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CHICAGO-The local REIT population declined by one more Tuesday, with Morgan Stanley Real Estate's Prime Property Fund closing on its $2.1-billion purchase of AMLI Residential. In recent years, Great Lakes REIT and Prime Group Realty Trust have been acquired by other companies, while CenterPoint Properties Trust awaits a closing.

AMLI Residential shares are being cashed in at $37.95, a 21% premium over the market price when the deal was announced in October. The deal prices the REIT's 27,730-unit multifamily rental portfolio at a capitalization rate below 6%. While company officials say they did not solicit the Morgan Stanley bid, they are among REIT bosses who believe their share prices have been undervalued by Wall Street. Also, its co-investment strategy, using joint venture partners on developments, was not understood by Wall Street, AMLI officials say.

A joint venture including California Public Employees' Retirement System and LaSalle Investment Management is paying $3.4 billion for CenterPoint Properties Trust, the largest industrial property owner in the Chicago market with a 33-million-sf portfolio. That deal places a 9% premium on CenterPoint Properties Trust shares.