Abbey Co., a Long Beach-based real estate investor, is buying the City Parkway office towers in Orange from Maguire Properties Inc., the Los Angeles-based landlord said on Tuesday.
Terms of the deal, one of the largest office sales seen so far this year, weren’t disclosed.
Maguire said the sale was done in a deal with the property’s lender. The real estate investment trust incurred $2 million in costs in connection with the sale, and it said the transaction resulted in a non-cash impairment charge of about $40 million.
City Parkway had been one of Maguire’s more troubled assets in Central County.
Occupancy at the three-building, 457,000-square-foot property stood at about 30% at the end of the first quarter. A few years ago the buildings had been leased to the parent of subprime lender Ameriquest Mortgage Co., which went out of business.
In March, Maguire said it was in talks with its lender about the property.
The sale allowed Maguire to eliminate the project-level debt that was scheduled to mature in 2010 and eliminate a master lease obligation with a potential exposure of up to $12 million, the company said.
Abbey owns more than 50 properties, including about 10 in Orange County, according to the company’s Web site. The company moved from Garden Grove to Long Beach around 2002.
