Culver City-based Hackman Capital will cede ownership of a historic movie studio to lender Goldman Sachs Group Inc. after defaulting on its $1.1-billion mortgage.

The setback came as Hackman was preparing to obtain city approval for a $1-billion renovation of the storied lot, in anticipation of renewed production activity.

News of the takeover comes months after Bloomberg News reported failed refinancing talks that decided Radford Studio Center’s fate in a struggling entertainment industry. Hackman, the world’s largest independent owner of studio properties, failed to repay its studio loan last summer.

Hackman, partnering with San Antonio- and New York-based Affinius Capital, bought the 55-acre Studio City campus, formerly the CBS Studio Center, for $1.85 billion in 2021. Founded in 1928 as a silent-movie lot, the facility produced landmark films and television shows like “Gilligan’s Island” and “Seinfeld.”

Following the sale, Hackman announced plans to modernize the nearly-century-old studio in a spanning renovation that would have increased production support and made Radford the largest all-electric production facility in L.A.

“If we can make it a little bit more price competitive, if we can provide space that is modern, that embodies the essence of the Southern California lifestyle, we think that the entertainment industry is poised for a real comeback here in Los Angeles,” Zach Sokoloff, a senior vice president at Hackman, told the Business Journal in April.

Before the company defaulted on its loan, city approval for the $1-billion project was slated for early 2026.

‘Challenging time’

Hackman did not respond to the Business Journal’s request for comment about Goldman Sachs’ takeover in time for publication but told Bloomberg that it continues to work with lenders on “a path forward” for the asset in an emailed statement Jan. 14.

“This is a challenging time for all suppliers and independent studio owners and operators in the US,” the company wrote.

As Hollywood’s largest landlord, Hackman has suffered through the television and film industry’s production downturn following the pandemic, writer and actor union strikes in 2023, and studio consolidation. Total shoot days in L.A. totaled 19,694 last year, down nearly 50% from 2021, according to FilmLA, which tracks production in the area.

The entertainment industry is seeing some relief from California’s expanded production tax credit, which grew to $750 million last July. The updated incentive, backing upcoming projects such as Ang Lee’s “Gold Mountain” and a “Baywatch” television reboot, will lead to an estimated 25,000 crew hires and $4.1 billion in economic activity, according to the California Film Commission. 

Hackman’s Sokoloff called the program “an enormous win for the state” in an interview with the Los Angeles Times in July and expressed hope it would fuel studio occupancy as similar incentives did in New York.

Unrealized hope

Before a harsh post-pandemic reality set in, studio managers sparkled with optimism that streaming’s rise would bolster demand for studio spaces as producers rushed to make movies and shows for Netflix and other platforms. 

Over the past decade, Hackman and Affinius snatched up production properties in the U.S. and abroad, bringing the former’s portfolio to 19 facilities with 145 active sound stages and $10 million in assets under management. 

Among Hackman’s acquisitions was Manhattan Beach-based studio management firm MBS Group, which leases lighting and other production equipment to prominent facilities across the country. 

After restructuring its debt over last year, MBS broke away from direct affiliation with Hackman but continued overseeing many of its largest client’s studios, including Radford. Together, the companies also service more than 600 sound stages across eight countries. 

In a December letter to investors, Hackman claimed MBS thwarted its efforts to restructure the Radford loan, Bloomberg reported, which drove the firm’s decision to return the property to lenders.