Goldman to Acquire Famed LA Film Lot After $1.1 Billion Default

Goldman Sachs Group Inc. is set to acquire the historic Radford Studio Center in Los Angeles after the property's owner, Hackman Capital Partners, defaulted on a $1.1 billion mortgage. The Radford Studio Center, a former silent movie lot, has been the site of productions such as Gilligan's Island and Seinfeld.

Hackman's HCP Studio Fund has informed investors that further restructuring efforts have been abandoned. The company acknowledges the decision is disappointing but sees no viable alternative at this time.

The acquisition follows a challenging period for the Los Angeles entertainment industry. Production activity has declined over the past year due to the pandemic, recent strikes by writer and actor unions, and industry consolidation. FilmLA data indicates a reduction in shooting days in each of the first three quarters of 2025 compared with 2024.

Why Did This Acquisition Occur?

Hackman had attempted to modify the loan but ultimately failed to secure a restructuring deal. The property was appraised at $1.8 billion in 2021.

Interest rate hikes in 2022 led to a surge in servicing costs for the floating-rate loan. As of June 30, revenue covered only about 21% of the debt servicing costs.

What Is the Current State of the Entertainment Industry?

The entertainment industry in Los Angeles is facing a downturn, with fewer production days compared to previous years. Industry players are also dealing with a potential takeover battle for Warner Bros. Discovery Inc. between Netflix Inc. and Paramount Skydance Corp. A potential acquisition of Warner Bros., one of the largest studios, could further reduce demand for production space.

What Are Analysts Monitoring?

Analysts are watching for signs of a production turnaround. California doubled film and tax credits last year, leading to some production growth. Projects like a sequel to Jumanji and a new version of the TV series Baywatch have taken advantage of these incentives.

Goldman has declined to comment on the acquisition. Meanwhile, Hackman has stated it will cooperate with the lenders in transitioning the Radford property and focus on its other assets and opportunities.

What Are the Implications for the Market?

The acquisition highlights the challenges faced by the real estate sector in the entertainment industry. With production activity down, property values and rental rates have been affected. Investors are closely watching how this development impacts the broader market.

The Radford Studio Center represents a significant piece of the Los Angeles real estate puzzle. Its acquisition by Goldman could influence future investment strategies and market dynamics.