The agreement includes all of the former EOP assets in OrangeCounty and Downtown Los Angeles, although Blackstone will retainownership of other Los Angeles area buildings that were part of theformer EOP portfolio. Maguire intends to establish a joint venturerelationship with an investor similar to the existing MaguireMacquarie office venture for the transaction, but the DowntownL.A.-based company may initially fund the acquisition from proceedsof project and corporate level financing. The transaction isexpected to close in the second quarter of 2007.

The buildings include the two in Downtown L.A. totaling morethan two million sf and 22 in Orange County that totalapproximately 6.1 million sf. The two Downtown L.A. propertiesfurther solidify Maguire's position as the largest owner of class Aoffice space in the Central Business District of Los Angeles. Amongthe REIT's new Orange County holdings will be trophy propertiesincluding 1920 Main Plaza, 2010 Main Plaza, 18301 Von Karman, Tower17, Stadium Towers, Griffin Towers and 2600 Michelson.

Rob Maguire, chairman and CEO of the REIT, says that the companyis paying a price below replacement cost and that it sees upsidebecause rents are "substantially below" current market rates. Thecompany also foresees revenue growth through higher parking rates"as well as fee income and promotional interest from the jointventure we plan to form to own these assets," Maguire says.