Kaufman Astoria Studios in New York Navigates Foreclosure Amid Changes in U.S. Film Production
Deutsche Bank has initiated a foreclosure complaint against Kaufman Astoria Studios and its owner, Hackman Capital Partners, citing a default on a substantial loan. The bank alleges that the historic sound stage has failed to meet its financial obligations, with the loan, originally secured in 2021 for $340 million, now totaling $359 million as of March 26. The sum includes principal, accrued interest, late payment charges, and exit fees, according to the complaint filed in New York State Supreme Court for Queens County.
The loan was due for repayment in full last fall, with a maturity date set for November 9, 2025. However, as stated in the court filing, no payments have been made to date. “In light of the Maturity Default, Agent seeks to enforce the terms of the Loan Documents and to foreclose upon the Mortgage,” the complaint reads. It also requests a deficiency judgment against the borrower and guarantors, for cases where the proceeds from the property sale do not cover the total amount owed.
Hackman Capital Partners has declined to comment, though Michael Hackman, the firm’s founder and CEO, is named as a defendant in the suit. In 2022, Hackman Capital, in partnership with Square Mile Capital Management, acquired Kaufman Astoria Studios during a significant push to buy sound stages. This acquisition followed their purchase of New York City’s Silvercup Studios in 2020 and the Radford Studio Center in Los Angeles the year after. Recently, Hackman defaulted on the Radford campus, which was subsequently taken over by Goldman Sachs, with Netflix reportedly in negotiations to buy it.
Kaufman Astoria Studios, established in 1920, is a historic landmark, having originally served as the home of Paramount Pictures. Notable productions filmed there include the long-running children’s program Sesame Street, which began filming in 1992, as well as acclaimed series like Netflix’s Orange is the New Black and HBO’s The Undoing. The studio boasts a total of 11 sound stages that have also hosted feature films such as The Irishman and Men in Black 3.
The filing comes at a precarious time for the studio, which faces dwindling production levels as more projects shift overseas, attracted by lower costs and greater incentives. Additionally, Hackman’s portfolio includes various locations in the UK and Ireland, such as Eastbrook Studios and Ardmore Studios.
In the broader landscape of studio complexes in the U.S., contrasting trends are emerging. Recently, Hudson Pacific Properties announced it would exit all leased sound stage facilities in Los Angeles aside from its Griffith Park location. The real estate trust has described its separately owned Sunset Studios as more “resilient,” noting that its flagship Hollywood stages are currently 96% leased, while a new Manhattan facility is fully leased.
Meanwhile, neighboring New Jersey continues to establish itself as a key player in U.S. production, hosting its second annual Film Expo today at the Meadowlands Arena in East Rutherford, with Governor Mikie Sherrill set to deliver a keynote address.
