The mystery buyer is an entity that Maguire "didn't know anything about," Bill Flaherty, senior vice president for the Los Angeles-based Maguire, tells GlobeSt.com. "We had an internal target for the property and the sale price wasn't widely off. We think it's a fair price." The buyer will have to assume $104 million of mortgage debt. For previous story, click here.
Los Angeles-based Security Capital Corp. and CB Richard Ellis Inc.'s local office partnered to market the 18-year-old tower at 2 N. Central Ave. "The activity on this building was mind-boggling--overwhelming," CBRE's Charles Miscio says. One Renaissance Square, with an average rent of $15.33 per sf, is 90.8% occupied to a mix of national and local tenants.
Flaherty says Maguire put One Renaissance Square on the market "as soon as we could" after inheriting it in March through a $1.5-billion portfolio acquisition from CommonWealth Partners LLC, Rockefeller Group International Inc. and the California Public Employees Retirement System. The portfolio, commonly referred to as the Fifth Street Properties Portfolio, gave Maguire Properties its inroad into the San Diego market.
"With the CommonWealth portfolio, it was all or nothing," Flaherty says. "We wanted the L.A. properties and wanted into San Diego, but we also had to take Phoenix and Austin. They're both quality assets, but the key is that we're a Southern California company and One Renaissance Square doesn't fit us from a core standpoint." He adds Maguire Properties is close to coming to an agreement to sell Austin Research Park I and II, 271,889 sf of class A space the Austin property. He says the deal could be inked within weeks.
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