$95M Loan Secured for LA Luxury Tower
- Jan 29, 2019
ASB Real Estate Investments has received $95 million in financing for WaterMarke Tower, a 35-story, Class A residential high-rise in Los Angeles’ downtown financial district.
Helaba provided ASB Allegiance Real Estate Fund—a core investment vehicle—with a 10-year non-recourse, floating-rate loan with an interest rate equal to One Month LIBOR plus a spread of 1.30 percent. Furthermore, the loan will be swapped at closing to a fixed rate of 3.957 percent.
“This is an attractive long-term financing on a superior multifamily investment,” David Quigley, ASB’s managing director & chief investment officer, said in prepared remarks. “We are also pleased to grow our relationship with Helaba.”
Originally built in 2009, WaterMarke Tower was purchased by ASB in 2014 in a $160.5 million deal.
Located at 705 W. 9th St., the 263,335-square-foot luxury high-rise comprises 214 units. The building boasts superior amenities and finishes, including a state-of-the-art fitness center, cardio room, catering kitchen, private dining room, wine cellar, private conference rooms, heated swimming pool and spa, billiards lounge, media room, dog park, Zen garden and parking for more than 350 vehicles.
The property also includes 9,000 square feet of retail space, currently occupied by Faith & Flower.
Downtown is the Place to Be
The building offers commanding views of the Los Angeles skyline and the Hollywood Hills and is situated within walking distance of prime downtown attractions, including numerous restaurants, entertainment complex LA Live and the popular retail center FIG@7th.
According to a Yardi Matrix multifamily market report, investors are drawn to the Los Angeles high occupancy rates and rising rents, as job and population gains underpin rental demand in the context of a high barrier to homeownership. Gains in the professional and business services and education and health services sectors also display high growth potential in the foreseeable future, supporting demand for high-end apartments.
At the time of the deal, WaterMarke Tower’s units were 95 percent leased.
Image courtesy of ASB Real Estate Investments