Douglas Emmett buying 1299 Ocean for roughly $290M: sources

JV with QIA is in talks to acquire 429 Santa Monica, too

TRD LOS ANGELES /
Mar.March 08, 2017 07:12 PM

It’s hard to outbid Douglas Emmett.

The company, known for paying top dollar and holding assets long-term, is in contract to purchase the Wilshire Palisades building for about $287 million, or $1,400 a square foot, sources told The Real Deal. If the deal to purchase the property from Blackstone Group closes, it would be the highest per-square-foot sale price in Santa Monica’s history.

Other bidders for the 11-story, 205,000-square-foot, ocean-facing property at 1299 Ocean Avenue included Boston Properties, sources said. But Douglas Emmett (DEI) blew the pack away by offering a stiff premium – when TRD wrote about the building being shopped around last month, sources familiar with the property said they expected it to trade for about $238 million, or $1,165 a square foot.

The deal is expected to close in the coming months, sources said.

The mega-landlord’s joint venture partner on the deal is Qatar Investment Authority, sources said, but this could not be confirmed. QIA, the sovereign wealth fund of Qatar, was DEI’s joint venture partner on a $1.34 billion acquisition of a Westside office portfolio from Blackstone last year.

DEI is also in talks to acquire the 86,700-square-foot office at 429 Santa Monica Boulevard from Blackstone for more than $73.7 million, or $850 a square foot, sources said. QIA is said to be a partner on that deal as well. 

Eastdil Secured has the listing for Wilshire Palisades but its brokers could not be reached for comment, nor could HFF’s Ryan Gallagher, Andrew Harper, and Michael Leggett, the brokers marketing 429 Santa Monica.

The current per-square-foot price record in Santa Monica is $1,165, set by Oracle’s purchase of 2700 Colorado late last year.

DEI could not immediately be reached for comment. Blackstone declined to comment.


Related Articles

arrow_forward_ios
Blackstone CEO Stephen Schwarzman, and the building (Credit: Google Maps)

Blackstone pays $62M for Southeast LA warehouse

Blackstone pays $62M for Southeast LA warehouse
The Tower at Burbank at 3900 West Alameda Avenue with Jeffrey Worthe and Blackstone Group President Jonathan Gray (Getty, Google Maps)

Here’s what tenants pay at Blackstone and Worthe’s Tower at Burbank

Here’s what tenants pay at Blackstone and Worthe’s Tower at Burbank
Blackstone’s Jon Gray and 1777 Center Court Drive in Cerritos (Getty, Google Maps)

Blackstone sells Cerritos office building for $44M

Blackstone sells Cerritos office building for $44M
A Brentwood fire came at Douglas Emmett owned building

Brentwood high-rise fire comes after owner sued for negligence

Brentwood high-rise fire comes after owner sued for negligence
From left, clockwise: Daydream Apartments’ Griffin and Grace on Spring, Douglas Emmett’s The Glendon at Westwood and Carlyle Group’s Sofia Los Angeles

Here are LA’s 5 biggest multifamily sales of 2019

Here are LA’s 5 biggest multifamily sales of 2019
The sale of the Ace Hotel was the biggest L.A. County hotel buy in 2019 (Credit: Google Maps)

Here are the biggest LA hotel sales of 2019

Here are the biggest LA hotel sales of 2019
Blackstone CEO Stephen Schwarzman and TruAmerica CEO Robert Hart

Blackstone digs deeper into SoCal with massive rental portfolio buy

Blackstone digs deeper into SoCal with massive rental portfolio buy
Clarion Partners CEO David Gilbert, Douglas Emmett CEO Jordan L. Kaplan and the Glendon

Douglas Emmett dives into multifamily pool with $365M resi buy in Westwood

Douglas Emmett dives into multifamily pool with $365M resi buy in Westwood
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...