COMMERCIAL REAL ESTATE
Untitled Page
Maguire Properties not considering bankruptcy
The Los Angeles-based company will relinquish control of 7 buildings to lenders, 6 in Orange County.
By Susan BelknappPublished: August 10, 2009 02:50 AM
Maguire Properties Inc., one of the largest owners of office buildings in Southern California, is facing mortgage default from two subsidiaries; but the company denies it is considering bankruptcy.
To alleviate the financial pressure from the loss of mortgage payments, Maguire will turn seven of its properties back over to lenders. Stadium Towers Plaza in Anaheim, Park Place I and II in Irvine, 2600 Michelson in Irvine, Pacific Arts Plaza in Costa Mesa, 500 Orange Tower in Orange. These buildings, plus 550 S. Hope in Los Angeles represent $1.06 billion in debt.
Nelson Rising, chief executive, denied that bankruptcy was being considered and contended that Maguire was comfortable with its cash position and optimistic about attracting investment in its properties and the company itself.
According to Rising, once the defaults became imminent, the Maguire board approved the disposal of several properties to shore up its cash position. The company will no longer fund the cash shortfall on the mortgages, however, it made itself available to manage the properties until a receiver is appointed.
It recorded a non-cash impairment charge of $345 million associated with the assets, which include Park Place I and II properties in Irvine and several other buildings.
NEXT PAGE >>
Related headlines
‘OC METRO Minute,’ August 10: Irvine may receive $58 million from Lennar Corp. for the Great Park
‘OC METRO Minute,’ Anaheim Redevelopment Agency receives EPA grant
Surfrider’s San Clemente headquarters earns LEED Gold Certification
|
||||
|
Maguire Properties Inc., one of the largest owners of office buildings in Southern California, is facing mortgage default from two subsidiaries; but the company denies it is considering bankruptcy. To alleviate the financial pressure from the loss of mortgage payments, Maguire will turn seven of its properties back over to lenders. Stadium Towers Plaza in Anaheim, Park Place I and II in Irvine, 2600 Michelson in Irvine, Pacific Arts Plaza in Costa Mesa, 500 Orange Tower in Orange. These buildings, plus 550 S. Hope in Los Angeles represent $1.06 billion in debt. Nelson Rising, chief executive, denied that bankruptcy was being considered and contended that Maguire was comfortable with its cash position and optimistic about attracting investment in its properties and the company itself. According to Rising, once the defaults became imminent, the Maguire board approved the disposal of several properties to shore up its cash position. The company will no longer fund the cash shortfall on the mortgages, however, it made itself available to manage the properties until a receiver is appointed. It recorded a non-cash impairment charge of $345 million associated with the assets, which include Park Place I and II properties in Irvine and several other buildings. NEXT PAGE >> Related headlines ‘OC METRO Minute,’ August 10: Irvine may receive $58 million from Lennar Corp. for the Great Park ‘OC METRO Minute,’ Anaheim Redevelopment Agency receives EPA grant Surfrider’s San Clemente headquarters earns LEED Gold Certification |
||||
