In addition to One Market, the portfolio sold to Morgan Stanley includes One Maritime Plaza (534,000 sf), 150 California St. (201,000 sf), 201 California St. (250,000 sf), 60 Spear St. (133,000 sf), 188 Embarcadero (aka Bayside Plaza, 88,000 sf) and the 75 Howard St. parking garage. The development project is Foundry Square I, a $145-million redevelopment that when complete will be the new headquarters of Barclays Global Investors.

Early reports regarding the deal between Blackstone and Morgan Stanley estimated the deal at $2.5 billion and $4.14 billion. Properties thought to be in the deal that ultimately were not include: One Post (421,000 sf), 201 Mission (489,000 sf) and 580 California St. (318,000 sf). The one property specifically left out of the deal from the start is the Ferry Building, a 240,000-sf development for which a $100-million rehab was completed in 2003. Equity Office's entire Bay Area portfolio totals approximately 14.5 million sf.

Neither Blackstone nor Morgan Stanley could be reached Wednesday for comment on the acquisition. In a prepared statement, Morgan Stanley managing director Michael Franco describes the deal as a "rare opportunity to acquire a significant portfolio of well-located assets in San Francisco's central business district, one of the most supply constrained office markets in the country. We believe that the occupancy characteristics of these high-quality office buildings coupled with our expectation for one of the fastest net operating income growth rates of any city in the nation position the portfolio for outperformance."