SAN FRANCISCO, CA—A joint venture between certain affiliates ofWestport Capital Partners LLC and CannaePartners LLC have closed on the sale of 1019 Market St.The buyer, a global investment manager, paid $48.25 million for theproperty and assumed the property free and clear of debt.

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HFF represented the seller of the75,523-square-foot building. The transit-oriented creative officeproperty is located in San Francisco's Mid-Market District.

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Originally built in 1909, 1019 Market was completelyre-constructed in 2013. The redeveloped property blends historicfeatures such as classical Corinthian-style columns, exposed brickand timber interiors, and floor-to-ceiling glass line with modernstadium-like collaborative meeting areas, high-end creative officespace finishes and an exterior LED lighting system.

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The building 100% leased on a long-term basis to cloud-basedcustomer service firm Zendesk, with a small groundfloor NNN retail tenant signed up for 10 years. Theseven-story property is situated within one block of both the CivicCenter and Power Street BART/Muni subway stations and two blocksfrom the future Central Subway project providing access to Caltrainwith connections to the Peninsula and Silicon Valley.

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The HFF investment sales team representing the seller was led bymanaging directors Steven Golubchik andNicholas Bicardo, directors JohnSimerlein and Nathan Blair and seniorreal estate analyst Josh DiSalle. GlobeSt.comcould not connect with sources involved by deadline, but willupdate the story as we learn more information.

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Westport Capital Partners LLC is a real estate investment firmspecializing in the opportunistic real estate arena. Through itsvarious funds, the firm invests in a wide variety of distressed andopportunistic real estate assets. San Francisco-based CannaePartners LLC is a private real estate company that invests invalue-add properties on the West Coast, principally in the SanFrancisco Bay Area. Cannae invests on its own behalf as well as inconjunction with institutional partners and high net worthindividuals.

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As GlobeSt.com previously reported, the Mid-Market region is the hottest thing in SanFrancisco at the moment, adjacent to Union Square. RobertBellinger, president and CEO of ASB Real EstateInvestments, recently noted that “Led by Twitter, Spotify,Yammer and Intuit, new and expanding technologycompanies have made the Mid-Market District a location ofchoice, leading to a market renaissance, from which our investorscan take advantage. The property's proximity to Union Square andthe extension of premier retailing along Market Street alsotranslates to great long-term fundamentals for the retailspace.”

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As GlobeSt.com previously reported, in 2013, roughly 800,000square feet was occupied by tech companies either migrating (orexpanding) from Silicon Valley to San Francisco. Mid-Market has seen an increase in activity:Twitter led the charge with its headquarter movein early 2013 and is looking to expand. As the technology sectorcontinues to grow, look for Mid-Market to become the new tech hotspot, says brokerage firm Avison Young.

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Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.