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Maguire Properties sued for foreclosure on Irvine office tower

November 16, 2009 |  2:57 pm

Maguire Properties Inc., one of the region’s largest commercial landlords, has been sued for foreclosure by Bank of America Corp. on one of its prime Irvine office buildings.

The bank’s move to take title to 2600 Michelson Drive, a 16-story tower near John Wayne Airport, was expected. Maguire, which has been hit hard by the real estate downturn, announced in August that it would default on payments for seven office buildings in Los Angeles and Orange counties.

Los Angeles-based Maguire missed $1.68 million in payments in August, September and October against the Michelson Drive property, the bank said in complaint filed Nov. 10 in Orange County Superior Court in Santa Ana. The bank wants the court to appoint a receiver for the property who would conduct a sale and attempt to recoup the remaining $95 million in unpaid principal owed by Maguire. The real estate investment trust is defaulting on loans worth more than $1 billion.

Maguire hopes that by giving back the keys to properties for which it overpaid at the peak of the last boom, it can reduce debt enough to keep the company solvent, Chief Executive Nelson Rising said in August.

Maguire posted a $46.8-million third-quarter loss earlier this month, an improvement from a loss of $72.5 million in the same period a year ago. Shares closed up 13 cents today at $2.30.

-- Roger Vincent