NEW YORK--(BUSINESS WIRE)--April 11, 2005--Acadia Realty Trust (NYSE: AKR - "Acadia" or the "Company"), a real estate investment trust, today announced the purchase of 4650 Broadway located in the Washington Heights section of Manhattan. This is the third of Acadia's New York Urban/Infill investments. The acquisition was made through AKR Fund II, in partnership with P/A Associates.

The property, a 140,000 square foot building, which is currently occupied by the City of New York and a commercial parking garage, was acquired for a purchase price of $25 million. It is located at the intersection of Broadway and Sherman Avenue across from the Cloisters, a branch of the Metropolitan Museum of Art, and Fort Tryon Park.

Acadia plans to redevelop the site to include retail, commercial and residential components totaling over 300,000 square feet. The retail and commercial (including office, 'Community Use' and parking) portion comprises approximately 50% of the project and the residential component comprises the other 50%. Acadia plans to start development of the project in the next 12 to 24 months and anticipates completion 18 months thereafter. Expected costs to complete the retail and commercial component of the project are estimated at $40 million before any potential sale of the residential air rights. In lieu of directly developing the mid-rise residential portion of the project, the Company may sell its rights to this component while retaining ownership of the other portions of the project.

Previously Acadia has announced two other Urban Infill acquisitions. In September 2004, Acadia acquired the Sears Building on Fordham Road in The Bronx and in October 2004, Acadia entered into a 95-year ground lease to redevelop a 16-acre site in Pelham Manor, Westchester County, New York into a community shopping center.

Kenneth F. Bernstein, Acadia's President and Chief Executive Officer, stated that, "Broadway is another exciting addition to our Urban/Infill redevelopment program with our partners, P/A Associates. As is the case with our two other Urban/Infill projects, this high density and high barrier-to-entry real estate creates extremely strong tenant demand as well as attractive risk adjusted returns. We look forward to continuing our focus on this value-added facet of our business."

Acadia Realty Trust, headquartered in White Plains, NY, is a fully integrated and self-managed real estate investment trust which specializes in the acquisition, redevelopment and operation of shopping centers which are anchored by grocery and value-oriented retail.

Certain matters in this press release may constitute forward-looking statements within the meaning of federal securities law and as such may involve known and unknown risk, uncertainties and other factors which may cause the actual results, performances or achievements of Acadia to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of this document. Acadia expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Acadia's expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based. The Company also refers you to the documents filed by the Company, from time to time, with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K, for a discussion of such risks and uncertainties.

For more information on Acadia Realty Trust, visit the Company's Web site at www.acadiarealty.com

    CONTACT: Acadia Realty Trust
             Investor Relations
             Jon Grisham, 914-288-8142
             VP

    SOURCE: Acadia Realty Trust