Drakes Landing is located in southern Marin County, one of themost supply-constrained markets on the West Coast. Spieker now ownsand operates 390,000 sf of office space in the submarket. It'snearby holdings include Larkspur Landing (190,000 sf) and WoodIsland (75,000 sf), "the two projects that probably compete mostclosely with Drakes landing" for tenants, says Spieker's StuartRothstein, who brokered the deal with partner Craig Vought. "We'rebullish on the market."

Rothstein tells GlobeSt. there is room for much upside in theproperty as leases expire. Current market rents for similarproperties in South Marin County are between $40 and $50 per squarefoot per year, says Rothstein, while in place rents at Drakeslanding are about 65% of that. Seller Heitman Properties could notimmediately be reached for comment on its reasons for the sale.

Spieker also announced this morning the acquisition of theLincoln Center development in Lake Oswego, Ore., just south ofPortland. The company paid $118.75 million ($161 per sf) for735,000-sf in six buildings, the biggest being the 12-story,224,383-sf Lincoln Tower on Southwest Greenburg Road. Including itsmultiple Kruse Way properties, Spieker owns approximately threemillion sf in the submarket.