Netflix (NASDAQ: NFLX) is reportedly moving to acquire Radford Studio Center in Los Angeles for close to $400 million, representing a sharp discount to the property’s 2021 sale price of $1.85 billion.
The deal is expected to close in the third quarter of 2026, following a distressed ownership transition that saw lenders take control of the property.
Goldman Sachs (NYSE: GS) and other lenders repossessed Radford Studio Center from Hackman Capital Partners after the firm defaulted on $1.1 billion of bondholder debt.
The acquisition would give Netflix a significant owned production hub in Los Angeles, consolidating its real estate footprint in the city’s competitive studio market.
Netflix has been weighing a move away from several Hollywood buildings it currently leases from Hudson Pacific Properties (NYSE: HPP), with those existing leases running through 2031.
Radford Studio Center is a historic former silent movie lot with deep roots in American television, having served as the production home for shows including Gunsmoke, Gilligan’s Island, and Seinfeld.
Despite its storied history, the property was only 71% leased as of March, according to mortgage filings, reflecting the broader weakness affecting Los Angeles studio real estate.
Higher interest rates and the 2023 writers’ and actors’ strikes weighed heavily on production activity across Hollywood, driving down demand for soundstage space across the city.
Soundstage occupancy in Los Angeles fell to 62% in the first half of last year, according to FilmLA, underscoring the difficult conditions that pushed Radford’s previous owners into default.
For investors, Netflix’s potential purchase represents a rare opportunity to acquire a major Hollywood production asset at a distressed valuation while other Hackman Capital-owned studio properties are also being marketed or facing lender pressure.
The transaction highlights how streaming giants with strong balance sheets are positioned to capitalize on the distress rippling through legacy studio real estate markets.
Netflix’s move on Radford could set a precedent for further consolidation of Hollywood production infrastructure by well-capitalized media and technology companies.
