Douglas Emmett gets $450 million seven-year term loan fixed at 2.26%

By Wendy Van Sickle

Columbus, Ohio, May 20 – Douglas Emmett, Inc. has closed a secured non-recourse $450 million interest-only loan that will mature in May 2027, according to a company news release.

The loan bears interest at Libor plus 135 basis points, which has been fixed at 2.26% per year following the expiration of the current swap, for an average fixed interest rate of 2.6% per annum through April 2025.

In connection with the new loan, Douglas Emmett paid off a $400 million loan scheduled to mature in July 2024.

Since May, Douglas Emmett said it has refinanced about $2.4 billion in debt. The company said the new debt has added almost five years to its debt term and reduced its current interest rate by nearly 35 bps.

Douglas Emmett has no remaining loan maturities before 2023, has fixed all of its floating-rate debt and has increased its pool of unencumbered properties available for future financings to 41% of its office portfolio.

The company said it will continue to monitor interest rates and spreads for additional opportunities.

Douglas Emmett is a real estate investment trust based in Santa Monica, Calif., that owns office and multi-family properties in Los Angeles and Honolulu.

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