The CalEdison, a well-known art deco building in downtown Los Angeles, has been refinanced.
New York-based GreenOak Real Estate acquired its interest in the building from a joint venture partnership managed by Houston-based Lionstone Investments. The CalEdison was previously acquired by Lionstone and downtown-based Rising Realty Partners in a joint venture in 2015.
Improvements then made to the building include a revamped lobby, a concierge and renovated common areas.
“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,” said Christopher Rising, founder and president of Rising, in a statement. “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.”
Rising Realty will continue to be the operating and managing partner for The CalEdison.
“GreenOak is one of the world’s finest real estate investors with a strong track record of success in Downtown Los Angeles. We’re very pleased that our first partnership is at The CalEdison and look forward to working with them to further execute our vision to fully transform this landmark asset,” said Nelson Rising, Chairman and CEO of Rising, in a statement.
Tenants of the building, at 601 W. 5th St., include architectural firm Jerde Partnership and H&M Innovation Labs. The 14-story building has 287,000 square feet, including two levels of retail.
Jones Lang LaSalle’s Steve Collins, Paul Spellman and Tom Bohlinger had the listing.
“This historic building is in one of the most prominent locations in DTLA and is close to two major transit hubs. In addition to its excellent location it is one of the finest examples of Art Deco architecture in the area,” Bohlinger said in a statement.
JLL also secured a $111 million loan for the new owners. JLL’s Spellman and Reid McGlamery led the team that secured the financing.
“We continue to see very strong pricing levels on transitional deals. The lender demand for a lease-up play with GreenOak’s sponsorship coupled with this quality of asset showed throughout the process.” Spellman said in a statement.
Rumors of a sale of the building first circulated this summer.
The building was previously the headquarters of the Southern California Edison Company.
Industry Partners’ Carle Pierose, Scott Rigsby, and Chris Bald are the building’s leasing agents.
Commercial real estate reporter Hannah Madans can be reached at firstname.lastname@example.org. Follow her on Twitter @HannahMadans
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