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DENVER-Macquarie Office Trust will become the 80% owner of the 50-story, 1.2-million-sf Wells Fargo Center office tower by year's end, under a $1.2-billion portfolio deal structured by its current owner, Maguire Properties of Los Angeles. Maguire, which focuses on Southern California, bought the Wells Fargo Center early this year as part of a portfolio purchase.
Maguire and Macquarie in the late fall agreed to form a joint venture called Maguire Macquarie Office, or MMO, that will own six office towers, five of them in California and the Denver property. The net proceeds contributed by Maguire are valued at about $1.2 billion, although individual assets aren't broken out.
Under the joint venture, Macquarie will own 80% of the buildings and Maguire the remaining 20%. Maguire also will collect fees for property management, leasing, construction management, acquisitions, dispositions and financing. The joint venture is expected to generate $350 million in net proceeds to Maguire. Together, the six buildings have almost four million sf.
"The deal hasn't closed yet," a spokeswoman for Maguire tells GlobeSt.com. "But we expect it to close before the end of the year."
When the deal was first announced, Robert F. Maguire III, chairman and co-CEO of his namesake REIT, had this to say: "We are impressed with Macquarie's proven track record of comparable ventures and entrepreneurial approach and their enthusiastic commitment to the growth of this new venture. The structure of the venture is particularly meaningful because it creates an investment entity in which the interests are aligned to maximize the value of these terrific assets, long-term. The venture also provides Maguire Properties with a new capital partner with significant interest in future acquisitions."
In addition to the Wells Fargo Center, the new joint venture will include five California properties: One California Place, Los Angeles; Cerritos Corporate Center, Cerritos; Washington Mutual Campus, Irvine; and Stadium Gateway, Anaheim.
The Wells Fargo Center was designed by the late architect Philip Johnson. Called the "cash register" by locals, the skyscraper's unique crescent roofline has been defining the Denver skyline since its completion in 1983.
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