Chastain Capital Makes Additional Investments.

ATLANTA--(BUSINESS WIRE)--July 1, 1998--Chastain Capital Corporation (Nasdaq/NM:CHAS), a hybrid real estate investment trust managed by ERE Yarmouth, today announced additional investment activity for the second quarter ended June 30, 1998. The Company completed $26 million in two mezzanine investments, acquired a $3.7 million specialty retail center and closed on its previously announced acquisition of subordinated commercial mortgage-backed securities (CMBS) from Bear Stearns Commercial Mortgage Securities Inc.

The Company purchased a mezzanine loan for $24.8 million that is secured by interests in the owner of 277 Park Avenue, a 52-story, 1.75 million-square-foot office building in Midtown Manhattan's Plaza District. The project is currently 100% occupied. The Company's first equity investment was made in Lakeside Plaza, a 73,000-square-foot specialty retail center in Stockton, California. Lakeside Plaza is anchored by Marshalls and is currently 86% occupied.

With the closing of theBear Stearns CMBS transaction, Chastain Capital has purchased or originated investments totaling approximately $103 million since its initial public offering on April 23, 1998.

Kurt Wright, Chastain Capital's chief executive officer, stated, "Our active domestic and international pipelines have continued to produce solid investment opportunities. As evidenced by our investment activity to date ranging from loan originations to CMBS transactions and equity real estate purchases, we have been able to capitalize on the strength and presence of the ERE Yarmouth/Lend Lease organization to carefully select the investments where we see the highest relative value. Within the next 30-45 days, we expect to have the entire IPO proceeds invested in real estate related assets and will begin to apply leverage to the portfolio."

Mr. Wright added, "It is important to note that unlike the real estate investment trusts who have focused on single family residential mortgages which have significant exposure to prepayment risk, all of Chastain's debt investments are backed by commercial real estate benefiting from call protection and should not be impacted by prepayments driven by lower market interest rates."

Chastain Capital Corporation is a newly formed hybrid real estate investment trust that invests in commercial and multifamily mortgage and real estate related assets identified, managed and actively serviced by ERE Yarmouth, the largest investment manager of real estate assets owned by pension plans and other tax exempt investors in the United States, with 12 offices located in major metropolitan markets throughout the country. ERE Yarmouth is the U.S. real estate investment unit of Lend Lease Corporation Limited (Australian Stock Exchange: LLC), the Australian-based international property and financial services group.

This press release includes forward-looking statements related to Chastain Capital Corporation that involve risks and uncertainties. These forward-looking statements are made in reliance on the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. For further information about these factors that could affect Chastain Capital's future results, please see the Company's recently filed Form S-11, as amended, and its other filings with the Securities and Exchange Commission. Prospective investors are cautioned that forward-looking statements are not guarantees of future performance and actual results may differ materially from management expectations. Copies of Chastain Capital's SEC filings are available upon request from Chastain Capital's investor relations department.

    CONTACT:   Chastain Capital Corp.
                Steve Grubenhoff, 404/848-8871 (investors)
                or
                ERE Yarmouth/Lend Lease
                Jonathan D. Miller, 212/605-0737 (media)