The disposition is part of Maguire's previously announced planto sell certain Orange County properties and use a portion of thenet proceeds from the sales to reduce the company's debt and forgeneral corporate purposes. Douglas Shorenstein, chairman and CEOof Shorenstein Properties LLC, comments that, "While the GreaterOrange County market is currently experiencing a challengingnear-term leasing market, we like the long-term fundamentals ofthis Airport area submarket because of its excellent amenities andaccess to a highly skilled work force."

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Main Plaza is a Class A office complex near the John WayneAirport that features two 12-story office buildings and twofreestanding buildings that make up the roughly 607,000 sf of thecomplex. Occupancy is approximately 70%, with major tenantsincluding Lawyers Title Insurance, Balboa Capital Corp., thearchitectural firm Greenberg Farrow, and Stewart Title Co.

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Shorenstein, in a statement regarding the deal, notes that, "Thebuildings were well maintained by the prior owner but had beenrecently hit by declining occupancy levels as a result of thedownturn in the residential home building and mortgage sectors."Recent market statistics show that the mortgage meltdown hasproduced negative net absorption of more than 1.1-million-sf thusfar this year in Orange County, a market that was one of thestrongest in the nation before the subprime lending marketcollapse.

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Shorenstein Properties made the purchase on behalf of its ninthinvestment fund, Shorenstein Realty Investors Nine LP, a privatecommingled fund of more than $2 billion that it formed in thespring of 2007. The fund's other equity ownership interests includeproperties in New York, Houston, and South San Francisco as well asmore than $650 million in mezzanine loan investments.

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The sale of Main Plaza follows plans laid out in June, a monthafter Nelson Rising took the helm of Maguire as the REIT'spresident and CEO, to reduce debt, eliminate debt serviceobligations and increase FFO by disposing of certain of its assetsin Orange County. The company has brought on Eastdil Secured tomarket Park Place, a 105-acre real estate campus expected to befully developed over the next five to seven years, which is thebiggest of the Orange County properties Maguire plans to sell.Eastdil was also the broker on the Main Plaza sale.

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