Arden is the largest public real estate company in the SouthernCalifornia region with some 18.5 million sf of assets. As part ofthe transaction, Chicago-based Trizec Properties Inc. will acquirepart of the locally based REIT's office portfolio for $1.63billion. GE will also assume approximately $1.6 billion of Ardendebt as part of the deal.

Trizec's part of the deal is expected to include 13 of theREIT's assets totaling some 4.1 million sf in West L.A. (10holdings) and San Diego (three). The assets are roughly 91%occupied and include land parcels at the Howard Hughes Center.These can accommodate up to 490,000 sf of office development androughly 600 housing units.

The deal is part of a longstanding trend in REITbuys--specifically REITs going into private structures. AsGlobeSt.com reports in its new Issues in Focus feature, privatization is "definitely atrend," according to Gregory Pressman, a partner in the real estatedepartment of Manhattan-based law firm Schulte, Roth & ZabelLLP. "The market is simply undervaluing the stock compared to whatmanagement believes is the real value of their assets. It's aclassic buyback situation."