Hines and JP Morgan Chase & Co. have refinanced an office complex in Century City for $1.2 billion.
The refinancing is for Century Plaza Towers, a two-building, 2.4 million-square-foot complex located at 2029 and 2049 Century Park East.
The debt was provided by Deutsche Bank, Wells Fargo & Co. and Morgan Stanley Bank.Â
Kroll Bond Rating Agency Inc. analyzed the loan. The loan collateral is $700 million of the refinancing total and is subject to interest-only payments.
The fixed-rate loan has a 10-year term.
The towers are currently undergoing a renovation that includes common areas. The property was built in 1975.
Century Plaza Towers is 92.9% leased to 122 tenants, including Bank of America and Manatt Phelps, according to Kroll.
Hines and JP Morgan Chase acquired the two buildings in 2014 as part of a partial sale of three buildings for roughly $1.6 billion, according to data from CoStar Group Inc. The third building was an 817,000-square-foot office building at 2000 Avenue of the Stars, which is not collateral for the debt.
All three buildings were owned by JP Morgan Chase, AT&T and General Motors Co. AT&T and General Motors sold their interest to a group including JP Morgan Chase and Hines.
Century City is among the most desirable office markets in Los Angeles. In the third quarter, the vacancy rate was a mere 4.3%, the lowest in L.A. County, according to data from Jones Lang LaSalle Inc. The asking rate for Class A office space was $6.42 per square foot, second to only Santa Monica in price.
Commercial real estate reporter Hannah Madans can be reached at [email protected]. Follow her on Twitter @HannahMadans
