Commercial Observer

The owners of a 301,000-square-foot Class A office property in Los Angeles’ South Bay have secured refinancing for the property. Owners Related Companies and Cruzan landed the $64.7 million loan from Waterfall Asset Management and Delaware Life for the eight-story property called the Torrance, named after its home city.

Ares Management has acquired two fully leased warehouses in Miami-Dade County from BGRE for a combined $108.7 million, property records show. In the larger transaction, the L.A.-based asset manager paid $65.3 million for a 230,147-square-foot, 15-acre distribution center at 3811 West 108th Street, located between Florida Turnpike and Interstate 75 in Hialeah.

It’s déjà vu for GAIA Real Estate. The developer landed for the second straight year a one-year extension for its $48 million loan  on loan with Raymond James Bank backing a multifamily property at 55 Hope Street in Williamsburg, Brooklyn, Commercial Observer can first report. The extension pushed the loan maturity to August 2027, which will be five years after Gaia acquired the 1907-built and 2012-renovated apartment building previously utilized as a pencil factory.

Patreon is staying put at its offices in Manhattan’s Hudson Square. The membership and monetization platform, which allows creators to build communities and share exclusive content, has signed a sublease renewal for 44,661 square feet at Hudson Square Properties’ 75 Varick Street, according to a monthly office report from CBRE. The renewal was confirmed by Patreon.

Residential towers grow in Brooklyn. Affordable and mixed-income housing developer Ailanthus has filed a rezoning application with the New York City Department of City Planning to build a 17-story, 175-foot-tall mixed-use residential development at 424 Hoyt Street in Gowanus, Brooklyn.

Human resources technology company Gusto has doubled its footprint at Vornado Realty Trust’s 2.5 million-square-foot Midtown office tower Penn 1, also known as 1 Pennsylvania Plaza. The deal includes a 13-year lease expansion that added 38,000 square feet across the tower’s 47th floor. The company also opted for a five-year renewal of its 52nd-floor lease, which also spans 38,000 square feet, bringing its total footprint at the building to 76,000 square feet.

Payroll employment in the U.S. increased by 162,000 jobs in August, but that uptick did little to reduce the nationwide 4.1 percent unemployment rate. In its monthly jobs report released Friday, the U.S. Bureau of Labor Statistics (BLS) said the biggest increases in hiring were in the food and beverage service industry and local government education. Meanwhile, wage growth slowed, with average hourly earnings increasing only 3.1 percent year-to-date in 2026.

Nearly four years after mortgage rates surpassed 6 percent for the first time since the height of the 2008 financial crisis, borrowing conditions for homeowners and prospective buyers have remained stubbornly elevated with no signs of abating anytime soon. The average U.S. 30-year fixed mortgage rate went up to 6.02 percent from 5.89 percent  for the week ending Sept. 15, 2022, marking the first time since November 2008 it had crossed that 6 percent threshold.

Century City has long been one of Los Angeles’ most concentrated office districts, but Reuben Brothers is betting that the area’s next chapter will look far more residential, experiential and luxury-driven. At Century Plaza, the development firm is building up around the Fairmont Century Plaza hotel and Park Elm condominiums, layering in restaurants, galleries, expansive wellness offerings and a revamped public plaza.

One of Washington, D.C.’s largest office-to-residential redevelopments has secured a new majority partner and $175.6 million in construction financing. A partnership of Stonebridge, the Bernstein Companies and Criterion Real Estate Capital sold a 72 percent stake in the conversion of 1990 K Street NW to an entity managed by MetLife Investment Management for $58.7 million, according to records reported by the Business Journals.