Century Park towers in LA featured in $825M SASB deal
The owners of a twin-tower office complex in Los Angeles’ Century City neighborhood are securitizing a newly issued refinance mortgage for the 44-year-old property.
The sponsors of the Class A structure, deemed a “trophy asset” by Kroll Bond Rating Agency, are placing $825 million of a $1.2 billion whole loan into a transaction dubbed CPTS 2019-CPT, a single-borrower single-asset transaction secured by the 2.4 million-square-foot property near L.A.’s central business district. The building is valued at $2.4 billion, according to Kroll.
The notes offering includes a $354.3 million Class A tranche with a preliminary AAA rating from Kroll.
The building is at the corner of 2029 and 2049 Century Park East, part of the Century Park development that also includes the Avenue of the Stars building that itself was previously included in a Goldman Sachs CMBS transaction. The 44-story building built in 1975 by Alcoa but is now occupied by major tenants such as Bank of America, JPMorgan and the law firms Greenberg Glusker, Kirkland & Ellis and Manatt Phelps.
The proceeds on the note sale will be used to retire existing debt of $823.4 million, as well as set up reserves of $100.8 million that will include a $71.2 million escrow for contractual tenant improvements and leasing costs.
The property was previously securitized in a 2014 transaction (MSC 2014-CPT).
The sponsor is a 50/50 partnership between JPMorgan Strategic Property Fund and a joint venture involving Hines Investment Management Holdings, a private global real estate developer and manager. The property is managed by CBRE.