Terms of the transaction were not released. Procida remains thelargest investor in Palfi's Palisades Regional Investment Funds andwill act as an advisor to his old firm. PRIF I was launched in 2002and has invested in real estate valued at more than $500 million todate, and PRIF II has currently raising $200 million to invest intransactions of between $2 million and $50 million-plus.

With the departure, Procida will revive Palfi's predecessorfirm, William Procida Inc., the workout and repositioning vehiclehe founded in 1995 after 16 years of operating his own developmentcompany and a stint with the Trump Org.

"After 13 years at Palisades and its predecessor WPI, and whileI'm only 46, I figured I had one last opportunity to challengemyself," Procida says. "Palisades' fund out-performed almost all ofits peers last year, and it was the right time to sell out tomanagement."