The agreement includes all of the former EOP assets in Orange County and Downtown Los Angeles, although Blackstone will retain ownership of other Los Angeles area buildings that were part of the former EOP portfolio. Maguire intends to establish a joint venture relationship with an investor similar to the existing Maguire Macquarie office venture for the transaction, but the Downtown L.A.-based company may initially fund the acquisition from proceeds of project and corporate level financing. The transaction is expected to close in the second quarter of 2007.

The buildings include the two in Downtown L.A. totaling more than two million sf and 22 in Orange County that total approximately 6.1 million sf. The two Downtown L.A. properties further solidify Maguire's position as the largest owner of class A office space in the Central Business District of Los Angeles. Among the REIT's new Orange County holdings will be trophy properties including 1920 Main Plaza, 2010 Main Plaza, 18301 Von Karman, Tower 17, Stadium Towers, Griffin Towers and 2600 Michelson.

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

In addition to its existing holdings, Maguire owns land parcels in Southern California that can support nearly 13 million sf of office, retail, structured parking and residential uses, according to its recent public filings. The development parcels include sites in Los Angeles, Orange and San Diego counties.