Allergan had been renting its offices in the 18581 Teller building from Maguire in a lease due to expire in 2011.The sale of the building is part of Maguire's previously announced plan to sell some properties in order to eliminate debt and related debt guaranties.
The transaction included Allergan's assumption of the $20 million mortgage on the property. Maguire received net proceeds of $1.8 million from the transaction and says it will use the proceeds for general corporate purposes.
Nelson C. Rising, president and CEO of Maguire, points out that the deal, in addition to eliminating the REIT's debt obligations for the 18581 Teller building, also eliminates a "significant" lease rollover at the building that was slated to occur in 2011.
Orange County properties have figured significantly in Maguire Properties' plans for improving its balance sheet after Rising took over the CEO's job last year in place of company founder Rob Maguire. Those plans included the REIT's announced intention to sell Orange County holdings that account for a substantial portion of its debt obligations. To that end, Maguire has sold other Orange County assets besides the 18581 Teller building and has worked to modify terms on some of its loans, including the extension of the maturity on the $109 million mortgage at its 535,0000-square-foot Brea Campus office development to May 2010.
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