Maguire Set to Sell Off OC Properties
- Jun 16, 2008
About a month after appointing a new CEO, debt-troubled Maguire Properties Inc. is moving forward with a number of initiatives intended to deal with its problems, including the sale of office properties in Orange County, Calif. Other steps the company is taking include changes to senior management, seeking additional financing, and returning company headquarters to Downtown Los Angeles. Last month, as reported by CPN, Maguire Properties’ board selected Nelson Rising to head the company’s turnaround efforts. Rising worked for Maguire before leaving to become chairman & CEO of Catellus Development Corp. in 1994. During Rising’s 11-year stint with Catellus, he oversaw its evolution from a railroad land company to a diversified development company and REIT. Catellus merged with industrial giant ProLogis in 2005 in a transaction valued at $5.5 billion. In the near term, according the Maguire Properties, one of its main goals will be to sell some of its Orange County assets, with the proceeds going mainly to retire some of the worrisome debt that the company loaded up with in recent years to make acquisitions. In early 2007, it bought much of the former Equity Office portfolio in Southern California. Specifically, the company has hired Eastdil Secured to market Park Place, a 105-acre mixed-use real estate campus in Irvine. The Park Place property dates back to the late 1970s, but still has undeveloped areas. Maguire paid about $475 million for the property in 2004, and has since developed an additional office building in the complex. The personnel changes recently announced by Maguire include the departure of CFO Martin Griffiths, executive vice president Paul Rutter, and senior vice president of marketing William Flaherty. They are expected to leave sometime next month.