Netflix is currently in negotiations to purchase the Radford Studio Center, a large 55-acre production facility in Studio City, Los Angeles. This facility is being sold by Goldman Sachs for approximately $330 million, dramatically lower than the price paid by its previous owner, Hackman Capital Partners, which acquired it for $1.85 billion in 2021.
The circumstances leading to Goldman Sachs selling this property highlight the significant changes in the real estate market, particularly within the entertainment industry. Hackman incurred over $1.1 billion in mortgage debt during a booming production period fueled by streaming services. However, rising interest rates and low occupancy rates following labor strikes resulted in financial strain, prompting Hackman to default on its primary loan and allowing Goldman Sachs to take over the property in early 2026.
Over the decades, the Radford lot has been the backdrop for numerous notable productions, with its legacy including iconic shows like Seinfeld and Gilligan’s Island. The difference between Hackman’s inflated purchase price and Netflix’s potential acquisition reflects the volatility in studio lot valuations, which have not rebounded since the streaming spending surge of 2020-2021.
Why does Netflix want to acquire additional studio space? By purchasing the fully operational Radford lot for $330 million, Netflix gains an established facility with extensive infrastructure investments, which would be considerably more expensive to build anew, especially in a high-cost real estate market. This acquisition not only shows Netflix's commitment to its long-term content strategy but also signals a shift towards investing in physical assets rather than maintaining its former asset-light model.
For investors, the sale price of Radford raises important questions about the stability of entertainment real estate. Selling for just 18 cents on the dollar of its previous purchase price, the transaction could lead to concerns for stakeholders in the entertainment real estate sector. The Hackman default could prompt scrutiny on whether the studio lot market is recovering from earlier inflation. While Netflix's intent to invest in a physical asset shows operational confidence, the fate of studio lot valuations remains uncertain.
As of early June 2026, there has been no official word on the completion of this acquisition, but industry sources suggest that discussions are nearing conclusion. Investors and stakeholders will be watching closely, as this deal could have significant implications for the future of entertainment production facilities.