Embattled landlord Maguire Properties Inc. said Monday it plans to turn over five Orange County offices properties, including its massive Park Place campus in Irvine, to lenders in a bid to save cash.
In addition to Park Place, properties slated to go back to lenders include Irvine’s 2600 Michelson tower, the Pacific Arts Plaza in Costa Mesa, the 500 Orange Tower in Orange and Stadium Towers in Anaheim.
The Los Angeles-based landlord said it has alerted lenders that it will no longer continue to fund a cash shortfall associated with the mortgages tied to those properties.
Maguire officials said the company will take a $345 million impairment charge for the defaults, which also include a Los Angeles-area building.
The move “will eliminate the adverse effect these assets have had on the company’s cash position,” Chief Executive Nelson Rising said in a statement.
Many of the local properties were owned by Equity Office Properties Trust and were acquired by Maguire at the peak of the office market in early 2007. The Park Place campus was acquired a few years before the Equity Office deal.
The company said it is willing to continue to manage the offices until a receiver is appointed to run the properties.
Maguire was OC’s second-largest office landlord after buying the Equity Office buildings from the Blackstone Group in 2007, in a $2.9 billion deal. Now its local portfolio will primarily consist of offices in Brea and Central OC.
