Arden Realty Inc. announces acquisition of eight office properties for $97 million.

BEVERLY HILLS, Calif.--(BUSINESS WIRE)--April 15, 1997--Arden Realty Inc. (NYSE:ARI), a Southern California office real estate investment trust (REIT), Tuesday announced that it has completed a series of transactions to acquire eight suburban office properties for approximately $97 million.

The acquisitions bring the company's portfolio to a total of 42 properties composed of 60 buildings and 6.3 million square feet. Since Arden's initial public offering in October 1996, the company has acquired 18 properties in 11 submarkets.

"These acquisitions are indicative of Arden's strategy to purchase properties in markets in which the company has significant local experience and knowledge. We focus on office buildings that provide opportunities to enhance value through Arden's in-house construction management and leasing capabilities," commented Victor Coleman, president and chief operating officer.

Arden has begun a significant renovation of 535 North Brand Ave. in Glendale, a 109,187 square foot building it purchased for $10 million. The company plans to spend approximately $4 million on extensive renovations over the next 15 months, and to implement a marketing campaign to lease the property, which is currently 41 percent occupied. The property is in a strategic location in the Glendale/Burbank/Pasadena Tri-City area -- one of the strongest submarkets in Los Angeles where the company already owns five additional properties.

Arden has acquired five properties in other submarkets in which the company has significant presence and management staff. Clarendon Crest and 6800 Owensmouth in Woodland Hills, and Noble Professional Center in Sherman Oaks are San Fernando Valley locations on main commercial arteries and in close proximity to three other properties in the Arden portfolio. 10780 Santa Monica Blvd. is in West Los Angeles, a submarket in which the company owns eight other assets.

South Bay Corporate Centre is conveniently located between the Long Beach Airport, where Arden owns four properties, and the Culver City-Los Angeles International Airport submarket, where Arden owns five properties. These recent purchases will be managed by existing regional staff in the Arden organization. Acquiring additional properties in submarkets where Arden has significant presence affords the company the opportunity to achieve increased rental rates and operating efficiencies.

The seventh property acquired by Arden is Whittier Financial Center consisting of two office buildings containing 135,415 rentable square feet. After finalizing the contract, but prior to closing this transaction, Arden negotiated three new leases which increased the occupancy from 78 percent to 88 percent.

Arden's eighth acquisition reflects the company's targeted expansion into select markets outside the Los Angeles area. California Twin Centre is in Bakersfield, located in Kern County, approximately 60 miles north of Los Angeles. This property is 86 percent leased with a strong tenant base. Bakersfield is regarded as a significant center of oil and gas production in Southern California and is one of the fastest growing and improving submarkets in Southern California.

These acquisitions were funded by draws on the company's loan facility with Lehman Brothers, bringing the balance on that loan to $175 million, and by draws on the company's lines of credit, which currently have a balance of $63.2 million. In addition, 26,880 Operating Partnership units were issued in conjunction with the purchase of California Twin Centre.

The company, with headquarters in Beverly Hills, is a self-administered, self-managed REIT which acquires, owns, manages, renovates, operates and leases commercial office properties located in Southern California. -0-

                          Arden Realty Inc.
                     Recent Acquisition Summary

                                                 Percent      Current
                                                 Leased        Asking
    Property        Net Rentable   Purchase        at        Rental Rate
                    Square Feet    Price       Acquisition   Per Sq. Ft.

535 N. Brand          109,187    $14,000,000       41%         $25.50
Clarendon Crest        43,063      5,200,000       85           19.80
6800 Owensmouth        80,014      7,500,000       83           18.60
Noble Professional
 Center                51,828      6,720,000       81           22.20
10780 Santa
 Monica Blvd.          92,486     10,640,000       78           20.40
Whittier Financial
 Center               135,415     14,300,000       88           21.60
South Bay Centre      202,830     19,100,000       86           19.80
California Twin
 Centre               155,189     19,500,000       86           21.00
                      870,012    $96,960,000

CONTACT: Arden Realty Inc.

Victor J. Coleman/Diana M. Laing

310/271-8600