DivcoWest and TMG Partners, a San Francisco Bay Area mixed-use property developer, have completed their sale of 1275 Market Street, a 16-story office tower in San Francisco’s Mid-Market technology neighborhood. The building was sold to Dolby Laboratories Inc. for $109.8 million or approximately $310 per sq. ft.

The two San Francisco-based real estate investment companies have jointly owned the building, built on Market Street between Eighth and Ninth Streets in 1977, since October of 2011. 1275 Market is situated near where Twitter recently relocated this past month. Dolby’s current base of operations is in San Francisco’s Potrero Hill neighborhood.

“We have all been rewarded for our mutual belief in the future of the Mid-Market neighborhood as an emerging technology center for the Bay Area,” DivcoWest Founder Stuart Shiff said in a statement.

Dolby is believed to plan to fully occupy the 354,000-sq.-ft. building, which can accommodate approximately 100 employees. The company was chosen last month by Microsoft Corp. to provide audio for its Windows 8 software when the package is released later this year.