Bank of America Corp. and Shorenstein Company, which own theproperties under the name 555 California Street Partners LP, saythey are "exploring a potential recapitalization of theirpartnership" that would enable them to "explore various capitalmanagement options, which could include refinancing theirinvestment, selling the property or seeking various joint venturealternatives."

"In light of the current strength of San Francisco's real estatemarket, it makes good business sense to explore a recapitalizationof these properties," says William Miles, a senior veep with Bankof America who handles the company's Western corporate real estateportfolio. Banc of America Securities LLC is advising thepartnership.

Bank of America Center is comprised of three adjacentproperties: 555 California Street, a 1.5 million square-foot classA office building; 315 Montgomery Street, a 230,000-sf building;and 345 Montgomery Street, a Bank of America banking center at thecorner of California and Montgomery streets. The complex is thelargest Class A property to be brought to market in San Franciscosince Boston Properties' $1.2 billion purchase of the 3 million sfEmbarcadero Center in the spring of 1998.