ASR Investments Corp. announces sale of mortgage asset and groundbreaking on new apartment community.

TUCSON, Ariz.--(BUSINESS WIRE)--April 2, 1996--ASR Investments Corp. (AMEX:ASR), an apartment REIT, Tuesday reported that in late March it sold a 40 percent interest in one of its mortgage assets expected to be redeemed sometime during the second quarter 1996.

The sale was for $2.4 million and will result in income of approximately $1.9 million ($.57 per share). The subsequent redemption of the mortgage asset is anticipated to result in additional proceeds of $3.6 million and income of $3.0 million ($.91 per share).

The company also announced that it has begun construction of its Finisterra Apartments community in Tempe, Ariz. The 356 unit luxury apartment community is expected to be ready for initial leasing activity late in 1996. The apartment homes range from 649 to 1,180 square feet with a 919 square foot average, and rental rates are estimated to be from $590 to $930 monthly.

Total project costs are estimated to be $20 million; a construction loan of $15.4 million was obtained from Bank One Arizona.

ASR Investments Corp. is a real estate investment trust that owns and operates apartment communities. It currently owns 24 communities in the southwest United States totaling 4,124 units including six communities owned through joint ventures. Its common stock trades on the American Stock Exchange under the symbol ASR.

CONTACT: ASR Investments Corp., Tucson

Mary Clements, 520/748-2111