Downtown LA Mid-Rise Multifamily Community Lands $78M Refi Package
Waterton's mid-rise multifamily community in Downtown Los Angeles has secured a refinancing package totaling $77.8 million.
The deal consists of two pieces of debt, both of which were arranged by Walker & Dunlop, led by the brokerage's Steve Carlson. One is $66 million through Fannie Mac, with the other $11.8 million in preferred equity from Tokyu Land US Corporation. The larger debt was arranged specifically by Walker & Dunlop's Jeremy Seid, Joe Tarantino, Justin Nelson, Eric Norris and Allan Edelson.
"We were pleased to arrange this financing package in close collaboration with the team at Waterton," Nelson said in a statement.
"The structure we delivered with Fannie Mae and Tokyu Land US Corporation provided a compelling blended cost of capital along with five years of fixed-rate term, positioning the sponsorship to continue harvesting value from a high-quality asset in a recovering Downtown Los Angeles market."
Waterton first acquired the site, known as OLiVE DTLA, in January 2021. The property was built in 2016, consisting of one and two-bedroom apartments, along with studios. The units offer a mix of loft and flat styles. Amenities in the community include a pool, fitness center and a sundeck on the rooftop.
The site at 1243 S. Olive St. sits in a mixed-use destination that's near the Financial and Fashion districts, USC facilities, the Crypto.com area, as well as various other employers and retail.
For LA as a whole, the fourth quarter of 2025 showed weakness in rents, which dropped by 0.6 year-over-year in buildings with 50 or more units, according to a recent report from JLL. However, trends look favorable in the future for multifamily in the city, as permitting fell to a 10-year low and just 0.8 percent of its inventory has been delivered over the past five years, well below the national average of two percent.
Source: GlobeSt/ALM