When music producer McG and his investment partner, John Mayer, were negotiating the purchase of the iconic Jim Henson Studio lot, they wanted a comprehensive and detailed understanding of the physical condition of the historic buildings, including environmental condition studies, to evaluate potential costs associated with repairs and capital improvements for long term maintenance and future restoration of the subject property. They were committed to preserving both its function as a working studio and its legacy as a historic site in the entertainment industry.

With these goals in mind, their agent, Industry Partners (“The Client”), engaged Partner to provide the data and insight necessary to ensure an informed and strategic investment. Partner supported this $45MM transaction with an equity-level Property Condition Assessment (PCA), including specialty assessments by roof and MEP/Fire Life Safety experts, in conjunction with Historic Architecture Consulting. Partner also provided acquisition-level studies and surveys to include: Seismic Risk Assessment, ALTA Survey, Zoning Compliance Report, Phase I Environmental Assessment, and an Asbestos and Lead-Based Paint Pre-Renovation Survey.

Project Description

The Jim Henson Studio lot consists of 17 buildings comprising 90,412 square feet of office and studio space. The buildings were constructed in phases between 1917 and the 1970s. It is a working film and sound recording studio and is considered a historical property in the City of Los Angeles.

Challenges

The age, diverse construction, and varied condition of the buildings added complexity to the PCA. The site is also comprised of seven distinct parcels, adding complexity to the land survey. Additionally, numerous high-profile celebrity artists worked on-site during the acquisition period. To accommodate their privacy, the Partner team accessed the building during off-hours and worked around the artists’ schedules.

Benefits

To meet these challenges and honor The Client’s commitment to protect the historic integrity of the site, Partner assembled a PCA team of subject matter experts with extensive experience with complex assets, including movie and recording studios. They worked closely with Partner’s Historic Architecture Solutions (HAS) team to provide cost opinions and data that supported immediate and long-term requirements of restoring and maintaining the property according to its historic status.

Our HAS experts encouraged The Clients to pursue a listing on the National Historic Register and guided them through the registration process. In so doing, Partner’s solution will potentially save The Client thousands to millions of dollars in renovation and repair costs by allowing them to access the Historic Tax Credits available for properties with National Historic Register designation.