Hines, JPMorgan asset arm nab $1.2B refi on Century City office twin towers
The 2.4M sf Century Park Towers complex is undergoing extensive renovations
Hines and JPMorgan’s asset management arm have landed a $1.2 billion refinance on a Minoru Yamasaki-designed office complex in Century City.
Deutsche Bank, Wells Fargo and Morgan Stanley provided the debt on the 2.4 million-square-foot Century Plaza Towers. Bond rating agency Kroll provided details on the CMBS loan.
Proceeds from the 10-year, fixed-rate loan were used to pay down $823.4 million of existing debt from Morgan Stanley. A portion of the loan will also go toward tenant improvements. The 45-year-old twin-tower complex is undergoing a multi-year renovation that includes elevator lobbies, common areas and restrooms.
Commercial Observer first reported on the loan.
JPMorgan Asset Management’s Strategic Property Fund and Houston-based Hines’ Hines Management Holdings are equal partners on the property. CBRE will be the property manager.
The complex 2029 and 2049 Century Park East is 93 percent leased to 122 tenants, according to Kroll. JPMorgan is among the five largest tenants. The others are Bank of America, and the law firms Greenberg Glusker, along with Kirkland & Ellis, and Manatt, Phelps & Phillips. Together, they occupy nearly one quarter of the total square footage.
The complex includes 17,000 square feet of retail space and about 120,000 square feet of amenities and storage space, along with a six-story underground garage that holds about 6,000 vehicles.
The Century City office market was one of the tightest in Los Angeles in the second quarter, according to a Savills report. Vacancies for Class A space were at 8.5 percent, respectively.
The towers are adjacent to twin 44-story condominium and luxury hotel residences that Woodridge Capital Partners is redeveloping. Last week, Woodridge announced it had closed on more than $200 million in luxury condo pre-sales at Century Plaza Towers.