In July , the building's former owner Hines told GlobeSt.com that it and JV partner Sterling American Property would be exercising its right to deed the class A property back to lenders in lieu of foreclosure. At that time, it was expected that Brookfield would assume operational control given its stake in the asset and its ownership of approximately 75 million square feet of CBD office properties including World Financial Center in Manhattan, Brookfield Place in Toronto, and Bank of America Plaza in Los Angeles.

The acquisition is Brookfield's first in the San Francisco market; a stated goal of the company is to build a portfolio of assets in San Francisco. Bert Dezzutti, Brookfield's SVP in charge of California was not immediately available Wednesday for comment. Angus Scott and Jim Ousman with the CAC Group have the leasing assignment.

Values for Bay Area office properties have fallen by approximately 50% during the recession, according to some reports, and rents and occupancies also have suffered mightily. In many cases, the debt on the property is now greater than the value of the property and/or the revenue stream is no longer enough to cover the interest payments on the debt. As a result, instead of investing additional cash in the building in order to cover the mortgage or restructure the debt some owners are choosing simply to sell at a loss or walk away.