Douglas Emmett Snags Premier 310,100-SF Los Angeles Office Property for $111M
- Oct 23, 2010
It’s official. Approximately one month after a bankruptcy court gave the green light for Douglas Emmett Inc. to acquire the 310,000-square-foot Wilshire Bundy Plaza in West Los Angeles, the deal is now done. The REIT, acting through its closed-end fund, has completed the $111 million purchase of the property, which sits in the city’s ritzy Brentwood submarket.
Douglas Emmett snapped up the 14-story tower at 12121 Wilshire Blvd. in a transaction that included the REIT’s assumption of approximately $56.4 million in existing debt carrying an interest rate of 5.67 percent. But there are no immediate maturity issues for the new owner to confront, as the amortizing term loan does not mature until April 2016.
Wilshire Bundy Plaza was not one of those highly anticipated–but disappointingly elusive–bargain-basement deals that investors had been eagerly awaiting since the collapse of the real estate market following its 2007 peak. At $358 per square foot, the purchase is indicative of the fact that, down cycle or up cycle, prime Los Angeles office real estate is, well, prime Los Angeles office real estate and investors will compete for the opportunity to grab such a property.
Cornerstone Real Estate Advisors was among the crowd of investors with a hungry eye on Wilshire Bundy Plaza when brokerage firm Madison Partners, tasked with handling the marketing process, first began accepting bids late last year. As noted in a first quarter report by real estate services firm Colliers International, “The bid-up of this asset is an indication that West Los Angeles office buildings in the most desirable submarkets will command a premium in terms of pricing.”