Dealmaker: Douglas Emmett, QIA Acquire The Glendon for $365M
Michael Tucker email@example.com
Douglas Emmett Inc. and the Qatar Investment Authority paid $365 million for The Glendon, a large mixed-use development in Los Angeles' Westwood Village neighborhood.
Real estate investment trust Douglas Emmett and sovereign wealth fund QIA added the asset to their existing real estate partnership. QIA and Douglas Emmett have acquired nine office buildings in west Los Angeles along Wilshire Boulevard and in downtown Santa Monica to date. This purchase represented their first residential real estate joint investment.
Built in 2008 at 1060 Glendon Avenue, The Glendon occupies 4.25 acres within walking distance of the UCLA campus and the Ronald Reagan UCLA Medical Center in Westwood. The neighborhood will also be home to the 2028 Olympic Village. The Glendon's multifamily units and its ground floor retail are both 97 percent leased.
The joint venture received a $160 million non-recourse interest-only loan for the acquisition. The financing, which will remain fixed for the first eight years at 3.25 percent, matures in June 2029 and bears interest at Libor plus 0.98 percent.
Douglas Emmett provided 20 percent of the equity capital and manages the joint venture. The REIT now owns 11 apartment communities in Los Angeles and Honolulu totaling more than 4,000 units and a 72-property office portfolio totaling 18.4 million square feet.