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Tower Realty Trust Acquires Prime Midtown Manhattan Property for $143.4 Million

Acquisition is Latest Addition to Office REIT's Manhattan Portfolio

Original press release from Tower Realty Trust.
New York, NY, January 2, 1998

Tower Realty Trust, Inc. (NYSE: TOW), announced today the acquisition of a prime midtown Manhattan office building for $143,375,000 by one of Tower Realty Trust's wholly-owned subsidiaries. The total cost of the transaction including closing costs was approximately $150 million. The acquisition brings the total number of properties owned by Tower Realty Trust to 22 office buildings.

Rechler, president and chief operating officer of Melville-based Reckson Associates Realty Corp., answered. An investment banker at Merrill Lynch & Co. was calling about Reckson's $ 24-a-share offer for Tower Realty Trust Inc., a Manhattan-based real estate investment trust (REIT) that had gone public late in 1997 and that in March, 1998, had put itself into play.

The 42-story glass tower is located at 810 7th Avenue at the north end of Times Square, which is currently experiencing a resurgence as a leading financial, entertainment and communications center. Originally developed in 1970, the 700,000 square foot structure includes both office space and parking garage facilities and is presently 91% leased. Current tenants include: AT&T; EMI Entertainment World, Inc.; PR Newswire; and WWOR-TV, Inc.

Larry Feldman, Chairman and Chief Executive Officer of Tower Realty Trust, commented: "This prime location is an excellent addition to Tower Realty Trust's portfolio of midtown Manhattan properties. To enhance its value, we intend to further renovate and upgrade certain aspects of this already well-positioned property. Given this building's quality and location, we believe this is an outstanding acquisition at approximately 50% of replacement cost."

Tower Realty Trust, Inc. is a self-managed real estate investment trust engaged in the development, acquisition, ownership, renovation, management and leasing of office properties. Tower Realty Trust owns interests in 22 office buildings with an aggregate of approximately 4.1 million square feet in the Manhattan, Phoenix/Tucson and Orlando markets, with a majority of the Company's rental stream derived from Manhattan office properties.

Tower Realty Trust utilizes an innovative turnaround strategy focusing on the acquisition of office properties at a significant discount to replacement cost and enhancing value through renovation, upgrades and aggressive leasing programs.

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