BofA to Buy Half Interest in Headquarters Building

BankAmerica Corp., in another display of its financial recovery, has exercised an option to buy back a half interest in its world headquarters for $380 million.

The bank, which last month completed a merger with Security Pacific Corp. of Los Angeles, sold the landmark complex in 1985 when it was in mired in severe financial problems.

The $660 million paid by San Francisco real-estate magnate Walter Shorenstein was a record price for a U.S. office building.

Four years later, the bank was in recovery and purchased an option to buy a half-interest in the Shorenstein partnership that owns the complex.

The bank said the option deal, which includes 1.7 million square feet of office space, amounts to more than $400 per square foot. It includes space in three buildings, including the bank’s 52-story tower, San Francisco’s tallest.

BankAmerica, the nation’s second-largest bank, said exercising the option will not have much effect on its financial results. The purchase is expected to be completed later this year.

BankAmerica reported earnings of $303 million in the first quarter, up from $282 million a year earlier.