LOS ANGELES — CBS Corp. (NYSE: CBS) has signed a definitive agreement for the sale of its landmark CBS Television City property and sound stage operation in Los Angeles. Hackman Capital Partners, a Los Angeles-based real estate developer, is purchasing the 25-acre campus from the mass media company for $750 million.
As part of the agreement, Hackman Capital will have the rights to use the Television City trademark in connection with its operations on the property. CBS programs including “The Late Late Show With James Corden,” “The Price is Right” and “The Young and The Restless” will continue to be produced on the Television City campus for at least the next five years.
CBS will also retain office space for CBS Studios International’s U.S. headquarters and other company departments currently housed on the site. The transaction is expected to close in early 2019.
The Los Angeles Times reported that CBS has been considering selling its studio complex since 2017 to capture increased value for developers looking to build in the Fairfax area. The campus features surface parking that Hackman Capital could redevelop, according to the newspaper.
Joseph Ianniello, president and acting CEO of CBS Corp. says the company will use the proceeds of the sale “to redeploy capital for strategic growth initiatives such as additional content investment.”
Hackman Capital has experience owning and developing real estate for the entertainment industry in the Los Angeles area. The company is the owner of the Amazon-anchored Culver Steps, as well as the owner of Culver Studios, a 14-acre studio and creative office campus in Culver City, Calif., that Amazon Studios will occupy.
TV and movie star Lucille Ball (center) is flanked by CBS executives conducting a ceremonial lighting of the Television City construction site in 1951. (image courtesy of CBS)
“The acquisition of the legendary Television City will add another crown jewel to our portfolio,” says Michael Hackman, CEO of Hackman Capital Partners. “We have had great success modernizing and transforming real estate into state-of-the art facilities for notable media, entertainment and content creation companies. With a tremendous operations team already in place, we envision an exciting future for this storied production studio.”
CBS owns the 40-acre CBS Studios Center in Studio City, Calif., which will remain the company’s primary production facility.
The stock price for CBS closed at $50.03 per share on Monday, Dec. 10, down from $57.68 a year ago.
— John Nelson