Onni scores $240M construction loan for 60-story DTLA tower

Not only is Onni Group refinancing its existing projects, but its up-and-coming ones, too. 

The Vancouver, Canada-based development firm has scored a $240 million construction loan on Olympic and Hill, its 60-story project in Downtown Los Angeles, according to loan documents filed with Los Angeles County. 

Wells Fargo Bank, among other lenders, provided the debt, though terms were not disclosed. Onni did not respond to a request for comment. 

Onni plans to build a 685-unit apartment tower with 15,000 square feet of commercial space on the site, located at 230 West Olympic Boulevard, according to city planning documents. 

The developer bought the site for the project in 2017 for $24.5 million, records show, and filed plans with the city a year later, making its mark as one of the largest apartment developers focused on Downtown Los Angeles. Construction on the tower started last year. 

It’s unclear whether the new financing replaces existing debt. The site has not been previously tied to a senior commercial mortgage, property records show. 

The new debt came around the same time Onni refinanced three buildings across Los Angeles County with about $300 million in senior and mezzanine financing, according to a report from Fitch Ratings and property records. 

That debt was part of a roughly $1 billion commercial mortgage-backed securities and mezzanine loan package, provided by Wells Fargo, Citi Real Estate and Goldman Sachs. 

Though Downtown L.A.’s office market has been plagued by defaults, exiting tenants and sharp discount sales, its residential market has been a bright spot. 

Average monthly rents for apartments in Downtown Los Angeles have risen 3 percent over the last year, according to Zumper data, in contrast to the city at large, where rents have dropped 3 percent in the last year.