Hackman Capital Partners is expected to cede ownership of Radford Studio Center, the historic L.A. production facility, to lenders after defaulting on a $1.1 billion mortgage, Bloomberg reported Wednesday.
Hackman, the world’s largest independent studio owner, reportedly told investors last month that it had suspended negotiations to restructure the debt on the 55-acre site, and is expected to turn over the facility to Goldman Sachs.
Studio owners have struggled to lease space due to a sharp downturn in film and TV production volume since 2022. Bloomberg reported that revenue from the property covered just 21% of Hackman’s debt service costs on the property as of last June.
In a statement to Variety, Hackman said it is working with the banks on a resolution.
“We are continuing to work with the Radford lenders on a path forward for this asset,” a spokesperson said. “This is a challenging time for all suppliers and independent studio owners and operators in the U.S. We have substantial capital behind us, hold 50 percent of our assets without debt, and remain geographically diverse, with 55 percent of our studios outside the U.S. This will help us to navigate through these troubled waters.”
Goldman Sachs declined to comment.
In its letter to investors, Hackman said that the MBS Group — which operates Radford and other Hackman-owned facilities — had thwarted efforts to restructure the debt. The MBS Group is an affiliate of Hackman, and allegedly sought changes in the equipment rental deal that made working out an agreement with the banks impossible.
Hackman acquired the Radford lot, formerly known as CBS Studio Center, from ViacomCBS for $1.85 billion in 2021. The purchase was part of an acquisition spree that also included the CBS Television City studio in the Fairfax District.
Hackman announced plans in 2023 to invest $1 billion to renovate the lot, which was built in 1928 and has been home to shows like “Gunsmoke,” “My Three Sons,” “Gilligan’s Island,” “The Mary Tyler Moore Show,” “American Gladiators” and “Seinfeld.”
A worker, J.C. “Spike” Osorio, was killed when he fell through rafters at the facility in February 2024. A Cal/OSHA investigation attributed the death to aging wood in the catwalks and assessed Radford a $45,000 penalty.
Hackman also owns Culver Studios — which is leased to Amazon — as well as production facilities in New York, New Orleans, the U.K. and Vancouver.