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Hackman Capital Partners' Radford Studio Center is being handed to its lenders, a group led by Goldman Sachs Group, following a $1.1B mortgage default in early 2025.
The takeover comes "after months of failed talks to modify the loan," Bloomberg reported.
The property, which hosted iconic productions including Seinfeld and Gilligan's Island, was appraised at $1.8B in 2021.
Hackman addressed the handoff and the breakdown of talks with lenders in a December letter to investors.
"While disappointing, we do not see a realistic alternative," the letter says.
Revenue only covered about 21% of the cost of servicing the debt at Radford as of June 30, 2024, according to Bloomberg. The floating-rate loan suffered from interest rate increases in 2022.
Hackman hadn’t made payments since the loan matured in June, Bloomberg reported, though it was in negotiations with Goldman.
The entertainment industry has weathered an extended slowdown since the pandemic and hasn't rebounded as hoped. Film shoot days in Los Angeles proper declined by 13.2% year-over-year for the period from July through September, according to FilmLA, a nonprofit that tracks permit information for the city and county of Los Angeles.
Radford Studio Center was 63% occupied as of the end of the second quarter, and leases on 36% of its space were scheduled to expire by August 2026, Bloomberg reported.
Hackman also owns Television City and The Culver Studios, as well as studio space in New York. The studios are managed by The MBS Group.
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