Located at the corner of North First Street and Highway 237, the buildings were built by Cisco Systems in 2001-2002 but never occupied by the company. In October 2005, IBM signed a 12-year lease for 125,000 sf in one of buildings.

The seller, a joint venture of Divco West's Page Mill Property Fund and California State Teachers Retirement System, acquired the two 188,000-sf buildings along with an adjacent 78,000-sf building at the beginning of 2005 for $52 million or $114.50 per sf.

"Since we were able to purchase the property at a discount to replacement cost, we can provide new space at lower rents than is required for new construction," says Carlyle managing director Paul Brady. "There are very few options remaining for large tenants in the area who need a Class-A environment with great visibility… ."

Funds for the transaction came from Carlyle Realty Partners V, a U.S.-based fund that makes opportunistic investments in the major metropolitan markets of Boston, Chicago, Denver, Los Angeles, New York, San Francisco and Washington, DC.

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