How a $35M Deal Saved a California Landmark from Financial Ruin

MARINA DEL REY, CA – December 02, 2025 – One of Southern California’s most recognizable residential landmarks, the Marina City Club, has secured a financial lifeline to fund a transformative overhaul. Western Alliance Bank, through its specialized Alliance Association Banking group, has provided $35 million in financing, enabling the historic property to undertake sweeping structural repairs and amenity upgrades. Crucially, the deal was structured to completely avoid a special assessment, sparing more than 600 homeowners from a potentially ruinous financial blow that had loomed over the community for years.

The financing package marks a pivotal moment for the iconic trio of curved towers, a fixture on the coastline since the 1970s. It resolves a period of intense uncertainty for residents who faced the prospect of footing a repair bill estimated to be in the tens, or even hundreds, of millions of dollars. Instead, the community can now focus on a revitalization project designed to secure its legacy for decades to come.

A Legacy on the Brink

Designed to be a resort-style community from its inception, Marina City Club has a history intertwined with the ambitious legacy of Howard Hughes, whose capital quietly financed the project in the early 1970s to retain top talent at his aircraft company. The three towers were among the first high-rises in Marina del Rey, their unique curved design maximizing waterfront views and establishing them as an icon of modernist coastal architecture. For fifty years, they have represented a unique vision of luxury coastal living.

But time and the elements had taken their toll. In recent years, the landmark faced a growing crisis of deferred maintenance. Engineering reports confirmed the need for extensive work, including waterproofing a massive recreation deck, overhauling aging elevator systems, and addressing widespread moisture intrusion. While the towers were deemed structurally sound, the scope of necessary repairs was vast, with some estimates climbing as high as $140 million.

This situation placed the community’s homeowners in a precarious position. For Homeowners Associations (HOAs), such massive capital expenditures are typically funded through reserve funds or, when those are insufficient, through special assessments—large, one-time fees levied on each owner. For Marina City Club residents, this threatened a staggering financial burden, potentially amounting to tens or even hundreds of thousands of dollars per household. The prospect created significant anxiety, with the Los Angeles County Department of Beaches and Harbors, the ultimate landowner, applying pressure for the repairs to be made and raising the specter of the buildings being deemed uninhabitable if action wasn't taken.

Navigating a Labyrinth of Ownership

The challenge of funding the repairs was magnified exponentially by Marina City Club’s exceptionally complex ownership structure—a key reason traditional financing was not a viable option. Unlike typical condominium developments, the property sits on land owned entirely by Los Angeles County. Residents do not own the land beneath their homes but rather a subleasehold interest in their units, which is tied to a master ground lease that expires in 2067.

This framework involves a delicate balance of interests between multiple powerful stakeholders. Los Angeles County acts as the landlord, focused on rent revenue and the proper maintenance of its valuable coastal asset. The Marina City Club Owners Association represents the condominium owners, tasked with managing common areas and resident welfare. Adding another layer, Essex Property Trust, a major real estate investment trust, is also involved as a master lessee for the property's apartment and commercial components.

For any financial institution, this multi-layered arrangement of ground leases, subleaseholds, and competing stakeholder interests presents a daunting underwriting challenge. Structuring a loan required a lender capable of navigating the legal and financial intricacies to create a solution acceptable to the county, the master lessee, the HOA, and the bank itself. This complexity is precisely what makes the $35 million deal so noteworthy.

“Western Alliance Bank understood the complexity of this project and was instrumental in helping us move forward with improvements that maintain the property’s integrity and enhance the experience for everyone who lives here,” said Jennie Twyman, general manager of Marina City Club, in a statement.

The Anatomy of a Tailored Financial Solution

Enter Western Alliance Bank’s Alliance Association Banking group, a division that has carved out a niche in the highly specialized market of HOA financing. This sector has grown in importance as residential communities across the country, many built decades ago, confront the reality of aging infrastructure. Rather than forcing HOAs into the often contentious process of levying special assessments, specialized lenders can provide loans that spread the cost over time, making vital projects feasible without destabilizing a community’s finances.

For Marina City Club, the bank developed what it described as a “tailored financing structure” that worked within the property’s unique framework. This involved intensive collaboration with all parties to ensure the loan terms aligned with the ground lease conditions and satisfied the requirements of the county, the HOA, and Essex Property Trust.

“Marina City Club has a long and storied history in Marina del Rey and remains one of the area’s most iconic residential communities,” noted Roula Sakellakos, a vice president at the bank. Daniel Corwin, vice president of HOA lending, added that the financing “will ensure the property continues to shine as the jewel of Marina del Rey for generations to come.” By navigating the intricate stakeholder relationships and the leasehold property constraints, the bank effectively unlocked the capital needed to resolve a long-standing maintenance crisis.

Betting on the Future: Pickleball and Property Values

The $35 million infusion is not merely for patching up the old; it's a strategic investment in the property’s future. The project includes fundamental structural work, such as waterproofing and resurfacing the recreation deck and modernizing the elevator systems—repairs essential for the property's integrity and safety.

Beyond these critical repairs, the financing also fuels a significant upgrade to the community's resort-style amenities. The plans reflect a clear understanding of the modern luxury real estate market, often described as an “amenities arms race.” New additions will include barbecue areas, basketball and bocce courts, and redesigned gathering spaces. Perhaps most emblematic of this forward-looking approach is the construction of what is being touted as the only indoor pickleball court in the Los Angeles area—a direct nod to one of the fastest-growing recreational trends in the country.

These enhancements are designed to do more than just satisfy current residents. They aim to boost the property’s competitiveness, attract new buyers, and ultimately increase property values. For the homeowners at Marina City Club, the financing deal delivers a powerful dual benefit: it resolves a critical and costly maintenance issue without personal financial pain while simultaneously investing in lifestyle upgrades that enhance the value and appeal of their homes for years to come.