The five property sell-off, which totaled 770,000-sf, brought in$60.2 million for the locally based firm. A portion of the gainsfrom those sales, which included four properties in secondarymarkets in Northeastern Pennsylvania, were deferred for taxpurposes against properties acquired earlier this year inPhiladelphia and the Bronx, Kenneth Bernstein, president and CEO,said in a conference call with analysts. The remaining gain ofabout $20 million will be used to fund future acquisitions. "Allcomponents of our business plan remain on track. Our balance sheetis solid," he said.

Bernstein noted that the firm focused much of its growth duringthe quarter on its New York urban infill program where it has sevenproperties totaling 1.4 million sf currently under development at acost of $375 million. Those assets, he says, are "helping us builda nice pipeline for the future."

Acadia, which owns or manages more than 50 properties in 18states, also is growing its retailer controlled properties, whichexpanded by $25 million last year. It expects to soon launch athird fund comprised of between $400 million and $500 million, ofwhich Acadia will provide $80 million to $100 million inequity.