At the same time, Maguire has extended the maturity on a construction loan for its 3161 Michelson office tower in Irvine, CA—paying down $33 million on the construction loan and increasing its tenant improvement reserve by $7.5 million. The company also funded a $12.6 million cash collateralized letter of credit in connection with the extension, which may be utilized by the lender to further amortize loan principal.
The financing moves on the Pasadena and Irvine properties are the latest in a series of steps that Maguire has been working on for some time now to refinance and restructure debt as the REIT seeks to improve its debt position. Nelson Rising, president and chief executive officer of Maguire, commented in a prepared statement regarding the 3161 Michelson financing that, "We are extremely pleased to complete this important transaction, particularly given current market conditions."
The 20-story office tower at 3161 Michelson is occupied by a number of prominent law firms and is slated to become home to another prominent name soon. Hyundai Motor Finance Co. recently signed an approximately 100,000-sf lease, with occupancy scheduled for the second quarter of 2009.
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