EFI owns 35 acres of bay front real estate in Foster City. Theacreage holds approximately 500,000 sf of buildings and includesseveral undeveloped parcels, according to EFI, which provided noadditional detail and did not respond to a request for additionalcomment. JLL also could not be reached Thursday for comment.

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EFI's headquarters campus is located along East Third Avenuebetween lakeside and Marsh Drives, across from the Links atMariners' Point. EFI received approvals from the Pleasanton CityCouncil in 1997 and 2000 for one million sf of offices, R&D andlight warehousing. The company reportedly completed two buildings,a 10-story 300,000-sf office building and a 163,000-sf officebuilding.

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At least some of the property is currently tied up in syntheticlease arrangements. A recent filing with the SEC states that thecompany is party to two synthetic leases covering its corporateoffice buildings at 301 and 303 Velocity Way. Both Leases expire inJuly 2014.

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The company may, at its option, purchase the facilities duringor at the end of the term of the leases for the amount expended bythe lessor to purchase the facilities--$56.9 million for the 303Lease and $31.7 million for the 301 Lease. EFI states that it hasguaranteed to the lessor a residual value associated with thebuildings equal to 82% of their funding of the respectiveLeases.

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In conjunction with the Leases, EFI leased the land on which thebuildings are located to the lessor of the building. These separateground leases are for approximately 30 years. EFI is treated as theowner of these buildings for federal income tax purposes, accordingto the filing.

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In January, EFI chief executive Guy Gecht stated that thecompany is "implementing significant steps to align our spendingwith … lower revenue and will take a restructuring charge in Q1 toreflect our reduced cost structure," and that it "will take sometime…to regain our traditional levels of profitability andgrowth."

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In April, the company reported a first quarter (GAAP) net lossof $5.4 million, compared to $2.1 million in the same 2007 period,on revenue of $136.6 million, down from $147.8 million in the sameyear-earlier period.

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