The deal between The Boeing Company and Long Beach Studios LLC to turn a former Boeing manufacturing plant into a film studio has fallen out of escrow, leaving it incomplete and with the possibility of a sale by the end of the month.
Long Beach Studios plans to turn the former plant into a production studio that would provide internship opportunities and two soundstages that would be available to Cal State Long Beach film students.
According to Glen Golightly, Boeing Realty spokesman, the company is still “discussing the sale” with Long Beach Studios.
“We do want to sell the property,” Golightly said. “We’ve been working with them for a while and will continue to work with them.”
Golightly said they will continue to talk with Long Beach Studios “indefinitely.” He said the company has already placed the Boeing 717 facility on the market.
“We’re obligated to sell the property,” Golightly said, adding that the sale of the facility will increase the number of jobs available in Long Beach.
The deal fell through on Friday afternoon and has not been extended because it was already extended once in February. The studio plan has been in the works since June, according to lbreport.com.
Golightly said that multiple factors could have contributed to the sale’s incompletion.
“The bottom line is that we’re not in escrow anymore. … I’m not sure why the deal fell out,” Golightly said. “I don’t think it’s due to an appraisal. … The deal could not be done, for now.”
Jack O’Halloran, chair of Long Beach Studios, said the studios have a lender and enough money to fund the sale but Boeing “could not wait for us to finish the appraisal,” which would determine the value of the property. The appraisal would also help determine how much money will need to be borrowed.
“Time ran out,” O’Halloran said. “It’s all technicality.”
Once the paperwork is complete, the studios plan to seal the deal by the end of the month, he said.
According to the Long Beach Report, the 1-million-square-foot property, located near the Long Beach Airport at Lakewood Boulevard and Conant Street, would include 40 soundstages, editing suites and a hotel.
The sale and construction is projected to a total of approximately $500 million.
