A bank is set to take over ownership of an historic Los Angeles TV and film studio because the current owner has defaulted on the $1.1 billion loan, as Hollywood continues its collapse.
Goldman Sachs is reportedly on the verge of taking control of the famous Radford Studio Center in Studio City, California, because Hackman Capital Partners (HCP) can’t seem to come up with the cash to stay current on its mortgage, according to The Wrap.
Mayor Karen Bass and City Council President Paul Krekorian join union workers and leaders to celebrate a construction labor agreement with Radford Studio Centers modernization and expansion plan on Tuesday, January 30, 2024 at the Studio City studio. (Sarah Reingewirtz/MediaNews Group/Los Angeles Daily News via Getty Images)
“We’ve made the difficult decision to inform the lenders that we must pause further efforts to complete the restructuring,” Hackman’s HCP Studio Fund wrote in a letter to investors, according to Bloomberg. “While disappointing, we do not see a realistic alternative.”
Radford, where series such as Seinfeld and Gilligan’s Island were filmed, was founded in 1927 when silent film producer Mack Sennett opened the facility at Ventura Boulevard and Radford Avenue. The studios became the California home for CBS in the early 60s before being bought outright by the TV giant in 1967 when it became the base production facilities for other famed shows including Gunsmoke, Get Smart, My Three Sons, Bob Newhart, Mary Tyler Moore and so many more.
HCP claims it is still working to raise the capital to retain control of the studios, but Goldman Sachs does not appear confident. According to the media, HCP has only been able to raise 21 percent of the cost of its debt as of June.
The investment group also says that its own partner is working against them.
HCP accuses the organization tasked with managing the studios, MBS Group, of working at odds to prevent restructuring plans.
“MBS delivered a proposal requiring significant adverse changes to the Radford equipment rental agreement that would undermine the projected economics of the loan restructuring,” HCP exclaimed in a letter to Bloomberg.
HCP bought the studios in 2021 from ViacomCBS for $1.85 billion.
Along with the general decline of the entertainment industry, the company was hit with an expensive lawsuit in 2024 when a worker died after falling through rotted flooring on the property.
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