An office building in downtown has received a $24 million loan for building improvements. Funds managed by downtown-based Oaktree Capital Management is financing improvements to elevators, HVAC, plumbing, lighting and exteriors with the loan.
The property, at 444 S. Flower St., is a 48-story, more than 910,000-square-foot office tower. Tenants include Morgan Stanley, Industrious and law firm Fisher Phillips.
PACE Loan Group closed the C-PACE loan, which allows property owners to finance recent and future improvements focused on things like energy efficiency and water conservation.
“In a marketplace where ESG (environmental, social and governance) continues to be a priority for tenants, it’s essential that we continue to lead by example,” Bryan Sather, managing director at Oaktree, said in a statement.
“By investing in sustainability, we not only enhance the tenant experience, but secure long-term value and differentiate 444 S. Flower from competitive office assets,” he added.
Robbie Pinkas of PLG arranged the financing.
“What’s interesting about C-PACE is that sponsors don’t necessarily have to go above and beyond to qualify for financing. Tenants benefit from the landlord investment in refreshed spaces and tangible reductions in utility costs, creating a win-win scenario for all stakeholders,” he said.
