Maguire Extends Debt on 535,000-SF Office Campus

The Brea Campus mortgage of $109 million is one of a number of debts maturing in 2008 that Maguire has been working to negotiate extensions on, according to remarks by president and CEO Nelson Rising during the REIT's latest earnings conference call. Following the extension of the Brea Campus loan maturity to May 2010, the company now has debt maturities totaling $239 million in 2009, $594 million in 2010 and $55 million in 2011.

Maguire has been working to reduce and manage its debt since Rising took over as president and CEO earlier this year. Among other actions, the Downtown LA-based office REIT has sold a number of its Orange County assets and placed the remainder on the market, has completed a $100 million refinancing of its Plaza Las Fuentes property in Pasadena and has negotiated extensions on other mortgages.

Rising noted that the REIT extended the mortgage maturity on the Brea property at a time of "lending challenges and uncertain market conditions." The Brea Campus consists of two six-story buildings and four low-rise buildings on South State College Boulevard.

In addition to the Brea debt, Rising said that Maguire is addressing the rest of the debt that matures in the coming years and has extension options available under some of the loans that would allow it to extend debt maturities from one to three years. If the REIT is successful in exercising all available extension options, its would have no maturities in 2009, $208 million of maturities in 2010 and $373 million of maturities in 2011.