When Hackman Capital Partners CEO Michael Hackman spoke at our Capital Markets Summit last fall, the talk was about his firm's purchase of the Hostess Brands assets--140 properties in 34 states for $62M. Today, Hackman is generating buzz for another big one. (Hint: Instead of vanilla creme, it might hold Vanilla Sky.)
Affiliates of the LA-based private investment firm recently purchased the historic Culver Studios, 9336 W Washington Blvd in Culver City, from Lehman Bros for a reported $85M (though the buyers wouldn't confirm that). Contrary to speculation that the property would be transformed into condos, the new owners will continue to operate it as a studio and preserve its history, the Hackman folks told us last week. Plans are to upgrade and modernize the complex--possibly adding more parking and production-oriented office space--to turn it into LA's best-in-class, premier independent studio. Why? Because LA's the place to be for film and TV production.
Built in 1918 by silent movie producer Thomas Ince, Culver Studios saw the filming of movie and TV productions ranging from old faves such as Gone With the Wind, Citizen Kane and Lassie, to modern fare like Marvel’s Agents of SHIELD. While this is the first movie studio in Hackman Capital's portfolio, the firm is an active player in Culver City with six creative office properties here. VP Susan Skros says the properties include two buildings in the Hayden Tract that are being leased to Beats by Dre for its world HQ. (Perhaps Dre will speak at our next event. We hear the "G" in "Nuthin' But a G Thang" stands for graduated leases.)
We used the Bisnow skycam to get this aerial. The 14-acre, 358k SF property includes numerous sound stages and other buildings. Real estate attorney Dennis Martin, who led an Orrick team that assisted Hackman Capital in the deal, which included a capital raise and bridge financing, says it demonstrates the liquidity that's back in the market. We didn't have assets trading in '08, '09, and '10, and finally, these assets are being unfrozen. (As they say in the movie with a similar title, owners now are willing to let it go.))
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