Former NASA Facility in Downey To Get New Life as Production Studio
By DARRELL SATZMAN
Staff Reporter
The city of Downey has reached a deal to sell a 50-acre portion of a former NASA manufacturing facility to a developer with plans to turn it into a full-service film studio.
The property, part of a 162-acre development known as Downey Landing, has been a popular shooting locale for a number of big budget features in recent years, including “Spider-Man,” “Daredevil” and the upcoming “Terminator” film, “T3: Rise of the Machines.”
The buyer, Redondo Beach-based Industrial Realty Group, has tapped Los Angeles Center Studios to manage the facility.
“It’s a tremendous location and a unique facility because of the indoor and outdoor components,” said Stuart Lichter, president of Industrial Realty.
Los Angeles Center Studios has run a large production facility in the old Unocal Corp. headquarters in downtown Los Angeles.
The purchase price was not disclosed, but Darrell George, Downey’s director of community and economic development, pegged it at less than $21.8 million, or $10 per foot. That would be less on a square foot basis than previous deals in which portions of the National Aeronautics and Space Administration site were sold to two other developers.
“Because of the investment (Lichter) has to make, we’ve factored that into the purchase price,” George said.
Industrial Realty has converted other former military facilities, including McClellan Air Force Base in Sacramento, to civilian uses.
Last year, the city struck a deal with Kaiser Permanente, which intends to build a 400-bed hospital, clinics and medical offices on the NASA property as part of its new Southern California headquarters. It also made a deal with Irvine-based Eclipse Development Group for a 370,000 square foot retail and retail center. Kohl’s, BestBuy, Marshalls and Linens ‘n Things are among the signed tenants, said Douglas Gray, president of Eclipse.
All the deals are contingent upon Downey acquiring the property from NASA. After years of negotiations complicated by soil and groundwater contamination at the property, that deal is expected to close in the next 90 days, George said. Groundbreaking for all three projects is set for July 1.
NASA officials could not be reached for comment.
Terms of the studio deal call for Downey to sell 50 acres and lease an additional 25 acres to Industrial Realty.
Besides a handful of cavernous manufacturing buildings, the property has about 40 acres of flat, outdoor space. The developer will tear down about half of the estimated 1.5 million square feet of buildings on the 50 acres and renovate the rest, George said.
Lichter wants to convert what is basically raw space into a facility with professional stages, office space, equipment rentals and a catering business. The rehab will cost between $15 million and $20 million.
Since taking over the property from NASA, Downey has used bargain rates, ample space and the promise of no community resistance to lure Hollywood studios east. George said a full-service facility will help attract television production and smaller features.
“The city is getting out of the film business and turning it over to professionals,” George said.
