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

IBM is leading selling partnership which leases the class-A buildings at rents somewhat below the market rate of $19.50/sf, triple-net. Rockwood Partners, a New York-based firm, is also part of the ownership team. With IBM's leases running through 2011 for Capital Gateway II and 2005 for Capital Gateway IV and a purchase price equaling $210 sf, Hines can expect an initial yield of 8.7%.

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