Square Mile Capital and Hackman Capital Partners acquire CBS Studio Center
Davis Polk advised Square Mile Capital in connection with its acquisition, together with an affiliate of Hackman Capital Partners LLC, of the company that owns the studio property commonly referred to as “CBS Studio Center” for a purchase price of approximately $1.85 billion from CBS Broadcasting Inc.
Located in the Studio City district of Los Angeles, California, CBS Studio Center was built in 1928 as Mack Sennett Studios. It is a fully operational studio facility, comprised of 18 soundstages, 18 office buildings, 20 bungalows and numerous ancillary buildings, totaling approximately 1,211,184 square feet of studio and non-studio spaces. An affiliate of Hackman will serve as the property manager and leasing agent for CBS Studio Center.
This is the thirteenth joint venture between Square Mile Capital and Hackman in the studio stage and related space, as part of a broader agreement between Square Mile Capital and Hackman to jointly pursue such investments. Prior joint investments between Square Mile Capital and Hackman include CBS Television City, MBS Media Campus, The Culver Studios, Culver Steps, Raleigh Studios and Sony Animation, all located in or near Los Angeles, California; Second Line Stages in New Orleans, Louisiana; Silvercup Studios and Kaufman Astoria Studios in Queens and the Bronx; Eastbrook Studios in London, United Kingdom; and Ardmore Studios in Bray, Ireland and Troy Studios in Limerick, Ireland.
Square Mile Capital is an integrated institutional real estate finance and investment management firm based in New York. Square Mile Capital has an investment program that includes first mortgages, mezzanine loans, preferred equity and joint venture equity, and maintains a strategic partnership with USAA Real Estate.
Hackman is a privately held real estate investment and operating company that focuses on commercial and industrial properties in major U.S. markets. Founded in 1986, Hackman has invested more than $6 billion in real properties across 41 states – having owned, through its affiliates, over 400 buildings totaling 35-plus million square feet.
The Davis Polk real estate team included partner Michael J. Rishty and associates Rachel M. Feldstein and David Beizer. The tax team included partner Po Sit and associates Liang Zhang and Dylan J. Steiner. Partner Harold Birnbaum provided M&A advice. All members of the Davis Polk team are based in the New York office.