Hackman Capital Partners, the largest independent owner of soundstages in Los Angeles, is facing financial challenges as production levels in the region reach historic lows. A consortium of lenders led by Deutsche Bank has initiated the process to sell Television City, a significant studio lot in Los Angeles, due to an outstanding debt of over $357 million, as indicated by a notice of default filed last month. Additionally, Deutsche Bank is seeking to sell Manhattan Beach Studios, which has received a preemptive offer from an industrial company.
A spokesperson for Hackman stated, "The studio market is evolving, and the financing environment for studio assets remains complex. We are engaged in active discussions with our lending partners and are carefully evaluating the most appropriate path forward."
Hackman has spent the last decade building a substantial studio portfolio, owning over 145 soundstages across North America, the UK, and Ireland by 2024. However, the outlook shifted in 2022 when streaming companies began focusing on profitability rather than subscriber growth, compounded by a dual writers and actors strike. This led to a significant decline in production in Los Angeles, with filming for TV shows dropping over 50% below the five-year average.
As a result, Hackman may have to relinquish control of Television City, which it purchased in 2019 for $750 million. The company has also lost Radford Studio Center and Kaufman Astoria Studios in New York. Potential buyers for Television City may include Rick Caruso, who has previously expressed interest in the property. However, any acquisition could face challenges due to legal actions from Caruso regarding renovations at the site. Meanwhile, Manhattan Beach Studios, acquired by Hackman in 2019 for $650 million, is also receiving offers amid the ongoing financial difficulties.