Exhibit 99.1


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



 Capital Trust, Inc. Announces Closing of Second Collateralized Debt Obligation
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        NEW YORK, NY - March 15, 2005 - Capital Trust, Inc. (NYSE: CT) announced
today the closing of a $337.8 million  collateralized debt obligation  financing
("CDO").

        "We are  pleased to announce  the closing of our second CDO  financing,"
said John Klopp, CEO of Capital Trust. "The combination of this CDO with the CDO
we  closed  last  summer  gives  the  Company  a  unique  advantage  in a highly
competitive  business.  We expect to continue to use this  technology to finance
and grow our business going forward."

        The Company  issued  $337.8  million of  securities  comprised of $334.4
million of floating  rate notes and $3.4  million of preferred  shares.  Capital
Trust  retained  all of the below  investment  grade  securities  and all of the
equity in the CDO issuer. The investment grade rated securities, totaling $289.9
million, were sold to third-party investors.  Capital Trust's wholly owned asset
management  subsidiary,  CT Investment  Management  Co., LLC, is the  collateral
manager for the CDO.

        Collateral for the CDO consists of $337.8 million of B-Notes,  mezzanine
loans and commercial  mortgage  backed  securities  from Capital Trust's balance
sheet that have an implied average rating of BB. The CDO is an efficient form of
financing for the collateral,  representing  investment  grade  subordination of
11.5% and a weighted  average cost of investment  grade debt of LIBOR plus 0.49%
on a cash basis. The structure is non-mark-to-market,  non-recourse and provides
for a five-year  reinvestment  period that allows the  principal  proceeds  from
repayments of the collateral  assets to be reinvested in qualifying  replacement
assets.

        Capital Trust will account for the transaction as a financing and record
on its balance sheet all of the  collateral as assets and the  investment  grade
rated securities issued to third party investors as direct liabilities.

        Bank of America and Morgan  Stanley acted as co-lead  managers and joint
bookrunners for the CDO  transaction.  Bear Stearns & Co. Inc.,  Goldman Sachs &
Co. and GMAC Commercial Holding Capital Markets Corp. served as co-managers. The
CDO is rated by Fitch Ratings and Standard & Poor's.







                                       ***

        The  forward-looking  statements  contained  in this  news  release  are
subject to certain risks and  uncertainties  including,  but not limited to, new
origination  volume,  the continued credit performance of the Company's loan and
CMBS investments,  the  asset/liability  mix, the effectiveness of the Company's
hedging strategy and the 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.

        Capital  Trust,  Inc. is a finance  and  investment  management  company
focused on the commercial real estate industry and headquartered in New York. To
date,  Capital  Trust,  for its own account or for funds under  management,  has
originated $4.7 billion of commercial real estate mezzanine investments.