Maguire to Acquire Plaza in Downtown L.A.

LOS ANGELES -- Maguire Properties Inc., a real estate investment trust, has entered into an agreement to acquire One California Plaza in Los Angeles from Metropolitan Life Insurance Co.

The purchase price is approximately $225 million, which will be funded through cash on hand and a $146.3 million, seven-year mortgage loan at a fixed interest rate of 4.73% provided by Metropolitan Life Insurance Co. The acquisition is expected to close next month.

One California Plaza is a 42-story, Class A building located at 300 South Grand Ave. in the Bunker Hill section of downtown Los Angeles. The property is immediately across from Maguire Properties' Wells Fargo Center.

The property totals approximately 975,000 sq. ft. of office and retail space, as well as approximately 1,200 parking stalls.

The building is approximately 92% leased and is occupied by national tenants such as Skadden, Arps, Slate, Meagher and Flom, Morgan, Lewis & Bockius, Bank of the West, Riordan & McKenzie and Deutsche Bank.

The property is subject to a ground lease with the Los Angeles Community Redevelopment Agency, with a 79-year remaining term.

Robert F. Maguire III, chairman and co-chief executive officer of Maguire Properties, said the acquisition of One California Plaza is consistent with his firm's strategy of expanding ownership in the Bunker Hill sub-market.

"Upon completion of this transaction, we will own approximately 6.2 million sq. ft. and over 60% of the office space in the prime Bunker Hill market," Maguire said. "The excellent quality of the building is complementary to our portfolio."

Arthur Erickson designed the building.

"We estimate that the purchase price is about 65% of replacement cost and the in-place rents are 20% under the rents we are achieving in our other buildings," Maguire added, "and we believe that we should be able to achieve operating savings through consolidation with our total portfolio."

Maguire Properties currently owns four major office properties aggregating 5.2 million sq. ft. on Bunker Hill: US Bank Tower, Gas Company Tower, Wells Fargo Tower and KPMG Tower.