Hackman Capital Partners plans to transfer ownership of Radford Studio Center, a historic production facility in Los Angeles, to lenders after defaulting on a $1.1 billion mortgage, Bloomberg reported Wednesday.
Mr. Hackman, the world’s largest independent studio owner, reportedly told investors last month that he had halted debt restructuring negotiations for the 55-acre site and planned to hand over the facility to Goldman Sachs.
Starting in 2022, studio owners are struggling to rent space as film and TV production plummets. Proceeds from the property covered only 21% of Mr. Hackman’s debt service costs on the property as of June last year, Bloomberg reported.
Hackman said in a statement to Variety that he is working with the bank toward a resolution.
“We continue to work with Radford’s financiers on the future direction of this asset,” the spokesperson said. “These are difficult times for all of our suppliers and independent studio owners and operators in the United States. We have significant capital, 50 percent of our assets are debt-free, and we remain geographically diverse, with 55 percent of our studios located outside the United States, which will help us navigate this difficult situation.”
Goldman Sachs declined to comment.
In a letter to investors, Mr. Hackman said MBS Group, which operates Radford and other Hackman-owned facilities, had thwarted debt restructuring efforts. MBS Group, an affiliate of Hackman, is said to have sought changes to the equipment rental agreement that would have made it impossible to reach an agreement with the bank.
Hackman acquired the Radford property formerly known as CBS Studio Center from ViacomCBS in 2021 for $1.85 billion. The purchase was part of a takeover spree that also included CBS Television City Studios in the Fairfax area.
Mr. Hackman announced plans to invest $1 billion in 2023 to renovate the grounds, which were built in 1928 and have hosted shows such as “Gunsmoke,” “My Three Sons,” “Gilligan’s Island,” “The Mary Tyler Moore Show,” “American Gladiators” and “Seinfeld.”
In February 2024, worker JC “Spike” Osorio died after falling from the facility’s rafters. A Cal/OSHA investigation attributed the death to aging wood in the catwalk and fined Radford $45,000.
Hackman also owns Culver Studios, which is leased to Amazon, and production facilities in New York, New Orleans, England, and Vancouver.
