(To read more on the multifamily market, click here.)

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.

Lakewood, NJ-based Lightstone Group, LLC bought Prime Group Realty Trust and its 7.6-million-sf city and suburban office portfolio in a deal worth $734 million.

The bulk of Great Lakes REIT's suburban office portfolio here, as well as Milwaukee and Detroit, was acquired by Transwestern Investment Co. for $240 million, with its medical office portfolio going to LaSalle Investment Management for $69 million.

JP Morgan Securities Inc. was AMLI Residential's financial adviser, while the company got legal advice from Mayer, Brown, Rowe and Maw.

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