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FIRST CITY COMPANY ANNOUNCES NEW OWNER FOR GALLERIA

 PITTSBURGH, Nov. 5 /PRNewswire/ -- The First City Company announced today a new ownership/management alliance for Galleria, the premier shopping and entertainment facility located at Washington and Gilkeson roads in Mt. Lebanon, Pa.
 The center represents one of southwestern Pennsylvania's most heralded retail developments created through a local development company.
 The deal secured with Gilkeson Road Corporation shifts ownership of the 240,000 square foot facility to an affiliate of an original, limited partner of the project. Under the new ownership agreement, First City Company will continue as management and leasing agent for the property, which is currently at 95 percent occupancy -- 10 percent above the national average. All operational procedures for the center's 60 plus retailers will also remain in effect.
 "We're thrilled to continue our association with the project," Richard Zappala, shareholder of The First City Company and developer of the project, stated. "Our continuing role as manager will solidify our management portfolio and strengthen our place in the industry. This transaction falls directly in line with First City Company's primary business activities and focus on asset management."
 The new alliance will also enhance Galleria's growth potential, First City acknowledges, as well as ensure the fruition of the project's long-term development plans. For Zappala, who is responsible for doubling the Galleria's sales performance and tripling its occupancy rates over a successful 4-year term, the deal represents the best of all worlds.
 "As Galleria moves into its fifth year, we are very pleased to make today's announcement. The project is well positioned to increase in value," Zappala added shortly after the closing. "This new ownership/management alliance attests to Galleria's strong operational performance and investment potential. It's really a project whose time has come, and now we will have even greater flexibility to explore exciting new concepts and facility enhancements. This is seen as a tremendous boon to Galleria's tenants and to the region."
 Details of the acquisition have not been disclosed, but in a statement released today, Carl Wise, senior vice president of Gilkeson Road Corporation, commented: "First City Company paved the way and now Galleria's doors have been opened to even greater possibilities. The opportunity for long-term growth and development of the project, as a result of this new association, is better than ever. The deal was structured to maximize Galleria's profit potential and its continued operational success under the direction and leadership of The First City Company."
 Located seven miles south of the City of Pittsburgh, Galleria houses over 52 specialty retail operations, six restaurants and a six-screen cinema, representing a strong mix of national and local tenants. In the past few weeks, several tenants have exercised their lease renewal options including the national retailer, Talbots, who has committed to the project for another 5-year term. Other national tenants have recently reaffirmed their commitment with letters of intent for expansions, relocations and new concepts.
 -0- 11/5/93
 /NOTE TO EDITORS: Interviews with representatives of The First City Company or Gilkeson Road Corporation may be arranged exclusively through the contact./
 /CONTACT: Tina Millard of Elias/Savion Public Relations, 412-642-7700, for The First City Company/


CO: First City Company; Gilkeson Road Corporation ST: Pennsylvania IN: REA SU: TNM

CD -- PG012 -- 1276 11/05/93 14:05 EST
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Publication:PR Newswire
Date:Nov 5, 1993
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