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SUPPLEMENT NO. 1
DATED JULY 8, 1999
TO THE PROSPECTUS DATED MAY 1, 1999
FOR THE TIAA REAL ESTATE ACCOUNT
THE FOLLOWING DESCRIBES A RECENT PROPERTY PURCHASE BY THE REAL ESTATE ACCOUNT
AND SUPPLEMENTS THE INFORMATION SET FORTH IN THE "DESCRIPTION OF PROPERTIES"
SECTION OF THE PROSPECTUS.
On July 8, 1999, the TIAA Real Estate Account purchased a 50-story
office building located at 780 Third Avenue in New York, New York (midtown
Manhattan), for a purchase price of approximately $161,000,000. The property
is not subject to a mortgage.
780 Third Avenue was built in 1984, and contains approximately 487,501
rentable square feet. It features a polished granite exterior and attractive
plaza area. The building is approximately 94% leased to various tenants, with
rents averaging $42 per square foot. Recently signed leases at the property
have commanded significantly higher rents, reflecting the strong real estate
market in midtown Manhattan. No tenant occupies more than 4% of building
space. Although the terms vary under each lease, most of the expenses for
operating the property are either borne or reimbursed by the tenants.
As of the date of this supplement, the acquisition represented
approximately 11% of the Account's total net assets and just over 15% of its
real estate assets.
