Maguire Properties Provides Update on Joint Venture Property Quintana (Business Wire)
Mon, 15 Jun 2009 12:30:00 Etc/GM
The Federal Deposit Insurance Corporation (FDIC), as receiver for Washington Mutual Bank (WAMU), relinquished the majority of its Quintana lease effective March 2009, and was not obligated to pay any rent or other compensation in connection with the lease termination. The unexpected relinquishment of the leases reduced the occupancy of Quintana by approximately 250,000 square feet to 40% occupancy, resulting in a significant reduction in the cash flows of the property. The $106.0 million CMBS financing covering the property is due to mature in December 2011. The loan is not cross-collateralized or cross-defaulted with any other debt held by Macquarie Office Trust or Maguire Properties, Inc.
MR. Nelson C. Rising, President and Chief Executive Officer of Maguire Properties, said, “The FDIC’s rejection of the leases at Quintana was a highly unusual and unfortunate event. Maguire Properties, Inc. and Macquarie Office Trust determined and jointly concurred that the best outcome for our respective firms is to commence discussions with the CMBS special servicer in lieu of continuing further capital funding at the Quintana Campus. We are prepared to work collaboratively with the servicer and aim for a satisfactory outcome for all parties. Our Company has a practice of working collaboratively with lenders and we have completed two transactions recently which achieved favorable results and as such are optimistic.”
About Maguire Properties, Inc.
Maguire Properties, Inc. is the largest owner and operator of Class “A” office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. Maguire Properties, Inc. is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. For more information on Maguire Properties, visit the Company’s website at www.maguireproperties.com.
Business Risks
This press release contains forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants' financial condition, and competition from other developers, owners and operators of real estate); risks associated with the availability and terms of financing and the use of debt to fund acquisitions and developments; failure to manage effectively the Company's growth and expansion into new markets to complete acquisitions or to integrate acquisitions successfully; risks and uncertainties affecting property development and construction; risks associated with downturns in the national and local economies, increases in interest rates, and volatility in the securities markets; potential liability for uninsured losses and environmental contamination; risks associated with joint ventures; risks associated with our company's potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended and possible adverse changes in tax and environmental laws; and risks associated with the Company's dependence on key personnel whose continued service is not guaranteed. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Maguire Properties, Inc. Peggy Moretti Senior Vice President, Investor and Public Relations 213-613-4558
source: http://biz.yahoo.com/bw/090615/20090615005485.html?.v=1