WELLSFORD REAL PROPERTIES, INC. PROVIDES LAND FOR $80 MILLION RETAIL/ENTERTAINMENT/HOTEL PROJECT NEAR DENVER

Press Release: Wellsford Real Properties, Inc.

July 19, 1999
NEW YORK/DENVER----Wellsford Real Properties, Inc. (AMEX:WRP) has completed a series of transactions clearing the way for the development of a 360,000-square-foot retail and entertainment center plus three hotels in Broomfield, Colorado, a fast-growing Denver suburb. The expected total cost of the development project is estimated at $80 million.

WRP sold 45 acres, adjacent to the 1.5 million-square-foot Flatiron Crossing regional mall under construction, to Koll Development Company of Newport Beach, California. The land parcel also adjoins the 1,000-acre Interlocken Business Park, which includes the Colorado homes of Sun Microsystems and Level 3 Communications.

WRP has provided financing for the project through a series of commitments. Initially a ``Stand-by Commitment and Bridge Loan'' agreement was executed in mid-1998 with the land developer, who was responsible for processing the site entitlements and tax increment financing with the City. Subsequently, in January 1999, WRP purchased the land for $7.2 million. Upon sale, WRP has recovered its cost and realized gross profits totalling $1.5 million, equating to an internal rate of return on its investment in excess of 30 percent.

Finally, concurrent with the sale transaction, WRP purchased $11,740,000 of Bond Anticipation Notes issued by Broomfield Village Metropolitan District No. 2 bearing tax exempt interest of 6.25 percent and maturing December 1, 1999. Banc of America Securities LLC has committed to repurchase these Notes from WRP at maturity if they are not repaid by the District. Including fees and interest, WRP will earn an equivalent pre-tax yield of 15 percent supported by the creditworthiness of a Bank of America subsidiary.

WRP Chairman, Jeffrey H. Lynford, said, "This was an excellent opportunity to invest in a prime property bordered by other large scale, quality developments. WRP was able to respond in a creative manner because of our real estate knowledge, industry contacts, and experience with tax exempt financing.''

David Strong, Vice President of Development, commented, "This type of financing enabled us to realize equity-like returns in the first two stages, without regulatory or vertical construction risk.'' He added, "the transaction, culminating in the purchase of the Bond Anticipation Notes, displays WRP's ability to react quickly to special opportunities.''

Certain statements in this press release constitute "forward-looking statements'' under federal securities laws and involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results implied by such forward-looking statements. Such factors include, among others, general economic and business conditions, construction and lease-up delays and cost overruns, defaults by tenants, lower than anticipated rents, availability of cost of financing, competition, and default by the District and Bank of America.

Wellsford Real Properties is a real estate merchant banking firm headquartered in New York City, which acquires, finances, develops and operates real properties and organizes and invests in private and public real estate companies.