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SAN FRANCISCO-A Lexington Corporate Properties Trust joint venture has acquired a 127,024-sf, four-story office building in the South of Market area here for $36.8 million. The New York REIT says California Culinary Academy leases 103,838 sf under a net lease that expires Nov. 14, 2019 and is unconditionally guaranteed by its parent, Career Education Corporation.

Lexington did not reveal the address or the seller in its Wednesday announcement and could not be reached Wednesday for confirmation. Local industry sources tell GlobeSt.com that the building’s address is 350 Rhode Island St. and that the seller was SKS Investments. No brokers were mentioned in the announcement.

The acquired building contains approximately 117,600 sf of office space and approximately 9,474 sf of retail space. The culinary institute has an option to take down another 10,000 sf of office space in the building, according to published reports at the time of its lease commitment in early 2004. The institute occupied the building this time last year.

Starbucks Corporation leases 1,500 sf of the retail space through September 2013. Information on the rest of the retail space was not immediately available.

In connection with the acquisition, Lexington’s joint venture program arranged for $22.1 million in non-recourse first mortgage financing. The loan bears interest at a fixed rate of 5.58% and matures on or about Nov. 14, 2019.

The main campus of the culinary institute is at 625 Polk St.. Its year-old SoMa location is an expansion of that campus.

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