The owners of a 301,000 square foot Class-A office property in Los Angeles' South Bay have successfully completed a refinancing for the asset. Related Companies and Cruzan obtained the US$64.7 million loan from Waterfall Asset Management and Delaware Life. This financing serves to secure the eight-storey property, known as The Torrance, named after its home city, which represents a key anchor point in the region.
The asset, located at 21250 Hawthorne Boulevard, boasts an impressive occupancy rate of 93 per cent, according to current data from Yardi Matrix. The tenant structure is diverse and includes renowned companies from various sectors, among them All Nippon Airways, Salon Republic, Barrister Executive Suites, Compass California, Unio Health Partners, and Morgan Stanley. This broad tenant base underscores the property's attractiveness and stability in the local market.
The debt financing was arranged by a team consisting of Jordan Roeschlaub, Nick Scribani, and Chris Lozinak from Newmark. The building itself was constructed in 1988 and has since undergone several changes of ownership and refinancing rounds. Related and Cruzan acquired the property in 2017 from Stream Realty Partners for US$106.8 million. They had already secured a previous refinancing of US$59.2 million in 2022, which highlights the continuous investment and value preservation of the asset.
The South Bay region has benefited significantly in recent years from increasing demand from aerospace and defence companies. This applies to both office and industrial spaces. This development has contributed to strengthening the local real estate economy and increasing attractiveness for investors. The continuous development of these sectors supports the high occupancy rate and value appreciation of properties such as The Torrance.
Nevertheless, the office market in Greater Los Angeles remains profoundly bifurcated. After the second quarter, the overall vacancy rate stood at 25.3 per cent, which is almost unchanged from the end of 2025. This high figure reflects the challenges in some market segments. In contrast, so-called 'Trophy Properties' or premium properties show a significantly lower vacancy rate of 13.5 per cent, as research by Newmark shows. This discrepancy illustrates the differing performance within the market, with high-quality properties continuing to be in strong demand.