Douglas Emmett Plans $200M-$250M Westwood Conversion, Boosts Leasing Momentum

Douglas Emmett Inc. plans a $200M-$250M conversion project in Westwood, while showcasing strong leasing momentum in both office and residential portfolios. The company leased 973,000 square feet of office space, including over 300,000 square feet of new leases.

Douglas Emmett Inc. (DEI), a leading real estate investment company, has announced plans to convert its recently acquired 10,900 Wilshire office property in the Westwood submarket into a residential development worth between $200 million and $250 million. This announcement comes amidst strong leasing momentum in both office and residential portfolios, with the company reporting significant leasing activity in the second quarter of 2025 [2].

In the second quarter, Douglas Emmett leased 973,000 square feet of office space, including over 300,000 square feet of new leases. This strong leasing activity has contributed to positive absorption across the company's total portfolio for three of the last four quarters [2]. The company's residential portfolio also performed exceptionally well, with full occupancy, increasing rents, and same property cash NOI growth exceeding 10% [2].

The Westwood residential submarket has significant unmet demand from UCLA faculty and executives, making it an attractive location for residential development [2]. Douglas Emmett plans to convert the existing 247,000 square foot office tower into apartments and integrate it with a new residential building on Ashton Avenue. The total project cost is expected to range from $200 million to $250 million, with the first apartments in the existing office tower set to be delivered within the next eighteen months [2].

Douglas Emmett's CEO, Jordan Kaplan, highlighted the company's transition in the real estate market, stating that the company expects this conversion to enhance the value of 10900 Wilshire and reduce office vacancy in the submarket. The company's strong financial health, as indicated by a healthy current ratio of 2.29 and an impressive Piotroski Score of 7, supports these ambitious plans [2].

Despite the earnings beat in the second quarter, Douglas Emmett's stock fell by 3.8% to $15.12, reflecting investor caution over broader market conditions and future guidance. The company's stock currently offers an attractive dividend yield of 5.03%, significantly higher than its 5-year average of 4% [2].

References:
[1] https://seekingalpha.com/news/4480361-douglas-emmett-outlines-200m-250m-westwood-conversion-plan-while-strengthening-leasing
[2] https://za.investing.com/news/transcripts/earnings-call-transcript-douglas-emmett-q2-2025-earnings-beat-estimates-93CH-3823719