Details about the debut are unavailable, but the offering stacksup as the most significant value-add deal to come down the pikethis year in Dallas. The 50-story high rise at 1601 Elm St. is just60% leased due to the exit of a Bank One credit card division inthe past year. Local brokers say the remaining tenants, though, arein place for the long term.

In 2002, the New York City investment giant tapped its MorganStanley Real Estate Fund III to team with locally based MacfarlanReal Estate & Investment Management to buy an 80.5% stake inthe property for $95 million, according to published accounts aboutthe deal's closing. This year, Morgan Stanley has sold severaloffice buildings in Dallas and Austin that it bought with Macfarlanas it lowers the curtain on MSDW Southwest Partners.

Bets are starting to go down that the value add--assessed at$107 million--will change hands for roughly $100 per sf or lessbecause the new owner will have to dig into its pockets for tenantimprovements and leasing commissions to fill the open floors. "Itwill be substantial," one market source predicts.