LOS ANGELES-Joint venture partners MPG Office Trust and Australia’s Charter Hall Office REIT have refinanced their 42-story, 992,000-square-foot One California Plaza office tower at 300 S. Grand Ave. in Downtown Los Angeles with $160 million in new debt. The new financing consists of a $140 million mortgage loan, which bears interest at a fixed rate of 4.775%, and an up to $20 million mortgage that bears interest at a floating rate equal to one month LIBOR plus 3%, according to an announcement from MPG, which owns a 20% interest in the joint venture. The new financing matures on July 1, 2016.
News releases from MPG, Charter and Jones Lang LaSalle, which arranged the financing, identified the capital source as “a major US lending institution.” JLL senior vice president Reid McGlamery, executive vice president Mathew Comfort and managing director Paul House led the Jones Lang LaSalle team on the financing.
Some proceeds of the financing will be used to pay 60% of certain tenant improvement costs, leasing commissions and leasing-related capital expenses for existing and new leases at One California Plaza. Concurrently with the funding of any advance of the financing, the borrower will be required to invest additional equity equal to 40% of the leasing costs to be paid with the proceeds of the advance.
Arthur Erickson Architects designed the 42-story office tower, which fronts Grand Avenue in the Bunker Hill District. McGlamery and Comfort describe it as a trophy asset with one of the highest-quality tenant rosters in the city.
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