17 Maguire properties for sale
Days after announcing it would buy 23 Southern California office buildings for almost $3 billion, Maguire Properties Inc. is putting 17 properties on the block.
The Los Angeles developer and landlord wants to sell buildings in Glendale, San Diego and Orange County totaling almost 4.7 million square feet of space, according to an offering being circulated to investors.
A representative for Maguire declined to comment Friday.
Maguire needs to sell the buildings to finance its pending purchase from New York investment firm Blackstone Group, said analyst Craig Silvers of Bricks & Mortar Capital. That transaction, expected to close this spring, would be the second-largest office transaction in Southern California history, after the $3.2-billion acquisition of Arden Realty Inc. last year by General Electric Co.
Silvers estimated that Maguire could command a price of about $1.75 billion for the properties, which would substantially reduce the debt Maguire was expected to take on in the Blackstone purchase.
Some of the buildings Maguire plans to sell are being acquired from Blackstone, such as Tower 17 in Irvine, but others have been owned by the real estate investment trust for years. The sale would end the company’s decade-long presence as a Glendale landlord.
Compared to Maguire’s trophy properties in downtown Los Angeles such as the 72-story U.S. Bank Tower, Silvers said, “these are less glamorous and in some cases might not exhibit growth potential that their downtown properties have.”
Maguire hopes to sell four buildings in Glendale totaling 950,000 square feet, two in San Diego totaling 708,000 square feet and 11 buildings in Orange County totaling more than 3 million square feet. Eight of the properties have government approvals for development nearby.
Among the largest properties to be sold are City Parkway in Orange, Brea Corporate Place in Brea and Bixby Ranch in Seal Beach. In San Diego, Pacific Center is the largest, and Glendale Center is Maguire’s largest property for sale in Glendale.
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