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                                                                   Exhibit 99.2
                                      
CONTACT: JOSEPH MACNOW
         (201) 587-1000



                                              [VORNADO REALTY TRUST LETTERHEAD]



FOR IMMEDIATE RELEASE - April 18, 1997
- --------------------------------------


        SADDLE BROOK, NEW JERSEY ... VORNADO REALTY TRUST (NYSE:VNO) announced
today that it has acquired The Montehiedra Town Center located in San Juan,
Puerto Rico from Kmart for $74 million of which $63 million is newly issued 10
year financing. The Montehiedra shopping center, which opened in 1994, contains
525,000 square feet, including a 135,000 square foot Kmart.

        In addition, Vornado has agreed to acquire Kmart's 50% interest in the
Caguas Centrum Shopping Center (currently under construction) located in
Caguas, Puerto Rico (adjacent to San Juan). The Caguas shopping center will
contain 485,000 square feet including a 123,000 square foot Kmart and a 146,000
square foot Sears. This acquisition is expected to close in early 1998.

        These purchases mark Vornado's first acquisitions in Puerto Rico.
Vornado Realty Trust is a fully-integrated equity real estate investment trust.




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