A bunch of traders is buying the New York studios the place “The Sopranos,” “30 Rock” and “Intercourse and the Metropolis”….
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have been filmed, the newest signal that real-estate house owners are attempting to capitalize on the rising reputation of streaming content material.
The group led by Hackman Capital Companions, a Los Angeles-based real-estate investor and operator, has signed a contract to pay $500 million for Silvercup Studios, based on an individual conversant in the matter.
With Netflix Inc., Walt Disney Co., Amazon.com Inc. and others racing to launch new motion pictures and reveals for a booming on-line viewers, demand is rising for area to provide this content material.
Actual-estate brokers say they’ve observed rising curiosity from massive institutional traders in film-production amenities, partially due to the sector’s attraction, but additionally as a result of different sorts of actual property akin to resorts and retail have been hit onerous by the pandemic and recession.
Blackstone Group Inc. in June bought a 49% stake in three film-production amenities in Hollywood, Calif., managed by Hudson Pacific Properties Inc. in a deal that valued the buildings at $1.65 billion.
“We expect that is actually a long-term pattern,” Blackstone’s head of actual property for the Americas, Nadeem Meghji, stated on the time. “We’re thematic traders and deal with sectors with sturdy tailwinds, and content material creation is a main instance.”
Silvercup, one among New York Metropolis’s most storied film-studio heaps, doesn’t simply function the amenities—it additionally owns the actual property. Manufacturing amenities in Los Angeles and New York are scarce, and new ones are troublesome to construct due to excessive land prices, a mix that has led to rising rents.
Silvercup operates 23 capturing levels at three places in Queens and the Bronx, based on its web site. Its first location opened in 1983 in a former flour silo of the Silvercup Bakery in Lengthy Island Metropolis. It’s one among New York’s main manufacturing amenities, together with Steiner Studios, Kaufman Astoria Studios and Broadway Phases.
Silvercup is now poised to be the primary of the 4 to be managed by an out-of-town investment agency. Eastdil Secured LLC was the unique adviser to the sellers, brothers Alan Suna and Stuart Suna. The deal is anticipated to shut on the finish of the month.
The house owners of manufacturing amenities in New York have benefited from a beneficiant state tax-credit program for film and tv manufacturing, with $420 million in incentives put aside for 2020 alone. The state renewed this system this yr, though the credit score was lowered to 25% of certified prices, down from 30%. Final yr, New York Gov. Andrew Cuomo stated that Netflix would open a manufacturing hub in New York, together with six sound levels in Brooklyn.
Hackman Capital additionally owns Culver Studios and Tv Metropolis in Southern California. Final yr, the corporate and Sq. Mile Capital Administration LLC purchased the studio-operating firm MBS Group for $650 million from Carlyle Group Inc. and bought a manufacturing facility in Manhattan Seaside, Calif., as a part of the deal.
Different traders within the Silvercup acquisition embody Sq. Mile Capital, the Trainer Retirement System of Texas, an affiliate of the United Companies Car Affiliation and Canada-based PSP Investments, the individual stated.
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