CalPERS will acquire 63 shopping centers in the Mid-Atlantic states and the Midwest. The price is $26 per common share, about 25% better than its closing price of $20.75 on Sept. 27. The sale is expected to close in January.

First Washington's management will continue to manage the same properties, through a new company called U.S. Retail Partners LLC, which is essentially the same as the company they run now. They plan no layoffs and CalPERS wants them to expand their acquisitions, says William J. Wolfe, president.

Officials at the Bethesda real estate investment trust had long been frustrated that the company's stock was not appreciating, and felt that Wall Street undervalued the small, independent real estate investment trust.

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