The REIT continues along with its three-fold directive ofmaintaining a solid core portfolio and strong balance sheet inaddition to creating a profitable external growth platform. Thefirm doesn't anticipate short-term earnings from the infillprojects this year, but expects significant earnings over the nextfew years. "In a company of our size, even a few smallertransactions can make a difference," said Kenneth Bernstein,president and CEO, during a conference call.

During December 2005, the firm's Fund II acquired the remaining40-year term of a leasehold interest in land located at LibertyAvenue and 98th Street in Ozone Park, Queens. The development plansfor this property includes 30,000 sf of retail anchored by a CVSdrug store and a 98,500 sf self-storage facility to be operated byStorage Post. Acadia will be a partner in the self-storage complexwith Storage Post, which is anticipated to be a partner in futureretail projects.

The Fund also acquired a 65,000 sf parking garage located at10th Avenue and 216th Street in the Inwood . The Company plans toredevelop the building into a 60,000 sf office building and isfinalizing a transition where it would be occupied by an agency ofthe City of New York, which is a current tenant at another AcadiaUrban/Infill Redevelopment project. Inclusive of acquisition costs,total costs for the project, which also includes a 100-spacerooftop parking deck, are anticipated to be $25 million.