Real Estate Investors Are Hungry for Movie Studios
CBS Studio Sells for Over $1.8 Billion
CBS Studio Center in Los Angeles is being sold for over $1.8 billion to Hackman Capital Partners and Square Mile Capital Management. The studio complex has 210,000 square feet of office space and 18 sound stages. The final sale is happening after an intense bidding war.
Just three months ago when CBS Studio Center was put up for sale, it was worth between $1.2 and $1.3 billion, which is about $500 million less than what it fetched yesterday. Studio space is currently in high demand and real estate investors are eager to buy any studio space they can find.
Demand for Studios Soars
CBS Studio Center’s more than $1.8 billion price tag shows just how strong demand is for space. This is because streaming services are churning out content and need space to film it. As competition in the streaming industry heats up, Netflix (NFLX), Amazon (AMZN), Apple (APPL), Disney+ (DIS), and others are clamoring for studio space.
Production companies are noticing this trend and are selling their complexes and leasing space. This has been happening for several years. In 2019, CBS sold its Los Angeles-based Television City studio complex to Hackman Capital for $750 million.
Real Estate Investors Go to Hollywood
Real estate investors want a piece of the action. They are snapping up any real estate associated with the film industry whether that means studios or office buildings. Private equity firm TPG purchased Cinespace Studios last week for $1.1 billion, getting access to 56 sound stages in Chicago and Toronto. Earlier this year Hackman and Square Mile bought Kaufman Astoria Studios and Sony Pictures Animation. Meanwhile in 2020, Blackstone (BX) acquired a 49% stake in a venture that controls Hollywood studios and commercial properties.
Content providers are competing for viewers by developing new shows, movies, and games. That requires studio space, which is limited. Real estate investors are on the edge of their seats to get involved in the content boom.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.