via San Francisco Businesss Times

Sega of America has inked a 10-year lease at 350 Rhode Island St., and will move its headquarters to 70,000 square feet in the Potrero Hill office building.

The deal is a long time coming for SKS Development's speculative 260,000-square-foot project, which opened in early 2002, just as the dot-com economy cratered. The two-building development is now 75 percent occupied, with Sega joining California Culinary Academy and SEIU as major tenants.

The influx of about 250 Sega workers to 16th and Rhode Island streets will further solidify the neighborhood's ascent as a hot mixed-use area. The buildings are next door to the new Whole Foods at 450 Rhode Island St., which is on the ground floor of the recently completed 165-unit condo project, the Potrero.

"It was waiting on the right tenant, and I think Sega is an appropriate party to the area," Paul Stein, a principal with SKS Investments. "It's got great visibility from the freeway and they'll have a big sign. The guys from Sega were a joy to deal with."