LOS ANGELES-The buyers of the 30-story, 490,000-sf 5900 Wilshire Blvd. office building in the Miracle Mile District financed the acquisition with $63 million in loans, according to Holliday Fenoglio Fowler. Scott McMullin of the Los Angeles office of Holliday Fenoglio Fowler reports that the joint venture of the Ratkovich Co. and Prudential Real Estate Investors secured a $43-million fixed-rate loan and a $20 million floating-rate loan.
Massachusetts Mutual Life Insurance Co., advised by its investment subsidiary Babson Capital Management LLC, provided both of the loans. Both of the financings are for four-year terms.
The Ratkovich Co. and Prudential Real Estate Investors acquired the 5900 Wilshire building from RMR Management Co. for approximately $102.5 million. The new owners say they will spend more than $22 million on capital improvements for the 32-story office tower and its two, two-story satellite buildings.
The 5900 building, which is situated directly across Wilshire Boulevard from the Los Angeles County Museum of Art, was designed by architect William Pereira and built in 1971. The office tower, which was renovated in 1993, "offers tremendous redevelopment potential," Ratkovich Co. president Wayne Ratkovich said at the time that the buyers announced the purchase.
The Ratkovich Co. plans capital improvements at 5900 Wilshire will include renovating and retrofitting the tower to attract large tenants and reduce vacancies in the upper floors. The new owners also plan to redesign the sprawling plaza area in front of the building to significantly increase ground-floor retail space.
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