We've Got Hollywood Covered
|

ViacomCBS to Explore Sale of Studio City Lot

CBS Studios has been home to ”Gilligan’s Island“ and ”Mary Tyler Moore Show,“ among many others

ViacomCBS is looking to part with more real estate. A week after reaching a deal to sell CBS’ former “Black Rock” New York City headquarters, ViacomCBS is looking at offloading its famed CBS Studios in Studio City, California, according to reports.

ViacomCBS has hired commercial real estate firm JLL to explore a sale, Bloomberg reported on Monday. A rep for ViacomCBS did not immediately respond to TheWrap’s request for comment.

First opened in 1928, CBS Studios has been home to TV series including “Gilligan’s Island,” “Mary Tyler Moore Show,” “Gunsmoke,” and more recently “Big Brother” and the newsmagzine show “Entertainment Tonight.”

Last week, ViacomCBS agreed to sell Black Rock to the privately owned real estate firm Harbor Group International for $760 million. The network, which has occupied the 38-story, 491-foot-tall building since it opened in 1964, plans to lease back its space on a short-term basis. The transaction is expected to close before the end of the year.

Naveen Chopra, EVP and chief financial officer for ViacomCBS, said the sale was prompted by a review of non-core assets since the company completed its re-merger in December 2019. “The use of proceeds from this transaction will remain consistent with our previously discussed capital allocation strategy, allowing us further financial flexibility to invest in our strategic growth priorities, including streaming,” Chopra said in a statement.

Harbor Group plans a significant capital program to pursue a long-term leasing plan, with updates to the lobby, cafeteria and other tenant amenities. The company’s $14.5 billion investment portfolio includes 4.4 million square feet of commercial space throughout the U.S. and the U.K. and 53,000 apartment units in the U.S.

Three years ago, then-CBS Corp. sold off its 25-acre Los Angeles-based Television City studio to Hackman Capital Partners for $750 million.