The joint venture also is working on getting its line of creditdoubled to $150 million, a prerequisite for the five-yearextension. CalEast Industrial Investors, which owns 75% of thejoint venture, is a real estate operating company owned by theState of California Public Employees' Retirement System and LaSalleInvestment Management, Inc. The venture has done $600 million inbusiness in its first five years, and currently holds $123 millionworth of properties, according to the REIT's most recent earningsreport.

"CalEast has proved itself a terrific partner over the last fouryears," says CenterPoint Properties Trust chief financial officerPaul Fisher. "Our venture will continue to operate with a similarstructure and governance, but the renegotiated terms are in linewith today's improved market for institutional equity. ... Theventure has not only been successful in providing attractivecapital, but in CalEast we have found a partner with whom we canefficiently transact other acquisition and dispositionbusiness."

Under the current arrangement, CenterPoint receives an 11%return, plus a 50-50 split of excess distributions.