The disposition, which includes nearly $10 million of cash reserves and assumption of approximately $161 million of project level financing, amounts to roughly $325 per sf, which Mark Lammas, Maguire's executive vice president, calls market-rate."It's definitely in keeping with the market," Lammas says. "That's definitely a solid price for that property."
Main Plaza is located in the heart of the John Wayne Airport area submarket of Irvine and features two 12-story Class A office buildings and two free-standing buildings totaling roughly 607,000 sf.
The disposition is also in keeping with plans laid out in June, a month after Nelson Rising took the helm of Maguire, "to reduce debt, eliminate debt service obligations and increase Funds from Operations by disposing of certain of its assets in Orange County, California," the company said in a statement released at the time.
The company has brought on Eastdil Secured to market Park Place, a 105-acre real estate campus expected to be fully developed over the next five to seven years, which is the biggest of the Orange County properties Maguire plans to dispose of, Lammas says.The mixed-use property in Irvine is adjacent to the San Diego (405) Freeway at Jamboree Road and Michelson Drive.
The Main Plaza disposition was the second largest Orange County property Maguire is ridding itself of, Lammas says. The disposition of Orange County properties is not due to lack of faith in that particular market, Lammas says, adding, "We will still have properties in Orange County."
Nelson Rising, Maguire's president and CEO, said in a statement: "This transaction demonstrates our commitment to our stated objective of disposing of certain Orange County properties to accomplish our balance sheet goals."
The sale of Main Plaza is subject to the assumption of the existing project financing and customary closing conditions, and the company expects the transaction to close in the third quarter of 2008.
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