Winthrop Realty Trust Announces Acquisition of First Mortgage Loan

Winthrop Realty Trust FUR announced today that it has acquired for a purchase price of approximately $27 million, a $31.1 million first mortgage loan secured by a 276 unit class A apartment community in Tempe, Arizona. The loan, which bears interest at a blended rate of 5.88% and matures January 2015, has an unleveraged current yield of 8.31% and, assuming the loan is satisfied at maturity, an unleveraged yield to maturity of 10.11%. Winthrop financed a portion of this transaction with borrowings under its credit facility with KeyBank National Association. In addition, Winthrop acquired two rake bonds with a face amount of $2.27 million, for $1.2 million. The rake bonds are subordinate to $17.7 million of senior debt, all of which is secured by a three building, 229,000 square foot office complex in Costa Mesa, California. The rake bonds mature in December 2010.