Ratkovich scores $150M recap for sprawling office campus, The Alhambra

The mixed-use complex is 90% occupied
May 16, 2019 12:00PM

Ratkovich Company’s Wayne Ratkovich

Ratkovich Company’s Wayne Ratkovich

The Ratkovich Company just scored a second major loan in as many months.

The company scored a $150 million loan to refinance The Alhambra — a massive office campus between Downtown L.A. and Pasadena — not long after securing $30 million for the San Pedro Public Market development near Long Beach.

Wells Fargo provided the funds for Ratkovich, the primary investor of the 355,000-square-foot office complex at 1000 South Fremont Avenue in Alhambra, the Commercial Observer first reported. The ten-year loan closed at a 4.22-percent interest rate in the beginning of May.

The property is 90 percent leased, and last year it earned $24.4 million in rent, with $10.6 million in expenses, according to the Commercial Observer report. USC is the largest tenant with 137,500 square feet. Other leases include the nonprofit Eastern Los Angeles Regional Center, and agencies for Los Angeles County including its parks and recreation department.

Ratkovich bought The Alhambra complex in 1999 and has controlled an equity stake in it ever since. The company previously secured a $130 million loan from Goldman Sachs in 2006, and sold a majority stake to China-based ELITE International Investment Fund in 2017. Ratkovich also manages the Hercules Campus creative office space on the site of a hanger that belonged to Howard Hughes.

Earlier this year, B2 Partners sold a new dialysis clinic in Alhambra for $15 million. [CO]Gregory Cornfield