LOS ANGELES--- Maguire Properties Agrees to Acquire San Diego Tech Center
Maguire Properties, Inc. (NYSE:MPG), a leading southern California real estate investment trust, today announced that it has entered into an agreement with an affiliate of RREEF to acquire the San Diego Tech Center, a 38-acre office campus in Sorrento Mesa in San Diego County, California. The purchase price will be $185 million and will be funded with new mortgage financing and cash on hand. The acquisition is in line with Maguire Properties announced strategy to expand significantly in the San Diego Mid-City submarket. The acquisition is expected to close in the second quarter of 2005.
The Company also announced plans to immediately dispose of less strategically significant assets including Glendale Center, 700 N. Central and 801 N. Brand in Glendale, California.
Acquisition highlights include:
-- 647,000 square feet of office space in a superb location in close proximity to University of California, San Diego and Scripps. The project is adjacent to Wateridge Plaza and complementary to Regents Square and Mission City Corporate Center, all assets being acquired in the CommonWealth portfolio. San Diego Tech Center also features 1.2 million square feet of additional office entitlements in a market with a fast disappearing supply of entitled land for future development.
-- Project tenants include Sony Computer Entertainment America, Qualcomm, and Broadcom Corporation among others. Project is 92% leased with minimal rollover.
-- Vibrant region with a large concentration of leading and expanding biotech, technology and communication companies and known as San Diego's 2nd CBD given its ongoing increase in rental rates and desirability and prestige among national and credit tenants. Area tenants include Pfizer, Motorola, and Texas Instruments.
-- San Diego Tech Center features extraordinary technology infrastructure. Campus environment with extensive tenant amenities including 5-acre Japanese garden, fitness center, swimming pool, sand volleyball courts, tennis courts and dining options including the popular Karl Strauss Brewery Garden.
-- Substantially increases the Company's market share in a supply constrained submarket. Will bring the Company's market share to 3.5 million square feet at full build out of San Diego Tech Center.
Mr. Robert F. Maguire III, Chairman and Co-Chief Executive Officer of Maguire Properties, said, "This acquisition is an ideal next step in continuing our expansion into San Diego and fits our strategy perfectly. We successfully implemented a similar strategy in Orange County through the acquisitions of Park Place, the Washington Mutual Campus and Pacific Arts Plaza, which is part of our recently announced acquisition of the CommonWealth Portfolio. This is a campus with a wide range of amenities designed to enhance employee productivity and with nearly two million square feet at full build out should be very profitable to the Company. The San Diego Tech Center is located in a dynamic submarket known as the Mid City market with low vacancy and very little supply. We are excited about the prospects of this acquisition as it gives us predominant market share in a high growth market and the potential of strong rent growth."
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.