Exhibit 99.1


[CAPITAL TRUST LOGO]

Contact:   Rubenstein Associates
           Robert Solomon: (212) 843-8050


Capital Trust, Inc. Announces Closing of Collateralized Debt Obligation Issuance
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      NEW YORK, NY - July 21, 2004 - Capital Trust,  Inc. (NYSE:  CT) announced
today the closing of two related transactions on July 20, 2004:

      o     the purchase from GMAC Commercial Mortgage Corporation ("GMACCM") of
            40 floating rate B Notes and one mezzanine loan totaling $251.2
            million; and

      o     the private placement of $320.8 million of floating rate
            non-recourse collateralized debt obligations ("CDO Notes") and $3.2
            million of preferred shares by its consolidated wholly owned
            subsidiary, Capital Trust RE CDO 2004-1 (the "CDO Issuer").

      The  $251.2  million of assets  purchased  from  GMACCM,  along with $72.9
million  of B Notes,  mezzanine  loans and  subordinate  CMBS  contributed  from
Capital Trust's portfolio  comprise the initial assets  collateralizing  the CDO
Notes.  Capital Trust has acquired all of the $71.3 million of below  investment
grade and  unrated CDO Notes and the entire  equity  interest in the CDO Issuer.
The  investment  grade  rated CDO Notes  totaling  $252.8  million  were sold to
third-party investors.

      The governing  documents provide for a four-year  reinvestment period that
allows the principal  proceeds from  repayments of the  collateral  assets to be
reinvested  in  qualifying  replacement  assets,  which allows  Capital Trust to
extend the life of the financing.  Capital Trust's wholly owned asset management
subsidiary,  CT Investment Management Co., LLC, will serve as collateral manager
for the CDO.

      Capital Trust will account for the  transaction  as a financing and record
on its  balance  sheet the  collateral  assets  owned by the CDO Issuer as loans
receivable  and the  investment  grade  rated  CDO Notes  issued to third  party
investors as direct liabilities.

      Morgan  Stanley (the  Bookrunner)  and GMAC  Commercial  Holding  Capital
Markets  Corp.  acted  as  co-lead  managers  for  the  CDO  transaction.  Bear
Stearns & Co. Inc.  and Goldman  Sachs & Co.  served as  co-managers.  The CDOs
were rated by Fitch Ratings, Standard & Poor's and Moody's Investors Service.

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      The forward-looking  statements contained in this news release are subject
to  certain  risks  and  uncertainties   including,  but  not  limited  to,  new
origination volume, continued performance, asset/liability mix, effectiveness of
the Company's hedging strategy and rate of repayment of the Company's  portfolio
assets, as well as other risks indicated from time to time in the Company's Form
10-K and Form 10-Q filings with the  Securities  and  Exchange  Commission.  The
Company assumes no obligation to update or supplement forward-looking statements
that become untrue because of subsequent events.