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SAN FRANCISCO-The 24,660-sf headquarters of Initiative Media Worldwide recently changed hands for $13.5 million or $547 per sf, according to the brokerage firm with the listing, Grubb & Ellis Co. BRM Bakersfield LLS, a San Francisco based private investment group acquired the building from Group I Inc. of San Francisco.

The tenant, Initiative Media Worldwide, is a subsidiary of Interpublic Group, a Fortune 500 company. It has 2.5 years remaining on its lease, according to an industry source. The lead broker in the deal, Daniel Cressman, could not immediately be reached Wednesday afternoon for comment.

Located at 410-440 Pacific Ave., in the historic Jackson Square district, the building came to market in the spring at an asking price of $16 million. At the asking price, the asset would have yielded a 12.5% cash-on-cash return with $9.78 million of assumable financing at a fixed interest rate of 6.75 percent through March 1, 2012, according to an industry source familiar with the offering.BRM Bakersfield, which was completing an IRS 1031 exchange with the purchase, did not assume the loan, it paid cash, according to a local broker familiar with the transaction.

Even though the negotiated price came in 15% below the asking price, the per-sf price is a record for an office building in the Jackson Square district, according to C&W. The building last traded in March 2007 for $13.3 million, according to an industry source.

G&E says Cressman was assisted with the listing by fellow G&E brokers Mike Taquino and Ben Allott.

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