Dealmaker: Douglas Emmett JV Pays $177M for Beverly Hills Office Building

Douglas Emmett Inc., Los Angeles, acquired 9665 Wilshire Boulevard, a 171,000-square-foot Class A office property, for $177 million.

The property will be held by an existing joint venture with Qatar Investment Authority, Doha, Qatar. The same joint venture acquired nearby properties 1299 Ocean Avenue and 429 Santa Monica Boulevard for $352.8 million in April.

The Real Deal Los Angeles reported seller Blackstone, New York, acquired 9665 Wilshire Boulevard in 2006.

Real estate investment trust Douglas Emmett provided 20 percent of the equity capital and manages the joint venture. The venture secured a $77.5 million non-recourse interest-only loan that bears interest at LIBOR plus 1.55 percent and matures in July 2019.

The 85 percent leased property is in Beverly Hills’ “Golden Triangle” shopping district adjacent to several high-end restaurant and retail shops. With this acquisition Douglas Emmett owns more than 25 percent of Beverly Hills’ Class A office market.

For Qatar Investment Authority, the acquisition represents a step forward in its plan to significantly expand its U.S. investment portfolio. It follows other large Class A real estate investments including the Manhattan West project in New York in 2015 and a 9.9 percent interest in Empire State Realty Trust last year. QIA has announced plans to invest $35 billion in North America over the next five years.

Douglas Emmett’s office portfolio now includes 70 office properties totaling 18.3 million square feet. The firm also owns 10 apartment communities in Los Angeles and Honolulu totaling 3,320 units and has 850 residential units under development.