Douglas Emmett Inc. late Tuesday said it paid $232 million to acquire Bishop Square, an office project in downtown Honolulu that is considered the largest complex of its type in the state of Hawaii.
The Santa Monica real estate investment trust said the 960,000-square-foot complex is comprised of two office towers, an above-ground parking structure and a one-acre park that is a popular meeting area in Honolulu’s central business district. The property is currently 91 percent leased, with about 200 tenants.
Bishop Square was acquired using the REIT’s available cash and revolving credit facility. The transaction increases Douglas Emmett’s market share of Class “A” properties in the business district from 15 percent to 36 percent, it said.
“It has been a primary focus of our Hawaii acquisition strategy since we purchased our first property in Honolulu in 2004, so we are extremely pleased that we have been successful in acquiring this premier property,” Chief Executive Jordan Kaplan said in a statement.
In addition to Honolulu, the company’s office and apartment properties are concentrated in nine Los Angeles County submarkets: Brentwood, Olympic Corridor, Century City, Santa Monica, Beverly Hills, Westwood, Sherman Oaks/Encino, Warner Center/Woodland Hills, and Burbank.
Douglas Emmett shares earlier closed down 57 cents, or 3.7 percent, to $14.54 on the New York Stock Exchange.
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