Thanks, Google!

LA’s Maguire Properties has lost another bundle on another Orange County property, selling a 3-building complex in Orange that at one time served as a headquarters for the now-defunct Ameriquest subprime lending empire.

While terms weren’t publicly available, your blogger did a little sluething for a rough purchase price for twin 10-story glass office towers and a four-story office building that were 71% empty as of Dec. 31 …

• Per Maguire’s annual report, it’s cost basis ran $140 million as part of the ill-fated 2007 purchase of the Blackstone-EOP portfolio of commercial properties.
• That same report noted a $99 million mortgage on the complex.
• Per this latest press release, Maguire says the transaction — a “conveyance” — resulted in a non-cash impairment charge of approximately $40 million.” Maguire had $2 million in cash costs from the sale.
• Thus, some simple math — acquisition costs minus loss — gets you a $100 million sales price.

The buyer, Abbey Co. of Long Beach, called it an “all-cash” purchase that included the purchase of the property’s mortgage from the lender. Abbey, owner of 53 California properties, also noted:

• Abbey has owned the adjacent Cityview Plaza office property since 1993.
• Abbey’s Kurt Kaufman: “we believe this was the appropriate time to acquire an asset like City Parkway, which prior to mid-2008 had historically exhibited high occupancy rates due to its ideal central Orange County location, at a price substantially below replacement cost due to the current real estate market disruption.”

Note: In Irvine, an office tower next to the 405 looks to cost Maguire $73 million in losses. That sale should close soon.

Other industry news …

Posted in: Commercial property • Top tale • industry • Maguire Properties • Orange • troubled |

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