Continental began selling off its multifamily assets in 2006. "Idon't know if that was ever one of their primary businesses," NickMatt tells GlobeSt.com. Managing director of Holiday FenoglioFowler LP, which is marketing the property for the JV, Matt adds,"They built apartments primarily in conjunction with their retaildevelopments," such as the Waterfront MXD.

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More recently, Matt says, Columbus, OH-based Continental hasbeen focusing more on "core competencies and property groups, and Ithink they'd probably say that's retail and office to a certainextent." Matt is confident that the Waterfront multifamily asset,which consists primarily of rental units, will find a buyerquickly.

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"We have a couple of things going for us," he tells GlobeSt.com."Number one, occupancy is strong"—currently at 97%, according to anews release from HFF. "Also, there's a real opportunity to raiserents, because right now, demand is outstripping supply. With thecrisis enveloping single-family housing, residents are just notable to finance single-family properties and so the market ismoving more toward rentals."

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That goes for investment sales as well, Matt says. "On theinvestment side, people still have money that they need to put towork, and buying retail or office properties right now is verydicey in terms of getting those deals financed," he says. "Despiteall the recent negative press, Fannie Mae and Freddie Mac are stillvery active on the multifamily financing side."

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The JV is marketing the Waterfront multifamily property withoutan asking price. However, Matt tells GlobeSt.com he believes theproperty will command "about $100,000 per unit," or approximately$23.5 million. It was completed in 2001, and features one-, two-and three-bedroom units and townhomes averaging 1,049 sf each.

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Continental sold the retail portion of theWaterfront MXD in 2003 to Inland Retail Real Estate Trust for$123.5 million. The Waterfront MXD was in turn part of DevelopersDiversifed Realty's $6.2-billion purchase of Inland in2006.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.