BRE Properties Buys 280-Unit Apartment Community in Seattle Area for $15.3 Million; Company Announces Additional Non-Core Property Sale.

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 7, 1997--BRE Properties, Inc. (NYSE:BRE), one of the nation's largest multifamily real estate investment trusts (REITs), has purchased The Park at Dashpoint, a 280-unit apartment community in the Seattle submarket of Federal Way, for an all-cash purchase price of $15.3 million.

"This purchase reflects BRE's focus on the ownership and management of multifamily properties in Western markets that display strong apartment demand fundamentals," said Frank C. McDowell, BRE's President and Chief Executive Officer. "Our research forecasts Seattle to be among the top metropolitan areas in the nation for employment, personal income, population and household formation growth during the next decade."

The addition of The Park at Dashpoint increases BRE's ownership in the Seattle area to six multifamily communities containing 1,673 apartment homes. "We view the acquisition of The Park at Dashpoint as an opportunity to increase our investment in a particularly strong rental market and to continue building our operating efficiencies in metropolitan Seattle," said McDowell.

The company currently owns a total of 13,235 apartment units in nine key growth markets of the Western United States. BRE's investment in the Seattle market now generates approximately 11% of the company's net operating income.

BRE's Chief Operating Officer Jay W. Pauly said, "The Park at Dashpoint is a good example of the emphasis BRE places on employment and transportation fundamentals when making acquisitions. The Seattle submarket of Federal Way is located roughly 30 miles south of downtown Seattle and just five miles from Sea-Tac International Airport. Employment in the area surrounding The Park at Dashpoint benefits from Boeing's increased production of the 737 and the rapid expansion of Intel."

The Park at Dashpoint is bounded by Dashpoint State Park on Puget Sound and attractive single-family housing. The garden-style apartment community was built in 1989 and contains 280 units in two- and three-story buildings. The floorplans average 945 square feet and include 22% one-bedroom, 44% two-bedroom and 34% three-bedroom units. The property is currently 93% occupied with average rents of approximately $660 per unit. Including replacement reserves, the property was purchased at an 8.3% capitalization rate.

Residents enjoy covered parking, washers and dryers in all units, two swimming pools, a fitness center and an on-site, independently operated day-care center.

In other news, BRE announced the sale of a non-core commercial asset in Southern California. Coast Auto Center, a 20,500 square foot retail property in Ventura, was sold for $1.375 million. "We are nearing the end of our non-core asset disposition program," said McDowell. "We have approximately $45 million in expected proceeds from remaining assets-more than half of which is currently under contract. We plan to redeploy the proceeds from non-core sales into additional multifamily investments."

BRE Properties, Inc., headquartered in San Francisco, is a self- administered, self-managed and fully integrated real estate investment trust focusing on the ownership and management of multifamily properties in the Western United States. BRE owns and operates 55 apartment communities totaling 13,235 units in nine major markets in California, Arizona, Washington, Oregon and Nevada. Additional information about BRE can be found on the company's website (http:\\breproperties.com). -0-

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, this news release contains forward-looking statements regarding Company and property performance, and is based on the Company's current expectations and judgment. Actual results could vary materially depending on risks and uncertainties inherent to general and local real estate conditions, competitive factors specific to markets in which BRE operates, legislative or other regulatory decisions, future interest rate levels or capital markets conditions. The Company assumes no liability to update this information. For more details, please refer to the Company's SEC filings, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q.

CONTACT: BRE Properties, Inc.

Lauren L. Barr, 415/445-6523