- The Anderson family’s 940,000 SF Century City campus secured a $550M CMBS refinancing expected to close Oct. 15, retiring about $300M of debt and returning roughly $219M in cash.
- A $205M renovation in 2025 lifted the campus to 95.5% leased, with Ares Management and top law firms as anchors and recent leases signed about 32% above prior rents.
- Lenders are concentrating on a narrow set of upgraded, well-located buildings while Los Angeles overall carries record 16.4% vacancy, so older competitors face tougher financing.
The twin towers at 1800 Avenue of the Stars in Century City have landed a $550M commercial mortgage-backed securities refinancing, one of the largest office loans in the U.S. this year, according to CoStar. The deal is expected to close Oct. 15.
S&P’s Christopher Kropas and Alexandre Hanoun say capital keeps flowing to a handful of leased-up, well-located offices even as the broader sector struggles.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
What Lenders Are Backing
The loan backs a recently renovated campus that is nearly full. Finance and law firms anchor the property, while rents and occupancy outperform the broader market. Zack Streit of Priority Capital Advisory, who was not involved in the deal, called a $550M office refinancing rare but not a fluke.
CoStar’s Catherine Yeh said lending has picked up significantly. However, capital still targets a narrow group of assets. Lenders must believe in both the property and its surrounding area.
A Cash-Out in an Unlikely Market
The financing would retire about $300M in existing debt and cover tenant-leasing obligations. It would also return roughly $219M to Anderson Family Properties affiliates. As a result, ownership can extract cash while retaining control.
Such cash-out deals remain rare in the office sector. Lenders generally prefer owners to keep more equity invested while property values remain uncertain.
Appraised High, Underwritten Lower
The 940,000 SF campus carries an appraised value of about $1.025B. However, S&P used a more conservative value of roughly $642M. Its assumptions included higher vacancy, expenses and a higher capitalization rate. Even so, the property ranks among Southern California’s most valuable assets.
The towers overlook the Los Angeles Country Club. A pedestrian bridge also connects them to Westfield Century City, one of the region’s busiest malls by foot traffic.
Renovation Drives the Leasing
In 2025, a roughly $205M overhaul added new lobbies, landscaped outdoor work areas and updated building systems. Today, the campus is 95.5% leased. Since 2022, tenants have signed leases covering about 875,000 SF at rates roughly 32% above those of earlier leases.
Ares Management relocated from the neighboring 2000 tower and committed to more than 206,000 SF. That represents roughly one-fifth of the campus. Its lease runs through 2036. S&P also reports that Ares spent more than $400 per SF on its buildout.
Overall, tenants have invested an estimated $125M in their spaces. That equals about $310 per SF. Meanwhile, remaining lease terms now extend beyond the new loan’s term.
Major law firm tenants include Milbank, Irell & Manella, Baker Hostetler and Jeffer Mangels Butler & Mitchell.
Zooming Out
Other major office financings include a $630M refinancing of Miami’s 830 Brickell Plaza in December. Manhattan’s 31 W. 52nd St. secured about $500M in July, while 9 W. 57th St. received a $1.8B loan in May.
Locally, this deal far exceeds the $265M Pacific Design Center refinancing from 2023. It also dwarfs the $270M One Culver deal now in progress.
Still, the broader market faces significant challenges. Los Angeles office vacancy has reached a record 16.4%, compared with a pre-pandemic average of 9.6%. Hybrid work continues to reduce space needs, as recent Los Angeles office leasing trends show.
Why It Matters
Century City’s top buildings recorded 13.6% vacancy in Q2. Comparable Los Angeles properties, by contrast, had 25.4% vacancy. According to CoStar data cited by S&P, asking rents in Century City approach $94 per SF, with some trophy space exceeding $100. That performance helps explain why the campus secured financing.
The takeaway for other owners is clear. Major upgrades and long-term leases can attract lenders, while older towers continue to struggle. This divide reflects the price reset outlined in Los Angeles CRE investor interest.
What’s Next
Following a September visit, S&P reported that the owner was negotiating with a private equity tenant to lease most of the remaining vacant space. If the parties sign a deal, the lease would reduce vacancy further. It would also reinforce the trend of tenants and lenders concentrating on a small group of heavily upgraded buildings.
