Excel Announces The Purchase Of 7 Shopping Centers.

SAN DIEGO--(BUSINESS WIRE)--Oct. 23, 1995--The Company announced today the purchase of three community shopping centers located in Hilton Head, South Carolina and Kinston and Wadesboro, North Carolina for a total purchase price of approximately $17.9 million.

Two properties were purchased from a group of eleven properties the Company previously managed under a master lease and option to purchase agreement. To date the Company has closed seven of the eleven properties under this option agreement. The third property was purchased from a group of 25 properties the Company has under contract in the Southeast. The Company purchased the properties by assuming debt of $2.5 million on the Hilton Head South Carolina property and paying approximately $750,000 in cash. The remaining two properties were purchased with cash for approximately $14.6 million.

The capitalization rate for the three properties was approximately 10.5%. The properties will add approximately 340,000 sq.ft. and approximately $1.8 million in annualized base rents to Excel Realty Trust, Inc. Wal Mart (90,600 sq.ft.) anchors the center in Kinston, approximately 170,000 sq.ft., and Wal Mart (51,985 sq.ft.) also anchors the center in Wadesboro approximately 131,000 sq.ft. These centers have a total occupancy of 85% and 99% respectively. Food Lion (29,000 sq.ft.) anchors the center in Hilton Head, South Carolina, which has approximately 41,000 sq.ft. and is currently 100% occupied.

The Company also announced today the purchase of an additional four neighborhood and community shopping centers located in the southeast through Excel Realty Partners, L.P., the Company's "DownREIT." The centers were purchased at a 10.25% capitalization rate. The Company purchased the centers for a contract purchase price of approximately $22.6 million in a combination of debt assumption, partnership units and cash. These centers were also part of the 25 centers the Company currently has under contract.

The four centers are currently 100% occupied and comprise 430,000 sq.ft. of gross leasable area and approximately $2.7 million of annualized base rental income. Excel Realty Partners assumed approximately $15.7 in debt, paid approximately $2.9 million in cash, and distributed approximately 129,000 units at $20.70 and approximately 60,000 units at $21.50. The partnership units priced at $21.50 are exchangeable for common shares of Excel Realty Trust anytime after one year from closing and adjust to the existing market price of the common shares of Excel Realty Trust at the time of the exchange. The partnership units priced at $20.70 are exchangeable anytime after two years on a basis of one partnership unit for one common share of Excel Realty Trust.

The center located in Gadsen, Alabama is approximately 150,000 sq.ft., and is anchored by Wal Mart (116,215 sq.ft.) and Cato stores. The second center is located in Snellville Georgia, and has approximately 165,000 sq.ft. of gross leasable area. The center is anchored by Kmart (84,164) and Winn Dixie. The center located in Shelbyville, Tennessee, is anchored by Red Foods Stores (25,375 sq.ft.) and is approximately 55,000 sq.ft. The fourth center is located in Dalton, Georgia and is anchored by a Bi Lo food store (32,375 sq.ft.) and an Ace hardware store.

Separately the Company announced it had negotiated lease termination fees for 5 properties leased to the Kmart Corporation. The Company has received approximately $3.5 million in lease termination fees for three stores and anticipates receiving termination fees on the remaining two stores within the next thirty days of approximately $2.7 million. The Company is currently in negotiation to sell or release all five stores. This transaction will reduce to 17 the number of properties leased to Kmart by the Company comprising 12.7% of the Company's annualized base rental income.

Excel Realty Trust, Inc., is an operating real estate company which owns and manages community and neighborhood shopping centers and single tenant properties leased primarily to national retail tenants. The Company currently operates over 8.4 million square feet of gross leasable area with an occupancy of 98%.

CONTACT: Excel Realty Trust, Inc., San Diego 

Graham R. Bullick, 619/485-9400 ext. 203