Douglas Emmett Inc. has announced that it has obtained a non-recourse $365 million term loan to refinance the bridge loan that was obtained in connection with the REIT’s acquisition of a six-office portfolio on March 26, 2008. This new loan is secured by the six-office portfolio. The loan bears interest at a floating rate equal to LIBOR plus 165 basis points, but the firm has entered into interest rate swap contracts that effectively fix the interest rate at 5.515 percent until September 4, 2012. The loan facility matures on August 18, 2013. Emmett does not have any debt maturities until 2012, except for its revolving credit facility, which matures on October 30, 2009 and has two one-year extension options. The portfolio was purchased in March 2008. it encompassed 1.4 million square feet in the six Class A office buildings\/ All are located in its core Los Angeles submarkets \u2013 Santa Monica, Beverly Hills, Sherman Oaks\/Encino and Warner Center\/Woodland Hills. At that time Emmett paid approximately $610 million, or $428 per square-foot. The portfolio was 89 percent leased at the time of purchase. An affiliate of the seller, Arden Realty, provided $380 million of first trust deed bridge financing for 9 months.Commenting on the acquisition at that time, Jordan Kaplan, President & CEO said, \u201cThe six properties are all located in submarkets where Douglas Emmett already has a very strong presence.\u201d The transaction has more than doubled the square-footage the firm controlled in the Beverly Hills submarket increasing our market share from 7.8 percent to 18 percent.The Company planned at the time of purchase to reposition and make capital improvements to a number of the buildings.Douglas Emmett\u2019s properties are concentrated in ten submarkets \u2013 Brentwood, Olympic Corridor, Century City, Santa Monica, Beverly Hills, Westwood, Sherman Oaks\/Encino, Warner Center\/Woodland Hills, Burbank and Honolulu.<\/p>\n","protected":false},"excerpt":{"rendered":"
Douglas Emmett Inc. has announced that it has obtained a non-recourse $365 million term loan to refinance the bridge loan that was obtained in connection with the REIT’s acquisition of a six-office portfolio on March 26, 2008. This new loan is secured by the six-office portfolio. The loan bears interest at a floating rate equal…<\/p>\n","protected":false},"author":1314,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1003840526","post","type-post","status-publish","format-standard","hentry","category-regions"],"acf":[],"yoast_head":"\n