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QIA and Douglas Emmett Acquire 233 Wilshire Boulevard

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.

233 Wilshire Building Photo

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.

Delaware Corporations
Entity File Number
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

Tagged: DE Partnership with Qatar