DivcoWest, Maguire Form JV for Water's Edge

San Francisco real estate investment firm DivcoWest announced this week that it had completed a joint venture with Maguire Investments to own Water's Edge in West Los Angeles’ Playa Vista submarket near Marina del Rey, with plans to develop a state-of-the-art third building as part of an integrated campus dubbed WE3. Terms of the venture were not disclosed, but in a press release Robert Maguire III of Maguire Investments said that the partnership has the resources to spend nearly $70 million constructing WE3.

Maguire led development of several of L.A.'s best-known office buildings in the 1980s and '90s including U.S. Bank Tower, the tallest structure in Southern California. He has held part interest in Water's Edge at the intersection of Lincoln and Jefferson boulevards since he erected two buildings there in 2002, according to a Los Angeles Times article. The two existing buildings, constructed in 2002, are together nearly 90% leased to tenants including Electronic Arts Inc., Popchips Inc. and an outpost for health club chain L.A. Fitness.

Designed for the creative community, the third building, WE3, will have 14-foot ceilings, exposed ductwork, large operable windows to let in natural ventilation and light, and splashes of color throughout. It will share the existing amenities at the Water’s Edge campus including an LA Fitness gym, a cafe, a soccer field, a basketball court, a sand volleyball court and an Olympic- length lap pool. The JV hopes to begin work by the middle of next year after planning is complete and city approvals are secured.

"We believe this market, like other tech enclaves around the country, offers the unique set of advantages that are needed to recruit and retain top notch talent," said Stuart Shiff, CEO of DivcoWest. "Here in Los Angeles that means living and working near the ocean with rich amenities and being amongst a broad swath of tech companies, all of which Playa Vista offers. We look forward to working with Rob Maguire of Maguire Investments to complete his strategic vision for this community."

For more news and information visit Blumberg Capital Partners.

Maguire Secures $105M Recapitalization Loan for Water's Edge

Maguire Investments announced that it has secured a $105 million loan to recapitalize the Water's Edge office campus in Los Angeles, with financing arranged by Rob Verrone of Iron Hound Management. Maguire said that the money will be used for tenant improvements and leasing commissions for new leases on available space. The company has also retained Jones Lang LaSalle to manage leasing at the property.

"We have the team and capital to aggressively get deals done at Water's Edge," said Rob Maguire, Chief Executive Officer of Maguire Investments. "We offer a seamless and obstacle-free opportunity for companies to relocate to Los Angeles' premier campus environment featuring spectacular views and abundant amenities."

The 6.5 acre creative office campus in the Los Angeles submarket of Playa Vista was designed by Gensler. The 58,000-square-foot, green glass–sheathed Water's Edge I and the four-story, 185,000-square-foot Water's Edge II were developed in 2002 by a JV of Maguire Partners and Equity Office Partners at a total cost of $77 million, according to a Commercial Property Executive report.

For more news and information visit Blumberg Capital Partners.