Tishman Speyer has secured a $125 million refinance for its large creative office building in El Segundo.
Royal Bank of Canada provided the debt on the 260,000-square-foot building at 555 Aviation Boulevard, according to the Los Angeles Business Journal. Cushman & Wakefield arranged the loan. Cushman’s Rob Rubano said the debt also provides “some future money to pay off the leasing,” according to the report.
Tishman purchased the property for $45 million in 2015 and repositioned the building as a creative office after tenant Xerox vacated in 2017.
Tishman signed global advertising firm Saatchi & Saatchi to an 80,000-square-foot lease there last year.
Overall, the Los Angeles office market has been struggling. Office vacancy climbed to 15 percent in the third quarter, from 13.7 percent in the second quarter. That compares to Q3 2019 vacancy, which stood at 12.6 percent.
Overall office occupancy fell by 2.7 million square feet in the third quarter, after a drop of 1.9 million square feet in the second quarter. [LABJ] — Dennis Lynch