The deal marks the 36th acquisition for Sterling American Property Fund IV, which Hines has a 10% interest in. In June 2005, the companies formed a joint venture to purchase a portfolio of properties from EOP in the San Francisco area. They acquired a portfolio of unstable Bay Area office properties for $329 million. The portfolio totals 1.36 million sf, of which 729,214 sf is empty for a overall 53.4% vacancy.

The 25-story Montgomery St. is approximately 59% occupied. Its roster of tenants includes the US General Services Administration, Wells Fargo Bank, the law offices of Trucker Huss and the Segal Co.

Sterling American plans to begin a comprehensive repositioning strategy to lease the property, which was constructed in 1955, at current market levels. In negotiating the transaction, Sterling American's managing directors coordinated the efforts of Tarak Patolia, SVP/head of acquisitions, Robert Watman, VP, acquisitions and Robert Bergman, SVP/asset management.