Few studio assets in Los Angeles carry the cultural weight of the Radford Studio Center, originally developed in the late 1920s as a silent film lot and
later known as CBS Studio Center. Located in Studio City (a neighbourhood effectively named after it), the property has been at the heart of American television production for decades. Iconic shows such as Seinfeld, Gunsmoke, The Mary Tyler Moore Show and Gilligan’s Island were all filmed on-site, cementing its status as one of Hollywood’s most storied production campuses. Over time, the 100 000 square meters (10 hectares, or 20 rugby fields) site evolved into a full-service studio complex, comprising soundstages, permanent sets, office space and production facilities that made it a cornerstone of the Los Angeles entertainment ecosystem. This deep heritage underpinned its record-breaking USD 1.85 billion acquisition in 2021 by Hackman Capital Partners, at the height of the streaming boom.

At the time, surging demand for content from platforms such as Netflix, Amazon and Disney drove intense competition for studio space, with investors underwriting strong rental growth and near-full utilisation. The transaction set a new benchmark for Los Angeles studio assets and even rivalled the largest office deals nationally, reflecting a market conviction that production infrastructure would remain structurally undersupplied. In short – it was all the rage, with investors looking for “the next hot deal”.

Hackman Capital Partners and its partners promoted the deal as a landmark transaction, emphasizing heritage, scarcity of production space, and streaming‑era demand.
Marketing and promotional coverage highlighted the site’s cultural legacy, redevelopment plans, and strategic fit within Hackman’s growing studio portfolio. The site was
even described as “irreplaceable.” All of these sound like perfectly valid reasons to go all in. Until they are not.

That thesis has since been challenged by a sharp reversal in industry fundamentals. The Hollywood writers’ and actors’ strikes in 2023 brought production to a standstill, while broader consolidation across media companies led to tighter content budgets and a more disciplined approach to spending. At the same time, major tenants such as Paramount (formerly CBS) reduced their footprint at the site, contributing to a decline in occupancy to around 60%. The combination of weaker demand, lower utilisation and a structural reset in the economics of television entertainment has materially impaired income expectations, exposing the vulnerability of assets acquired while it was the talk of the town.

The consequences have been stark. Hackman Capital ultimately defaulted on approximately USD 1.1 billion of debt secured against the property after multiple extensions,
forcing a lender group led by Goldman Sachs, alongside Wells Fargo and Morgan Stanley, to take control. The asset is now up for sale, with indicative bids reportedly in the
region of USD 400–450 million, implying a decline of around 75% from its 2021 valuation. This level of value destruction is extraordinary for a prime Los Angeles asset and highlights the degree to which capital values in certain “sexy” real estate sectors remain exposed to cyclical demand shocks and shifting structural trends.

The difference between the 2026 reality check of the 2021 deal description is stark. In five years, equity investors were wiped out, and lenders lost more than half their capital. If the USD 1.85 billion was invested in the S&P500 (very much not a “sexy” investment at the time, shortly after COVID-19) on 1 December 2021 it would have been worth USD 3.1 billion on 30 April 2026. A not too shabby return of over 10% per annum.

The Latin phrase “caveat emptor” comes to mind – let the buyer beware. Or at the very least, partner with a trusted adviser that has seen this movie before2.