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SAN FRANCISCO-Page Mill Properties LP has acquired a 70% stake in 444 De Haro St. The two-building 152,000-sf office complex sits on a full block (1.84-acre) in the Showplace Square area.The buildings are former warehouses built between 1927 and 1937. The oldest is a two-story concrete building with 140,000 sf. The remaining 12,000 sf are in an adjoining three-story, 12,000-sf wood-frame building. They were renovated, seismically upgraded and converted to office in the mid 1980s.

Occupancy is 70%. The larger building has about 33,000 sf of available space and the smaller building is vacant. The seller, an affiliate of locally based Flynn Properties, acquired the building in 1999 for about $23 million, according to published reports at that time.

Flynn initially expected to sell the whole property but instead opted to do its first deal with Page Mill Properties. Formed in 2001 to invest in the tech-crash and dot-com-crash markets, the Divco West-sponsored fund typically invests with local minority partners who manage the property.

The property went to market 60% leased at an asking price of around $25 million. The listing broker was Daniel Cressman, and executive vice president with Grubb & Ellis, and fellow brokers Richard Johnson, Edward Suharski and Edmund Najera. Cressman tells GlobeSt.com that leases were signed for another 10% of the building before Page Mill Properties tied it up, and the rents were above the pro forma.

A new Whole Foods Market and a residential development are under construction across the street from the property. “There’s no dot-com boom but there’s a synergy between Mission Bay, Showplace Square and lower Potrero Hill,” says Cressman.

In September, Lexington Corporate Properties Trust joint venture acquired 350 Rhode Island, a 127,024-sf, four-story office building located one block from the 444 De Haro St. The building contains approximately 117,600 sf of office space and approximately 9,474 sf of retail space. The California Culinary Academy leases most of the office space. The acquisition price was $36.8 million.

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