Company officials say all of the current investors in Acadia's existing acquisition fund, along with two additional undisclosed institutional investors, will invest a total of $240 million of equity in Fund II. Acadia will invest $60 million in the new fund. Acadia will earn a pro rata return on its invested equity in Fund II as well as fees for asset management, property management, leasing and construction services.

Acadia Strategic Opportunity Fund I totals $90 million in equity investment. To date, $70 million has been invested or committed to redevelopment of currently owned assets, Acadia officials say.

"Fund II is of a size and structure that enables us to continue to invest opportunistically while still maintaining our investment discipline," says Acadia president and CEO Kenneth F. Bernstein. "Most importantly, with non-dilutive discretionary equity commitments, Fund II allows us to accretively fuel our future growth independently of the increasingly volatile public markets."