SOUTH SAN FRANCISCO, CA-Genentech, a locally headquartered international pharmaceutical company, has acquired a 114,000-sf warehouse and manufacturing building here for $11.2 million, according to one of the brokerage firms involved in the transaction. The building is located within the Cabot & Forbes Industrial Park, which is adjacent to Genentech’s headquarters campus. The building is leased through 2005 to Keeco, an importer and wholesaler of household textile products also headquartered in South San Francisco, according to broker Jacob Levy of Marcus & Millichap, who had the disposition assignment. Levy describes his client as a Palm Desert-based private investor who was initiating a 1031 exchange.The acquired building includes 84,000 sf of warehouse space on one level and 30,000 sf of office, conference and showroom space on two levels. Keeco has occupied the premises with a triple-net lease since 1987, according to materials used to market the property.Levy says Keeco will pay Genentech an average triple-net monthly rent of $100,000 per month through 2005, the end of its lease term. Beyond that, Levys says it is unclear whether Genentech will opt to occupy the building at that time, extend its lease agreement with Keeco or seek another tenant. A Genentech executive could not be reached for comment and the company’s third-party broker, Dave Lardner of BT Commercial, declined comment, citing a confidentiality agreement.

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