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SANTA CLARA, CA-CarrAmerica Realty Corp. has acquired the Mission Towers I class A office building here for $129.7 million. The 282,000-sf, 12-story class A office tower at 3975 Freedom Circle is fully leased to Sun Microsystems and PMC-Sierra.CarrAmerica’s Northern California managing director Christopher Peatross was not immediately available Monday for comment. In an announcement, the Washington, DC-based office REIT says $51.6 million of the purchase price is attributable to the value of the above market rents Sun Micro and PMC-Sierra are paying over the next several years. The tenants are committed to the building through October 2011.The purchase of Mission Towers I takes CarrAmerica’s Bay Area portfolio to 88 office buildings containing about 6.5 million sf. The office tower is expected to provide a year one GAAP return of 6.8%, according to the announcement. Current GAAP returns, which reflect the mark to market of rents, are significantly less than year one cash yields, which are expected to be approximately 11.1%. GAAP returns are expected to steadily rise to approximately 10% in 2011 as the amount attributable to the value of above market rents is amortized. Mission Towers I is one of a matching pair of buildings completed in 2000 on an 11-acre site at the intersection of Highway 101 and Great America Parkway. In July 2003, publicly traded PMC purchased and resold Mission Towers II in order to relieve itself of a $215-million lease obligation. The maker of semiconductor chips for broadband communications said it lost $102 million in the transaction. The seller was WHTS Freedom Circle Partners LLC, a joint venture of Tishman Speyer, Travelers Real Estate Venture and Whitehall Street Real Estate Limited Partnership IX.

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