"Our relationship with Morgan Stanley has been a good one, andwe continue to maintain the resources and strategies that haveworked for us in our two earlier ventures," according to MarkYeager, president of Gale & Wentworth's commercial group.

The first step is an investment of $75 million in MSGW RealEstate Fund III, with the money being used to begin the process ofpicking up assets, targeting New Jersey, New York and Boston on theEast Coast, and California on the West, according to Yeager. In NewJersey, four class A office buildings are in the fold in Montvaleand Morristown, and an announcement on two other properties is saidto be near. The newly acquired properties include a 200,000-sfportfolio of three properties in Montvale, worth more than $26million, and 131 Madison Avenue in Morristown. The buildings'occupants include Mercedes Benz, International Paper and VolvoNorth America.

Indeed, based on what's already happened, Yeager predicts thatthose initial acquisitions will be completed as soon as the end ofthis year, at which time a fourth such venture could belaunched.