Maguire Defaults on Seven California Properties

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By Christopher Palmeri
It's one of the nation's largest real estate investment trusts, but these days Maguire Properties (MPG) looks like just another heavily indebted homeowner trying to renegotiate loans and cope with foreclosure.
The Los Angeles-based company announced on Aug. 10 that it was handing over the keys to seven of its office buildings in Orange County and Los Angeles to lenders because it could no longer afford to carry them. The news followed other moves the company has made in the past three months to shore up its balance sheet, including renegotiating the terms of another large loan.
Since the burst of the housing bubble roughly two years ago, investors have been speculating about a wave of foreclosures in commercial real estate—shopping centers, office buildings, and warehouses. The market research firm Real Capital Analytics figures that the owners of some $127 billion worth of office buildings could ultimately lose control of those properties because they are carrying too much debt in this weak market for leasing.
Maguire Defaults on Seven California Properties - BusinessWeek

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