Blackstone and LBA Realty have secured a $270 million refinancing for an office campus in Culver City, Southern California. The transaction is structured as a Commercial Mortgage-Backed Securities (CMBS) refinancing, indicating that the loan is securitised into tradable instruments. Nomura Holdings, an integral part of Japan's largest investment bank and brokerage Nomura Group, is providing the loan for the property. This underscores institutional investors' continued confidence in high-quality office properties in strategically important markets.
The property in question is One Culver, a prominent asset spanning 378,377 square feet at 10000 Washington Boulevard. Its location is of particular significance: the campus is situated directly next to the renowned Sony Pictures Studios and in close proximity to Amazon Studios and Sony Pictures Animation. This concentration of media and entertainment companies in the surrounding area significantly enhances the attractiveness of the location, positioning One Culver as a sought-after address for tenants from these sectors.
Property features and financing details
One Culver is distinguished by its diverse usage options. In addition to modern office spaces, the complex includes three sound stages, retail shops, dining options and an Equinox fitness studio. This blend of work, leisure and service offerings contributes to the campus's appeal and functionality, providing a comprehensive environment for its users. The refinancing aims to repay existing debt totalling $310 million. Furthermore, closing costs of $5.8 million are anticipated and are to be covered within this transaction.
This latest financing round comes more than four years after a previous capital measure. At that time, Blackstone partnered with LBA to recapitalise the property in a comprehensive deal valued at over $500 million. This repeated financing activity underscores the long-term commitment to and value appreciation of the property. Blackstone holds a significant 90 per cent stake in One Culver, highlighting the asset's strategic importance for the company.
LBA originally acquired the property in 2014 for $159 million. Subsequently, a comprehensive renovation, designed by Gensler, was completed in 2017. These modernisation measures have not only significantly enhanced the property but also improved its functionality and aesthetic appeal to meet the demands of today's office real estate market. The investments in infrastructure and amenities significantly contribute to the enduring value of One Culver.
