Ames to Lease 113,000 Sq. Ft. Former Caldor Store at Kranzco's Bristol Commerce Park; 20-Year Lease Valued in Excess of $6 Million

Business Wire, Nov 3, 1999

CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--Nov. 3, 1999--

Kranzco Realty Trust (NYSE:KRT), a real estate investment trust, today announced it has signed a lease with Ames Department Stores, Inc. (NASDAQ:AMES) for the 113,000 square foot former Caldor store at Bristol Commerce Park, Bristol, PA. The 20-year lease is valued at more than $6 million.

Ames, headquartered in Rocky Hill, CT, is the nation's largest regional full-line discount retailer with annual sales of nearly $4 billion. It operates more than 455 stores, including 155 Hills Stores acquired earlier this year, in 19 states and the District of Columbia. The Bristol Commerce Park store is scheduled to open in March 2000, in time for the Easter shopping season.

Ames joins SuperFresh as anchors at Bristol, in the heart of affluent Bucks County. Major tenants include Eckerd Drug, Fashion Bug, Radio Shack and Family Toy Warehouse. Out parcels house McDonald's, Pizza Hut, PNC Bank, STS Tire and Auto Center and Big Apple Grill.

Norman M. Kranzdorf, president and chief executive officer of Kranzco, commented: "Ames is a major, rapidly growing retail force that has added more than 161 new stores this year. The Bristol store will be the third Ames unit in a Kranzco center, a positive reflection of our abilities to provide appealing shopping environments and strong consumer traffic flows."

He added: "The Bristol store was one of three facilities vacated by Caldor as a result of their bankruptcy. The 120,000 square foot store at Suburban Plaza, Hamilton Township, NJ, is now home to a Bradlees, which recently held a successful grand opening, and the lease for the 94,000 square foot store at Anneslie Shopping Center, Baltimore, MD, is guaranteed and full rent is being paid by the guarantor while we pursue new tenant opportunities. The movement of prime retail space from weak to stronger merchants is part of the evolutionary process that accompanies shifting consumer needs and desires. Awareness and rapid response to those trends help Kranzco centers maintain their status as key shopping destinations for area residents."

Kranzco Realty Trust is a self-administered, self-managed real estate investment trust that owns and operates 62 neighborhood and community shopping centers with approximately 9 million square feet of leasable area in 16 states. Detailed information regarding Kranzco and its properties can be found on its World Wide Web site: http://www.krt.com.