Douglas EmmettInc. and Qatar's sovereign wealth fund, the Qatar InvestmentAuthority, bought a class A Los Angeles office property for $225 million.
The 365,000-square-foot property is at 12100 Wilshire Blvd.in the Brentwood submarket. The purchase price equates to $616 per square foot.With the acquisition, Douglas Emmett said, its ownership share of the Brentwoodclass A office market has risen to 61% from 50%.
Douglas Emmett, which will be the manager of the jointventure, expects to retain an equity interest of between 20% and 30%, with therest held by institutional partners.
Owing to the property's below-market occupancy, the companysaid, it was bought using a new secured, nonrecourse $90 million interest-onlyloan, which bears interest at a floating rate of LIBOR plus 1.55% and maturesin July 2019. The property will be 77%leased, including known move-outs.