Invesco Provides $111M Financing for DTLA Office Property
By Cathy Cunningham January 9, 2019 11:15 am
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GreenOak Real Estate Advisors and Rising Realty Partners scored a $111 million loan for the The CalEdison, a 14-story office property at 601 West 5th Street in Downtown Los Angeles (DTLA), Commercial Observer has learned.
Invesco Real Estate provided the floating-rate financing, according to sources familiar with the transaction.
Rising acquired the asset in a joint venture partnership with Lionstone Investments in late 2015. GreenOak acquired its interest in the building from the previous ownership in December, as previously reported by CO. Rising will continue to act as operating and managing partner for The CalEdison.
JLL’s Steve Collins, Paul Spellman and Tom Bohlinger led the sale.
Officials at JLL confirmed the transaction but declined to comment on the lender’s identity.
“We continue to see very strong pricing levels on transitional deals,” Spellman said. “The lender demand for a lease-up play with GreenOak’s sponsorship coupled with this quality of asset showed throughout the process.”
The 287,615-square-foot building was erected in 1931 as the headquarters for the South California Edison Company and sits in one of the most popular creative office locations for tenants in DTLA today. The property is undergoing a repositioning for creative office use, retaining its architectural integrity—the lobby features 30-foot ceilings and Art Deco-style marble finishes—while being updated for today’s creative tenants’ needs.
“This historic building is in one of the most prominent locations in DTLA and is close to two major transit hubs,” Bohlinger said at the time of the acquisition. “In addition to its excellent location it is one of the finest examples of Art Deco architecture in the area.”
Under Rising’s management, the building has signed more than 110,000 square feet of additional new tenants, including H&M Innovation Labs, Systems Source, Akerman, General Growth Properties.
Architectural firm JERDE is the latest addition to the tenant roster. JERDE’s projects include the Bellagio and Palms Casino Resort in Las Vegas, Universal CityWalk in Universal City, Calif. and Santa Monica Place Mall.
“When we acquired The CalEdison we implemented a vision to differentiate our office product through investing in best-in-class tenant improvements, a deep commitment to provide unique services, and creating a casual, refined ambiance more like a boutique hotel than something a tenant would expect to find in an office building. We’re thrilled that GreenOak shares our vision for the building and we look forward to working together to continue the great progress that we started three years ago,” Christopher Rising, the founder and president of Rising, said in a release.
Officials at Invesco didn’t return a request for comment. Officials at GreenOak weren’t immediately available for comment.
