is taking a big hit selling properties to raise cash, but even worse they've apparently defaulted on the CMBS loan for 17885 Von Korman (Quintana Campus, which I can't find in any deal, but the news stories indicate it is a CMBS loan - let me know what you know...). Apparently they had a big tenant break a lease in March leaving occupancy at 40%, and the loan is due in 12/2011 for about $84mm, and there is additional financing in place bringing the total owed to $106 mm.
Maguire has a number of problems already. They had the highest exposure of any other property company to subprime mortgage servicing operations due to their heavy office exposure in Irvine, CA (where this Quintana property is located). Further, a property named Solana that Maguire, the man not the company, owns is also seeking debt relief as we previously noted here, and here.
The real estate investment trust sold the 19-story building to an affiliate of the EMMES Group of Companies, according to a statement today. Maguire sold the property for about $160 million, 40 percent less than its construction cost, the
Wall Street Journal reported, without citing anyone. Maguire is repaying debt from the 2007 purchase of buildings from Blackstone Group LP. The company had paid $2.88 billion for 24 office properties and 11 development sites, as Orange County vacancies were rising after the collapse of the subprime-mortgage market. The subsequent credit-market freeze blocked Maguire’s efforts to refinance, Chief Executive Officer Nelson Rising said in an April interview.