Built in 1906 and renovated in 1999, the four-storybrick-and-timber building is fully leased through November 2009 toLookSmart Ltd., an online media and technology company that hassubleased portions of the building to third parties. The averageannual rental rate over the remaining lease term is $2.92 per sfper month, according to an SEC filing regarding the transaction.The online media and technology company has two five-year renewaloptions.

The building's renovation in 1999 included a full seismicretrofit of the building and new building systems. KBS acquisitionofficer Peter Mette tells GlobeSt.com that SoMa is one of the mostsought-after locations for San Francisco's technology companies andSecond Street is one of the best locations within the submarket. Inaddition, he says 625 Second St. is one of only a fewbrick-and-timber office buildings in the submarket, which is thepreferred construction style for many tenants.

Mette expects LookSmart will remain in the building beyond itsremaining lease term, though probably in less space than itcurrently leases. In the long run, given the smaller nature of manySoMa tenants, he expects to have multiple tenants in the building.LookSmart's annualized average lease rate for the building isapproximately $35 per sf per year. The average asking lease rate inSoMa is $36.11 for class A space and $29 for class B product. Forthe year, rental rates increased 14.2% for class A space and 19.2%for class B space.