BEA acquired the 17-story building in April 2007 for $135.3 million or $355 per sf. Built by Sobrato Cos. in 2002, the building has never been occupied. BEA had spent an additional $6.5 million renovating the building in preparation for a mid-2008 move-in when it halted work in March after it became clear it would be acquired by Oracle, according to SEC filings. One month after the $8.6-billion transaction was consummated BEA put the building up for sale the through Eastdil Secured.

With Legacy's alleged $275 per-sf offer now off the table, seller BEA Systems, acquired by Oracle in April, may have to accept per sf price closer to $250 per sf based on the previous bids that were submitted, according to local sources. Regardless of the acquisition price, the buyer would have to invest an additional $15 to $20 million to finish the building's interior office space for tenancy as most of it remains in shell condition.

The current class A asking lease rate in Downtown San Jose is approximately $33 per sf. Office vacancy in the market is approximately 20%. Legacy is the largest office landlord in Downtown San Jose with more than 1 million sf, or close to one-third of the class A market there. Its assets include Riverpark Towers, where it is in the midst of adding a second 300,000-sf office building on a speculative basis. Other Downtown Legacy assets include Almaden Financial Plaza and Horizon Center.

One obvious potential back-up buyer--among many local, national and international buyers, no doubt--is DivcoWest, which was rumored to be one of the companies outbid by Legacy. DivcoWest, through a representative, declined comment.