Netflix Negotiates Heavily Discounted Acquisition of Iconic Radford Studio Center in Los Angeles

Netflix is in talks to acquire the Radford Studio Center for under $400M, a staggering drop from its $1.85B valuation in 2021 amid a shifting studio market.

By: AXL Media

Published: Apr 23, 2026, 11:19 AM EDT

Source: Bisnow

Strategic Real Estate Acquisition Amid Market Correction

The potential acquisition of the Radford Studio Center at 4024, 4064, and 4200 N. Radford Avenue marks a significant strategic pivot for Netflix. By moving from tenant to owner, the streamer can lock in long-term production costs at a time when the studio market is recalibrating. The property was handed over to lenders after Hackman Capital Partners and Square Mile Capital Management failed to maintain debt obligations on the lot. For Netflix, the deal offers an opportunity to own a storied 564,000-square-foot office and production complex for less than a third of its 2021 market peak.

Occupancy Challenges and Industry Shifts

Radford Studio Center has mirrored the broader struggles of the Southern California film and television industry. As of September, the facility was only 61% leased, with half of those remaining agreements set to expire by the end of 2024. The studio sector, which saw a frenzy of investment during the pandemic-era content boom, is now grappling with a dual crisis of lower production volumes and high interest rates. These macroeconomic headwinds have made refinancing nearly impossible for many leveraged owners, forcing assets like Radford into the hands of creditors who are now eager to divest.

Transformative Analysis: Vertical Integration vs. Third-Party Leasing

The move represents a classic vertical integration strategy. Currently, Netflix is a major tenant across Hollywood, leasing over 722,000 square feet of office space from Hudson Pacific Properties and maintaining an anchor position at Raleigh Studios through 2031. Acquiring Radford allows Netflix to insulate itself from future rent hikes while gaining control over 360,000 square feet of soundstages and 356,000 square feet of production support space. Strategically, this positions Netflix more like a traditional "Big Five" studio, owning the physical infrastructure where its primary products are manufactured.