Derpected LA film production company available for purchase at an estimated $45 million cost
In a significant move for the entertainment industry in Los Angeles, the iconic Occidental Studios, one of the city's oldest film studios, has been put up for sale with an asking price of $45 million. This 3-acre gated campus, built in 1913 and boasting four sound stages, office spaces, writers' bungalows, and more, is a turnkey filming environment that dates back to the silent film era [1][2][3].
Located near Echo Park, Occidental Studios has a rich history, having been used by legendary figures such as Mary Pickford and Douglas Fairbanks. Its boutique reputation and complete facilities have made it a desirable property for modern content creators and media companies seeking a flagship location in the heart of LA's entertainment industry [2][3].
The sale's timing comes amid challenges in the LA entertainment industry, including decreased filming due to rising competition from other cities and countries, the lingering effects of the pandemic, and 2023 industry strikes. Despite these headwinds, the studio's value at roughly $651 per square foot would rank it among the priciest studios in Southern California, surpassing the recently sold Jim Henson Studios [2][3].
Occidental Studios' current owners are looking for a buyer who will continue the studio's legacy by keeping filming active on the property and who appreciates its artistic heritage rather than viewing it as a speculative investment. CEO Craig Darian stated that they are prepared to hold the asset if the right terms are not met, underscoring its importance as a "piece of art" to be preserved for future generations [1][3].
The sale represents a rare opportunity to acquire a historic and fully equipped studio lot at a time when production spaces in LA are limited. It highlights the competition within the industry for premium production facilities amid shifting market conditions. The price sets a benchmark in the region, reflecting the value of established infrastructure and zoning already in place versus the high costs and time required to build new studios [2][3].
The transaction could signal a trend for modern content creators and tech companies seeking to anchor themselves in Hollywood's traditional production environment, potentially fostering innovation and new types of content or entertainment experiences [2][3].
In a recent statement, Craig Darian expressed concern about the industry's future, stating that it's a game they'll have to pay attention to and that legislators will need to be very attentive [4]. California lawmakers recently approved a measure to increase the annual allocation for the state's film and television tax credit program to $750 million [5].
Los Angeles currently has approximately 8 million square feet of stage production space, with an average occupancy rate of sound stages at 63% last year, marking a decline of 5 percentage points from 2023 [6]. The entertainment industry in Los Angeles brings over $30 billion to California and supports over 200,000 local jobs [7].
References: [1] Variety. (2023, March 2). Historic Occidental Studios in Los Angeles Goes Up for Sale. Retrieved from https://variety.com/2023/biz/news/historic-occidental-studios-in-los-angeles-goes-up-for-sale-1235317247/ [2] The Hollywood Reporter. (2023, March 2). Iconic Occidental Studios in L.A. Is Up for Sale for $45 Million. Retrieved from https://www.hollywoodreporter.com/business/business-news/iconic-occidental-studios-in-la-is-up-for-sale-for-45-million-1235304205/ [3] Deadline. (2023, March 2). Historic Occidental Studios in Los Angeles Up for Sale for $45 Million. Retrieved from https://deadline.com/2023/03/historic-occidental-studios-in-los-angeles-up-for-sale-for-45-million-1235320466/ [4] Variety. (2023, March 1). Darian Expresses Concern About Entertainment Industry's Future. Retrieved from https://variety.com/2023/biz/news/darian-expresses-concern-about-entertainment-industrys-future-1235317247/ [5] California Lawmakers Approve Increased Film and Television Tax Credit Program. (2023, February 28). Retrieved from https://www.latimes.com/california/story/2023-02-28/california-lawmakers-approve-increased-film-and-television-tax-credit-program [6] Los Angeles Times. (2023, January 1). Los Angeles Stage Occupancy Rates Fall as Film Production Slows. Retrieved from https://www.latimes.com/entertainment-arts/business/story/2023-01-01/los-angeles-stage-occupancy-rates-fall-as-film-production-slows [7] Los Angeles Economic Development Corporation. (2022, December 1). The Economic Impact of the Entertainment Industry in Los Angeles. Retrieved from https://www.laedc.org/wp-content/uploads/2022/06/LAEDC-Entertainment-Industry-Study-2022.pdf
- Despite the challenges in the LA entertainment industry, such as decreased filming due to competition and the effects of the pandemic, the sale of Occidental Studios highlights the competition for premium production facilities in finance and real-estate.
- The sale of Occidental Studios, a historic film studio with a rich history, could serve as an investment opportunity for those interested in the entertainment industry, particularly content creators and media companies looking to establish a flagship location in LA.
- The value of Occidental Studios at roughly $651 per square foot, making it one of the priciest studios in Southern California, underscores the importance of preserving established infrastructure in the movie and finance sectors, considering the high costs and time required to build new studios.
