Onni Group Gets $240M Construction Loan for 60-Story DTLA Tower

Onni Group, a Vancouver-based development firm, has secured a $240M construction loan for its 60-story residential tower in Downtown Los Angeles, according to The Real Deal.

Loan Lookup

The project, located at 230 West Olympic Boulevard, will feature 685 residential units and 15 KSF of commercial space. 

Onni purchased the site in 2017 for $24.5M and filed development plans with the city the following year, solidifying its position as one of the largest apartment developers focused on Downtown LA.

Wells Fargo and other lenders provided nearly a quarter of a billion in financing, though the specific terms of the loan were not disclosed.

Finding Financing

Onni’s new construction loan comes as the firm continues to refinance its portfolio across Los Angeles County. 

In addition to the Olympic and Hill tower, Onni recently refinanced three other buildings with $300M in senior and mezzanine financing, as part of a larger $1B CMBS and mezzanine loan package from Wells Fargo (WFC), Citi Real Estate (C), and Goldman Sachs (GS).

While Downtown LA’s office market has faced significant struggles, including tenant departures and distressed asset sales, the residential sector remains resilient. 

According to Zumper, average monthly rents for apartments in Downtown LA rose 3% over the past year, compared to a 3% decline in rents across the broader city.

Looking Ahead

As Onni Group moves forward with its Downtown LA project, the residential market’s strength offers optimism. 

Despite challenges in the office sector, the demand for residential space in the area continues to grow, with Onni’s development poised to contribute significantly to the revitalization of the neighborhood.