GlobeSt.com EXCLUSIVE: Douglas Emmett Advisors Lands Nearly $2B in Financing

LOS ANGELES-Douglas Emmett Realty Advisors has closed on $1.8 billion in loans to refinance seven of the funds it manages, GlobeSt.com has learned. The US offices of Germany-based Eurohypo and the UK's Barclays were the lead banks on the package of syndicated loans, which are secured by Emmett's extensive holdings of class A properties in the West.The company would not comment on the deal, but industry sources tell GlobeSt.com that the firm, which manages pension fund money and owns some of the top trophy properties on the West Coast, sought the refinancing to take advantage of lower rates and spreads. The loans are all seven-year, interest-only adjustables that float over Libor.Those who engineered the loan package at Eurohypo included Ben Marciano, Al Koch and Cliff Rooke in New York. The Barclays team included Mike Mazzei in New York and Ed Chirba in Los Angeles. When the loans went to market for syndication, they were not only oversubscribed they were double-subscribed, according to industry sources, meaning that the banks participating in the syndication were willing to lend Emmett twice the amount that it sought to borrow.The banks' willingness to provide financing in part reflects the quality of the assets held by Emmett. One source describes the Emmett portfolio as "tons of super class A buildings" primarily office and luxury apartment properties. The seven funds that were refinanced own something in the neighborhood of 50 properties in California and Hawaii. Among these holdings are the Warner Center Towers in Warner Center, the Sherman Oaks Galleria in Sherman Oaks and the 100 Wilshire office building overlooking the Pacific Ocean in Santa Monica.