joint venture transaction

"We expect this will the first in this line of deals," Katzmansaid. "This was the right way to do it--sell a stable portfolio ofproperties and redeploy in other markets." Those other marketsinclude the Northeast and the Southeast. The firm has already made$100 million of investments to date this year, and anticipates atleast $100 million more of acquisitions.

Equity anticipates net proceeds will be $327 million. The dealis on track to close in the middle of the second quarter.. The firmexpects to realize between $400,000 and $600,000 annually thanks tothe management contracts and additional fees. Equity One still hastwo additional properties in Texas. The transaction includes thejoint venture's receipt of approximately $323 million of committedproperty financing. Upon the closing of the transaction, Equity Oneexpects to record an estimated gain on the sale of approximately$92 million, including approximately $5 million of gains on thesale of various undepreciated land parcels.