The property is 87% occupied, with 50 tenants.

"We are, of course, disappointed that Denholtz failed tocomplete the purchase of University Square," says Banyan chairman,interim president and CEO L.G. Schafran. "We will immediatelycommence a marketing program in an effort to sell this asset at afavorable price."

Walking away from the deal costs Denholtz a $1-million earnestmoney deposit, which Banyan says it will use to meet a $500,000principal payment on industrial revenue bonds on its 6901 RiverportDr. project in Louisville, KY, which is 55% occupied. In additionto that 322,065-sf office property, Denholtz had the opportunity tobuy the 304,082-sf Northlake Tower Festival Mall in Tucker, GA.Although that property is 98% occupied, that rate may drop under90% with the expected departure of AMC Theaters, according to thecompany's third-quarter report.