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                                                                    Exhibit 99.1


Contact:  Joseph Macnow                               Roanne Kulakoff
          Vornado Realty Trust                        Kekst and Company
          201-587-1000                                212-593-2655

                                                           FOR IMMEDIATE RELEASE

                   VORNADO AND MENDIK COMPANY AGREE TO COMBINE

                -- Vornado To Convert to Umbrella Partnership --


New York, NY, March 12, 1997 -- Vornado Realty Trust (NYSE:VNO) and The Mendik
Company today announced that they have entered into a definitive agreement,
pursuant to which the Mendik Company will combine its operations with Vornado.
As part of the transaction, Vornado will convert to an Umbrella Partnership
(UPREIT) structure.

The Mendik Company owns and manages a portfolio of commercial office properties
in Manhattan, and as contemplated by the agreement, Mendik's interests, covering
an aggregate of 4.0 million square feet, in seven midtown buildings, Two Penn
Plaza, 1740 Broadway, 866 U.N. Plaza, 11 Penn Plaza, Two Park Avenue, 330
Madison Avenue and 570 Lexington Avenue, will be contributed to the Umbrella
Partnership.

Bernard Mendik, who has been a leading owner/manager of office properties in the
New York metropolitan area for forty years, will become Co-Chairman of the board
of Trustees of Vornado. Steven Roth continues as Vornado's Chairman and Chief
Executive Officer.

Mr. Mendik said, "I am excited about the exceptional management team created
with Michael Fascitelli, Vornado's president, and David Greenbaum, who is
president of The Mendik Company, joining forces with Steven and me." Mr. Roth
added, "The financial strength of our combined companies will enable us to
capitalize on opportunities, including those in the Manhattan office market.

The estimated consideration in connection with the transaction, which includes
Mendik's management and leasing business and personnel, is approximately $654
million, including $269 million in cash, $168 million in privately placed
Vornado UPREIT limited partnership units and $217 million in indebtedness.

The closing, which is expected in the second quarter, is subject to receipt of
consents from various third parties and other customary conditions; accordingly,
there can be no assurance that the proposed transaction will ultimately be
completed.

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