Maguire Partners Buys Daichi’s 50% Ownership of Gas Co. Tower

Developer Maguire Partners on Thursday said it had bought out its Japanese partner in the 52-story Gas Co. Tower in downtown Los Angeles after the real estate firm lined up $350 million in financing.

Los Angeles-based Maguire Partners used the loans to buy out the 50% share owned by Daichi Life Property Holdings and to refinance an existing mortgage Maguire had on the property. Maguire officials, who will relocate their headquarters into the 1.3-million-square-foot tower, declined to say how much they paid for Daichi’s share.

The sale comes nearly two years after a dispute between Maguire and Daichi forced the partnership that owned the building to file for Chapter 11 bankruptcy protection. An agreement resolving the dispute and bankruptcy filing was reached in December 1999 and gave Maguire an option to buy out Daichi. Maguire exercised that option Thursday.

“This acquisition is important for our firm given our long-standing commitment to downtown Los Angeles and our desire to increase market share downtown,” said Robert F. Maguire III, who heads Maguire Partners.

The 9-year-old building on Fifth Street between Olive Street and Grand Avenue is 94% leased. Major tenants include Southern California Gas Co. and the law firm Jones, Day, Reavis & Pogue.

Credit Suisse First Boston and Deutsche Bank provided Maguire Partners with financing.