Los Angeles-based Douglas Emmett Inc., a real estate investment trust, has recently acquired 9665 Wilshire Blvd., a 171,000-square-foot class A office property for $177 million. The 85% leased property is located in the heart of the Beverly Hills golden triangle, immediately adjacent to world class restaurants and retail amenities.
According to a prepared statement, the acquisition increases Douglas Emmett’s ownership share of the Beverly Hills class A office market to more than 25%.
The property will be held by an existing consolidated joint venture with institutional investors including Qatar Investment Authority. The same consolidated joint venture also acquired 1299 Ocean Ave. and 429 Santa Monica Blvd. in April 2017.
A portion of the purchase price was provided by a $77.5 million secured, non-recourse interest only loan to the joint venture that matures July 2019 and bears interest at Libor plus 1.55%. Douglas Emmett provided 20% of the equity capital and manages the joint venture.
Douglas Emmett’s total office portfolio now consists of 70 office properties totaling approximately 18.3 million square feet. The REIT also owns 10 premier apartment communities in Los Angeles and Honolulu comprising 3,320 units, and approximately 850 residential units under development.
For QIA, this acquisition represents another step in its plans to significantly expand its US investment portfolio, and follows other large class A investments in real estate, such as the Manhattan West project in New York City in 2015, the acquisitions of the Westwood Office Portfolio with Douglas Emmett, and a 9.9% interest in Empire State Realty Trust in 2016. QIA has announced plans to invest $35 billion in North America over five years.