Lights, Cameras, Capital: The Northeast Film Boom Fuels a Real Estate Gold Rush

The $85 million bridge loan provided by Silver Point Capital to Great Point Studios and National Resources for the North Broadway Campus in Yonkers, New York, is more than a financial transaction—it's a bet on the Northeast's emergence as a global film production powerhouse. This refinancing of a 112,000-square-foot studio complex, fully pre-leased to Lionsgate and Mediapro US, underscores a seismic shift in the entertainment industry: the rise of purpose-built studios in tax-incentive-friendly regions. For investors, this deal signals a compelling opportunity in real estate aligned with the streaming era's insatiable demand for film infrastructure.

The Northeast's Film Renaissance

The Northeast's film production sector has undergone a quiet revolution. Yonkers, once a manufacturing backwater, is now home to Great Point Studios, a $500 million facility with 12 soundstages and a 28-acre iPark expansion. This transformation is no accident: New York State's film tax credits, which offer up to 30% rebates on production costs, have made the region a magnet for studios fleeing higher-cost, less-incentivized markets.

The data is clear: in 2024, the film industry contributed $924 million to Westchester County's economy, supporting over 3,000 jobs—a 50% jump from 2023. The Empire State Independent Film Production Credit, a $100 million fund for smaller productions, has further democratized access to incentives once dominated by Hollywood giants. Meanwhile, Yonkers' proximity to Manhattan and its Qualified Production Facility (QPF) status—required for major studio productions—cements its position as a logistical and creative hub.

Why the North Broadway Loan Matters

Silver Point Capital's loan to Great Point and National Resources is a masterclass in strategic real estate investing. The North Broadway Campus, set to open in 2026, benefits from 100% pre-leasing to Lionsgate and Mediapro, a Spanish firm with global media rights. This stability reduces risk for lenders and investors alike. The joint venture's partners also bring complementary strengths: National Resources' sustainable development expertise (evident in its 30-year track record) and Great Point's entertainment industry ties (Lionsgate's involvement ensures credibility).

Anthony DiNello, Silver Point's Head of Direct Lending, called the deal a “natural extension” of a decade-long partnership with National Resources. Silver Point's $16 billion Direct Lending portfolio—which includes over 100 real estate transactions—reflects a proven ability to underwrite risk in dynamic sectors. The firm's focus on long-term, asset-backed loans aligns perfectly with the North Broadway Campus's projected 50-year lifespan.

Tax Incentives = Tenant Stability = Investor Confidence

New York's film tax credits are the unsung heroes of this boom. For productions with budgets over $15 million, at least 10% of filming must occur at a QPF like North Broadway—a rule that ensures demand for the studio. Smaller productions, meanwhile, qualify for post-production incentives if they hire in-state vendors. These rules create a virtuous cycle: studios attract tenants, which attract vendors, which attract talent.

The results? In 2024, film-related jobs in Westchester County rose by 50%, with wages exceeding $260 million. Even skeptics citing the PFM Group's 31-cent ROI per tax credit dollar must acknowledge the broader economic multiplier: every $1 in credits generates $1.70 in state/local taxes, per a 2022 REMI study. For real estate investors, this means studios like North Broadway aren't just physical assets—they're economic engines.

Investment Thesis: Bet on Sustainable Real Estate Partners

The North Broadway deal offers a blueprint for investors seeking exposure to the film production boom:

1. Tenant Quality Matters: Pre-leasing to Lionsgate and Mediapro—a firm with stakes in TF1 (France) and Fox Sports Argentina—reduces vacancy risk. Look for deals with tenants backed by global media empires.
2. Sustainable Development Pays: National Resources' focus on green infrastructure (e.g., energy-efficient studios, local hiring) aligns with investor demand for ESG-aligned assets.
3. Tax Incentives Are a Compounding Advantage: States like New York are doubling down: the 2025 budget raised the tax credit cap to $800 million annually, with new bonuses for high-volume producers.

Consider real estate investment trusts (REITs) with exposure to entertainment hubs, such as AMC's studio spaces or Paramount's lot expansions. For direct investors, partnerships with firms like Silver Point—experienced in structuring loans for complex projects—offer access to high-yield, long-duration assets.

Risks and Caveats

No investment is without risk. Over-reliance on tax incentives could backfire if states cut budgets (a political wildcard). Labor strikes or shifts to virtual production (e.g., LED wall stages) might reduce demand for physical studios. However, Yonkers' diversified ecosystem—including the Yonkers Film Academy training local talent—mitigates these risks by building a self-sustaining industry.

Conclusion: The Silver Screen's New Gold Standard

Silver Point's North Broadway loan isn't just financing a studio—it's financing the future of film production. As streaming platforms like Netflix and Disney+ drive demand for high-quality content, purpose-built studios in tax-friendly regions will thrive. Investors who align with real estate partners offering sustainable development, stable tenants, and strategic locations stand to reap rewards as Hollywood's center of gravity shifts east. The lights are on in Yonkers—and the cameras are rolling.