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GI Partners Lands $389M Refinance For DTLA Internet Hub, One Wilshire

One Wilshire

Downtown LA's One Wilshire, one of the largest internet exchanges on the planet, has been refinanced in a deal nearing $400M. 

JLL arranged the $389.25M refinancing for the approximately 661K SF multi-tenant data center and office property on behalf of the building owner, Menlo Park-based private investment firm GI Partners.

One Wilshire is considered to be the most important telecommunications connectivity point between the U.S. and the Pacific Rim by the industry, according to a release from JLL. The building is the “primary terminus” for fiber optic cables that link North America and Asia, the Los Angeles Times once reported.

One Wilshire is 89% leased with tenants including AT&T, VerizonTime Warner Cable and CoresiteThe Real Deal reports

Goldman Sachs provided the loan for GI, which will use part of the funds to repay an existing loan on the property. GI bought the building in 2013, paying $437.5M. Public records show that GI received an $80M loan from Cantor that same year. It was set to mature in 2023.

The last two years have been active ones for data centers. As the pandemic pushed more activities online and led to an increase in demand for digital content, the demand for data centers grew too. The trend that began in 2020 continued through 2021 in a big way, Bisnow has reported, with the industry showing consistent revenue growth.

In Los Angeles specifically, the data center market absorbed 7 megawatts in the first half of 2021, according to a JLL report published in September, marking a 250% increase over 2020 levels, when LA absorbed 2 megawatts. 

“JLL anticipates the demand for faster, safer and more reliable content delivery will continue to propel the Los Angeles Data Center market,” JLL said in the announcement of the deal. 

JLL’s team was led by Executive Managing Director Kevin MacKenzie, Managing Director Brian Torp, Director Jake Wagner and associate Samuel Godfrey, with brokerage support from JLL Managing Director Darren Eades.