Tower for $616 Per SF: Hines Sells California

In Los Angeles, Hines has sold the 12100 Wilshire building in the Brentwood area of Los Angeles for $225 million or $616 per SF.

The 19-story building was purchased by a joint venture of the Douglas Emmett Inc. REIT of Santa Monica, Calif. and the Qatar Investment Authority.

Hines, on behalf of its U.S. Office Value Added Fund II, purchased the 350,000 SF building from RREEF in 2007.

Designed by Tracy Price Associates, 12100 Wilshire was completed in 1985. The building, which is ranked LEED GOLD, features ocean views.

The building is 77 percent leased.

The purchase increases Douglas Emmett’s ownership share of the Brentwood Class “A” office market from 50 percent to 61 percent.

Douglas Emmett will manage the joint venture and expects to retain a 20% to 30% equity interest, with the remainder held by institutional partners. Due to the below market occupancy of the property, it was purchased using a new secured, non-recourse $90 million interest only loan that matures in July 2019. The loan bears interest at a floating rate of Libor plus 1.55%.

Douglas Emmett’s total office portfolio now consists of 67 office properties totaling approximately 17.6 million sq ft. Douglas Emmett also owns ten apartment communities in Los Angeles and Honolulu comprising 3,336 units.

July 21, 2016