I have a special place in my heart for the Studio City-based facility now known as the Radford Studio Center. It was historically known as the CBS Studio Center, and at least for today is the home of CBS LA’s duopoly and the offices of many network executives who cheered their relocations from the far more familiar confines of Television City years ago. The southbound commute of the 405 Freeway–or even the so-called “shortcuts” of Laurel Canyon or Sepulveda Boulevards–even more so the snakelike Coldwater Canyon Avenue that sits between them–is a daunting and overcrowded challenge most mornings, and since most big shots with families tend to live “over the hill” not having to do that any more was reason enough for them to be thrilled to now be housed where GILLIGAN’S ISLAND and THE ANDY GRIFFITH SHOW were once filmed using the same man-made lake rather than where Carol Burnett and Bob Barker once called home.
But since CBS decided to auction it off in 2021, the executives that remain have been a lot less comfortable. Renters tend to be much more so than buyers to begin with. And that edginess grew exponentially when the supposed savior that had purchased TV City, the apropos-named Hackman Capital Partners, defaulted in January on a $1.1 billion loan they had taken out to finance the majority of the record price they and Square Mile Capital Management ponied up to add Radford to their holdings. Rumors continued to swell that the nearly century-old lot was heading toward extinction–as with any real estate transaction of that scale, the land is eminently more valuable than the properties on it.
But yesterday afternoon the news of a white knight that at least for now is staving that fate off provided some welcome positive vibes, not the least of which was exemplified by the triumphant take that the LOS ANGELES TIMES’ Roger Vincent took:
Streaming entertainment giant Netflix is in negotiations to buy the historic Radford Studio Center lot in Studio City. Netflix plans to purchase the Los Angeles studio that has been home to generations of landmark television shows, including “Gunsmoke” and “Seinfeld,” according to two people with knowledge of the pending deal who were not authorized to speak about it publicly.
THE WRAP’s Alyssa Ray struck a more cautious tone:
Per the outlet, the deal has yet to close, as the final price hasn’t been locked in — though, it’s expected to be “one-third” of its aforementioned prior sale price. The update comes three months after it was reported that Hackman Capital Partners was set to give up ownership of Radford Studio Center after refinancing talks between HCP and its lenders failed. Goldman Sachs was said to be leading a takeover of the famous facility.
“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 at the time in a letter to investors. “While disappointing, we do not see a realistic alternative.”…Hackman nabbed Radford Studio Center (formerly known as CBS Studio Center) from ViacomCBS for $1.85 billion in 2021.
Those that shared this news were downright giddy, especially in light of the sobering fact regarding local production that Vincent pointed out:
(P)roduction has substantially declined in Southern California. L.A. continues to battle the loss of production to other states and countries, as well as the lingering effects on the industry of the pandemic and the 2023 dual writers’ and actors’ strikes. Cutbacks in spending at the major studios after a surge in streaming-fueled TV production have further damped film activity in the region.
And I for one have fond memories of those better days, particularly at Radford. I’ve spent many days and nights on studio lots, as regular readers might recall. But Radford was the only one that I was able to see at sunrise, after working frequent overnight shifts during my transformational summer of 2020 on the production of one of the few original series daring to produce while COVID “raged”, BIG BROTHER, whose “house” was more accurately defined as Stage 18. With pretty much everything else shut down and a lot of free time on my hands while my fellow PAs traded off primary responsibilites I had free reign to roam the lot solo–a much more desirable way to spend time than navigating the ridiculous one-way lanes of getting in and out of the building that often required precarious navigating of outdated and rickety catwalks that defined the soundstage where the show shot. I got to appreciate and love all that facility had to offer even more than I did when I was merely an audience member or a visiting executive.
But as DEADLINE’s Tom Tapp reminded, Netflix’s interest appears to be much more motivated by a desire to find a good deal on a place to call home:
As Netflix nears the end of its 10-year lease on Sunset Bronson Studios, the streaming giant is looking north for new space…A source close to the situation calls it “a great opportunity” for Netflix, “at the right price.”
VARIETY’s Gene Matteus shone a light on exactly how right that price might be:
The streamer’s interest in the lot, which went into foreclosure earlier this year, was first reported on X on Sunday by Michael Trujillo, a political campaign consultant. Bloomberg confirmed the report on Tuesday, citing three sources with knowledge of the discussions…Trujillo cited a sale price of around $400 million, saying he had heard rumors about the sale from brokers and City Hall.
And Ray reminds that just like any search for new digs, timing’s also a key factor:
(T)he streamer’s decision to invest in the property comes after it lost out on Warner Bros. Discovery. While initially named the victor in the WBD bidding war with its $82.7 billion offer in December, they were eventually outbid by Paramount Skydance and refused to match the latter’s $31 per share offer at the end of February. And Vincent underscored exactly how much leverage Netflix is bringing to the market: (a)s part of the switch, Netflix was paid a $2.8-billion termination fee.
With the CBS braintrust a bit more secure in the knowledge that they will likely wind up on the Warner Brothers lot–mere minutes from Radford–any concerns about a long commute are far more muted. And if Netflix can take a fraction of that fee and put their own teams in a similarly advantageous location as compared to the heart of Hollywood–particularly at virtual pennies on the dollar to what they’ve been on the hook for as a renter–it all adds up to a deal no one could refuse.
Vincent further pointed out that Netflix already has a lot of other options on the table to accommodate even their ambitious production slate: The Los Gatos-based company has production offices worldwide, including facilities in Albuquerque, Brooklyn, London, Madrid and Toronto. Matteus added the following details:
Netflix has committed to build a $1 billion studio at Fort Monmouth, a former Army base in New Jersey. The streamer will be eligible for a 40% state subsidy for productions filmed at the studio, and has also been approved for up to $397 million in tax credits for redeveloping the 292-acre parcel. Netflix has a similar deal with New Mexico, where it bought ABQ Studios in 2018 and invested heavily to expand it. The state offers an uncapped tax incentive of 25%-35% for “production partners,” like Netflix, that make long-term commitments to production infrastructure.
We’ve already seen how Netflix can hondle their way into great deals with the likes of Hackman et al. The myriad gubernatorial candidates–not to mention they guy currently in charge who’s looking to score points for his own new gig–are hereby on notice to step up in manners similar to their New Jersey and New Mexico counterparts already have.
I suspect for them and their teams there are many long nights of negotiations ahead down the road. I’ll offer that for as much creature comfort as a posh hotel suite might otherwise offer, you could do a lot worse for motivation than seeing the sun rising over Stage 18.
Until next time…