The six-story 701 Gateway building was 93% occupied at the timeof sale. Triple-net asking rates in the area are approximately $3per sf per month. The sellers' broker, NAI BT Commercial managingdirector Gary Willard, tells GlobeSt.com that the immediate area is"exhibiting extremely strong leasing dynamics because it is theheart of an important biotech cluster. Genentech and Amgen arelocated in the neighborhood."

Tenants at 701 Gateway include Actuate Software, San MateoHealth and Solstice Neuroscience. Willard declined to comment onnear-term rollover in the building but Actuate Software, the anchortenant, has been in the building for several years and is believedto be nearing the end of its lease term. Given the demand in themarket, that may present more opportunity than risk. BroadwayPartners director of acquisitions Scott Sorensen declined commentfor this story.

The price of 701 Gateway on a per-sf basis was approximately 30%higher than what Broadway Partners paid Hines for 801 Gateway,while rents over the past year have risen 12%, according to localbrokers familiar with the market. Mike Moran, Clarke Funkhouser andKevin Waldman of NAI BT Commercial were given the leasingassignment for 701 Gateway.