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Carey Closes Mortgage Financing on Facilities of Auto Parts Retailer

5 August 1999

Carey Diversified Closes Mortgage Financing on Facilities of Nation's Leading Auto Parts Retailer

          Financing Frees Additional Capital for Future Acquisitions

    NEW YORK, Aug. 5 -- Carey Diversified LLC , a
market leader in the ownership and net leasing of corporate properties, has
announced the closing and funding of a $17 million non-recourse mortgage
financing secured by 48 retail facilities leased to AutoZone, Inc.
under triple net leases.  The facilities are located in eleven states.  The
non-recourse financing, which was structured in four tranches with varying
terms to coincide with the remaining terms of the leases on the properties,
carries a fixed rate of 6.85 percent and an average term and amortization
schedule of 12 3/4 years.  The lender is TIAA.  Carey Diversified will use the
proceeds to pay down its credit facility freeing up capital for future
acquisitions.
    The facilities were originally acquired through a series of sale-leaseback
transactions arranged by W. P. Carey between 1986 and 1988.  Carey
Diversified, which structured the financing, is a member of the $3 billion
W. P. Carey Group and is the largest limited liability company traded on the
New York Stock Exchange.  AutoZone is a specialty retailer of auto and truck
parts, chemicals, and accessories through 2,695 AutoZone and Chief stores in
39 states.
    Commenting on the financing, Gordon F. DuGan, Carey Diversified's
President, noted, "This transaction demonstrates the financial flexibility
inherent in quality long term net lease assets.  The original debt on the
properties had been fully amortized, and given the strength of the AutoZone's
credit we were able to obtain a liquid capital source for additional
acquisitions.  These new acquisitions in turn will further diversify the Carey
Diversified portfolio, build future value and provide steady income for our
shareholders."
    Carey Diversified's portfolio consists of 210 properties, totaling more
than 20 million square feet.  Carey Diversified leases properties to
manufacturing, technology, retailing and communications companies including
America West Airlines, Federal Express Corp., Detroit Diesel, Gibson
Greetings, Inc., Dr. Pepper Bottling Company of Texas, Wal-Mart, AT&T, The Gap
and more than 70 others nationwide.  Additional information about Carey
Diversified LLC is available on the company's website at
http://www.careydiv.com.
    This press release contains forward-looking statements within the meaning
of the Federal securities laws.  A number of factors could cause the company's
actual results, performance or achievement to differ materially from those
anticipated.  Among those risks, trends and uncertainties are the general
economic climate; the supply of and demand for office and industrial
properties; interest rate levels; the availability of financing; and other
risks associated with the acquisition and ownership properties, including
risks that the tenants will not pay rent, or that costs may be greater than
anticipated.  For further information on factors that could impact the
company, reference is made to the company's filings with the Securities and
Exchange Commission.