Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.