Kendall Noxxel, a friend of the former bodybuilder, told CBS News : "Tom came and encountered the young men, and it proceeded to a fight.
"It was sort of a conflict over who was allowed to park in this spot."
She said the attackers fled when neighbours came outside upon hearing the commotion.
Magee was found incoherent and he was taken to hospital to treat his injuries. He has since been released and is recovering at home.
A neighbour said: "To me, it was attempted murder. If we wouldn't have come out here I don't know if he would be alive.
"If you saw his face right now and saw what they were doing to him, he's really lucky to be alive."
Two men have now been arrested in connection with the attacked.
The Los Angeles Police Department detained Justin Lee, 20, and Degrate Byrant, 20, on Thursday.
Both men were charged with assault with a deadly weapon.
Magee is a Canadian champion power lifter who made a name for himself in the ring.
In his heyday in the 1980s Magee weighed-in at a hefty 265 pounds and towering at 6ft 5in.
His career took off when he fought in the WWF - now WWE - and placed second in the 1982 World's Strongest Man competition.
One of his notable wins was against Bret "The Hitman" Hart.
