Jonathan Litt, senior real estate analyst and director of realestate research for Salomon Smith Barney, renewed the flurry ofspeculation about the bidding process during his presentationyesterday at the New York Chapter of the Real Estate LendersAssociation breakfast. Litt suggested during an interactivequestion and answer period that Boston Properties was no longerhotly pursuing the property and Vornado Realty has become thelikely frontrunner.

Following Litt's comments, GlobeSt.com spoke with an insidesource who confirms that Boston Properties is no longer in therunning. "With the shift in lending rates, what we're seeing isthat different players with more depth of resources [equity versusdebt structures] are making their moves," he told GlobeSt.com."Increasingly, this is going to become a market where equityovershadows debt. Of course, the cost of that equity is higher. So,in order to gain something, these players have to sacrificemore."

None of those considered the top bidders, Equity OfficeProperties Trust, Vornado Realty Trust, Boston Properties Inc. andFisher Brothers, would comment on the record, nor would GoldmanSachs.