Inside Onni Group’s refi of LA, Long Beach apartments

Onni Group has refinanced three properties across Los Angeles County as part of a $1 billion debt deal on eight complexes across the county and Chicago. 

The Vancouver-based firm scored $297.5 million on two apartment buildings — Onni East Village in Long Beach, and SMB Hollywood in Hollywood — and Level Los Angeles, a short-term rental complex in Downtown L.A., according to a report from Fitch Ratings. 

Wells Fargo, Citi Real Estate and Goldman Sachs originated the debt, totaling $865 million, which is set to be packaged into a CMBS deal and sold to investors. The five-year loan has a fixed interest rate of 6.21 percent, according to Fitch. 

The three buildings, plus five in Chicago, are also tied to a $125 million mezzanine loan, provided by a group of lenders that includes Wells Fargo, Citigroup and Goldman Sachs, according to the report. 

The two L.A. County apartment properties were built in 2023, with Onni trying to lease them up since then. 

In the first quarter, the Long Beach complex at 333 East Broadway was 81 percent leased, after opening in the first three months of 2023, Fitch said in its report. 

SMB Hollywood at 6933 Santa Monica Boulevard opened two quarters later and is currently 59 percent leased, the lowest occupancy across the L.A. and Chicago portfolio.

Level Los Angeles, the 303-unit short-term rental building at 888 South Olive Street, was occupied about 87 percent on average in 2023, higher than the Downtown L.A. average of about 68 percent from April 2023 through April 2024, according to Fitch. 

The entire portfolio, including the five Chicago buildings, is valued at about $1.5 billion, Fitch said, citing an appraisal from Newmark earlier this year. Onni spent about $1.2 billion to build the properties.