Qatar investor JV buys L.A. office building
Douglas Emmett, on behalf of a consolidated joint venture with the Qatar Investment Authority, has acquired a 365,000-square-foot class A office property located at 12100 Wilshire Blvd. in the Brentwood submarket of Los Angeles for $225 million.
The acquisition increases Douglas Emmett’s ownership share of the Brentwood class A office market from 50 percent to 61 percent. Douglas Emmett will manage the joint venture and expects to retain a 20 percent to 30 percent equity interest, with the remainder held by institutional partners.
The property is 77 percent leased, significantly below the 97 percent average of Douglas Emmett’s existing Brentwood portfolio. Because of the below-market occupancy of the property, it was acquired using a new secured, nonrecourse $90 million interest only loan that matures in July 2019. The loan bears interest at a floating rate of LIBOR plus 1.55 percent.
Douglas Emmett’s total office portfolio now consists of 67 office proper