Related and Cruzan Refinance South Bay Office Tower With $64.7 Million Loan

Related and Cruzan Refinance South Bay Office Tower With $64.7 Million Loan

Related Companies and Cruzan have closed a $64.7 million refinancing on the Torrance, an eight-story, 301,000-square-foot Class A office building at 21250 Hawthorne Boulevard in Torrance, Calif., according to an announcement this week. The debt was provided by Waterfall Asset Management and Delaware Life.

Newmark’s Jordan Roeschlaub, Nick Scribani and Chris Lozinak arranged the financing on behalf of the borrowers.

The asset, constructed in 1988, currently runs at 93 percent occupancy according to Yardi Matrix. Its tenant roster spans several industries, including All Nippon Airways, Salon Republic, Barrister Executive Suites, Compass California, Unio Health Partners and Morgan Stanley.

Related and Cruzan purchased the property from Stream Realty Partners in 2017 for $106.8 million and previously refinanced it in 2022 with a $59.2 million loan, making the new facility a step up in proceeds from the prior deal.

Market Context

The South Bay submarket has drawn elevated interest from aerospace and defense tenants seeking both office and industrial space, a tailwind that has supported demand at well-positioned assets like the Torrance. Still, the broader Greater Los Angeles office market remains sharply split between tiers. Overall vacancy stood at 25.3 percent following the second quarter, roughly flat from year-end 2025, while trophy-quality buildings posted a 13.5 percent vacancy rate, per Newmark research — a gap underscoring how financing terms and tenant demand increasingly concentrate in newer or higher-spec properties.

Refinancings of this scale remain closely watched across the sector as older office loans originated in prior rate environments come due, with lenders differentiating sharply between well-leased assets and those facing rollover risk.

What to watch

• Occupancy trends at the Torrance, including lease expirations among major tenants such as All Nippon Airways and Morgan Stanley.
• Updates to Greater Los Angeles office vacancy figures in upcoming quarterly brokerage research.
• Further aerospace and defense leasing activity in the South Bay submarket.
• Additional refinancing activity on 1980s-vintage Class A office assets across the L.A. region.

Source: original release