The iconic Radford Studio Center in Studio City, California, is set to change ownership as its current owner, Hackman Capital Partners (HCP), has defaulted on a $1.1 billion loan. This situation reflects ongoing financial difficulties within the Hollywood industry. As a result, the studio may soon be under the control of Goldman Sachs, which is poised to take over the historic site known for its significant contributions to television and film since its establishment in 1927.
HCP has struggled to maintain mortgage payments, leading to its inability to finalize restructuring plans. The firm communicated its decision to pause efforts to resolve the situation in a letter to investors, stating, “We’ve made the difficult decision to inform the lenders that we must pause further efforts to complete the restructuring. While disappointing, we do not see a realistic alternative.” This announcement has raised concerns about the future of the studio, which has been home to CBS since the 1960s.
The Radford Studio Center, located at Ventura Boulevard and Radford Avenue, has been a pivotal site for numerous television productions and films. Its historical significance dates back to its founding by silent film producer Mack Sennett. In 1967, CBS acquired the studio outright, further solidifying its status in Hollywood history.
Despite claims that it is still working to secure the necessary funds to retain control, HCP has reportedly raised only 21 percent of the required amount to manage its debt as of June. The firm’s financial woes have been exacerbated by an ongoing lawsuit related to a workplace accident in which a worker died after falling through deteriorating flooring on the property.
Tensions have also emerged between HCP and the MBS Group, the organization responsible for managing the studio. HCP has accused MBS of obstructing attempts to restructure the loan. In a recent statement, HCP expressed frustration with a proposal from MBS that would significantly alter rental agreements, undermining the financial viability of the restructuring process.
On January 30, 2024, Mayor Karen Bass and City Council President Paul Krekorian joined union workers and leaders to celebrate a construction labor agreement concerning modernization and expansion plans for the Radford Studio Center. This illustrates the local government’s commitment to the studio’s future amid its current challenges.
As the situation unfolds, the impact of HCP’s financial difficulties on the studio’s operations and its employees remains a pressing concern. The outcome of this potential ownership transfer will not only affect the studio’s historical legacy but also the broader landscape of the entertainment industry in Hollywood.