Netflix Poised to Buy Radford Studio Lot at Auction

Key Points:

• The historic Radford Studio Center lot in Studio City, repossessed from Hackman Capital Partners, is scheduled for a foreclosure auction on November 24, with lenders seeking approximately $1.3 billion, though the final price is expected to be lower due to low production levels in Los Angeles.
• Netflix has been in talks to purchase the 55-acre property from Goldman Sachs-led lenders for around $400 million, a significant discount compared to the $1.85 billion paid by Hackman in 2021, and is anticipated to be the top bidder at the auction.
• Acquiring Radford would allow Netflix to consolidate its scattered production facilities in Los Angeles, potentially reducing costs by owning a major production campus rather than leasing multiple sites.
• The deal structure, involving foreclosure management by Goldman Sachs, may help Netflix avoid certain taxes and streamline the acquisition process, though competing bidders could still emerge at auction.
• Separately, Cushman & Wakefield is marketing a loan secured by Netflix’s leased animation office on Vine Street, signaling possible uncertainty about Netflix’s long-term office space plans, although Netflix has denied any discussions about changing its lease.