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Globest.com UPDATE: Maguire Completes $185M Deal

SORRENTO MESA, CA-The Los Angeles-based REIT acquires San Diego Tech Center from Rreef. The 38-acre office campus counts 647,000 sf and includes an additional 1.2 million sf of office entitlements for development.

By Daniel D. Williams | Updated on April 14, 2005

SORRENTO MESA, CA-Maguire Properties Inc., Los Angeles’ largest owner and operator of class A office space, has completed a San Diego area deal it announced last month. In the deal, Maguire purchased San Diego Tech Center, a 38-acre office campus for $185 million. Maguire funded the acquisition through a $133 million ten-year loan, bearing interest at a fixed rate of 5.70% and cash on hand. Credit Suisse First Boston handled the note. The REIT used a tax deferred reverse exchange structure on the expected gains coming from the sale of its Glendale Center property.The 11-building, 647,000-sf complex counts some $286 per sf for the existing property plus land that’s been approved for an additional 1.2 million sf of development. The San Diego Tech Center campus is 92% leased and among its major tenants are Sony Computer Entertainment, Qualcomm, and Broadcom Corp. Also on the property are a private athletic club, a Karl Strauss Restaurant and Brewery and a five-acre Japanese Garden. Entitlements for phase II call for three mid-rise buildings ranging in size from 154,000 sf on seven floors to 330,000 sf on 11 floors. “We are excited about the prospects of this acquisition as it gives us predominant market share in a high growth market and the potential of strong rent growth,” Maguire says in a released statement. The addition of San Diego Tech Center gives Maguire 1.4 million sf of office space in the Greater San Diego area. With full build-out of the campus, Maguire would become one of the area’s largest property owners.

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