Douglas Emmett Strikes $1.07B Refi of Pacific Multifamily Portfolio
Douglas Emmett has refinanced a nine-property multifamily portfolio located in two Pacific states for nearly $1.07 billion.
Walker & Dunlop, which arranged the deal and announced it today, accomplished the move through multiple transactions this year, all of which were done through the Fannie Mae DUS program.
The portfolio covers 3,099 units in Hawaii and California. The cities and the properties were not named.
Jordan Kaplan, CEO and president at Douglas, referred to the deal structure in a statement as "complicated" — but it was done that way to provide the "most favorable market pricing" for the company.
Allan Edelson, senior managing director of multifamily finance at Walker & Dunlop, along with his team, led the refinancing efforts on behalf of the brokerage.
“This transaction represents more than just refinancing, it delivers significant value to Douglas Emmett’s shareholders at a highly competitive rate,” Edelson said.
“Our team has been working side by side with Douglas Emmett for over a decade, and this execution reflects the strength of that relationship and their exceptional portfolio.”
The deal comes a day after Douglas announced a separate refinancing of eight residential properties, under a $941 million transaction. The REIT noted that it will continue to explore refinancing deals on its 2026 scheduled maturities. The Santa Monica-based firm has no maturities coming up this year.
Across multifamily nationally, a staggering $120 billion in loans are scheduled to mature before 2027, according to a recent analysis by Trepp. A chunk of those loans feature interest rates below six percent and Debt Service Coverage Ratios under 1.20x. While Trepp noted that this makes refinancings challenging for borrowers, the firm did note that the landscape will create a buying opportunity for investors.
Source: GlobeSt/ALM