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MPG Office Trust Eliminates Debt Obligation on 17885 Von Karman in Irvine, California

^{Published on 2010-05-26 13:35:13 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--MPG Office Trust, Inc. (NYSE: MPG), a SouthernCalifornia-focused real estate investment trust, today announced that the company has extinguished the $26.4 million construction loan obligation secured by 17885 Von Karman in Irvine, California. The Company contributed approximately $2.0 million in reduction of the loan, turned the property over to the lender pursuant to a deed-in-lieu transaction, and was relieved of the $26.4 million obligation and a $6.7 million repayment guaranty. The loan was scheduled to mature on June 30, 2010.

MPG Office Trust President and Chief Executive Officer Nelson C. Rising commented, aOur efforts that started two years ago to reduce debt, eliminate repayment and debt service guarantees and extend debt maturities continue to produce positive results. In addition to the transaction announced today, earlier this month, we made a principal payment of $9.7 million on the 207 Goode construction loan and in exchange, the lender agreed to substantially reduce our repayment guaranty on this loan. We are currently marketing the property for sale. As a result of meeting the prescribed debt service coverage ratio for five consecutive quarters, the Company eliminated a debt service guaranty on a $109.0 million mortgage secured by Brea Corporate Place and Brea Financial Commons in Orange County, California. The Company also extended the maturity of this loan to May 1, 2011.a

About MPG Office Trust, Inc.

MPG Office Trust, Inc. is the largest owner and operator of Class A office properties in the LosAngeles central business district and is primarily focused on owning and operating high-quality office properties in the SouthernCalifornia market. MPG Office Trust, Inc. is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. For more information on MPG Office Trust, visit our website at [ www.mpgoffice.com ].