All three buildings saw extensive exterior and interiorretro-fits and seismic upgrades. As a result, AMB executives saysthe buildings "have many advantages of new buildings at a muchlower occupancy cost than other competing class A products."

Mark Hansen, AMB's SVP of value-add conversions, tellsGlobeSt.com that new R&D office buildings command rates closerto $3.25 per sf (NNN), so its highly renovated product for 75% lesshas been attractive to tenants.

In the largest of the three deals, Omneon Inc, a maker of mediaservers and content storage and distribution products, leased a69,000-sf building at 1237 East Arques Ave., which is within thetwo-building, 132,000-sf AMB Lakeside Business Center. The second,63,000-sf building within the development, 432 Lakeside, is set tobe renovated next; the triple-net asking lease rate is $1.75 per sfper month. Craig Fordyce and Mike Rosendin with ColliersInternational have the leasing assignment for the development.Steve Levere of Jones, Lang, LaSalle and Brian McCorduck withCushman & Wakefield represented Omneon in its leasenegotiation.

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