MAGUIRE PROPERTIES DEFAULTS ON MORTGAGES OF SEVEN PRIME OFFICE PROPERTIES

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LOS ANGELES — In its second quarter conference call Monday, Maguire Properties (NYSE: MPG) announced that it would default on the loans it held for seven office properties in Southern California, saying that it would no longer fund the cash shortfall associated with the mortgages. The properties are Park Place I, Park Place II, Stadium Towers, Pacifc Arts Plaza, 2600 Michelson (Irvine) and 500 Orange Tower, all located in Orange County, and 550 South Hope in downtown Los Angeles. Maguire has contacted the master servicers of the loans for the properties and will manage the properties until the CMBS special servicer appoints a receiver. While these are not the first defaults for Maguire, they are a significant set of holdings for the beleagured company. Reports Monday put the value of the loans in excess of $1 billion. Maguire CEO Nelson Rising again stated on Monday that the company is not considering filing for Chapter 11 protection.

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