JP Morgan Fleming Asset Management Signs Contract With Cappelli To Make $105 Million Investment In One City Place Residential Tower

WHITE PLAINS, NY (March 31, 2004) -- The strongest indication yet of the robust economic strength of the City of White Plains came today with the announcement that a major institutional investment fund is joining with the city's most prominent developer as an investor in the downtown City Center complex.

Louis R. Cappelli, President of Cappelli Enterprises that is developing the $325 million City Center project, said today that JP Morgan Fleming Asset Management has signed a contract with LC White Plains Residential LLC to invest $105 million and become a partner in City Center's 35-story luxury rental apartment north tower known as One City Place.

While specific terms of the agreement were not disclosed, Cappelli emphasized that the investment is solely in the One City Place tower. His company remains the sole partner of the retail, entertainment and other residential components of City Center.

Cappelli said the investment by JP Morgan Fleming is a "tremendous vote of confidence not only in City Center, but in the entire City of White Plains. The level of interest in White Plains by major investment funds is extremely strong. Investors see White Plains as offering a dynamic and positive environment. This is a tribute to the foresight and approach of Mayor Joseph Delfino and the City Council. White Plains is not just a place where shoppers and new residents want to be, but it has rapidly emerged as a community where major institutional investors want to be, as well."

He added: "When a player like JP Morgan Fleming makes a major investment such as this, it highlights how successful White Plains has become as a national model for economic development in a small city. It is particularly gratifying for me as a private developer to realize the significant impact City Center is having in drawing so much positive attention to this community."

The investment agreement, Cappelli said, will not change the leasing and management structure that is in place for One City Place. Trammel Crow Residential Services, one of the nation's leading residential leasing and management companies, will continue to handle these activities. The rental office had its soft opening a week ago, and the first leases for the 311 luxury apartments in the tower have been signed. Residents are expected to begin moving into apartments on the first 14 floors of the tower in April, with the entire tower slated for opening by the end of May.

Much of the retail component of City Center is now open including Target, Circuit City and the National Amusements Multiplex Cinema. Recently announced leases with Office Max and other tenants leave only about 30,000 square feet of the approximately half million square feet of retail space available, and leases are pending for the balance.

The south residential tower, known as Ten City Place, is under construction. It will include 211 luxury condominium apartments. A separate building containing 29 luxury Soho-style loft apartments is also under way. These final two components of City Center are scheduled to open by July 2005.

Cappelli said he is now anxiously anticipating the start of construction on his second major downtown White Plains project, Renaissance Square. This $350 million project includes a tower with a luxury hotel and condominium apartments and an office tower.

"The partnership with a major investor in City Center encourages us to move forward quickly with the new project," he stated. "With site plan approval expected in May, we intend to immediately begin the demolition of the old storefronts on Main Street. That will be followed by the excavation work for the foundation of the new complex."

Cappelli predicted that the investment by JP Morgan Fleming would not be the last by major institutional investors in White Plains. "The potential for another $300 million in investment partnerships is very real, and more will likely follow. White Plains has emerged a place to be. This is something the entire community can be proud of."