Douglas Emmett pays a record price for 1221 Ocean Avenue in the heart of prime Santa Monica
I don’t typically write about institutional transactions but this is what I would call a WOW price. Douglas Emmett, a firm that is very near and dear to me, paid a record-price for a multifamily asset in prime Downtown Santa Monica with the purchase of 1221 Ocean Avenue – which is certainly one of the most prestigious multifamily assets on the West Coast with unbelievable ocean views. The Seller was The Irvine Company, who had owned and operated the Class-A property for years. 1221 Ocean was one of a few assets that they own in Los Angeles – outside of their core market of Orange County.
Here are the deal Metrics:
- $330,000,000 Purchase Price
- 120 Unit Multifamily Property
- $2,750,000 per unit
- $1,800 per SF
- 98% leased at close
- 1,500 SF Average Unit Size
- Closed April 26, 2022
- Purchased in the low 3% Cap range
- DE plans to continue to significantly upgrade units and common areas
The deal was purchased via a new Joint Venture managed by Douglas Emmett in which they own a 55% interest. The property is a nice addition to the vast portfolio of Class-A office buildings which they own in the area, in addition to their sister multifamily assets also in Santa Monica – The Shores and Pacific Plaza. Congrats to my friends over at DE on this incredible acquisition!
