WPCNR The Cappelli News. May 30, 2007: Cappelli Enterprises has sold controlling interest in its City Center in White Plains  to Entertainment Properties Trust (with whom it is associated in New Roc City in New Rochelle) for $30 Million cash. The City Center has $120 Million in debt, according to a news release.

City Center in the Heart of White Plains is at the building in the middle of this photograph with the white cap, adjacent to the twin spires of the Ritz-Carlton Hotel under construction.

Robert Drum, Associate General Counsel for Entertainment Properties Trust, based in Kansas City, told WPCNR that Cappelli Enterprises would still be responsible for the day-to-day management of the building.

However, Drum, said on matters of major policy and management direction involving the future growth of the property,  Entertainment Properties Trust would be consulted by the Cappelli organization for approval.

Drum said that Entertainment Properties owned all the units in the property with the exception of the Target store, which owns its portion of the City Center on a condominium arrangement.

“We don’t own the real property,” Drum told WPCNR today, “We own (the voting rights) as an investment.”

WPCNR is seeking details from Cappelli Enterprises on the arrangement and future direction of the City Center.

Mr. Drum said details of the arrangement on what Entertainment Properties paid for the property, whether they assumed a portion or all of the $120 Million debt in exchange for the voting rights, were not available because the persons who had hammered out the deal were not available.

The purchase of voting rights was announced by Entertainment Properties Trust CEO David Brain who said in a news release on the Entertainment Properties website, that  "The addition of the City Center of White Plains to our portfolio of entertainment retail centers represents a continuation of our strategy

to own premier theatre-anchored properties, and a strengthening of our relationship with the Capelli

group, our partner in the New Roc Entertainment Center and a developer of numerous high-quality

retail and residential properties. Also, we are very excited about adding the National Amusement

name to our family of theatre operators.”