Built in 1979, the 25-story office tower is 98.4%leased. Tenantsinclude Bank of the West, Ameriprise, Daoro Zydel, IntermediaryInsurance and Schneider & Wallace. The seller, TMG Partners,also of San Francisco, acquired the financial district asset in2000 for approximately $89 million from Carlyle Group ofWashington, DC, which two years earlier acquired the building for$67 million.

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Swig Co. president Jeanne Myerson tells GlobeSt.com that itsbusiness plan for 180 Montgomery includes a makeover meant to matchthe building's ground-floor appeal to the quality of its addressand office space. "The building is in a great location and itsspace lays out very well for tenants but the lobby is not excitingand the street-level window line and exterior lighting aresuboptimal," she says. "Right now, it's plain jane--a solid,servicable building that, when you say 'I'm going to 180Montgomery' people have to think about which one it is because itdoesn't create a strong mental picture. We see the ability to moveit from its grouping of class A-minus competition to a higher classA grouping, and with that capture better economics."

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The Swig Co.'s 9 million-sf office portfolio includesapproximately 2 million sf in San Francisco, including: The MillsBuilding at 220 Montgomery Street; The Russ Building at 235Montgomery Street; 115 Sansome Street; and 369 Pine Street, all inthe financial district; and 501 Second Street and 633 Folsom Streetin the South of Market (SoMa) district. The company also ownscommercial development sites at 350 Bush Street and 500 Pine Streetin san Francisco, Kaiser Center in Oakland and 444 Castro Street indowntown Mountain View.

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Mitsui Fudosan America's signature asset is 1251 Avenue of theAmericas in New York, which contains approximately 2.3 million sfof commercial space. In the past year, MFA has acquired significantholdings in Washington, DC and also owns two properties in downtownLos Angeles that it is holding pending future developmentopportunities.

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"As we planned our reentry into the U.S. commercial real estatemarket, we were attracted to San Francisco because of its solidunderlying fundamentals and the continued, steady recovery of itsoffice market," says Kosei Murakami, President and CEO of MFA, in aprepared statement. He adds that the joint venture with Swig ispart of the company's broader "to compete effectively in localmarkets as we build our investment management platform."

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Jones Lang LaSalle managing director Michel Seifer brokered thesale. "We have seen a strong flow of offshore capital into the BayArea office markets over the last year and our read is that foreigninvestor appetite for well-located, quality assets shows no sign ofdissipating," Seifer says. "At a price in excess of $425 per squarefoot, this sale also demonstrates the significant and rapidrecovery the San Francisco real estate market has experienced."

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