Posted: June 1st, 2017
To finance its latest round of property acquisitions, publicly traded real estate investor Douglas Emmett Inc. (NYSE: DEI) has partnered with the sovereign wealth fund of Qatar. (Learn more about Qatar and the QIA)
In September 2016, QIA and Douglas Emmett made a splash in Santa Monica in Los Angeles County. The partners used a joint venture vehicle to acquire 233 Wilshire Boulevard, a 129,000 square foot Class A office property in Los Angeles.
The purchase price was $139.5 million, consisting of $83.7 in the partners’ capital and a $55.8 million loan.
|Address||Purchase Date||JV Vehicle||Square Feet (Type)||Value|
|233 Wilshire Boulevard||Sept 2016||DE Pacific 12100 LLC||129,000 SF office property||$139.5M purchase|
Per reports, Douglas Emmett reduced its capital interest in the consolidated joint venture to 20 percent through the planned sale of a portion of its interest to another unspecified sovereign wealth fund investor, not the QIA.
Per a Douglas Emmett 8-K stock disclosure (dated 1 November 2016), the joint venture financed 40% of the acquisition cost using a $55.8 million secured, non–recourse interest-only loan that matures in July 2019 and bears interest at LIBOR + 1.55%.
One UCC in Delaware was located in connection with the transaction. It reveals the lender to be Bank of America—the same lender as in the acquisition of 12100 Wilshire Boulevard.
|Debtor||Secured Party||Date||State||Filing #||Filing Type|
|DE Pacific 233 LLC||Bank of America||Sept 27, 2016||DE||20165934284||Original|
Delaware again turns up a series of companies bearing the moniker “DE Pacific”. Per public records, the series of DE Pacific firms leads to Douglas Emmet Properties LP as the ultimate manager or member.
|DE Pacific 12100, LLC||6069343|
|DE Pacific 1299, LLC||6353643|
|DE Pacific 233, LLC||6106715|
|DE Pacific 429, LLC||6353647|
|DE Pacific Manager, LLC||6069317|
|DE Pacific Member, LLC||6069323|
|DE Pacific Operating Company, LLC||6069335|
|DE Pacific Venture, LLC||6069328|