Mack-Cali Lands Tenants for all 3 San Fran Buildings

SAN FRANCISCO-Mack-Cali Realty Corp. has completed five leases totaling 122,856 sf for its three local properties. The Cranford, NJ-based office REIT says the largest of the bunch is a lease at 795 Folsom with SBC Services Inc. The provider of telecommunications services is taking 63,278 sf within the 183,445-sf building. Mack Cali CEO-president Mitchell Hersh tells GlobeSt.com that SBC is consolidating its operations in the top two floors of the building from multiple locations. Interestingly, SBC’s neighbor in the building will be AT&T, from whom Mack-Cali acquired the asset in 1999. The lease drops vacancy in the building to 85.3% and “effectively stabilizes the building,” says Hersh. The asking rate for space in the building is $33 per sf per year. Chris Adams and Phil Tippett of CB Richard Ellis represented SBC. Margaret Duskin, Tom McDonnell and John Walsh of Cushman and Wakefield represented Mack-Cali. In the second largest deal, CaseCentral Inc., a provider of electronic discovery and litigation management solutions, extended its 23,014 sf lease at the Phelan Building, a 267,446-sf office building located at 760 Market. Mack-Cali’s Western regional director Robert Drabkin tells GlobeSt.com that the company has extended its lease two years beyond its original lease expiration at the end of 2005. The company has been in the building since 1998.Mack-Cali’s Web site shows about 60,000 sf as available at 760 Market and a gross asking rate range of $26-$30 per sf per year. Gary Arabian of The CAC Group represented the tenant. At its third San Francisco property, the 305,000-sf Convention Plaza at 201 Third Ave., the nonprofit San Francisco Health Plan has signed on for 21,898 sf. Michael McCarthy and Sam Brownell of Colliers International represented the tenant and Margaret Duskin and Tom McDonnell represented Mack-Cali. The lease drops vacancy in the building to about 7.4%. The asking rate for space is $35 per sf per year.In another lease there, TEKsystems Inc., a provider of information technology staffing and services, signed on for 11,861 sf. Peter McGill of Colliers Pinkard and Sam Brownell of Colliers International represented the tenant. In addition, New Leaf Gallery signed on for 2,805 sf. Susan Jordan of Starboard Commercial Real Estate represented the tenant.Mack-Cali currently owns or has interests in 271 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 30.2 million sf. Although it has only three buildings in San Francisco, Hersh tells GlobeSt.com that the assets help give the company a bit of a bi-coastal presence. There are no current plans to expand or contract the San Francisco portfolio, says Hersh.