GI secures $389 million to refinance One Wilshire
11 January 2022 | Melanie Mingas
GI Partners has secured a $389 million loan from Goldman Sachs to refinance One Wilshire, one of the largest internet exchanges in the world and the most interconnected terrestrial facility in the Western US.
Arranged by JLL, the 10-year interest only loan will allow GI to pay off existing finance and repatriate a portion of the equity on the 30-storey tower.
"As one of the largest internet exchanges in the world, One Wilshire is truly a best-in-class asset recognised as the premier telecommunications hub of the Western United States," said Kevin MacKenzie, executive MD and head of the team at JLL.
MacKenzie was supported by colleagues Brian Torp, MD; Jake Wagner, director; and Samuel Godfrey, associate, alongside JLL's Capital Markets group. Brokerage support was provided by MD Darren Eades.
MacKenzie continued: "GI Partners has done an excellent job managing the asset to maximize utilisation and creating significant value. We were able to bring together a cross discipline team to secure the optimal results for our client, and all parties involved worked tirelessly to accomplish the goal of closing on a short time-line before year-end."
The 661,553-square-foot, multi-tenant, critical technology asset comprises a tier 3+-equivalent data centre and office space and is considered the most important point of connectivity between the US and the Pacific Rim.
JLL described the property as being "at the epicentre of a vast in-ground fiber optic network".
It boasts five separate utility power risers and 13 on-site generators with fuel storage for 24 hours of operation and priority refuelling status, along with separate and redundant data risers, antenna line of sight to much of the Los Angeles basin, a multi-tower antenna array and fibre connectivity to the rooftop.
One Wilshire is 89% leased to major interexchange and local exchange carriers, financial services companies, data communication companies and ISPs.
According to JLL's own research, the LA market absorbed 7MW of new supply during the first half of 2021, a 250% increase on the 2MW absorption level recorded in 2020.
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