CBS Studio Center to Trade for $1.85B
ViacomCBS has entered into an agreement to sell the studio lot to a partnership formed by Hackman Capital Partners LLC and Square Mile Capital Management LLC.
LOS ANGELES, CA – ViacomCBS Inc. has entered into an agreement to sell CBS Studio Center and its associated operating business for $1.85 billion to a partnership formed by Hackman Capital Partners LLC and Square Mile Capital Management LLC.
The best-in-class studio lot is situated on a 55-gross-acre site in Studio City, Los Angeles and it comprises more than one million square feet of space, including 22 stages, a production office and support buildings, third-party tenant offices, a purpose-built broadcast and filmable backlot locations.
ViacomCBS implemented a widely-marketed sale process for CBS Studio Center, which attracted interest from numerous buyers and resulted in the transaction.
The transaction is expected to close in 2021, subject to customary closing conditions, including regulatory approval.
At the time of closing, CBS Broadcasting Inc. will enter into a long-term lease-back agreement for the Broadcast Center, which hosts the television stations, CBS 2 and KCAL 9.
Upon closing, ViacomCBS will continue to occupy stages and produce content on the lot. The company will also enter into a short-term lease-back agreement for certain portions of the property, to better transition ViacomCBS employees to other locations.
“This sale is part of an ongoing optimization of ViacomCBS’ real estate and operations portfolio and will allow the company to re-deploy capital to strategic growth priorities, including streaming,” states Naveen Chopra, EVP and CFO of ViacomCBS.
“We’re honored to have been selected as the new stewards of CBS Studio Center, one of the most celebrated and successful studios in Los Angeles,” says Michael Hackman, founder and CEO of Hackman Capital Partners.
Hackman adds, “The studio has been a hit maker from the days of ‘Gunsmoke,’ ‘Mary Tyler Moore,’ and ‘Seinfeld,’ and we’re thrilled to continue our ongoing relationship with ViacomCBS to service its many successful shows currently filmed on the lot.”
“CBS Studio Center is an iconic property that has been home to many of television’s legendary programs over the years,” says Square Mile Capital CEO Craig Solomon. “With ViacomCBS maintaining an important presence at the property, we anticipate a smooth ownership transition and many more great years ahead.”
For the transaction, JLL’s Carl Muhlstein and Kevin MacKenzie are serving as the exclusive agents for ViacomCBS.