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Netflix Eyes Studio Lot Deal Amid Market Downturn
22 Apr
Summary
- Netflix is negotiating to acquire Radford Studio Center for a reduced price.
- The studio lot was repossessed by lenders, including Goldman Sachs.
- LA studio real estate values have fallen significantly since 2021.
Netflix is reportedly in negotiations to acquire the historic Radford Studio Center in Los Angeles. This move comes after the streaming giant withdrew from bidding on Warner Bros. Discovery Inc. The potential purchase price for Radford Studio Center is significantly less than its 2021 sale value of $1.85 billion, with one source suggesting it could be less than one-third of that amount.
Lenders, led by Goldman Sachs Group Inc., repossessed the studio lot after its owner, Hackman Capital Partners, defaulted on $1.1 billion in debt and failed to secure refinancing. The property's value has diminished as Los Angeles studio real estate has seen a significant downturn since interest rates increased and production slowed following the 2023 strikes.
Netflix aims to consolidate its operations and has been exploring options to move from its current leased Hollywood buildings. This potential acquisition marks an increased investment in studio real estate for Netflix, which is also developing a $1 billion production center in New Jersey. The Radford Studio lot was reportedly only 61% leased as of September, with many leases set to expire this year.
