The seller is a joint venture of Blackstone Real Estate PartnersII and Glenborough Realty Trust, a San Mateo-based REIT. Blackstoneowned a 90% stake in the property and Glenborough the remainder. Asource at Blackstone confirmed for GlobeSt.com that Boston-basedBeacon Capital is the new owner. Beacon Capital senior managingdirector Jeremy Fletcher was on a plane and unavailable forcomment.

Glenborough CEO Andrew Batinovich tells GlobeSt.com the sale wasprompted by the renewal of the largest office tenant, SBC/Pac Bell,which signed a long-term lease, and the potential to convert themultifamily units to condominiums. Glenborough's share of the gainfrom the June sale was approximately $9.5 million, which equates toan internal rate of return in excess of 20% to all investors,according to a statement issued Monday.

The property was developed in 1988. In April 1999, Glenboroughpurchased a 10% interest in a joint venture holding the fee simpletitle to the land under Rincon Center I & II. The land waspurchased from the United States Post Office for a purchase priceof $80.5 million, according to SEC filings. At that time, the landhad a triple net ground lease with a remaining term of 51 yearswith minimum 30% rental increases every six years.