SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________________________
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 3)
_________________________________
GREAT LAKES REIT, INC.
(Name of Issuer)
COMMON STOCK, $.01 PAR VALUE PER SHARE
(Title of Class of Securities)
390752 10 3
(Cusip Number)
___________________________________
HAROLD J. SCHAAFF, JR.
MORGAN STANLEY ASSET MANAGEMENT INC.
1221 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10020
(212) 296-7000
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
___________________________________
COPY TO:
Leonard B. Mackey, Jr., Esq.
Rogers & Wells
200 Park Avenue
New York, New York 10166
(212) 878-8000
____________________________________
FEBRUARY 25, 1997
(Date of event which requires filing of this statement)
_______________________________________________________________________________
<square> Check box if the filing person has previously filed a statement on
Schedule 13G to report the acquisition which is the subject of this
Schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or
(4).
<square> Check box if a fee is being paid with the statement.
_______________________________________________________________________________
<PAGE>
[CAPTION]
CUSIP No. 390752 10 3 13D Page 2
[CAPTION]
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
MORGAN STANLEY INSTITUTIONAL FUND, INC. - U.S. REAL ESTATE
PORTFOLIO I.R.S.# 13-3808424
_______________________________________________________________________________
<TABLE>
<S> <C>
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)<checked-box>
(b)<square>
__________________________________________________________________________________________
<S> <C>
3. SEC USE ONLY
__________________________________________________________________________________________
<S> <C>
4. SOURCES OF FUNDS
WC
___________________________________________________________________________________________
<S> <C>
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d)
OR 2(e)
<square>
____________________________________________________________________________________________
<S> <C>
6. CITIZENSHIP OR PLACE OR ORGANIZATION
Maryland
_____________________________________________________________________________________________
<S> <C>
<S> 7. SOLE VOTING POWER
0
NUMBER OF _________________________________________________________
<S> <C>
UNITS 8. SHARED VOTING POWER
BENEFICIALLY 646,200*
_________________________________________________________
OWNED BY <S> <C>
9. SOLE DISPOSITIVE POWER
EACH 0
_________________________________________________________
REPORTING <S> <C>
10. SHARED DISPOSITIVE POWER
PERSON WITH
646,200*
________________________________________________________________________________________________
<S> <C>
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
646,200*
________________________________________________________________________________________________
<S> <C>
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
<square>
_________________________________________________________________________________________________
<S> <C>
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.3%*
__________________________________________________________________________________________________
<S> <C>
14. TYPE OF REPORTING PERSON
IV, CO
___________________________________________________________________________________________________
</TABLE>
* Includes 33,150 Class A Convertible Preferred shares of the Issuer that
are exercisable on a one-to-one basis into Common Stock of the Issuer and
3,050 options exercisable on a one-to-one basis into Common Stock of the
Issuer.
<PAGE>
[CAPTION]
CUSIP No. 390752 10 3 13D Page 3
[CAPTION]
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
MORGAN STANLEY SICAV SUBSIDIARY S.A.
_______________________________________________________________________________
<TABLE>
<S> <C>
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) <checked-box>
(b) <square>
_________________________________________________________________________________________________________
<S> <C>
3. SEC USE ONLY
_________________________________________________________________________________________________________
<S> <C>
4. SOURCES OF FUNDS
AF
__________________________________________________________________________________________________________
<S> <C>
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d)
OR 2(e)
<square>
__________________________________________________________________________________________________________
<S> <C>
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Luxembourg
___________________________________________________________________________________________________________
<S> <S> <C>
7. SOLE VOTING POWER
NUMBER OF 0
_______________________________________________________________________
UNITS
<S> <C>
BENEFICIALLY 8. SHARED VOTING POWER
413,139*
OWNED BY ________________________________________________________________________
<S> <C>
EACH 9. SOLE DISPOSITIVE POWER
REPORTING 0
_________________________________________________________________________
<S> <C>
PERSON WITH 10. SHARED DISPOSITIVE POWER
413,139*
______________________________________________________________________________________________________________
<S> <C>
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
413,139*
_______________________________________________________________________________________________________________
<S> <C>
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
<square>
_______________________________________________________________________________________________________________
<S> <C>
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.6%*
_________________________________________________________________________________________________________________
<S> <C>
14. TYPE OF REPORTING PERSON
OO
__________________________________________________________________________________________________________________
</TABLE>
* Includes 21,189 Class A Convertible Preferred shares that are exercisable
on a one-to-one basis into Common Stock of the Issuer and 1,950 options
exercisable on a one-to-one basis into Common Stock of the Issuer.
<PAGE>
[CAPTION]
CUSIP No. 390752 10 3 13D Page 4
[CAPTION] [C]
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
MORGAN STANLEY SICAV - U.S. REAL ESTATE SECURITIES FUND
_______________________________________________________________________________
<TABLE>
<S> <C>
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) <checked-box>
(b) <squared box>
______________________________________________________________________________________________________________________________
<S> <C>
3. SEC USE ONLY
______________________________________________________________________________________________________________________________
<S> <C>
4. SOURCES OF FUNDS
WC
______________________________________________________________________________________________________________________________
<S> <C>
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d)
OR 2(e)
<square>
______________________________________________________________________________________________________________________________
<S> <C>
6. CITIZENSHIP OR PLACE OR ORGANIZATION
Luxembourg
______________________________________________________________________________________________________________________________
<S> <S> <C>
7. SOLE VOTING POWER
NUMBER OF 0
_________________________________________________________________________________________
UNITS <S> <C>
8. SHARED VOTING POWER
BENEFICIALLY 413,139*
_________________________________________________________________________________________
OWNED BY <S> <C>
9. SOLE DISPOSITIVE POWER
EACH 0
_________________________________________________________________________________________
REPORTING <S> <C>
10. SHARED DISPOSITIVE POWER
PERSON WITH 413,139*
______________________________________________________________________________________________________________________________
<S> <C>
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
413,139*
______________________________________________________________________________________________________________________________
<S> <C>
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
<square>
_____________________________________________________________________________________________________________________________
<S> <C>
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.6%*
______________________________________________________________________________________________________________________________
<S> <C>
14. TYPE OF REPORTING PERSON
OO
______________________________________________________________________________________________________________________________
</TABLE>
* Includes 21,189 Class A Convertible Preferred shares of the Issuer that
are exercisable on a one-to-one basis into Common Stock of the Issuer and
1,950 options exercisable on a one-to-one basis into Common Stock of the
Issuer. Morgan Stanley SICAV beneficially owns the shares reported herein
as the owner of all outstanding capital of Morgan Stanley SICAV Subsidiary
S.A. This holding is being simultaneously reported herein by Morgan
Stanley SICAV Subsidiary S.A.
<PAGE>
[CAPTION]
CUSIP No. 390752 10 3 13D Page 5
<TABLE>
<CAPTION>
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
MORGAN STANLEY ASSET MANAGEMENT INC.
I.R.S.# 13-3040307
______________________________________________________________________________________________________________________________
<S> <C>
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) <checked-box>
(b) <square>
______________________________________________________________________________________________________________________________
<S> <C>
3. SEC USE ONLY
______________________________________________________________________________________________________________________________
<S> <C>
4. SOURCES OF FUNDS
OO
______________________________________________________________________________________________________________________________
<S> <C>
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d)
OR 2(e) <square>
______________________________________________________________________________________________________________________________
<S> <C>
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
______________________________________________________________________________________________________________________________
<S> <C>
NUMBER OF 7. SOLE VOTING POWER
UNITS 0
_________________________________________________________________________________________
BENEFICIALLY <S> <C>
OWNED BY 8. SHARED VOTING POWER
1,059,339*
EACH _________________________________________________________________________________________
<S> <C>
REPORTING 9. SOLE DISPOSITIVE POWER
0
PERSON WITH _________________________________________________________________________________________
<S> <C>
10. SHARED DISPOSITIVE POWER
1,059,339*
______________________________________________________________________________________________________________________________
<S> <C>
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,059,339*
______________________________________________________________________________________________________________________________
<S> <C>
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
<square>
______________________________________________________________________________________________________________________________
<S> <C>
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.9%*
______________________________________________________________________________________________________________________________
<S> <C>
14. TYPE OF REPORTING PERSON
IA, CO
______________________________________________________________________________________________________________________________
</TABLE>
* Includes 54,339 Class A Convertible Preferred shares of the Issuer,
exercisable on a one-to-one basis into Common Stock and 5,000 options
exercisable on a one-to-one basis into Common Stock of the Issuer. Morgan
Stanley Asset Management Inc. may be deemed to beneficially own the shares
reported herein in its capacity as the investment adviser of Morgan
Stanley Institutional Fund, Inc. and Morgan Stanley SICAV Subsidiary S.A.,
whose holdings are being simultaneously reported herein.
<PAGE>
[CAPTION]
CUSIP No. 390752 10 3 13D Page 6
<TABLE>
<CAPTION>
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
MORGAN STANLEY GROUP INC.
IRS# 13-283-8811
______________________________________________________________________________________________________________________________
<S> <C>
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) checked-box>
(b) <square>
______________________________________________________________________________________________________________________________
<S> <C>
3. SEC USE ONLY
______________________________________________________________________________________________________________________________
<S> <C>
4. SOURCES OF FUNDS
OO
______________________________________________________________________________________________________________________________
<S> <C>
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR
2(e)
<square>
______________________________________________________________________________________________________________________________
<S> <C>
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
______________________________________________________________________________________________________________________________
<S> <S> <C>
7. SOLE VOTING POWER
NUMBER OF 0
_________________________________________________________________________________________
UNITS <S> <C>
BENEFICIALLY 8. SHARED VOTING POWER
1,059,339*
OWNED BY _________________________________________________________________________________________
<S> <C>
EACH 9. SOLE DISPOSITIVE POWER
0
REPORTING _________________________________________________________________________________________
<S> <C>
PERSON WITH 10. SHARED DISPOSITIVE POWER
1,059,339*
______________________________________________________________________________________________________________________________
<S> <C>
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,059,339*
______________________________________________________________________________________________________________________________
<S> <C>
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
<square>
______________________________________________________________________________________________________________________________
<S> <C>
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.9%*
______________________________________________________________________________________________________________________________
<S> <C>
14. TYPE OF REPORTING PERSON
IA, CO
______________________________________________________________________________________________________________________________
</TABLE>
* Includes 54,339 Class A Convertible Preferred shares of the Issuer,
exercisable on a one-to-one basis into Common Stock and 5,000 options
exercisable on a one-to-one basis into Common Stock of the Issuer. Morgan
Stanley Group Inc. may be deemed to beneficially own the shares reported
herein in its capacity as the owner of all the outstanding capital of
Morgan Stanley Asset Management Inc. This holding is being simultaneously
reported herein by Morgan Stanley Asset Management Inc.
<PAGE>
AMENDMENT NO. 3 TO SCHEDULE 13D
This Statement, which is being filed jointly by Morgan Stanley
Institutional Fund, Inc. - U.S. Real Estate Portfolio ("MSIF"), Morgan Stanley
SICAV Subsidiary S.A. (the "SICAV Subsidiary"), Morgan Stanley SICAV - U.S.
Real Estate Securities Fund ("MSSICAV"), Morgan Stanley Asset Management Inc.
("MSAM") and Morgan Stanley Group Inc. ("MSGI") (each a "Filing Person" and
collectively, the "Filing Persons"), constitutes Amendment No. 3 to the
Statement on Schedule 13D relating to shares of Common Stock, par value $.01
per share (the "Shares"), of Great Lakes REIT, Inc., a Maryland Corporation
(the "Issuer") originally filed by MSIF, the SICAV Subsidiary, MSSICAV, MSAM
and MSGI with the Commission on August 30, 1996, as amended by Amendment No. 1
thereto filed with the Commission on October 16, 1996 and as amended by
Amendment No. 2 thereto filed with the Commission on November 27, 1996 (as
amended, the "Schedule 13D"). Capitalized terms used but not defined in this
Amendment No. 3 shall have the meanings ascribed to them in the Schedule 13D.
ITEM 4. PURPOSE OF THE TRANSACTION.
The following hereby amends Item 4:
The individual whom the Filing Persons nominated and whom subsequent
to such nomination was elected to the Issuer's Board of Directors (the "Board
of Directors") has resigned from the Board of Directors as of February 25,
1997, and the Filing Persons do not have, as of the filing of this Amendment,
any intention to exercise the contractual right under the Stock Purchase
Agreement (filed as Exhibit 7.2 on August 30, 1996) to designate another
individual to be nominated by the Issuer as a member of the Board of Directors
of the Issuer.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
The following hereby amends Item 5(c):
MSIF and the SICAV Subsidiary received 3,050 options and 1,950
options, respectively from the Issuer in connection with the services performed
by an affiliate of their investment manager as a director of the Issuer. Such
individual, who was designated by the Filing Persons to be nominated as a
member of the Board of Directors of the Issuer, has resigned from the Board of
Directors.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Not Applicable.
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: March 10, 1997
MORGAN STANLEY INSTITUTIONAL FUND, INC. -
U.S. REAL ESTATE PORTFOLIO
/S/ HAROLD SCHAAFF, JR.
___________________________________________________
Name: Harold Schaaff, Jr.
Title: Vice President
MORGAN STANLEY SICAV - U.S. REAL ESTATE SECURITIES
FUND
/S/ JAMES W. GRISHAM
___________________________________________________
Name: James W. Grisham
Title: Executive Officer
MORGAN STANLEY SICAV SUBSIDIARY S.A.
/S/ JAMES W. GRISHAM
___________________________________________________
Name: James W. Grisham
Title: Executive Officer
MORGAN STANLEY ASSET MANAGEMENT INC.
/S/ HAROLD SCHAAF, JR.
___________________________________________________
Name: Harold Schaaff, Jr.
Title: General Counsel
MORGAN STANLEY GROUP INC.
/S/ STUART BRESLOW
___________________________________________________
Name: Stuart Breslow
Title: Principal
