Currently 89% leased, Ygnacio Center is located at theintersection of Ygnacio Valley Road and Northern CaliforniaBoulevard in downtown Walnut Creek, approximately 25 miles south ofSan Francisco. Built out over 30 years, the four-building officecomplex adjacent to the Walnut Creek BART station consists of threemid-rise Class A office buildings, a two-story annex building and aparking structure.

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Legacy Partners Realty Fund III plans to capitalize on theasset's location and the lack of new development in the submarketwhile improving the quality of the asset, says Dana Valenti, adirector with Hypo Real Estate. "Historically, Walnut Creek hasbeen a more stable submarket than the overall San Francisco andEast Bay markets, which have experienced peaks and valleys inoccupancy," Valenti says. "Due to the limited developmentopportunities in Walnut Creek and its close proximity to the BARTand downtown San Francisco, we believe that this property is betterable to withstand any potential downturn in the nationaleconomy."

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The Ygnacio Center buildings include One Ygnacio Center, a156,002-sf tower at 1990 N. California Blvd. that was built in 1975and includes the two-story annex, which was added in 1980; TwoYgnacio Center, a 180,410-sf tower built in 1985 at 2033 N. MainSt.; and Three Ygnacio Center, a 162,863-sf building at 2001 N.Main St. that was built in 2001.

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Current tenants in the complex include a mix of professionalservice providers including attorneys, certified publicaccountants, investment bankers, engineers and architects. On-siteamenities include a 24-Hour Fitness branch, a Starbucks coffee shopand two cafés.

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Details of the flexible, floating rate loan, such as the term,the rate and the loan-to-cost percentage, were not readilyavailable. A Hypo Real Estate spokesperson at the parent company's(Hypo Real Estate Bank International) headquarters in Munich,Germany, did not respond to a Monday morning email seeking theinformation.

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In addition to existing assets, Foster City, CA-based LegacyPartners also has been investing in land in the Bay Area. Towardthe end of 2007, the company acquired a 322-acre rock quarry inPleasanton, CA, that may become mix of residential, retail, officeand industrial sites. Legacy also is the master developer of the60-acre Eden Shores project in Hayward, CA. Legacy envisions equalparts residential, retail and industrial.

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