Douglas Emmett Inc., a publicly traded real estate investment trust (NYSE: DEI) has acquired 150 S. Rodeo Drive, a three-story, Class-A office building in Beverly Hills, Calif., for $42 million, or approximately $570 per sq. ft. The 73,753 sq. ft. property sold for $42 million, or about $570 per sq. ft.
The seller was New York-based investment firm Brickman. Cushman & Wakefield’s capital markets group, led by Executive Managing Director Marc Renard, arranged the transaction on behalf of Brickman.
With this acquisition, Douglas Emmett now owns and operates seven office properties in Beverly Hills totaling more than 1.4 million sq. ft. The Santa Monica-based company owns approximately 19% of the Class-A office space within this submarket.
Douglas Emmett’s total office portfolio now consists of 58 properties totaling approximately 14.7 million sq. ft. The company also owns 2,868 apartment units in Los Angeles and Honolulu.
“The irreplaceable nature of the asset combined with the high barriers to entry in this market generated global investor interest,” said Renard in a press release. “Investors from Indonesia Greece, Korea, Germany and the Middle East all pursued this iconic asset.” The favorable location and high quality of the building were big selling points.
The building is located within one block of the intersection of Wilshire Boulevard and Rodeo Drive. Built in 1991, 150 S. Rodeo Drive features a grand marble lobby, state-of-the-art, 53-seat screening room, and expansive rooftop deck with panoramic views of Beverly Hills and Century City. The property is within immediate walking distance of the luxury retailers and restaurants of Beverly Hills.
The seller, Brickman, owns and operates office and multifamily properties in major coastal markets. Through its investment vehicles, the firm owns and manages more than 4.5 million sq. ft. of office, hotel and residential real estate. Founded in 1992, Brickman owns $700 million of equity assets and has more than $3 billion of portfolio value under management.
The share price of Douglas Emmett stock closed at $19.82 on Wednesday, April 20, up from $16.56 a year earlier.