LOS ANGELES--(BUSINESS WIRE)--Jan. 28, 2005
Maguire Properties, Inc. (NYSE:MPG), a real estate
investment trust, today announced that it has entered into an
agreement with an affiliate of CommonWealth Partners, LLC to acquire a
significant number of assets from CommonWealth's Fifth Street
Properties Portfolio, a portfolio of office properties owned through a
partnership with Rockefeller Group International, Inc and the
California Public Employees Retirement System. The purchase price will
be approximately $1.51 billion which Maguire Properties intends to
initially fund with assumed debt and financing provided by Credit
Suisse First Boston. The acquisition is expected to close in the first
quarter of 2005.
Acquisition highlights include:
-- Upon completion, the portfolio will allow Maguire Properties
to substantially and rapidly grow its Southern California
asset base by three million square feet in a single
-- The trophy quality one million square foot Downtown L.A.
property at 777 S. Figueroa, designed by Cesar Pelli, is
located near the Company's Bunker Hill properties and its
acquisition will increase Maguire Properties' already dominant
LA-CBD market share.
-- The Glendale properties are in close proximity to the
Company's existing Glendale building and are well-positioned
to benefit from increasingly improving office market
fundamentals in that submarket.
-- The Orange County Pacific Arts Plaza property, adjacent to
South Coast Plaza and a unique array of upscale amenities, has
more than one-quarter mile of freeway frontage. The property
is highly complementary to the Company's Park Place and
Washington Mutual Campus projects and its acquisition will
further expand Maguire Properties' market share in one of the
strongest and fastest-growing real estate markets in the U.S.
-- The San Diego, La Jolla, properties allow Maguire Properties
to enter that submarket on a sizeable scale from which it
intends to substantially expand its market share.
Under the terms of the agreement, Maguire Properties has agreed to
acquire 10 office properties comprising nearly 5.0 million square feet
and four development sites entitled for over 1.5 million square feet
of office space. The portfolio is currently 86.4% leased.
Mr. Robert F. Maguire III, Chairman and Co-Chief Executive Officer
of Maguire Properties, said, "Our emphasis is to expand in high job
growth and severely supply constrained areas which should give us
higher returns. This acquisition fits our strategy very well and the
timing appears to be extraordinary. All of these markets: Los Angeles
suburbs, Orange County (Irvine), and San Diego (La Jolla), all have
vacancies of 10% or less with very little supply and strong job growth
which gives the potential of very high rent growth. This acquisition
will also increase our fully entitled development pipeline in Southern
California to over 5.0 million square feet. This low cost pipeline
gives us a substantial competitive advantage and the potential to
generate high returns in these markets. We believe this acquisition
should be very accretive to the Company."
The specific properties that Maguire Properties has agreed to
Existing Office Properties:
-- 777 Tower, Downtown Los Angeles
-- Pacific Arts Plaza, Orange County
-- 700 North Central, Glendale
-- 801 North Brand, Glendale
-- Wateridge Plaza, San Diego
-- Mission City Corporate Center, San Diego
-- Regents Square I & II, La Jolla
-- Wells Fargo Center, Denver
-- Austin Research Park, Austin
-- One Renaissance Square, Phoenix
-- 755 S. Figueroa, Downtown Los Angeles
-- 200 North Burchett, Glendale
-- Pacific Arts (residential and office), Orange County
-- Mission City Development, San Diego
Credit Suisse First Boston acted as financial advisor to Maguire
Properties in connection with the acquisition.
Maguire Properties intends to engage CommonWealth in an interim
contract for provision of management and leasing services for the
Fifth Street Properties portfolio.
Teleconference and Webcast
Maguire Properties will conduct a conference call and audio
webcast at 9:00 A.M. Pacific Time (12:00 P.M. Eastern Time) today to
discuss the CommonWealth acquisition. The conference call can be
accessed by dialing 800-443-9874 (Domestic), or 706-634-1231
(International). A replay will be available through February 4, 2005
by dialing 800-642-1687 (Domestic) or 706-645-9291 (International).
The required passcode for the replay is 3722177. The live conference
call and replay can be accessed via audio web cast at the Investor
Relations section of the Company's web site,
www.maguireproperties.com, or through CCBN at www.fulldisclosure.com.
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
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: risks that the
closing conditions to the above-described acquisition and/or financing
will not be satisfied and the acquisition and 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, including that increased leverage could adversely affect
the company's financial performance; risks that the company may not be
able to dispose of non-strategic assets at attractive valuations;
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; general risks affecting the real estate industry
(including, without limitation, the inability to enter or renew
leases, dependence on tenants' financial condition, and competition
from other developers, owners and operators of real estate); 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, including the
Company's most recent annual report on form 10-K. 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.
Peggy Moretti, 213-613-4558
Senior Vice President, Investor and Public Relations
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