Streaming giant Netflix has closed on a site at a former U.S. Army base in New Jersey where it plans to build a roughly $1 billion studio complex, paying $55 million for the land.
The Los Gatos, California-based entertainment company has acquired nearly 300 acres, dubbed the Mega Parcel, spanning Oceanport and Eatontown at Fort Monmouth. Here Netflix intends to construct 12 soundstages for TV and movie production totaling nearly 500,000 square feet, with additional areas dedicated to supporting film uses and community amenities.
With the deal, the streaming service is moving forward with Netflix Studios Fort Monmouth, which will bring new jobs and economic opportunities to New Jersey, according to Anne Kelly, Netflix’s vice president of studio management and services.
“While there is still work ahead before we open our doors, we look forward to continuing our close partnership with this remarkable community as we transform this historic site into a world-class studio and vibrant community hub,” she said in a statement.
The project has been in the works for years, with Netflix successfully bidding for the Fort Monmouth site in 2022.
The Fort Monmouth Economic Revitalization Authority, which controls development on the former military installation, announced on social media on Friday that the sale of the land had closed.
“While the groundwork for the fort’s revitalization and success has been paved by many successful developments over the last 10 years, we look forward to the next chapter of Fort Monmouth,” FMERA said.
Netflix also released its statement Friday, the same day it announced it would seek to acquire Warner Bros. Discovery’s production studio and streaming assets for an equity value of $72 billion — about $82.7 in enterprise value. On Monday, that deal was complicated by a hostile bid from Paramount Skydance for all of Warner Bros. Discovery that values the media giant at more than $100 billion.
Under terms of the New Jersey land sale, Netflix will pay $47 million for the Mega Parcel, a $5 million utility contribution and a $3 million fee for FMERA to relocate its office.
A year ago, the project was awarded up to $387 million in tax credits from the New Jersey Economic Development Authority. Netflix broke ground on the studio complex in May.
