Atlas, Square Mile sell pricey stake in the Row: sources

Atlas Capital and Square Mile Capital Management have agreed to sell what’s estimated to be a one third stake in the Row, their trophy retail and office complex in Downtown Los Angeles, to a new partner, according to sources close to the deal.

The transaction, which is slated to close this week, is said to value the property, which borders the Arts District at 777 S. Alameda Street, at more than $700 million, said one person with knowledge of the terms. The identity of the purchaser was not immediately clear.

With a new partner on board, the original partners’ stakes will be reduced proportionally, sources said. Neither of them is exiting the deal.

A spokesperson for Square Mile declined to comment and a spokesperson for Atlas was not available.

In a separate transaction, a Blackstone debt fund is refinancing the entire project, sources said, though the dollar value of the loan obtained was not clear. A spokesperson for Blackstone did not immediately provide comment.

Atlas and Square Mile partnered with USAA Real Estate Company to buy the creative reuse project  as well as several separate properties for $357.4 million in 2014 from real estate investment trust EVOQ Properties, records show. Its slated to include 1.3 million square feet of creative office space and 200,000 square feet of retail.

Tenants who’ve already signed on for the project include jeans company J. Brand and MiTu, a new media brand and digital network.

Atlas and Square Mile recently tapped CBRE to take over office leasing at the project from Industry Partners.  Jeff Pion of CBRE wasn’t immediately available for comment.