DTLA Owner Refinances Portfolio Before Rates Climb

Investors are reacting to the rising interest rate environment by refinancing existing loans and locking in long-term debt. ASB Real Estate Investments has secured a $95 million loan to refinance the WaterMarke Tower, a 35-story residential tower in Downtown Los Angeles. The refinancing is part of the firm’s strategy to lock in fixed-rate long-term debt before rates continue to climb this year.

“The rising interest rate environment has been an important backdrop to our interest in managing the portfolio’s interest rate risk through fixed-rate executions for a number of years,” David Quigley, managing director and chief investment officer at ASB, tells GlobeSt.com. “With a rising interest rate environment, we believe that locking in 10-year financing at sub 4% is a very attractive execution.”