Television City Studios in Los Angeles may be sold as its owner, Hackman Capital Partners, grapples with over $357 million in debt. Lenders, led by Deutsche Bank, initiated the sale process on May 6, 2025, due to a notice of default filed last month. This comes as production levels in the area are at all-time lows.
Debt and Default at Television City Studios
The notice of default has prompted lenders to move quickly, indicating a lack of faith in renegotiating terms with Hackman. The studio, located in the Fairfax Avenue corridor, has been a significant asset for Hackman, which spent the last decade building a large portfolio of soundstages.
Hackman Capital's investment strategy included acquiring over 145 soundstages across North America, the UK, and Ireland. However, the studio market's dynamics shifted significantly in 2022, with streaming companies prioritizing profitability over growth. This shift, alongside the dual writers' and actors' strikes, has severely impacted production levels, which have fallen by over 50% compared to the five-year average.
The Future of Television City and Potential Buyers
Currently, Hackman is under pressure to relinquish control of Television City, which it acquired in 2019 for $750 million. The outstanding balance now stands at $337.5 million. Potential buyers are already emerging, with Rick Caruso, owner of the nearby shopping mall The Grove, being a notable candidate. Caruso was previously outbid by Hackman during the original sale.
