FAC REALTY TRUST COMPLETES ACQUISITION OF N.C. COMMUNITY SHOPPING CENTERS.

CARY, N.C.--(BUSINESS WIRE)--March 31, 1997--FAC Realty Trust, Inc. (NYSE:FAC), a fully integhe previously announced acquisition of five community centers in and around Raleigh, North Carolina, from North Hills, Inc. for a total purchase price of $32.3 million. -0-

                                 ,266   100    K-Mart Winn-Dixie  $501,275
                                                   lease
                                                   executed; con-
                                                   struction
                                                   to begin
                                                   spring 1997
Eastgate  Raleigh   1966    54,375   100    Books  Kerr Drug    361,937/2
                                            -A-    Subway
                                            Million
MacGregor  Cary     1986   142,655    99     N/A   Eckerd     1,159,787
Village                                            Drug
                                                   Spa Health
                                                   Club
Northridge Raleigh  1980   165,215    92    Winn-  Ace        1,205,575
                                            Dixie  Hardware
                                                   Kerr Drug
Tower      Raleigh  1976   152,157    96    Food   Shoe Show    597,283
                                            Lion   Kerr Drug
                                            Big    Baskin
                                            Lots   Robbins

Grand Total                605,668    97                     $3,825,857

    (1) Net operating income (NOI) is equal to revenue in excess of
certain operating expenses.  Operating expenses are exclusive of any
interest, depreciation, amortization, general and administrative
expenses.  The Statement of Revenue and Certain Operating Expenses
for the year ended December 31, 1996, was audited by Ernst & Young
LLP in accordance with rule 3-14 of regulation S-X, for inclusion in
the form 8-K of FAC Realty, Inc.

    (2) Eastgate shopping center was purchased subject to a
right-of-first-refusal, which, if exercised, would result in the sale
of the property for $3.8 million.  The property had net operating
income of $361,937 for the year ended December 31, 1996.

-0-

"This is a strategic acquisition for us and fits well with our shopping center management and development expertise," said C. Cammack Morton, FAC Realty's president and chief executive officer. "The Raleigh/Durham/Research Triangle market consistently ranks as one of the top five fastest growing markets in the United States. All of the North Hills centers are well-located and currently have an average occupancy of approximately 97%. With the current roster of well-known tenants, we expect the centers to maintain their current level of profitability and offer us the opportunity for growth as we transition in tenants from our existing centers. The acquisition was financed with approximately $30.5 million drawn under our previously announced credit facility with Nomura Asset Capital and should immediately produce positive cash flow and an increase in FAC Realty's funds from operations ("FFO") for 1997."

Headquartered in Cary, North Carolina, FAC Realty Trust, Inc. is a self-administered real estate investment trust engaged in the management, leasing, marketing, development and acquisition of centers. Including the recent acquisition, the Company now owns and operates 41 shopping centers in 21 states, with a total of 5.5 million square feet. For a complete listing of shopping centers, stores and other information on FAC Realty Trust, Inc., visit the web site at http:\\www.facrealty.com .

Investors are cautioned that any of the foregoing statements with respect to shopping center profitability, cash flow, and growth in FFO in 1997 as a result of the North Hoking statements involve known and unknown risks and uncertainties, which may cause the Company's actual rand local real estate and economic conditions, competitive factors in markets in which the Company operates,787

KEYWORD: NORTH CAROLINA

INDUS2 or 800-227-0845; LA 310-820-9473