Douglas Emmett Inc. and Qatar Investment Authority continued their sweep of Westside office towers last week, announcing that their joint venture purchased two prime Santa Monica buildings for almost $353 million, or $1,205 a square foot.
The seller, Blackstone Group, acquired the properties as part of its 2007 acquisition of Equity Office Properties. Eastdil Secured brokered the late April transaction.
One building, a waterfront-facing tower at 1299 Ocean Ave., is 206,000 square feet and sold for $248 million, according to CoStar. The other, at 429 Santa Monica Blvd. in downtown Santa Monica, is 87,000 square feet and sold for $104.8 million.
Taken together, the per-square-foot value of the transaction topped the $1,165-a-square-foot value that Oracle Corp. paid for a pair of Santa Monica office buildings in November in one of the priciest ever deals per square foot for a large office complex in the market.
Douglas Emmett said in a statement that it provided 20 percent of equity for the deal. A $142 million loan contributed to the rest of the purchase price.
The deals bring the total Westside investment from Douglas Emmett, a Santa Monica real estate investment trust, and Qatar Investment Authority, based in Doha, Qatar, to more than $2 billion.
The companies purchased four Westwood office towers in March 2016 for $1.34 billion. In July, they bought a Brentwood office building for $225 million, and in September, they picked up a Santa Monica office building for $139.5 million.
Douglas Emmett said it owns more than 70 percent of the Class A buildings in Santa Monica, including four overlooking the Pacific.
Its Santa Monica buildings have an average occupancy of 97 percent, although this week’s acquisitions could drag that figure down. Office suites at 1299 Ocean Ave. are about 20 percent vacant, and those at 429 Santa Monica Blvd. are slated to soon be 30 percent vacant after previously scheduled move-outs.
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