LOS ANGELES — Television City is getting a billion-dollar makeover.

Owner Hackman Capital Partners and operating partner MBS Group on Friday released a new $1.25 billion plan dubbed the Television City 2050 Specific Plan that would modernize the 25-acre former long-time headquarters of CBS Studios into a state-of-the-art production facility.

What You Need To Know

  • Hackman Capital Partners announced its plans to invest $1.25 billion to modernize Television City

  • Television City in the Fairfax District of Los Angeles has been home to several iconic shows in television history

  • CBS sold the 25-acre Television City to Hackman Capital in 2018 for $750 million

  • As part of the modernization, Hackman plans to build more production facilities and sound studios in Television City

"Television City is one of the great Hollywood studio lots," said Michael Hackman, founder and CEO of Hackman Capital, in a statement. "We are committed to ensuring it remains a robust job creator and world-class studio for decades to come. Los Angeles lacks the modern sound stages and production facilities to meet market demand, putting our region at risk of seeing the entertainment industry leave the state if we fail to invest in its future."

Hackman Capital's announcement comes as demand for production facilities in Los Angeles outweighs the current supply despite the coronavirus pandemic. While the pandemic shut down some productions early on, it also accelerated consumer demand for online streaming and television content.

"The demand for content and the pressure to keep producing content have increased exponentially since the advent of streaming," said Andrew Schmerzler, a partner at Venable LLP, in a blog post. "This, of course, means that content providers need production space to film that content."

While some production companies have opted to film around the nation or the world, "a large percentage of the content has traditionally been and will continue to be filmed in Los Angeles."

Built in 1952, Television City in the Fairfax District of Los Angeles has been home to some of the most iconic television series. The Carol Burnett Show, All in the Family, and Three's Company were filmed there.

CBS sold the site to a subsidiary of Hackman Capital in 2018 for $750 million. As part of the deal, CBS will remain a tenant for the next few years before moving to another CBS headquarters in Studio City. Currently, The Price is Right, The Young and the Restless, The Bold and the Beautiful, Dancing with the Stars, and The Late Late Show With James Corden are recorded there.

Hackman Capital is one of the largest studio space owners in the world. Earlier this year, Hackman acquired the Sony Pictures Animation Campus in Culver City.

The company also owns The Culver Studios, the MBS Media Campus in Manhattan Beach, and Silvercup Studios in New York.

As part of their plan to modernize Television City, Hackman says they plan to build new production facilities, sound stages, and studio offices. The company said it would preserve and invest in existing facilities, create a transportation management system and enhance the streetscape and landscape.

According to the Los Angeles County Economic Development Corp., modernizing Television City could be an economic boom to Los Angeles. An LAEDC report found that Hackman's billion-dollar investment in Television City could result in a $2.1 billion total economic output for the region.

"To remain globally competitive, Los Angeles needs more state-of-the-art sound stages and production space," said Bill Allen, chief executive officer at the LAEDC, in a statement. "Now is the time for a fully realized Television City, as the entertainment industry and the city continue to recover from the COVID-19 pandemic. TVC 2050 will bolster our local economy, generate thousands of good jobs, and create new opportunities for countless Angelenos."