Vornado also acquired the 165,000-sf Forest Plaza ShoppingCenter on Staten Island for $32.5 million. The purchase, whichincluded $18.5 million in debt, was funded as part of a Section1031 tax-free "like-kind" exchange using the remaining portion ofthe proceeds from the sale of the company's Two Park Ave. propertylast year.

And, as GlobeSt.com reported last week, AmeriColdRealty Trust, the REIT's joint venture with Fort Worth-basedCrescent Real Estate Equties Co., completed a $254.4 millionmortgage financing with Morgan Stanley. This mortgage affects 21owned and seven leased warehouses for the JV, which is owned 60% byVornado and 40% by Crescent. The loan matures in April 2006 withthree one-year extension options. Net proceeds are expected to be$225 million after the repayment of $12.9 million of existingmortgages. It is expected that $135 million will be distributed toVornado and $90 million will go to Crescent.

Earlier, Vornado sold its 75% interest in Palisades, aresidential tower in Fort Lee, NJ for $222.5 million. From thatsale, the company expects to gain approximately $70 million.