The North Bethesda properties, Capital Gateway II and IV, aretwin, five-story office buildings with a combined 574,000 sf. Theyare part of the Rock Spring Park, an office development nearInterstate 495. Salomon Smith Barney is handling the negotiations.Built in 1992 and 1993 on ground leased through 2090, IBM purchasedthe partnership in 1994.

IBM is leading selling partnership which leases the class-Abuildings at rents somewhat below the market rate of $19.50/sf,triple-net. Rockwood Partners, a New York-based firm, is also partof the ownership team. With IBM's leases running through 2011 forCapital Gateway II and 2005 for Capital Gateway IV and a purchaseprice equaling $210 sf, Hines can expect an initial yield of8.7%.

The only recent deal in Maryland that rivals the price Hines ispaying is the $118 million purchase last fall of Bethesda MetroCenter, an office/hotel complex that was acquired by a partnershipled by Blackstone Real Estate Advisors of New York.