99.a(1)(vii)
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December 20, 2001

To Holders of the Acadia Common Shares of Beneficial Interest:

   We are pleased to inform you that Acadia Realty Trust, a Maryland real estate
investment trust ("Acadia" or the "Company") is offering to purchase 4,784,615
Common Shares of Beneficial Interest (including common units of limited
partnership interests in Acadia Limited Partnership convertible into Acadia
Realty Trust Common Shares of Beneficial Interest) ("Shares"), through a tender
offer at a price not greater than $6.50 nor less than $6.05 for each of the
Shares.

   The price at which the Company will purchase the Shares (the "Purchase
Price") will be determined through a modified "Dutch auction." This procedure
allows you to select the price not greater than $6.50 nor less than $6.05 at
which you are willing to sell your Shares to us. Based upon the number of Shares
tendered and the prices specified by the tendering holders of Shares, we will
determine a price for each of the Shares within such price range that will allow
us to buy 4,784,615 Shares (or such lesser number of Shares as are validly
tendered). All Shares validly tendered prior to the Expiration Date at prices at
or below the Purchase Price will be purchased at the Purchase Price, net to the
seller in cash, upon the terms and subject to the conditions of the Offer,
including its Odd Lot "priority", proration and conditional tender provisions.
The Company will return all other Shares, including Shares tendered at prices
greater than the Purchase Price and Shares not purchased because of proration or
the conditional tender procedures, without expense to the shareholders.

   The tender offer provides holders of Shares with the opportunity to sell for
cash without the usual transaction costs and, in the case of those holders who
own less than 100 Shares, without incurring any applicable odd lot discounts.

   The tender offer is explained in detail in the enclosed Offer to Purchase and
Letter of Transmittal. If you wish to tender your holders of Shares, detailed
instructions on how to tender your Shares are also in the enclosed materials. We
encourage you to read these materials carefully before making any decision with
respect to the tender offer. Neither the Company nor its Board of Trustees makes
any recommendation to any holder of Shares as to whether to tender or refrain
from tendering Shares.

   Please note that the tender offer is scheduled to expire at 11:59 p.m., New
York City time, on January 22, 2002, unless extended by the Company. Questions
regarding the tender offer may be directed to MacKenzie Partners, Inc., the
Information Agent, at 156 Fifth Avenue, New York, NY 10010; toll free: (800)
322-2885, toll collect: (212) 929-5500.



                                      Sincerely,


                                      /s/ Kenneth F. Bernstein
                                      ------------------------
                                      Kenneth F. Bernstein
                                      President and Chief Executive Officer