As a sort of financing instrument, Gerding Edlen sold theproject earlier this year to Multi Employer Property Trust, a $3billion fund created by Seattle-based real estate investmentadvisor Kennedy Associates Real Estate Counsel in 1982. Rich Hass,Kennedy's senior vice president of acquisitions, says he'sdelighted to have acquired the one building that incorporates theold Blitz Brewhouse and is not at all concerned that Block 2,slated for completion in May 2002, is the only Brewery Blocksoffice project that is under construction and without a signedoffice tenant.

"We bought the property from them and then hired them todevelop, lease and manage the building," says Hass. "We are awareof the potential conflict in terms of them developing otherproperty within the project and have addressed that (in theagreement); it's fair to say they have incentives and risks in thedeal."

In further explaining his lack of concern, Hass says Block 2 isbetter suited toward smaller tenants, which is why the 260,000-sfBlock 4 already has secured a 70,000-sf tenant and a 52,000-sftenant despite the fact that it won't be completed until severalmonths after Block 2. "The buildings have different floor platesand will appeal to different users," says Hass. "Our floor plates(17,000 sf) are geared toward tenants that make up the majority ofthe Portland market; so there's no issue between us and thedeveloper, they are doing a good job in terms of prospects."