THE QUEENS
OCTOBER 2020
Silvercup Studios offi cially sold to West Coast investment group
BY BILL PARRY
bparry@schnepsmedia.com
@QNS
It is official. The iconic
Silvercup Studios, the fi lm and
television production company
based in Long Island City, has
been sold to a Los Angeles-based
group of investors.
Hackman Capital Partners
and Square Mile Capital made
the formal announcement on
Th ursday, Oct. 1, that they had
acquired the studio’s locations
in Long Island City, nearby
Blissville, and the South Bronx.
Founded in 1983 on the site of
the landmark Silvercup Bakery,
the studio has grown to its current
Elder Law Minute TM
A Great Time for a GRAT
BY RONALD A. FATOULLAH, ESQ.
AND JOSEPH BRENINGSTALL, ESQ.
With the election on everyone’s mind,
now is a great time to take advantage of
estate planning tools that may no longer be
available in the near future. One such tool
is a Grantor Retained Annuity Trust, more
commonly referred to as a GRAT.
A GRAT is a trust that allows assets to
appreciate while accruing minimal or no
gift tax liabilities. When using a GRAT,
the Grantor transfers assets to a trust for
a limited amount of time, usually a few
years. During that time period, the Grantor
will receive annuity payments in a fi xed
amount or based on a certain fi xed percentage
of the fair market value of the
assets transferred to the trust. GRATs are
structured in such a way that the annuity
paid out to the Grantor will cancel out the
amount initially transferred to the trust. If
this goal is accomplished, then the Grantor
will pay little or no gift tax on the assets that
are ultimately paid out to the benefi ciaries
of the trust when the trust terminates.
Th ere are two important things to keep
in mind with regard to GRATS: one is the
“ Section 7520 rate” which is an IRS mandated
rate of return that the Grantor must
receive in addition to the principal that
is repaid through the annuities that the
Grantor receives. Th e other thing to keep
in mind is that if the Grantor dies during
the trust term, the assets in the trust, minus
any annuity payments already paid to the
Grantor, will be added to the Grantor’s taxable
estate.
Th e current generous federal estate and
gift tax exclusion amount of $11,580,000
per person ($23,160,000 for a married couple)
adjusted for infl ation, would allow a
Grantor to transfer that amount to a GRAT
and lock in the current exclusion amount.
Regardless of what happens with the election,
the current exclusion amount is set
to “sunset” on January 1, 2026, and the
exemption amounts will be reduced back
to $5,000,000 ($10,000,000 for a married
couple), adjusted for infl ation. Accordingly,
now is the time to act in order to preserve
this opportunity.
For New York residents, GRATs are particularly
eff ective because New York does
not have a gift tax, but it does have an estate
tax for estates that exceed $5,850,000 in
value. Using a GRAT during the Grantor’s
lifetime would allow the Grantor to transfer
assets to his or her benefi ciaries with
signifi cant state estate tax savings. Again,
the age and health of the Grantor must be
taken into account because New York does
have a three year “clawback” on taxable
gift s made within three years of death. So,
if the Grantor should die within three years
of creating the GRAT, all of the assets used
to fund the trust would be included in his
or her taxable estate for New York estate
tax purposes.
Th is article has given a brief overview
of the tax implications of the Grantor
Retained Annuity Trust. If you think that
ELDER LAW
RONALD FATOULLAH
ESQ, CELA*
a GRAT may be a good fi t for your estate
planning goals, it is important to consult
with a competent professional to determine
which trust would best serve your
needs.
Ronald A. Fatoullah, Esq. is the founder
of Ronald Fatoullah & Associates, a law
fi rm that concentrates in elder law, estate
planning, Medicaid planning, guardianships,
estate administration, trusts, wills,
and real estate. Joseph Breningstall, Esq.
is an elder law attorney with the fi rm.
Th e law fi rm can be reached at 718-
261-1700, 516-466-4422, or toll free at
1-877-ELDER-LAW or 1-877-ESTATES.
Mr. Fatoullah is also a partner advisor
with Advice Period, a wealth management
fi rm that provides a continuum of
fi nancial and investment advice f or individuals
and businesses, and he can be
reached at 424-256-7273.
23 sound stages across the
three campuses.
While terms of the deal were
not disclosed, the Wall Street
Journal reported that it was
worth a half-billion dollars.
Alan Suna, who owned the
company with his brother Stuart,
will continue as chairman of
Silvercup Studios.
“In 1983, my father Harry, my
brother Stuart and I started on
this journey to build Silvercup
Studios into one of the preeminent
studios in New York,”
Suna said. “Aft er 37 years, we
sought to take on the right partner
to help us further grow and
develop the studio business as
the industry has continued to
thrive in New York City. Aft er
careful consideration, we chose
the HackmanCapital Partners/
Square Mile Capital Platform,
including Th e MBS Group,
because their leadership embodies
the values that we hold dear,
including retaining the dedicated
team that helped us achieve
so much success. As deeply
experienced operators, they will
help us continue the Silvercup
legacy into the future.”
In its 37 years, Silvercup
Studios has been home to television
productions including “Sex
and the City,” “Th e Sopranos,”
“30 Rock” and, most recently,
“Succession.” It has also hosted
dozens of major motion pictures
including “When Harry
Met Sally” and “Th e Devil Wears
Prada.”
Silvercup Studios represents
the seventh acquisition made by
the joint venture’s media platform
including The Culver
Studios and Television City
Studios that was the legendary
CBS broadcasting facility in
West Hollywood.
“As the leading independent
owner and operator of studio
properties, we are beyond
thrilled to add the iconic
Silvercup Studios to our portfolio
of distinguished studio and
media assets,” Hackman Capital
Partners CEO Michael Hackman
said. “We look forward to working
closely with Sivercup’s founders.”
“We are delighted to add iconic
Silvercup Studios to our growing
studio and media portfolio
and carry forward the legacy
and storied history that Alan
and Stuart Suna artfully created
while building Silvercup into one
of the most preeminent studios
in New York,” Craig Solomon,
CEO of Square Mile Capital
Management, said. “Michael and
I look forward to an exciting collaboration
with the Sunas and
their management team.”
Photo courtesy of Silvercup Studios
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