The four buildings accounting for 300 through 600 Campus Dr.will formally be in the portfolio of the Newport Beach, CA-basedKBS by the end of the year, although a final sale price for thesecond closing has not been released. The six buildings all risefour stories and range in size from the 356,000-sf 100 Campusbuilding to the 101,000-sf 300 and 600 Campus Dr. buildings.

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The deal was orchestrated on behalf of the seller by JeffreyDunne, Kevin Welsh and David Gavin of CB Richard Ellis' New YorkInstitutional Group, aided by Samuel Buckley of CBRE's SaddleBrook, NJ office. The quartet also procured the buyer for theproperty. "From every conceivable standpoint, this propertyrepresented an extraordinary investment opportunity," says ShannonW. Hill, SVP and director of acquisitions for KBS. "That includeslocation, quality, prestige and tenancy."

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In terms of that tenancy, Park Avenue is nearly a sell-out, withoccupancy listed at the 99.1% level at the time of sale. Among themajor firms on its marquee tenant roster are Accenture, BASF,BlackRock, The Hartford Fire Insurance Co., Mapfre Reinsurance,McKinsey & Co., Merrill Lynch, PricewaterhouseCoopers, QuincyMid Atlantic, Smith Barney, UBS and Wachovia Securities.

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"The availability of a trophy asset like this is highly unusualand a one-of-a-kind investment opportunity," says CBRE's Dunne."The buyer recognized the ability to capture substantial near-termupside by renewing existing tenants at market rents as leases rollover. KBS should experience great long-term appreciation."

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The six buildings were developed in succession between 1989 and1999 for JP Morgan by the Gale Co. Its successor Gale Real EstateServices, a subsidiary of Mack-Cali Realty Corp., has been managingand leasing the property, but CB Richard Ellis will now take thereins. Availabilities in the 200 and 300 buildings amounting tojust more than 10,000 sf are currently listed with an asking priceof $36 per sf.

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