JLL arranges $389.25M refinancing of downtown Los Angeles data center

Rhea-AI Summary

JLL's Capital Markets Group has successfully arranged a $389.25 million refinancing for One Wilshire, a significant technology asset located in downtown Los Angeles. This 661,553-square-foot facility serves as a critical data center and is recognized as a major hub for telecommunications between the U.S. and Pacific Rim. The 10-year, fixed-rate loan from Goldman Sachs will facilitate the payoff of the current loan and allow for equity repatriation. One Wilshire is currently 89 percent leased, positioning it as a vital asset amid increasing demand for data center space.

Positive

• Successful arrangement of a $389.25 million refinancing, enhancing financial flexibility.
• 89 percent leased, indicating strong demand and stability in occupancy.
• Major telecommunications hub recognized as one of the largest internet exchanges globally.

Negative

• None.

LOS ANGELES, Jan. 10, 2022 /PRNewswire/ -- JLL's Capital Markets Group announced today that it has arranged a $389.25 million refinancing for One Wilshire, a 661,553-square-foot, multi-tenant, critical technology asset comprising a tier 3+-equivalent data center and office space in downtown Los Angeles, California. The international telecommunications industry considers the building the most important point of connectivity between the United States and the Pacific Rim.

JLL worked on behalf of the borrower, GI Partners, to place the 10-year, fixed-rate, non-recourse, full-term, interest-only loan with Goldman Sachs. Loan proceeds will be used to pay-off the current loan early and repatriate a portion of the equity.

Standing at 30-stories tall with a façade of white marble and glass, One Wilshire is one of the largest internet exchanges in the world and the most interconnected terrestrial facility in the Western United States. It is 89 percent leased to major interexchange and local exchange carriers, financial services companies, data communication companies and Internet service providers. The property boasts five separate utility power risers and 13 on-site generators with fuel storage for 24 hours of operation and priority refueling status, along with separate and redundant data risers, exceptional antenna line of sight to much of the Los Angeles basin, a multi-tower antenna array and fiber connectivity to the rooftop.

Located at 624 S. Grand Ave., One Wilshire is at the epicenter of a vast in-ground fiber optic network. It is within Downtown Los Angeles, a vibrant district attracting high-growth tech, media and entertainment tenants, along with a highly educated workforce.

Demand for data center space has skyrocketed over the last two years. In 2020, increased data usage, including streaming services and virtual connectivity, caused record demand for data centers, which has continued through 2021. According to JLL Research's most recent Data Center Outlook, the Los Angeles Data Center market absorbed 7.0 MW during the first half of 2021, a 250 percent increase over the 2.0 MW absorption levels in 2020. JLL anticipates the demand for faster, safer and more reliable content delivery will continue to propel the Los Angeles Data Center market.

The JLL team was led by Executive Managing Director Kevin MacKenzie, Managing Director Brian Torp, Director Jake Wagner and Associate Samuel Godfrey with JLL's Capital Markets group, along with brokerage support from Managing Director Darren Eades.

"As one of the largest internet exchanges in the world, One Wilshire is truly a best-in-class asset recognized as the premier telecommunications hub of the Western United States," MacKenzie said. "GI Partners has done an excellent job managing the asset to maximize utilization and creating significant value. We were able to bring together a cross discipline team to secure the optimal results for our client, and all parties involved worked tirelessly to accomplish the goal of closing on a short time-line before year-end."

JLL's Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit our newsroom.

Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.

About GI Partners
Founded in 2001, GI Partners is a private investment firm with over 100 employees and offices in San Francisco, New York, Chicago, Greenwich, and Scottsdale. The firm has raised over $29 billion in capital from leading institutional investors around the world to invest in private equity, real estate, and data infrastructure strategies. The private equity team invests primarily in companies in the healthcare, IT infrastructure, services, and software sectors. The real estate team focuses primarily on technology and life sciences properties as well as other specialized types of real estate. The data infrastructure team invests primarily in hard asset infrastructure businesses underpinning the digital economy. For more information, please visit gipartners.com.

About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

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Contact: Kimberly Steele, JLL Manager, Public Relations
Phone: +1 713 852 3420
Email:  Kimberly.Steele@am.jll.com

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SOURCE JLL

FAQ

What is the significance of One Wilshire in the telecommunications industry?

One Wilshire is considered the most important point of connectivity between the U.S. and the Pacific Rim, highlighting its critical role in global telecommunications.

Who arranged the $389.25 million refinancing for One Wilshire?

JLL's Capital Markets Group arranged the refinancing on behalf of the borrower, GI Partners.

What will the proceeds from the refinancing be used for?

The loan proceeds will be used to pay off the current loan early and to repatriate a portion of the equity.

What is the current leasing status of One Wilshire?

One Wilshire is currently 89 percent leased, primarily to interexchange and local exchange carriers, financial services companies, and data communication firms.

What is the expected impact of increased demand for data center space on One Wilshire?

The ongoing high demand for data center space is expected to enhance the performance and value of One Wilshire, supporting its operational stability.