Bankruptcy Court Approves Process for Resolving Bankruptcy Proceeding by Selling or Refinancing the Anita Terrace Co-Op.

Business Editors/Real Estate Writers

GREAT NECK, N.Y.--(BUSINESS WIRE)--April 30, 2004

Keen Realty Retained To Market Three 14 Story Buildings

(560+/- Units) In Rego Park, Queens, NY

On Tuesday, April 27, Zachary B. Kass, the Chapter 11 Trustee of Anita Terrace Owners, Inc., Debtor, obtained approval from Judge Carla Craig in the U.S. Bankruptcy Court for the Eastern District of New York of various applications which set in motion the resolution of the three year old bankruptcy of the Anita Terrace Owners, Inc. Anita Terrace Apartments is a 560+/- unit cooperative housing corporation consisting of three 14 story buildings located at 99-40 63rd Road, 99-60 63rd Road and 99-05 63rd Drive, Rego Park, NY 11374.

At the bankruptcy court hearing, the Trustee obtained, among other things:

(i) The approval of a settlement with the secured lender, RB Asset (a successor to River Bank) and a settlement with the sponsor, ViSutton Associates;

(ii) The approval of a "stalking horse" contract to sell the real estate to Anita Rescue LLC, an entity controlled by Laurence Gluck, principal of Stellar Management, subject to higher and better offers in accordance with bidding procedures approved by the Bankruptcy Court;

(iii) The approval of the retention of Keen Realty, LLC to market the Stalking Horse contract for higher and better offers and to conduct an auction on Monday, May 24; and

(iv) The approval of the Trustee's disclosure statement, subject to minor clarifications.

The sales process approved by the Bankruptcy Court requires the submission of bids along with a $5,000,000 deposit to the Trustee by May 18. A party that, among other things, submits a $5,000,000 deposit will be deemed a "Qualified Bidder". Qualified Bidders will be invited to participate in an auction on Monday, May 24, and the Court will review and approve a transaction on Tuesday, May 25. All transactions are required to close prior to June 30, 2004.

The stalking horse contract is predicated upon a sale of the premises that would result in the de-conversion of the co-op structure: the buyer will become the new landlord and the former co-op owners will become tenants, subject to rent stabilization regulations. The stalking horse contract is for a price of $52,750,000, and provides for no break-up fee or expense reimbursement. Anyone seeking to outbid the stalking horse contract is required to submit a bid of at least $53,250,000.

An alternative deal structure is also authorized by the bidding procedures. In this alternative, a bidder must raise at least $40,150,000, refinance the existing mortgage, pay other claims and expenses, in return the bidder will obtain title to some or all of the 238 sponsor units, and preserve Anita Terraces' cooperative structure.

Keen Realty has been retained by the Trustee to market the stalking horse contract. Craig Fox, Vice President of Keen, states, "The Anita Terrace apartments are located in a vibrant Queens' neighborhood and, based on our recent experiences with the sale of multi-family portfolios, we anticipate that this opportunity will attract a significant amount of interest. Given the limited time frame and the rapidly approaching bid deadline and auction, we encourage interested parties to contact us and/or visit our website at KeenConsultants.com as soon as possible."

Since 1982, Keen Realty has had extensive experience solving complex problems and evaluating and selling real estate, leases and businesses. Keen is a leader in identifying strategic investors and partners for businesses, has consulted with hundreds of clients nationwide, and has evaluated and disposed of over 250,000,000 square feet of properties. Recent clients include: Arthur Andersen, Cable & Wireless, Fila, Spiegel/Eddie Bauer, Tommy Hilfiger Retail, Warnaco, and financial advisory work for CIBC World Markets and JP Morgan Chase.

For more information regarding the Anita Terrace transaction, please contact Keen Realty, LLC, 60 Cutter Mill Road, Suite 407, Great Neck, NY 11021, Telephone: [phone], Fax: [phone], e-mail: [e-mail], Attn: Craig Fox.