SRM Associates specializes in real-estate development and project management and Pacific Coast Capital Partners is a real-estate investment company with $1 billion invested in California and other western states. The acquired six-building waterfront campus was developed by SRM Associates between 1996 and 2000 for Ascend Communications and was later acquired by Lucent Technologies.

Lucent Technologies sold the property to the partnership and will lease back approximately 77,000 sf of space, or about 20% of the total developed space. The acquisition price was not released by the parties involved and was not otherwise available. Vacancy at the development is 68%. Tenants beside Lucent include Embarcadero Systems, Peninsula Pharmaceuticals and Volunteers of America. SRM's Joe Ernst did not return a Friday phone call seeking further comment.

In a prepared statement, SRM's Scott Newman said the decision to expand the company's ownership at Harbor Bay in order to be able to offer not only the existing office, R&D and light industrial and warehouse space for lease or sale, but also land for sale or build to suit on the adjacent land. "We're situated in the geographic center of the Bay Area," says Newman. "Oakland Airport is already close; but when the new cross-airport roadway is completed, we'll literally be a few minutes from the terminal and Interstate 880."