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SAN FRANCISCO-Broadway Partners has brokers marketing One Sansome St., a 652,000-sf Downtown office tower here that it acquired last spring as part of a 24-building portfolio, multiple industry sources tell GlobeSt.com. Also known as Citigroup Center because of its anchor tenant, the 43-story building is expected to trade for close to $400 million, which would translate to a sub-6% capitalization rate initially.

The North Financial District office building is encumbered with a $250-million, five-year, interest only (6.1%) mortgage that matures in mid 2012. The asset is seen as “core-plus” due to its 93% occupancy rate and near-term rollover, which could allow the new owner to raise rents and, therefore, its capitalization rate. In-place rents are said to be well below current asking rates, which are in the $60s per sf.

Citigroup, the largest tenant with more than 200,000 sf in the building, leased approximately 50,000 sf of the total in early 2003 at a lease rate believed to be in the $30s per sf. Citigroup’s leases expire from 2010 to 2015, according to a source familiar with the offering memorandum. Bear Stearns occupies another 10% of the building on a lease that expires in 18 months. Lewis Brisbois Bisgaard & Smith LLP, a national law firm, occupies about 8% of the building on a lease that runs into 2012.

One Sansome was completed in 1984. Broadway Partners acquired the building with its third fund as part of a 24-property portfolio acquisition from Beacon Capital in May 2007. An industry source tells GlobeSt.com that Broadway Partners identified the building as a candidate for early disposition at the time of acquisition. Eastdil Secured has the current marketing assignment.

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