Douglas Emmett (DEI) said Friday that it has purchased about 17% of the equity in one of its existing unconsolidated real estate funds for roughly $95 million in cash and operating partnership units, taking its ownership in the fund to about 89%.
In addition, Douglas Emmett and one remaining institutional investor in the fund have agreed to extend the fund term to 2049.
The fund owns six class A office properties aggregating 1.5 million square feet in the prime Los Angeles submarkets of Beverly Hills, Santa Monica, Sherman Oaks/Encino and Warner Center. It also holds a stake in another Douglas Emmett unconsolidated real estate fund which owns two additional class A office properties totaling 386,000 square feet in Beverly Hills and Brentwood.
Douglas Emmett expects the fund to be treated as a consolidated entity under generally accepted accounting principles following the acquisition.