Anderson Real Estate scored a $550 million loan package to refinance Anderson Towers after completing a years-long renovation, the family-owned company announced Tuesday.
Wells Fargo and JPMorgan Chase provided the commercial mortgage-backed securities loan for the two-building office campus at 1800 and 1900 Avenue of the Stars in Century City, according to Eastdil Secured Savills, which arranged the financing for Anderson along with law firm Allen Matkins. Hogan Lovells Cadwalader represented the lenders.
The deal refinances about $300 million of debt Anderson took on to renovate the 1960s office towers over the past five years, according to the company. Upgrades included new facades, lobbies and common areas, as well as landscaped outdoor space linking the towers designed by Montalba Architects and OJB Landscape Architecture.
After the renovations wrapped up last year, the campus was appraised at about $1 billion, according to CoStar.
The overhaul boosted demand for office space at the 940,000-square-foot complex, which Anderson says is 98% leased after the firm inked some 875,000 square feet of deals since 2022.
Private equity firm Ares Management Corp. signed a 12-year lease for 206,000 square feet at 1800 Avenue of the Stars in 2023 to relocate its Los Angeles headquarters from Hines’ 2000 Avenue of the Stars on the opposite side of the block, as the Business Journal previous reported. Other tenants include law firm Milbank, podcast group Dear Media and financial services firms Canyon Partners, Rockefeller Capital Management, Guggenheim Partners and Invesco.
Eastdil’s Mike Kathrein credited Anderson’s “clear vision” throughout the renovation for helping the towers emerge from “a period of significant change across the office market.”
The refinancing package and leasing boom “reflect the quality of the property and the continued appeal of Century City,” Kathrein added.
The towers were developed in the 1960s as Gateway East. The Anderson family bought 14-story building at 1800 Avenue of the Stars in 1983, and it has served as the firm’s longtime headquarters. In 2022, Anderson snapped up the 29-story 1900 Avenue of the Stars for about $185 million, the Los Angeles Times previously reported.
The terms of the $550 million refinancing are unclear. Spokespeople for Eastdil and Hogan Lovells Cadwalader declined to comment on the loan’s length or interest rate.
