The sale to Cisco represents a gain of approximately $3.1 million on a total sale price of $23.1 million. "Cisco actually has a signed lease agreement that allowed them to exercise a purchase option at the end of the term of the lease," Wayne Pham, Mission West Properties vice president of Finance tells GlobeSt. "Cisco leased the building in 1996 which had a five year term and from the beginning told us they wanted to exercise the purchase option."

During the first quarter of 2001, Mission West also acquired two R&D properties in San Jose containing 249,240 sf of rentable space. The properties are located at 5325 and 5500 Hellyer Ave. and were acquired from the Berg Group under the Berg Land Holdings Option Agreement. The total acquisition price of these properties was approximately $33.30 million with a combined first year unleveraged cash return of 14.87%. "Adding more than 249,000 sf to our portfolio with an unleveraged cash return of approximately 15% is definitely a plus for us and serves as a sound business move for the company," says Pham.

For the first quarter ended March 31, Mission West says its Funds From Operations were $26,136,000 or $0.26 per diluted common share as compared to $18,096,000 or $0.19 per diluted common share for the same period in 2000. On a sequential quarter basis, FFO per diluted common share increased 4% over the quarter ended Dec. 31, 2000.