The move is not an indication that the REIT, set to be acquiredby NJ-based Mack-Cali, is reducing its presence in TX, says RickBower, Prentiss Properties vice president of capital markets. "It'snot necessarily a focus on getting out of Texas, but a focus oncore markets," Bower told GlobeSt.com. He says the REIT isredirecting its emphasis to office properties from industrialholdings. Before the end of first quarter 2001, Prentiss plans todispose of its remaining industrial holdings in metro Washington,D.C., and Tucson, according to a company statement. In this year'ssecond quarter, industrial dispositions in Dallas and northern CAgenerated $56.3 million while another $4.2 million was realized bythe sell-off of a 26,730-sf industrial holding in a Philadelphiasuburb. The Dallas portfolio consisted of five buildings totaling664,306 sf while northern CA's two buildings had a combined 382,322sf.

Bower says the markets key to Prentiss' future are the Bay Area,Southern California, Denver, Washington, D.C., Philadelphia,Sacramento, Chicago, Los Angeles and ... Austin and its corporatehome, Dallas. The most closely watched markets are Austin, northernVA and Delmar, north of San Diego, according to Bower.

"The Lake Merritt Towers acquisition provides PrentissProperties the opportunity to enhance our position in the SanFrancisco Bay Area and our position as a dominant player in theOakland BCD," according to a prepared statement by Thomas F.August, Prentiss president and CEO.Prentiss will continue to shiftholdings through dispositions and acquisitions through November'smerger to create the nation's fourth largest REIT with a combinedcapitalization of $5.9 million and a 457-property portfolio in 16states and the District of Columbia. All forthcoming deals havebeen agreed to by Mack-Cali, according to Bower.