The JPMorgan Fleming fund is buying the joint-venture interestin the property from Arlington, VA-based Mills Corp. and Germany'sKan Am Realty Inc. While Kan Am conveys its entire 35% partnershipinterest to the fund, Mills Corp. relinquishes 15%.

The deal includes $73 million of joint-venture debt on theproperty, which carries a $146-million mortgage. The transaction isexpected to close this month, with Mills staying on as managinggeneral partner of the joint venture. The Mills Corp., a realestate investment trust, will receive net proceeds of $50 million,which will go to reduce the balance on its outstanding line ofcredit and for general corporate purposes. The deal represents thefirst joint venture between Mills and JPMorgan Fleming.

Ontario Mills, with 200 retailers, occupies a site at theintersection of Interstate 10 and Interstate 15 and is consideredby local retail experts to be a catalyst for a number of retailcenters, restaurants and other projects that have been developednear the mall in recent years.