Zelman Obtains $63M Refi for Los Angeles Asset

Zelman Development has secured a $63.2 million refinancing loan for Century Business Center, a 1.4 million-square-foot industrial park in Hawthorne, Calif., according to CommercialEdge information. UBS Bank issued the financing.

Previous debt consisted of a $57 million note issued by AIG in 2015, which was due to mature this September, the same source shows.

Located on 43 acres at 3901 Jack Northrop Ave., the property is about 6 miles from the Los Angeles International Airport and some 20 miles from the city’s port. Thoroughfares such as interstates 105 and 405 run within less than 3 miles of the park.

---

READ ALSO: Why SoCal Industrial Still Yields Opportunities

---

Featuring a total of seven buildings, Century Business Center debuted in four stages between 1939 and 1968. The park underwent renovations in 2008 and Zelman purchased it two years later for $40 million, CommercialEdge shows. In 2018, Zelman was looking to sell the asset for some $180 million, though no deal was closed.

Clear heights at the industrial park range from 18 to 35 feet, while truck courts vary between 60 and 380 feet. Century Business Center comprises 36 loading doors across all seven structures. The tenant roster includes SpaceX’s Starlink satellite internet provider.

Since its inception in the 1960s, Zelman has acquired and developed more than 10 million square feet of product. The company is active in the industrial, retail and hospitality sectors.

Industrial debt market shows resilience

Against the backdrop of uncertainty regarding tariffs and ongoing interest rate volatility, industrial debt origination decreased only 2 percent during the first quarter compared to the same period last year, according to a report by MBA.

However, tariff policy shifts also spurred some metro Los Angeles deals. Blackstone sold a 200,000-square-foot asset in the City of Industry, Calif., to a Taiwan-based company looking to expand its U.S. production lines. The property traded for $65.2 million.