Winthrop Realty Trust's Times Square New York Venture Refinances Existing Debt; Enters Into Agreement for the Operation of an

Winthrop Realty Trust's Times Square New York Venture Refinances Existing
Debt; Enters Into Agreement for the Operation of an EDITION Hotel at Location

BOSTON, Jan. 14, 2014 (GLOBE NEWSWIRE) -- Winthrop Realty Trust (NYSE:FUR)
announced today that itsventure with The Witkoff Group and New Valley LLC
which owns the property located at 701 Seventh Avenue, New York, New York and
in which Winthrop holds a preferred equity interest has refinanced its
existing indebtedness with a new $237.5 million mortgage loan and $315 million
mezzanine loan. Both the mortgage loan and mezzanine loans bear interest at
LIBOR plus 8% per annum, require payments of interest only and mature January
31, 2017, subject to two one-year extension terms. These loans refinance the
existing mortgage and mezzanine loans that bear interest at LIBOR plus 11% per
annum and permit the venture to draw funds in order to construct the
approximately 80,000 square feet of retail space which will include an
approximately 120 foot high, 20,000 square foot state of the art LED sign, at
the property.

In so doing, the venture entered into two additional loan agreements providing
for supplemental loans of $262.5 million, which agreements are held in escrow
and only become effective upon the satisfaction of certain conditions. At such
time as such loan agreements are released from escrow, the venture will be
permitted to draw on such loans to provide additional construction financing
in order to develop a 452 room hotel which will be constructed above the
retail component. If fully funded, the maximum aggregate debt among the
various loans funded would be $815 million.

Simultaneous with entering into the loans, the venture executed an agreement
with a wholly-owned affiliate of Marriott International, Inc. (Nasdaq:MAR) to
manage and operate an "EDITION" hotel at the property. The hotel will include
452- rooms and approximately 30,000 square feet of food, beverage and
entertainment space. As additional collateral for the lenders, Marriott
International, Inc. agreed to provide the lenders with the right upon an
uncured event of default under the loan agreement by the venture to require
Marriott to purchase the hotel component of the property during the first two
years after opening for $314.6 million.

Construction of the retail and hotel space is expected to be completed in
2017.

In connection with entering into the loans, Winthrop made an additional
contribution to the venture of $32.5 million bringing its current aggregate
capital contributions to the venture to $85.9 million. Winthrop has agreed to
contribute 61.1% of the aggregate capital for completion of the project up to
a maximum of $125 million. Although the ownership structure of the property is
rather complex, as more fully disclosed in a Current Report on Form 8-K filed
by Winthrop with the Securities and Exchange Commission on November 26, 2013,
Winthrop is entitled to receive 75.42% of all distributable cash flow from the
property, which reduces to 61.1% at such time as Winthrop has received a
return of its entire capital contributions, which is further reduced to 30.57%
at such time as Winthrop has received a return of its entire capital
contributions plus a 12% internal rate of return thereon. By way of example,
based on the current ownership structure and assuming that the property is
sold on October 1, 2017 and at such time the then existing debt encumbering
the property is $815 million, Winthrop has made aggregate capital
contributions of $100 million and all proceeds are distributed, Winthrop would
expect to receive:

  *on priority basis a return of its entire preferred capital contributions
    of $100 million together with a 12% internal rate of return thereon at a
    net sales price of approximately $1.031 billion; and
  *for each dollar of purchase price in excess of approximately $1.103
    billion, an additional $0.1528 cents.

About Winthrop Realty Trust

Winthrop Realty Trust, headquartered in Boston, Massachusetts, is a
NYSE-listed real estate investment trust (REIT) focused on acquiring, owning,
operating and investing in real property as well as real estate collateralized
debt and REIT preferred and common stock. For more information, please visit
our web-site at www.winthropreit.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995. With the exception of the historical information contained in this news
release, the matters described herein contain "forward-looking" statements
that involve risk and uncertainties that may individually or collectively
impact the matters herein described. These are detailed from time to time in
the "Risk Factors" section of the Company's SEC reports. Further information
relating to the Company's financial position, results of operations, and
investor information is contained in the Company's annual and quarterly
reports filed with the SEC and available for download at its website
www.winthropreit.com or at the SEC website www.sec.gov.

CONTACT: At Winthrop Realty Trust
         Carolyn Tiffany
         Investor or Media Inquiries
         Phone: (617) 570-4614; e-mail: ctiffany@firstwinthrop.com
 
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