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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) NOVEMBER 27, 1996
ARDEN REALTY, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
MARYLAND 1-12193 95-4578533
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
9100 WILSHIRE BOULEVARD, EAST TOWER, SUITE 700 90212
BEVERLY HILLS, CALIFORNIA
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (310) 271-8600
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On November 27, 1996, Arden Realty, Inc. (collectively with its subsidiaries,
the "Company") completed a series of transactions to acquire three suburban
office properties totaling 295,182 rentable square feet from unaffiliated
entities.
The first property, 1970 and 1990 E. Grand Avenue, El Segundo, California,
comprises 84,500 rentable square feet and is vacant. The purchase price for the
property was approximately $3,450,000, which was based on arms length
negotiations. The Company plans to complete capital improvements to the
property over the next three months for approximately $1,100,000 and then
initiate lease up of the property. Quoted market rental rates are $16.20 per
square foot, although there can be no assurance that the Company will be able to
achieve rents at this level. The property was purchased from Continental
Grand Company, a California limited partnership.
The second property, 2730 Wilshire Boulevard, Santa Monica, California, contains
55,080 rentable square feet of office space and 16 apartment units comprising
12,740 square feet. The purchase price for the property was approximately
$9,500,000, which was based on arms length negotiations. The office building is
presently 93% occupied, at average rents of $21.00 per square foot. The quoted
market rental rates are $21.00 per square foot. The apartments are presently
100% occupied, at average rents of $1.23 per square foot per month. The
property was purchased from Kennedy-Wilson, Inc.
The third property, Burbank Executive Center, contains two office buildings
totaling 142,862 rentable square feet. The purchase price for the property was
approximately $13,000,000, which was based on arms length negotiations. The
property is presently 92% occupied, at average rents of $18.84 per square foot.
Quoted market rental rates are $19.20 per square foot. The property was
purchased from Property Asset Management Inc.
The Company financed these acquisitions with its existing $104,000,000 bridge
loan with Lehman Brothers Holdings, Inc., bringing the outstanding balance on
that loan to $78,000,000.
Inclusive of these purchases, the Company's portfolio consists of 28 suburban
office properties comprising 4,415,151 rentable square feet and 16 apartment
units.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) FINANCIAL STATEMENTS OF PROPERTIES ACQUIRED.
It is impracticable to provide the required financial statements at the time of
the filing of this report. The required financial statements for the acquired
properties will be filed as an amendment to this Form within 60 days.
(b) PRO FORMA FINANCIAL INFORMATION.
It is impracticable to provide the required pro forma financial information at
the time of the filing of this report. The required pro forma financial
information will be filed as an amendment to this Form within 60 days.
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(c) EXHIBITS.
10.33* Agreement of Purchase and Sale and Joint Escrow Instructions for 1970
and 1990 East Grand Avenue, El Segundo, California, by and between
Continental Grand Company and Arden Realty Limited Partnership
10.34* Purchase and Sale Agreement between Kennedy-Wilson, Inc. and Arden
Realty Limited Partnership.
10.35* Agreement of Purchase and Sale by and between Arden Realty Limited
Partnership and Property Asset Management Inc.
* To be filed by amendment.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ARDEN REALTY, INC.
Date: December 13, 1996 By: /s/ Diana M. Laing
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Diana M. Laing
Chief Financial Officer
