Bixby acquired 11 buildings totaling 816,000 sf at five locations in Newport Beach, Irvine and Seal Beach in the Maguire transaction. It bought the properties in a joint venture with the AFL-CIO Building Investment Trust, for which PNC Realty Investors Inc., a subsidiary of the PNC Financial Services Group, provides investment advisory and management services.
Bixby's financing for the transaction included $233 million that was arranged by Newport Beach-based Buchanan Street Partners and was the second-largest financing in Buchanan's history. Tom Sherlock, managing partner at Buchanan Street, notes that the deal closed inside of 30 days.
Details about the new Bixby building and its construction schedule were not immediately available, but the Newport Beach-based company, a private REIT, has been expanding both through acquisitions and developments lately. It has bought and/or built in other Southern California markets, including the Inland Empire, and entered the Phoenix market this year as well.
According to Bill Halford, president and CEO of Bixby Land Co., the buildings that the company has taken title to in the Maguire transaction "are in highly desirable submarkets near executive housing and with existing rents below the current market rate." The majority of the properties are located in areas where new development is significantly restricted, Halford adds.
The Newport Beach properties that Bixby is acquiring are the two-building Redstone Plaza and the 1201 Dove St. building. In Irvine it is buying the two-building Fairchild Corporate Center and the three-building Inwood Park, which includes the 3.5-acre development site. Its Seal Beach acquisition is the three-building Bixby Ranch Office Park.
The properties that Bixby bought were part of a portfolio of former EOP assets that Maguire acquired from the Blackstone Group. Maguire motivation for selling was to reduce some of its debt from its $3-billion purchase of a portfolio of 8.1 million sf of EOP properties from Blackstone.
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