Maguire Properties Agrees to Acquire Park Place in Orange County, California for $260 Million

Feb 10, 2004, 00:00 AM by User Not Found
LOS ANGELES, February 10, 2004 – Maguire Properties (NYSE:MPG), a real estate investment trust, today announced that it has entered into an agreement with an affiliate of Blackstone Real Estate Advisors to acquire Park Place in Orange County, California. The purchase price is approximately $260 million including the assumption of the existing mortgage and mezzanine financing of approximately $164 million. The acquisition is expected to close in the first quarter.

LOS ANGELES, February 10, 2004 – Maguire Properties (NYSE:MPG), a real estate investment trust, today announced that it has entered into an agreement with an affiliate of Blackstone Real Estate Advisors to acquire Park Place in Orange County, California. The purchase price is approximately $260 million including the assumption of the existing mortgage and mezzanine financing of approximately $164 million. The acquisition is expected to close in the first quarter.

Park Place is a Class A mixed-used office campus featured on 15 acres and comprised of one 10- story office tower, six 4-story office buildings, and a concourse building, located at the intersection of Jamboree Road and the San Diego Freeway (I-405) in the John Wayne Airport sub-market of Orange County. The property totals approximately 1.7 million square feet of office and retail space. The project is approximately 96% leased and is occupied by strong credit, nationally recognized tenants including ConAgra, State Farm Insurance, Washington Mutual, Etrade, Balboa Insurance, Caltrans, and Cingular Wireless.

Robert F. Maguire III, chairman and co-chief executive officer of Maguire Properties, said, “The acquisition of Park Place is consistent with our strategy of acquiring large scale, institutional quality assets with credit worthy, prominent tenants. Upon completion of this transaction, we will extend our portfolio into an important region of Southern California with a major presence, in a strong sub-market of Orange County and with a project of the scale and quality complementary to the rest of our portfolio. With the recent successful completion of our preferred stock offering we are well positioned to continue executing our external growth strategy focusing on opportunistic acquisitions.”

About Maguire Properties, Inc.

Maguire Properties, Inc. is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. Maguire Properties, Inc. is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. For more information on Maguire Properties, visit the Company’s website at www.maguireproperties.com.

Business Risks

This press release contains forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants’ financial condition, and competition from other developers, owners and operators of real estate); risks that the closing conditions to the above-described acquisition and/or financing will not be satisfied and the acquisition and/or financing not be completed as a result thereof; risks associated with the availability and terms of financing and the use of debt to fund acquisitions and developments; risks associated with the failure to manage effectively the Company’s growth and expansion into new markets or to integrate acquisitions successfully; risks and uncertainties affecting property development and construction; risks associated with downturns in the national and local economies, increases in interest rates, and volatility in the securities markets; potential liability for uninsured losses and environmental contamination; risks associated with our company’s potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended and possible adverse changes in tax and environmental laws; and risks associated with the Company’s dependence on key personnel whose continued service is not guaranteed. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.