JMB Realty, a Chicago-based investment firm, has successfully obtained funding for its ambitious Century City development project in Los Angeles. The firm finalized a significant $575 million construction loan for the construction of a state-of-the-art 730,000 square foot office tower at 1950 Avenue of the Stars, according to a report from The Real Deal.
The financing was provided by an affiliate of Cale Street, UK-based investment firm. Cale Street, backed by the prestigious Kuwait Investment Office and the Kuwait Investment Authority, has emerged as a key player in facilitating this transaction.
The lead lender, Cale Street entity, spearheaded the financing package, with additional lenders remaining undisclosed according to loan documents. The involvement of sovereign wealth funds and international investment entities like Cale Street highlights the project’s attractiveness amid evolving market dynamics, where traditional US lenders have exhibited caution due to remote work trends and tenant uncertainties.
Despite initial challenges in securing financing, primarily attributed to market hesitancy surrounding office assets, JMB Realty’s Century City project has garnered substantial pre-leasing commitments. Notably, Creative Artists Agency, law firm Sidley Austin, and private equity firm Clearlake Capital have already committed to leasing significant portions of the building.
The tower is scheduled for completion by 2026.
