ONE LIBERTY PROPERTIES, INC. ACQUIRES A PARTY CITY STORE

Great Neck, New York - July 1, 1998 - One Liberty Properties, Inc. (ASE:OLP;OLP Pr) announced today that it has acquired, as of June 30, 1998, through a wholly owned subsidiary, a 12,000 square foot retail store on approximately 1.26 acres located in Houston, Texas for a cash consideration of approximately $2.04 million.

The single story building is net leased to Party City Corporation (NASDAQ:PCTY).

The basic term of the lease expires in 2007 and provides the tenant with lease renewal options through 2017.

The property was selected in part due to its location on a high traffic retail corridor, Highway 6, just off a main thoroughfare running easterly directly into downtown Houston. The property shares access with Service Merchandise and Builder's Square among others. The site is situated directly across the street from the West Oaks Mall, which contains over 1 million square feet of rentable space.

One Liberty is a New York-based REIT that specializes in the acquisition and ownership of long term net leased single tenant retail real estate. One Liberty's leases generally provide that all operating expenses and most or all other property related expenses are paid for by the tenant, while contractual rental income escalates. One Liberty's portfolio of real estate investments now consists of 40 properties in 14 states.

Matthew Gould, President of One Liberty, commented that the acquisition of this asset continues the Company's stated objective of acquiring improved long term net leased real property, primarily focusing on retail locations and tenants. Mr. Gould noted that the Company intends to continue to concentrate on investments of this type.