REAL ESTATE NEWS

Anderson Real Estate has refinanced its office campus in Century City, Los Angeles, for $550 million, highlighting the developer's bullishness on the property that has recently been renovated, even at a time when interest rates are on the rise.

The loan for the two-building campus at 1800 and 1900 Avenue of the Stars was provided primarily by Wells Fargo. JPMorgan Chase served as the secondary lender, with Eastdil Secured Savills arranging the deal on behalf of Anderson.

Adding To Renovation

The refinancing of Anderson Towers is a part of a multi-year repositioning program. Since 2021, Anderson Real Estate has poured more than $300 million into the buildings.

The investments allocated capital for improvements to features including lobbies, building facades, outdoor spaces and common areas. Completed in 2025, the renovation efforts were led by Dillon Diers of OJB Landscape Architecture and David Montalba of Montalba Architects.

Altogether with the refinancing, the moves express Anderson's long-term confidence in the buildings. That's despite the 10-year Treasury seeing sustained levels of 5 percent in recent weeks, with Pimco fearing that the yield could possibly reach 6 percent.

"We've invested in Anderson Towers because we believe deeply in the long-term strength of Century City and in creating office environments that will continue to attract leading companies to Los Angeles," Matt Lavin, executive chairman of Anderson, said in a statement.

"The leasing success we have achieved across the campus has validated that conviction. This financing represents another important milestone for Anderson Towers and underscores our long-term commitment to these properties and the broader Los Angeles community."

Benefiting From Leasing Activity

So far, the bets appear to be paying off for Anderson, with the office campus attracting significant leasing activity in recent years.

Since 2022, the property has attracted roughly 875,000 square feet in new leases. This includes Ares Management's 12-year, 206,000-square-foot deal at 1800 Avenue of the Stars in 2023. The building now serves as Ares' LA headquarters.

As of now, the over 1.4 million-square-foot property sits at 98.1 percent leased. Some other tenants include Savills, Milbank LLP, Canyon Partners, Rockefeller Capital Management, Guggenheim Partners, Dear Media and Invesco.

Plus, it's worth noting the Los Angeles office recovery, with the key market of Hollywood Mid-Wilshire seeing its occupancy loss streak snap recently, as vacancy dipped by 60 basis points year-over-year in the second quarter. That was thanks to positive absorption.

But for investors, the story isn't all about a specific market. It's that the flight-to-quality trend in office continues to triumph, meaning the best quality spaces perform the best.

So even in a new era with volatile interest rates, investing in top-tier office space may be enough to offset macroeconomic headwinds.

Source: GlobeSt/ALM