BRE Properties Buys 350-Unit Apartment Community in Las Vegas for $26.2 Million; BRE Now Owns 12,562 Apartment Units in Nine Western U.S. Markets.

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 18, 1997--BRE Properties, Inc., (NYSE:BRE) one of the nation's largest multifamily real estate investment trusts (REITs), has purchased Talavera at Peccole Ranch, a 350-unit apartment community in Las Vegas, for a cash price of $26.2 million.

BRE's portfolio of wholly owned apartment homes now totals 12,562 units at 54 apartment communities in nine major markets in the Western United States.

Talavera is a Class A, garden style apartment community situated on 18 acres of land in the western portion of Las Vegas. Construction was completed in early 1996, and current occupancy is 96%. The projected first-year yield is 9.2%.

Frank C. McDowell, president and chief executive officer of BRE, stated: "This acquisition demonstrates the continuing momentum of BRE's strategic plan to balance our multifamily assets across key growth markets of the Western U.S.

"With continued population and employment growth that substantially outpaces the U.S. as a whole, Las Vegas plays an important role in our portfolio diversification plan. The purchase of Talavera places BRE at the halfway mark toward our goal of building a portfolio of 25,000 units over the next several years."

Jay Pauly, BRE's chief operating officer, commented: "With this acquisition, BRE's presence in the Las Vegas market rises to a more efficient level of four communities totaling 814 units.

"This market now represents approximately 5% of our total apartment revenues. Annual population growth in Las Vegas, which has ranked as the nation's fastest growing metro area for the last 10 years, is projected to be 4.3% through 2001, compared with 0.9% for the nation."

Talavera is centrally located within Peccole Ranch, a 1,600-acre master-planned community, just seven miles west of the Las Vegas "Strip." The property has a 3,900 square foot clubhouse/leasing center, fitness facility, two swimming pools and seven floor plans ranging from 700 to 1,322 square feet.

The property contains 35% one-bedroom, 61% two-bedroom and 4% three-bedroom apartment homes with an average unit size of 1,011 square feet and an average monthly rent per unit of $863.

In the past 14 months, BRE has added 3,581 units through a strategic merger and another 3,506 units in ten acquisitions, representing a total investment of approximately $256 million.

BRE Properties, 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 apartment communities in California, Arizona, Washington, Oregon and Nevada. -0-

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements regarding Company and property performance. Actual results could vary materially depending on risks and uncertainties inherent to general and local real estate conditions, or competitive factors specific to markets in which BRE operates. 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