ASR Investments Corp. Announces Apartment Acquisitions.

TUCSON, Ariz.--(BUSINESS WIRE)--Nov. 21, 1997--ASR Investments Corp., (AMEX:ASR) an apartment REIT, announced that it has acquired two apartment communities totalling 478 units in the state of Washington for a total price of approximately $23,899,000.

On The Boulevard Apartments community is a 202-unit community in Kennewick, Wash. (the Tri-Cities area of South Eastern Washington). The community was built in 1995. The company purchased the community for $10,650,000, which amounts to $52,723 per unit and $56 per square foot.

The company (i) issued 91,678 shares of common stock of the company, (ii) assumed a mortgage loan of $7,900,000, and (iii) paid $650,000 in cash to the seller. The average rent is $669 per month ($0.71 per square foot) and the occupancy rate is 83 percent. As the community is relatively new, the company does not plan to incur major capital improvement expenditures.

Arbor Terrace Apartments community is a 276-unit community in Port Orchard, Wash. (a suburb of Seattle). The community was built in two phases in 1995 and 1996.

The company purchased the community for $13,249,000, which amounts to $48,003 per unit and $54 per square foot. The company (i) issued 86,184 shares of common stock of the company, (ii) obtained and assumed mortgage loans of $7,825,000, and (iii) paid $3,400,000 in cash to the seller.

The average rent is $627 per month ($0.71 per square foot) and the occupancy rate is 90 percent. As the community is relatively new, the company does not plan to incur major capital improvement expenditures.

ASR Investments Corp. is a self-administered and self-managed real estate investment trust that owns apartment communities. It currently owns 41 apartment communities containing 7,725 units located in Arizona, Texas, Washington and New Mexico.

CONTACT: ASR Investments Corp., Tucson

Joseph C. Chan, 520/748-2111