Built in 1916 and expanded in 1983, 55 Francisco is 95% leasedto19 tenants, including the headquarters office of Jackson &Wallace, an 80-attorney law firm; Pacific Fertility Clinic;Fitzgerald Communications; and Video Arts. KBS did not name theseller or say for what fund or client it acquired the asset.

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The seller is believed to be a joint venture of Rosenberg Co.,the investment affiliate of ROK Properties, and Pacific CoastCapital Partners, a real estate investment firm. The duo acquiredthe asset and the parking garage in mid-2006 for $32 million or$222.70 per sf, according to an industry source. At the time, itwas fully leased to 27 tenants, which included Jackson &Wallace and FitzGerald Communications.

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A source with KBS could not be reached Tuesday for comment. KBSsenior vice president Peter Mette says in a prepared statement thatthe property has the right attributes: a highly visible location,exceptional occupancy history, attractive parking ratio andextensive renovations, the most recent being an $8 million upgradein 1999.

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"Over the years, creative and service firms have appreciated thelocation proximate to the waterfront, the city's financial core,North Beach shops and restaurants, and the residentialneighborhoods of Telegraph and Russian Hills," Mette says.

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In April, Swig paid $27 million or $278 per sf for One BeachSt., a 1920's era three-story, 97,000-sf warehouse turned officebuilding across from Pier 39 in the North Waterfront submarket. Theseller was the anchor tenant, Alliant University, which immediatelyflipped the asset to Swig after exercising a four-year-old optionto acquire the building for $18 million. The deal included along-term leaseback at a rate that stays around $20s per sf peryear through 2014 and then jumps into the $30s if the universityexercises the first of three five-year renewal options.

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The building is 93% leased, with most tenants payingbelow-market rents. Swig's Ken Perry told GlobeSt.com at the timeof the purchase that market rents for that type of product in theNorth Waterfront submarket were in the mid- to upper $30s per sffor the first two floors and higher for the top floor. Asking rentsat 55 Francisco are $40- to $45 per sf per year, fullyserviced.

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