$800-millionpurchase

"There's a new baseline for pricing being established for classA office in Midtown, which is a very healthy sign for themarketplace," says Dan Fasulo, managing director and head ofresearch for Real Capital Analytics. He says that baseline is about10% to 15% lower than it was at the peak of the market. "That makessense, because the tremendous amount of liquidity on the debt sidecreated a 10% to 15% froth in pricing levels from the end of 2006through mid-2007, and the froth has been shaken out."

Fasulo adds that following "a huge disconnect" between buyersand sellers that hampered trading velocity over the past six tonine months, the big deals will help re-establish momentum. "Nowthat some of these properties are starting to trade and it's verysavvy investors who are making these purchases, the rest of themarket will go forward at this new confidence level," he says.