UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): September 7, 2007

MONTGOMERY REALTY GROUP, INC.
(Exact name of registrant as specified in its charter)

Nevada	000-30724	88-0377199
(State or other jurisdiction of	(Commission	(I.R.S. Employer
incorporation or organization)	File Number)	Identification No.)

400 Oyster Point Blvd., Suite 415 South San Francisco, California		94080
(Address of principal executive offices)		(Zip Code)

(650) 266-8080
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.01—COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS

On September 7, 2007, Montgomery Realty Group, Inc., completed its purchase of the property located at 447 Battery Street in San Francisco, CA, from an unrelated third party for an aggregate purchase price of $7,650,000. The 447 Battery Street property is designated to replace the London Square Apartments property, which was sold on April 25, 2007, in a tax-free exchange under Internal Revenue Code Section 1031. Approximately $2,000,000 in proceeds from the London Square Apartment sale was used in the purchase of the 447 Battery Street Building. Montgomery financed the remaining $5,650,000 at 7% interest per annum with a commercial lender. The loan has monthly payments of approximately $38,000, with the remaining principal and interest due in October 2010.

The 447 Battery Street building is in a financial district location and has approximately 27,000 square feet of mixed office and retail space. Based on historical operating expenses and current lease payments, Montgomery expects the 447 Battery Street building to generate positive cash flow for the Company.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	MONTGOMERY REALTY GROUP, INC.
	Registrant


Dated: September 19, 2007	By:	/s/ Dinesh Maniar
		Dinesh Maniar
		President

MONTGOMERY REALTY GROUP INC 8-K