Glenborough Acquires 20-Story Class A Office in San Francisco CBD

Glenborough Realty Trust (NYSE:GLB)(GLB PrA) announced
the continued focusing of its portfolio in its top five markets with
the acquisition of 33 New Montgomery a 20-story, Class "A" office
tower located in the San Francisco Financial District. The building,
totaling 241,794 rentable square feet, is located at the corner of
Market and New Montgomery streets directly above the Montgomery Street
BART Station offering exceptional access to San Francisco's
multi-modal transportation system. The building is also located within
two blocks of the Transbay Terminal. Additionally the property is
located within 1/2 mile of Interstate 80 and Highway 101 offering
commuters access to the East Bay, Oakland and the Peninsula. The
purchase price was $75 million or $310/SF.
   Constructed in 1986, the property's highly efficient "L" shaped
floor plates provide up to 12 corner offices per floor with panoramic
bay and city views. The average floor size in the building is
approximately 12,500 square feet which can accommodate either single
or multi-tenant users. The building has ground level retail space
offering tenants on site amenities including full service banking,
ATMs and two food establishments. The property's prominent location
provides outstanding access to a wealth of amenities, including the
Moscone Convention Center, San Francisco Shopping Center, Union
Square, the Sheraton Palace Hotel, Crocker Galleria Mall, and many
other government, retail, cultural, and recreational amenities.
   The property's distinguishing design feature is a 45 foot high
signature clock tower situated at the top of the building. 33 New
Montgomery has a two-story granite and marble lobby and the building
features state-of-the-art building systems. The property is 92% leased
to a diversified roster of 31 tenants with no single tenant leasing
more than 10% of the net rentable area (the average tenant size is
7,000 SF). Historically, the property has consistently outperformed
the submarket's occupancy level. The tenant base consists primarily of
prominent professional service oriented companies in the insurance,
government, finance and legal sectors.
   Andrew Batinovich, President and CEO commented, "33 New Montgomery
is a well located, pedestrian friendly, mass transit oriented property
located in San Francisco's Financial District. Historically well
leased, the acquisition presents the opportunity to acquire a Class A
office building on Market Street at a significant discount to
replacement cost."

   Glenborough is a REIT which is focused on owning high quality,
multi-tenant office properties concentrated in Washington D.C.,
Southern California, Boston, Northern New Jersey, and Northern
California. The Company has a portfolio of 57 properties encompassing
approximately 10 million square feet as of June 30, 2005.