Hackman Capital Partners is on the verge of losing ownership of the iconic Radford Studio Center in Los Angeles after defaulting on a $1.1 billion mortgage, according to a report by Bloomberg. The world’s largest independent studio owner had informed investors that negotiations to restructure the debt on the 55-acre site had been put on hold, with the expectation that the facility will be handed over to Goldman Sachs.
The decline in film and TV production volume since 2022 has made it challenging for studio owners to lease space, resulting in revenue from the property covering only 21% of Hackman’s debt service costs as of last June. In response to the situation, Hackman stated that they are working with the banks to find a resolution.
Goldman Sachs, the expected recipient of the facility, declined to comment on the matter. Hackman revealed in a letter to investors that efforts to restructure the debt had been hindered by the MBS Group, an affiliate of Hackman that operates Radford and other facilities. Allegedly, the MBS Group’s demands regarding equipment rental deals made it impossible to reach an agreement with the banks.
The Radford lot, formerly CBS Studio Center, was acquired by Hackman from ViacomCBS for $1.85 billion in 2021. This purchase was part of a larger acquisition spree that included the CBS Television City studio. Plans were announced in 2023 to invest $1 billion in renovating the historic lot, which has been the filming location for numerous iconic shows over the years.
Tragedy struck the facility in February 2024 when a worker named J.C. “Spike” Osorio fell through rafters and lost his life. An investigation by Cal/OSHA attributed the accident to aging wood in the catwalks and imposed a $45,000 penalty on Radford.
In addition to Radford Studio Center, Hackman Capital Partners owns Culver Studios, which is leased to Amazon, and various production facilities in New York, New Orleans, the U.K., and Vancouver. Despite the challenges they are facing with Radford, Hackman remains optimistic about their other ventures and assets, emphasizing their substantial capital reserves and geographic diversity as strengths to navigate through the current difficulties.
