"Up north we do have some ground for development in Portland andpotentially a site in Washington," says Dale Kemp, CFO of MBK."We're looking for repositioning properties, retail malls andcenters having difficulties. We have sufficient things going on inPortland and Seattle, so our next step is a strong push in SouthernCalifornia."

MBK President Mike Voss says he expects some retail centers tofalter next year due to troubles in the theater industry, stemmingfrom overbuilding and over encumbering themselves with too muchdebt. Still, finding property in the greater Los Angeles area isdifficult due to intense competition for the few existing centerson the market.

"We like to see retail centers that are well located from ademographic standpoint, but with anchors and tenants that areeither weak or inappropriate for that particular market. What we dois we come in and renovate and reposition the center by, first ofall, physically reconfiguring [the center] and then bringing in newtenants," Voss says.