NEW YORK--(BUSINESS WIRE)--Sept. 19, 2008--Acadia Realty Trust (NYSE: AKR - "Acadia" or the "Company"), a real estate investment trust ("REIT"), in conjunction with the Company's long term partners, PA Associates, today announced that it has entered into an agreement with BJ's Wholesale Club, Inc. ("BJ's") to anchor the retail component at Pelham Manor Shopping Plaza in Pelham Manor, Westchester County, New York.

Pelham Manor Shopping Plaza, a 230,000 square foot retail redevelopment project, offers neighborhood residents a state of the art community shopping center with both retail and self storage components. BJ's will occupy the space formerly leased to Home Depot, and is expected to open during the first half of 2009.

"We are pleased to announce this exciting opportunity to bring BJ's Wholesale Club to the residents of Pelham Manor and the surrounding neighborhood," stated Paul Slayton, Principal of PA Associates. "BJ's offers top-quality products with the convenience of one-stop shopping, and will be a great addition to this project. With the recent addition of Michael's Arts and Crafts, we have now completed the anchor tenant leasing at the property."

"With BJ's anchoring the newly developed Pelham Manor Shopping Plaza, and the Fairway specialty market opening in the adjacent shopping center, we will have a dramatically improved and desirable shopping corridor for the Village of Pelham Manor and residents of neighboring communities," stated Thomas Lavin, Mayor of Pelham Manor.

Acadia Realty Trust, headquartered in White Plains, NY, is a fully integrated, self-managed and self-administered equity REIT focused primarily on the ownership, acquisition, redevelopment and management of retail and mixed-use properties including neighborhood and community shopping centers located in dense urban and suburban markets in major metropolitan areas.

PA Associates is a real estate development company involved principally in the development of commercial and industrial properties in metropolitan New York and New Jersey. In partnership with Acadia Realty Trust, PA Associates launched the New York Urban Redevelopment Program, and to date, this joint venture is developing 10 projects with over 2.2 million square feet in New York City.

Certain matters in this press release may constitute forward-looking statements within the meaning of the federal securities laws and as such may involve known and unknown risks, 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. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in the Company's most recent annual report on Form 10-K filed with the SEC on February 29, 2008 (the "Form 10-K") and other periodic reports filed with the SEC, including risks related to: (i) the Company's reliance on revenues derived from major tenants; (ii) the Company's limited control over joint venture investments; (iii) the Company's partnership structure; (iv) real estate and the geographic concentration of our properties; (v) market interest rates; (vi) leverage; (vii) liability for environmental matters;(viii) the Company's growth strategy; (ix) the Company's status as a REIT (x) uninsured losses and (xi) the loss of key executives. Copies of the Form 10-K and the other periodic reports Acadia files with the SEC are available on the Company's website at www.acadiarealty.com. Any forward-looking statements in this press release speak only as of the date hereof. 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.

CONTACT: Acadia Realty Trust
Debra Miley, 914-288-8100

SOURCE: Acadia Realty Trust