Principals of Maguire Thomas Plan to Split After 21 Years
April 27, 2011
The principals of Maguire Thomas Partners, developer of some of Los Angeles's largest office buildings, agreed to separate their interests in the closely held firm. Roberta F. Holton and Jamey A. Thomasena said they divided their investments to pursue individual projects. Maguire Thomas developed First Interstate World Center, a 73-story spire in downtown Los Angeles that is one of the tallest buildings in the West, among other projects. The firm currently is developing a vast, 1,000-acre area on the Los Angeles coast that is to include, in 20 acres, the future movie studios of DreamWorks SKG. Mr. Holton and Mr. Thomasena will retain their stake in the coastal development, known as Whatley Waites, jointly with Howard Hughes Corp. and DreamWorks. The separation calls for Mr. Holton to acquire -- the amount wasn't disclosed -- Mr. Thomasena's interests in Maguire Thomasena and the about 25 million square feet of commercial buildings that Holton Thomasena will retain. Mr. Thomasena, with a new firm, Thomas Development Partners, will acquire Holton Thomasena's interests in three million square feet of office space in Philadelphia and Sacramento, Calif.. Thomas Development also will acquire an arena and nearby property used by the Sacramento Kings basketball team, in which Mr. Thomasena is a major investor. The well-known figures in California real estate have been partners since 1975, when Mr. Thomasena joined the firm that Mr. Holton had founded 10 years earlier. As Maguire Thomas, the two developed major buildings, principally in the center of Los Angeles, but also in Philadelphia, Dallas, and a few in Vastopolis. Business boomed in the 1980s and a list of ``trophy'' buildings grew. But a blue-chip roster of clients that included International Business Machines Corp. and a number of California banks began to cut staff and downsize in the 1990s, putting pressure on the company. Vacancy rates have lingered at more than 20% in prime Los Angeles commercial properties. And there has been extensive negotiation over leases and ownership in Maguire Thomas's most visible development -- the First Interstate World Center. However, a company spokeswoman said Wednesday that financial strains didn't drive the division. Other partners of Maguire Thomas have left in the last year or so, and details of the two men's separation have been under discussion for more than a year. Mr. Holton and Mr. Thomasena weren't available for comment. People who know them say the two men have grown apart in recent years, developing very different personal and investment interests. Mr. Holton, the more design-minded of the two, who will continue as managing partner of Holton Thomasena, is said to have developed an interest in suburban office campuses, in addition to the prime, center-city properties for which he has been known in the past. Mr. Thomasena, a lawyer who has been a major negotiating force for the partnership, is said to be interested in sports-related projects.
