Mervyn's operates 257 department stores, mostly on the West Coast. The chain was sold by Target to a partnership between Cerberus Capital Management, Lubert-Adler/Klaff and Sun Capital Partners in the summer for nearly $1.3 billion.

Acadia, based here, also launched its New York Urban/Infill program during the quarter. The program, in which the company invests a 90% share and developer P/A Associates funds the remainder, acquired the 400 East Fordham Road in the Bronx for $30 million. The six-story mixed-use building is anchored by a two-level Sears.

In the infill program Acadia also plans to redevelop 320,000 sf of warehouse space in Pelham Manor, NY, into a 200,000-sf multi-anchored community center. The REIT expects the project to cost between $30 million and $40 million. Acadia plans to do an average of two infill projects a year, company officials say. "National retailers are under represented in this market," said Kenneth Bernstein, Acadia's president and CEO, during a conference call with analysts and investors.