


                                                                    EXHIBIT 99.1


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FOR IMMEDIATE RELEASE         FOR MORE INFORMATION CONTACT:
December 31, 1998             Suzanne R. West, Investor Relations @ 212.421.8830


NEW YORK,  December 31, 1998 -- Acadia Realty Trust (NYSE:AKR), a New York-based
real estate  investment  trust,  formerly  known as Mark Centers Trust  ("MCT"),
announced today that it has resolved a significant litigation exposure.

The  litigation  stemmed from a complaint  filed by a former  officer of MCT who
claimed wrongful termination. The settlement of $2.9 million will be paid over a
period of six years,  with a  significant  portion to be paid in 1998. A Company
spokesperson  noted that the  settlement  is  consistent  with new  management's
original underwriting in connection with its investment in MCT.

According to Kenneth F. Bernstein,  Acadia's President,  "Since assuming control
of MCT in August 1998, new management has  implemented an aggressive  turnaround
policy.  We have actively  sought to resolve  outstanding  problems,  dispose of
non-core and under-performing assets, and take other essential steps to position
Acadia  for  superior  earnings  growth.  The  resolution  of this  longstanding
litigation  is another  tangible  sign to  investors  that we are serious  about
correcting the previous problems that limited the growth of this Company."

Acadia Realty Trust,  headquartered on Long Island,  NY, is a  self-administered
equity real estate  investment trust structured as an UPREIT,  which specializes
in the operation,  management,  leasing,  renovation and acquisition of shopping
centers and multi-family properties.  The Company currently owns and operates 58
properties  totaling  approximately  11.5 million square feet,  primarily in the
eastern half of the United  States.  Acadia's  executive  offices are located in
Manhattan.

Certain items in this press release may  constitute  forward-looking  statements
within the meaning of the Private  Litigation Reform Act of 1995 and as such may
involve known and unknown risk,  uncertainties and other factors which may cause
the actual  results,  performances  or  achievements  of Acadia to be materially
different from any future results,  performances  or  achievements  expressed or
implied by such  forward-looking  statements.  Such  forward-looking  statements
speak  only as of the date of this  document.  Acadia  expressly  disclaims  any
obligation or  undertaking  to release  publicly any updates or revisions to any
forward-looking  statements  contained  herein to reflect any change in Acadia's
expectations   with  regard   thereto  or  change  in  events,   conditions   or
circumstances on which any such statement is based.

794548.1
