Secured Capital was handed the disposition assignment. The property was brought to market without an asking price. Divco West officials were not immediately available for comment Thursday afternoon.

Market Center is a two-building class A office complex located on Market Street in the center of San Francisco's financial district with views of the city and the bay. 555 Market Street contains 21 stories of leasable space totaling 283,333 sf. 575 Market Street has 40 stories totaling 486,711 sf. Local sources tell GlobeSt.com that the building's occupancy remains in the 15% to 20% range. One of the buildings is entitled for an upper-floor residential conversion.

Divco, founded in 1993 by Stuart Shiff and David Taran, is acquiring the property on behalf of its new fund, Page Mill Properties LP, which closed late last year with equity commitments of $255 million from major institutional and private investors. Divco itself committed $10 million.

Targeting 20% returns, Divco says its Page Mill Properties fund makes value-add plays in Northern California and similar, technology dominant markets such as Seattle, Boston and the Dulles Corridor in Northern Virginia. "The key to the success of this fund is to remain patient and buy the right properties at the right basis," said Shiff last year.

In July, Page Mill acquired a 50% interest in the 12-story, 282,000-sf Mission Towers Two building in Santa Clara, CA for $16.35 million. The seller was publicly traded chip maker PMC-Sierra Inc., which had just purchased the building from a joint venture of Tishman Speyer, Travelers Real Estate Venture and Whitehall Street Real Estate Limited Partnership IX in order to void a $215-million lease obligation to the sellers. Like Market Center, the building remains largely vacant.