One of Hollywood’s most storied studio lots is changing hands.

Goldman Sachs Group is leading a lender takeover of Radford Studio Center after owner Hackman Capital Partners defaulted on a $1.1 billion mortgage, marking one of the most significant distress signals yet in the studio real estate sector amid a prolonged production downturn.

The Studio City–based Radford property — a historic lot that traces its roots back to the silent film era and has hosted productions ranging from Gilligan’s Island to Seinfeld — is being returned to lenders after months of unsuccessful negotiations to restructure the debt. The property was appraised at approximately $1.8 billion in 2021, near the height of the streaming boom.

In a December letter to investors reviewed by Bloomberg, Hackman’s HCP Studio Fund acknowledged the impasse. “We’ve made the difficult decision to inform the lenders that we must pause further efforts to complete the restructuring,” the firm wrote. “While disappointing, we do not see a realistic alternative.”

Neither Hackman Capital nor Goldman Sachs commented publicly on the move.

The takeover unfolds as Los Angeles — the world’s largest concentration of soundstages — continues to feel the aftershocks of the pandemic, the 2023 writers and actors strikes, and ongoing studio consolidation. According to FilmLA, shooting days declined year-over-year in each of the first three quarters of 2025, underscoring the depth of the slowdown.

While there have been early signs of a rebound following California’s decision to double its annual film and TV tax credit program — with projects such as a Jumanji sequel and a new Baywatch series returning to Los Angeles — demand remains uneven. Compounding uncertainty is the ongoing battle for control of Warner Bros. Discovery, with Netflix and Paramount-Skydance reportedly circling the studio’s assets, a transaction that could further reshape production demand.

Financial filings tied to Radford’s mortgage reveal the scale of the challenge. As of June 30, revenue from the property covered only about 21 percent of its debt service costs, after interest payments surged on the floating-rate loan following the Federal Reserve’s rate hikes beginning in 2022. Hackman stopped making payments after the loan matured in June while negotiations with Goldman continued.

Occupancy at Radford stood at 63 percent as of midyear, with leases covering 36 percent of the space set to expire by August, according to loan documents.

Hackman Capital — alongside investing partner Affinius Capital Management — embarked on an aggressive studio acquisition strategy over the past decade, betting that the rise of global streaming would fuel sustained demand for premium production infrastructure. The firm has grown into the world’s largest independent studio owner, with a portfolio spanning 19 facilities, 145 active soundstages, and 60 more in development.

That portfolio includes major assets such as Television City and The Culver Studios in Los Angeles, as well as Kaufman Astoria Studios and Silvercup Studios in New York.

Hackman’s expansion also included the acquisition of MBS Group, a major provider of lighting and production services. Over the past year, MBS hired a restructuring adviser and formally separated from Hackman, while continuing to manage several of the firm’s studio properties, including Radford.

In its investor letter, Hackman pointed to tensions with MBS as a key factor in the failed restructuring, alleging that proposed changes to Radford’s equipment rental agreement would have materially undermined the economics of the deal. MBS declined to comment.

As lenders move to take control of Radford, the situation is being closely watched across Hollywood, where studio real estate — once viewed as one of the safest bets in the streaming era — is being reassessed under a new economic reality defined by higher interest rates, leaner slates, and a more cautious approach to long-term growth.