Located at 550 Kearny St., the 10-story building is 98% leased in a submarket with an average direct vacancy rate of 13%. The anchor tenant at 550 Kearny is the General Services Administration, which leases 49% of the building. The seller was the Cahill family, of Cahill Construction. The buyer is Bay Pacific Corp., an undisclosed Bay Area family trust.

Local brokers tell GlobeSt.com that 550 Kearny is the first San Francisco office building sale over $20 million in more than two years, excluding the sale of a partial interest in 199 Fremont in July 2002. The building was originally built by Cahill Construction in 1957. It was fully renovated and expanded by four floors in 1981.

The seller's brokers were Alan Collenette, Rob Dumas and Charles Hine of Grubb & Ellis. All three declined to confirm the sale price, which was provided by other local brokers familiar with the transaction. The brokers also tell GlobeSt.com that the purchase price represents a 10% capitalization rate based on in-place rents and that about 5% of the building's space rolls over in each of the next three years.