Santa Monica, CA-based Douglas Emmett acquired two more office buildings in downtown Santa Monica totaling roughly 293,000 square feet for a combined purchase price of roughly $352.8 million. The assets, located at 1299 Ocean Ave. and 429 Santa Monica Blvd., are being purchased by an existing joint venture that includes Qatar Investment Authority (QIA) from Blackstone Group.
A portion of the purchase price was provided by a $142-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.
The acquisitions increase Douglas Emmett’s ownership share of the downtown Santa Monica Class A office market from 55% to 71%. The same consolidated joint venture also acquired 12100 Wilshire Boulevard and 233 Wilshire Boulevard in 2016.
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