Bank of America Corp. and Shorenstein Company, which own the properties under the name 555 California Street Partners LP, say they are "exploring a potential recapitalization of their partnership" that would enable them to "explore various capital management options, which could include refinancing their investment, selling the property or seeking various joint venture alternatives."

"In light of the current strength of San Francisco's real estate market, it makes good business sense to explore a recapitalization of these properties," says William Miles, a senior veep with Bank of America who handles the company's Western corporate real estate portfolio. Banc of America Securities LLC is advising the partnership.

Bank of America Center is comprised of three adjacent properties: 555 California Street, a 1.5 million square-foot class A office building; 315 Montgomery Street, a 230,000-sf building; and 345 Montgomery Street, a Bank of America banking center at the corner of California and Montgomery streets. The complex is the largest Class A property to be brought to market in San Francisco since Boston Properties' $1.2 billion purchase of the 3 million sf Embarcadero Center in the spring of 1998.

Bank of America has been the major tenant in the landmark skyscraper since it opened in 1970, and that won't change. Regardless of a sale, the largest bank in the United States says it will continue as the largest tenant and the complex will continue to carry its name under the terms of the bank's existing long-term lease.

Shorenstein Company, owns and operates a 25 million sf national portfolio, and is one of the Bay Area's most active commercial developers. In addition to a 450,000 square-foot office building under development at City Center in Oakland, the company plans to develop a 400,000 square-foot office building at Pine and Kearny in San Francisco.

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Bank of America Building For Sale

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