$230M in Financing Secured for West Los Angeles Office Complex

The Water Garden, a premier office complex in the beach community of Santa Monica, Calif., has just been financed for $230 million. The loan on the 1.3 million square-foot property (pictured) was provided for owner The Water Garden Co., an entity controlled by J.P. Morgan Asset Management.Newmark Realty Capital Inc. orchestrated the financial package, which came in the form of a fixed-rate loan provided by Teachers Insurance and Annuity Association of America. Designed by the architectural firm of McLarand, Vasquez & Partners Inc., the Water Garden occupies a 17-acre parcel and encompasses six structures that are six-stories high, as well as two five-story buildings and underground parking to accommodate 4,000 vehicles. The loan is for the Water Garden’s Phase I segment, which was developed in 1990. The second phase was completed in 2000.Located on Olympic Blvd. and just a stone’s throw from Wilshire Blvd., the Water Garden is one of the top trophy office properties in the area, providing easy access to the 10 and 405 freeways, as well as Los Angeles International Airport. Securing Class A office digs in the highly coveted area is not for the faint of heart. “West L.A. markets, which include Santa Monica, are arguably among the tightest in the country,” Mark Ritchie, a principal with Newmark, told CPN today. “And monthly rental rates for super-institutional class properties on the Westside are in the $6-plus per-square-foot range, and the Water Garden is certainly one of these types of properties.”