The historic Radford Studio Center lot in Studio City is scheduled to go to auction on November 24, marking a major shift in the Los Angeles real estate landscape. Nine months after lenders repossessed the property from Hackman Capital Partners, the 55-acre campus is being sold to cover outstanding debts. The event is expected to take place in Pomona, as indicated by a notice recorded in Los Angeles County.
Netflix has been in negotiations to purchase the site from Goldman Sachs-led lenders for approximately $400 million. This figure represents a steep discount compared to the $1.85 billion that Hackman Capital paid for the property in 2021. While the sale was anticipated to close earlier in the year, the deadline passed without a final agreement, leading to the current auction process.
Industry observers expect Netflix to emerge as the top bidder, which would grant the entertainment company ownership of a significant production campus. A spokesperson for Netflix stated that the deal is progressing according to the agreed-upon timetable and milestone dates. The company has asked Goldman Sachs to manage the foreclosure process and facilitate the sale, a move that avoids the administrative burden and uncertainty of handling the foreclosure directly.
The acquisition would allow Netflix to consolidate its production activities in the Los Angeles area. For years, the company has operated as the anchor tenant at Sunset Studios and has also filmed at Raleigh Studios. By owning Radford, Netflix could reduce costs associated with renting multiple facilities and centralize operations on a single sprawling campus.
The reported $400 million price tag is roughly 22 percent of the original 2021 purchase price. This substantial repricing reflects the current market conditions, where production levels in Los Angeles are hovering near historic lows. Some sources describe the deal as essentially finalized, noting that the structure helps manage issues such as the California mansion tax, which could have imposed a levy of approximately $22 million on the transaction.
Despite the strong position of Netflix, other bidders may enter the auction. Private equity firms and institutional investors might compete for the distressed asset, although the number of entities willing to take on a large production campus amid declining filming activity is believed to be limited. A higher bid could push the final price above the reported $400 million figure.
The purchase also raises questions about Netflix's office operations in the city. The company currently leases the ICON, EPIC, and CUE buildings at Sunset Studios. Additionally, Cushman & Wakefield is marketing a loan secured by Netflix's animation office on Vine Street, a 95,000-square-foot campus owned by Clarion Partners. The property is leased to Netflix through January 2031.
While there is no indication that Netflix intends to vacate the Vine Street campus, the timing of the loan marketing has drawn attention. The lease there expires just months before Netflix's leases in three Hudson Pacific Properties buildings are scheduled to end in September 2031. A source close to the situation called the loan offering unusual given this timeline, though another person close to Netflix said the company has not yet discussed lease changes with the landlord.
Netflix remains committed to its presence in Los Angeles, where it has produced more than 300 movies and television shows since 2018. In a press release earlier this year, the company highlighted the city's diverse locations, talent pool, and experienced crews as essential factors for bringing ambitious stories to life.
