Bank of America has provided a $42.6 million acquisition loan on a 238,205 sq ft office building in the Los Angeles area.
The bank provided the five-year, floating rate loan with two, one-year extension options to a partnership between EverWest Real Estate Partners and The Rhone Group. HFF arranged the deal.
The building is located at 465 North Halstead in Pasadena, California, in the Tri-Cities area of Los Angeles. The property currently has eight tenants including Giant Magellan Telescope, Community Bank, Sierra Lobo and OeWaves. It is 89 percent leased and was renovated in 2015.
Office real estate in the Tri-Cities — home to JPL, Caltech, the Art Center College of Design and multiple Fortune 500 companies –has become an increasingly competitive market, as asking rents increase and the area grows into another California tech hub, according to a Cushman & Wakefield report released this Spring.
“As global investor confidence continues to stabilize, [TriCities’] strong fundamentals represent an attractive investment opportunity with several trophy properties set to hit the market in the coming months,” read the report.
Tri-Cities overall vacancy rate continued declining to 12.9 percent at the end of first quarter this year, a 2.0 percent decrease from this time last year, with 435,613 sq ft of office space leased, while the area marked its ninth consecutive quarter of positive absorption, according to C&W.
Bank of America ended last year with $296.1 billion in assets under management, according to its annual report.