No Names, Please
Not, however, that any more of Project B’s slip is being allowed to show after the jolting change in circumstances. “We are actively filling up the (office/commercial) building with retailers and restaurants,” Mr. Katersky said. Identity of the commercial lessees remains closely guarded, and he has no interest in a game of sharesies. “I hope we can make an announcement soon.” Despite an influx of new eateries, Mr. Katersky said Culver City still lacks restaurants with comfortable space for group meetings. “Groups that want meetings have to go to hotels,” he said. “We will be bringing at least a couple of restaurants to Parcel B that have meeting rooms. That’s exciting. It will keep people in Downtown Culver City. We are going to bring in unique restaurants. We will bring some very unique retailers.” He promised that 8 to 10 ground-level businesses will anchor the Parcel B layout. “A nice variety of food and retail,” he added, without divulging even a whisper. There is no need to be impatient, he suggested. “Everything has been signed, and the land is in escrow. It is a complicated project, much more complicated now than what it started out being. We are closing a road (Washington Boulevard, in front of the Culver Hotel), widening a road (Ince), building a plaza, and building our building.”
Their Main Business
Mr. Katersky defined his 3-person team as “real estate guys with a long entertainment industry background. We are not entertainers. We service the industry. We don’t know how to make movies. We service the industry by providing them the right kinds of facilities. We brought business to the studio. We brought a certain amount of financial acumen to the studio. We have been able to marshal through a new building (on the backlot) that is under construction. And we have been able to build an outstanding team of people, some of whom came from Sony when we bought it.” Organized four years ago as Pacifica Ventures, the Katersky group was one of three corporate teams that participated in acquiring The Culver Studios from Sony in April 2004 for $125 million. Mr. Katersky said his team was selective. “A number of people from Sony we did not hire,” he said. “Others we brought in.” Sony and the Katersky group know each other well. Before purchasing ownership of the studio once known as Desilu, “we worked with Sony for years on a variety of projects. We continue to work with Sony on a variety of projects that have nothing to do with this studio. We also work with Universal and with the other big studios.” Mr. Katersky talked about the birth of the studio acquisition, a process that opened in 2003. “Sony came to us,” he said. “They asked if we were interested in this property. They had tried to sell it to other groups. Those deals always fell through. We were able to bring the financial muscle to the table, and to complete a deal with them. It was a long, arduous task that took almost a year to do.” Mr. Katersky said he could not discuss the purchase price, “but I can tell you the value of this property has been enhanced substantially since then.”
Past, Presence and Future
When Oct. 31 arrives on Tuesday, and Mr. Katersky and friends vacate their offices, they will hardly be kissing The Culver Studios farewell, he said. “Our group won’t be based on the lot (moving, instead, to Santa Monica). But we will be here a lot because of Parcel B and things we do with other people who are here. While we are physically relocating to Santa Monica, we are not going anywhere.” Was there any effort by the Katersky group to negotiate a new contract? “We made no attempt to do so,” Mr. Katersky said. “We didn’t think that… We are paid a lot of money when we do things. I’ll be honest with you. We get paid a lot of money for what we do. We have done it,” he said with his voice rising. “Our value isn’t here. We’ve got management employees who know how to run an ongoing studio. We brought that management here.” Mr. Katersky was asked if there was any attempt by the majority owner of the studio, the international investment bank, Lehman Brothers, to renew his side’s contract. “It was never an issue,” he said. “It was never brought up by either side because we knew it didn’t make any sense. Look at what investment banks do. They buy properties or businesses. They do their magic on the properties and businesses to enhance the value, and then what do they do with them? They are not long-term players. None of the investment banks are. We have added all the value we can add to this property.”
Crisscrossing and U-Turns
Mr. Katersky said he and Mr. Arnold, the least visible of the three during their term in Culver City, have been business partners for “14, 15 years. We are the owners of the Albuquerque studios (where the building began last summer). We are the owners of the property that we are doing in Hollywood (at Selma and Vine). We are involved with Ron Lynch on other deals.”
