GreenOak Real Estate Advisors and Rising Realty Partners obtained a $111 million floating rate loan for the historic CalEdison office building in Los Angeles. Invesco Real Estate provided the financing, while JLL arranged the deal.
Opened in 1931, the 14-story building at 601 West 5th Street was originally the headquarters of the Southern California Edison Company. According to the Los Angeles Conservancy, it was one of the first buildings in the western U.S. to have a heating and cooling system powered entirely by electricity. Rebranded as The CalEdison a few years ago, it is currently undergoing renovations for creative office use. Its stunning Art Deco lobby made of 17 different types of marble was restored and is now open to the public.
Rising purchased the property together with Lionstone Investments for $92 million in 2015. In December last year, GreenOak acquired its interest in the building from Lionstone for more than $140 million. Rising remained the operating and managing partner.
“When we acquired The CalEdison we implemented a vision to differentiate our office product through investing in best-in-class tenant improvements, a deep commitment to provide unique services, and creating a casual, refined ambiance more like a boutique hotel than something a tenant would expect to find in an office building,” Christopher Rising, Founder and President of Rising, told the Los Angeles Business Journal. “We’re thrilled that GreenOak shares our vision for the building and we look forward to working together to continue the great progress that we started three years ago.”
JLL brokered the sale and secured the new owners an $111 million loan. Steve Collins, Paul Spellman and Tom Bohlinger handled the sale. Spellman together with Reid McGlamery led the team that secured the financing.
“This historic building is in one of the most prominent locations in DTLA and is close to two major transit hubs. In addition to its excellent location, it is one of the finest examples of Art Deco architecture in the area,” Bohlinger said.
Tenants in the building include H&M Innovation Labs and the architectural firm Jerde Partnership. The listing brokers for the property are Industry Partners’ Carle Pierose and Robert D. Erickson.