From Los Angeles Business Journal · staff-author · · 1m 40s
Culver City in Talks to Buy Former Sony Site
Culver City may acquire 198,000 sq ft Sony Animation campus for $103 million.
In brief
Culver City may acquire 198,000 sq ft Sony Animation campus for $103 million. Culver City could buy the vacant former Sony Pictures Animation site for $103 million to develop affordable housing and community spaces. Originally reported by Los Angeles Business Journal.
Culver City City Council approves $103 million purchase option
Culver City City Council and Public Finance Authority voted unanimously Sept 28 to ink a $103 million purchase option agreement with Fortress Investment Group for the 3.5-acre complex.
Former Sony site valued at $520 per sq ft
The proposed sale price works out to about $520 per square foot, roughly equal to the unpaid debt Hackman Capital Partners racked up before Fortress took back the keys with a $71.3 million credit-bid.
Fortress foreclosed on property in August
Fortress Investment Group purchased the note for the property’s debt from Goldman Sachs in 2023 and foreclosed on the property with a $71.3 million credit-bid at a foreclosure auction four months later.
City to decide by Feb 28, 2027
The city will spend up to $500,000 on an appraisal, environmental and structural reviews, traffic studies and other due diligence until Feb 28, 2027 to decide if it wants to buy the vacant campus.
Potential housing development planned
If Culver City buys the campus, it would demolish existing buildings and construct affordable housing with 25% units for low-income households earning 80% of area median income.
City officials negotiating with Fortress
City officials are negotiating with Fortress on the price, with City Manager Odis Jones stating the entity is the bank of the project, not someone who acquired the property for flipping to the city.
The one thing
Culver City could buy the vacant former Sony Pictures Animation site for $103 million to develop affordable housing and community spaces.
