Under the terms of the deal, Liberty will retain a 25% ownershipposition in the portfolio, and will realize proceeds of anestimated $110 million. Liberty will also receive development,leasing and property management fees, and could receive a promotedinterest if certain return thresholds are met. The venture will befinanced with an estimated 60% leverage.

"Joint ventures allow us to harvest some of the value createdthrough our core competencies," explains Liberty president and CIO,William P. Hankowsky. He notes that the deal marks his company'sfirst joint venture since it went public.

"Our criteria for joint ventures have been very stringent,"Hankowsky continues. "First, we were only interested in venturesproviding geographic separation of properties. Second, we wished topursue transactions utilizing all of our strengths – development,acquisition, property management and leasing, allowing us tomaintain long-term relationships with our tenants. Third, we onlysought partners with a management and decision-making style similarand consistent with our own.

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