The centerpiece of the acquisition, the 28-story 375,000-sf building at 100 Van Ness Ave. which boasts views of all four bridges from the upper floors, represents the only high-rise multi-tenant office property in the submarket. The rest of the portfolio, built in the 1950s, consists of two connected seven-story buildings and one eight-story building located at 150 Van Ness Ave. and 150 Hayes St., and parking for 248 vehicles.

The complex came to market in mid-2007, when the CSAA, also known as AAA of California, announced it would move to a new 250,000-sf building in Walnut Creek that would be built to suit the 1,000-person organization by Equity Office Properties. The proceeds from the sale of its current headquarters complex should cover in large part the cost of its new digs, which is expected to cost approximately $500 per sf to develop. CSAA's long-term lease deal for the building includes a fixed-price purchase option.

"This investment provides a unique opportunity to reposition a significant amount of office space in a booming urban submarket," says Chris MacDonald, managing director of Buchanan Street Partners' San Francisco office. The Civic Center/Van Ness submarket is currently experiencing revitalization, he says, with the development of nearby residential properties, cultural centers, restaurants and entertainment venues.