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Culver City Weighs $103 Million Purchase of Former Sony Animation Campus

Culver City Weighs $103 Million Purchase of Former Sony Animation Campus

Culver City, CaliforniaSource: Los Angeles Business JournalTrending
DealsZoning

Culver City is moving toward a possible acquisition of the vacant former Sony Pictures Animation campus at 9050 Washington Blvd. The city council and the Public Finance Authority voted unanimously on Sept. 28 to enter a $103 million purchase option with Fortress Investment Group, which took over the 3.5-acre, three-building Art Deco-style complex through a foreclosure auction in August. The price works out to roughly $520 per square foot and is close to the unpaid debt left by former owner Hackman Capital Partners.

The option gives the finance authority until Feb. 28, 2027 to decide whether to buy and to prepare a plan for the property. Up to $500,000 would fund appraisals, environmental and structural reviews, and traffic studies, paid from the authority's budget rather than the general fund. The agency proposes using conduit or revenue bond financing.

City staff have floated affordable and workforce housing, youth and senior programs, and a hotel. A housing project would require rezoning, since the parcel is zoned for studio use, and environmental review alone could take at least a year. Public commenters criticized the closed-door sessions that preceded the vote.

For developers and lenders, the practical takeaway is that any redevelopment here depends on a rezoning path and a lengthy environmental process before a teardown or new build can proceed.

Topics

9050-washington-blvdconduit-bond-financingculver-cityfortress-investment-grouphackman-capital-partnerspublic-finance-authoritystudio-rezoning

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