One source tells GlobeSt it is likely there will be some action with regard to the property "before too long." Among the options for recapitalization are refinancing and taking on more joint venture partners. Shorenstein also manages the property and is not likely to want to give that up.

The downtown office market has softened since the 52-story property was put on the market last October. According to a report from Grubb & Ellis, the vacancy rate has risen from 3.9% at the end of last year to nearly 8% in the first quarter. Class A rents in the downtown area have slid from $77.50/sf to $66.08/sf.

Market observers initially thought 555 California St. would attract offers between $800 million and $1 billion. Shorenstein bought the property for $660 million in 1985. The Bank bought back a 50% share in the building in 1989, and in 1998 the bank was acquired by NationsBank of Charlotte, North Carolina in 1998 and has since sold the historic former Bank of America headquarters at Powell and Market Streets to developer Wilson Meany.