UPDATE 1-Maguire in discussions to amend CMBS loan
* Sees default under CMBS financing covering Quintana Campus
* In discussions with special servicer under CMBS loan
* Completes sale of 3161 Michelson in Orange County
* Shares up 23 pct
June 15 (Reuters) - Office real estate investment trust Maguire Properties Inc (MPG.N) said it is negotiating with the special servicer under the commercial mortgage-backed securities (CMBS) loan covering a joint venture property in California as it sees a possible payment default.
Shares of the company, which also announced the completion of the sale of another office building in California, were up as much as 23 percent on the New York Stock Exchange.
The REIT and its joint venture partner, Macquarie Office Trust (MOF.AX), have entered into discussions with the special servicer as the Quintana Campus in Irvine, California has seen a significant reduction in cash flow.
Occupancy at the property fell to 40 percent as the Federal Deposit Insurance Corporation, as receiver for Washington Mutual Bank, relinquished the majority of its Quintana lease effective March, the company said in a statement.
The $106 million CMBS financing covering the property is due to mature in December 2011, said Maguire, which has a 20 percent interest in the joint venture that owns the property.
Separately, Maguire said it completed the sale of an office building in California to an affiliate of EMMES Group of Companies.
The sale enabled the REIT to eliminate the project-level debt that was scheduled to mature in September and significant master lease obligations, it said.
Shares of Maguire were up 19 cents at $1.26 Monday morning on the New York Stock Exchange. They earlier touched a high of $1.32. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Deepak Kannan)
