GlobeSt.com reported in early May thatthe property was coming to market. On June 1, Sun Microrevealed that the sale was part of a larger plan that would include5,000 layoffs by the end of the year and additional real estatedispositions. The Santa Clara-based company is trying to curtailfour years of declining revenue.

BioMed CEO Alan Gold said in a Thursday morning conference callthat a limited availability of large contiguous spaces for lease tolife science tenants in the San Francisco Bay area and shadowtenant demand in excess of one million sf positions the Sun campusto generate attractive returns. Moreover, Gold said the campus isparticularly suited for a conversion to life science space becauseit consists of two-story R&D and lab facilities with thenecessary floor-to-ceiling clearance and floor load bearingcapacity that life science tenants require.

The sale price equates to $143 per sf when the land value ($16million) is excluded from the calculation. Given an all-ininvestment of $300 per sf, Gold said current market rents imply acash yield of approximately 10% assuming stabilization by the endof 2010.