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SAN FRANCISCO-Another chunk of 71 Stevenson was taken off the market recently by H5 Technologies, which signed a seven-year lease for 53,000 sf. The locally based company will occupy the second, third and fifth floors of the 23-story, 323,276-sf CBD office building. Occupancy is slated to occur in mid-2008 after tenant improvements are completed.

H5 provides large-scale document review technology to corporate law departments and large law firms. The new lease represents about a 20% increase in space for H5. The company is currently headquartered at 55 Second St. The negotiated lease rate on the H5 lease was not released by the parties involved but the pro forma lease rate for the asset is in the mid $30s per sf per year.

The building owner is Forward One, a Burlingame, CA-based LLC whose parent company is based in Taiwan. In September 2006, Forward One paid $105 million in cash for the building in order to complete an IRS 1031 exchange that began with the sale of a property in Hawaii.

At the time of the sale, the building was 94% occupied. In early 2007, federal government agencies occupying approximately half of the building vacated in order to occupy the new federal office building at Seventh and Mission streets. The federal agencies were paying about $29 per sf for their space at 71 Stevenson.

Helping fill the void before H5 were Regus Group, which leased a full floor (18,000 sf) for one of its executive suites operations; Bovis Lend lease, which took down close to a full floor, and Intuit, which leased 14,000 sf. In addition, VMWare, which held a billion-dollar IPO in 2007, expanded within the building and Bare Escentuals Inc., the publicly held cosmetics company, also expanded, taking another floor-and-a-half.

The leasing agents for the building are Anton Qiu and Jean Ko or TRI Commercial/CORFAC International. Jim Dublin of Jones Lang LaSalle and Scott Nykodym of CB Richard Ellis represented H5.

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