BRE Properties Inc. Surges into Development Arena; $200 Million in Multifamily Developments Underway; $200 - $300 Million More Expected By End of 1998.

SAN FRANCISCO--(BUSINESS WIRE)--May 19, 1998--BRE Properties Inc. (NYSE:BRE), one of the nation's largest multifamily real estate investment trusts (REIT), has entered the development market with a $200 million, 2,445 multifamily unit portfolio now under construction in five major Western U.S. markets and plans to add $400 to $500 million in new development and acquisitions by year's end.

BRE, with its headquarters in San Francisco, is aggressively searching the Bay Area for development and redevelopment opportunities. "Because of the continued growth potential of the Bay Area market, we expect a significant portion of our current development and acquisition efforts to be locally focused," said Bill Reed, BRE development director.

Reed is joined in BRE's Bay Area investment focus by development director Nick Chapman and development associate Dan McCadden.

The company is actively pursuing development sites, investment grade properties and redevelopment opportunities throughout the Bay Area. BRE will develop Class A luxury multifamily housing properties with 150 to 500 units for its own portfolio, and seek the acquisition of existing apartments of 150 to 400 units.

The company also will consider well-located redevelopment opportunities in middle to upper-middle income neighborhoods.

BRE is currently developing apartment communities in the metropolitan markets of Phoenix, Salt Lake City, Las Vegas, Denver and Albuquerque. By year-end, the company expects to identify additional development opportunities in these and other Western markets, including Seattle, Portland, Los Angeles, Orange County, Sacramento and San Diego.

The company's new development capabilities are derived from its recent acquisition of Western divisions of Trammell Crow Residential and Trammell Crow Residential Services (TCR-West), divisions of the nation's largest full- service residential development and management company. BRE also acquired TCR-West's construction and third-party management operations.

Now valued as a $1.7 billion operating entity, BRE is poised to enter the multifamily housing development market with the people, assets and operating strength necessary to facilitate the company's large-scale development debut.

"Without question, the TCR-West acquisition has provided the catalyst necessary for BRE to become one of the nation's premier development companies," said Bruce C. Ward, BRE's executive vice president. "We look forward to utilizing our resources and developing quality multifamily housing projects in some of the fastest-growing markets in the nation."

Ward also explained that BRE's goal is to develop and manage outstanding properties that will positively impact all of the communities it serves. "Whether through land purchase, property acquisition or development activities, we are committed to achieving this goal," he said.

BRE Properties is a self-administered, self-managed and fully integrated real estate investment trust focusing on the acquisition, development, ownership and management of multifamily properties in the Western United States.

Today, BRE owns and operates 75 apartment communities totaling 19,060 units in California, Arizona, Washington, Oregon, Nevada, New Mexico, Colorado and Utah. The company's investments in the Bay Area include nine communities totaling 2,960 apartment units. Additional information about BRE can be found on the company's website (http://breproperties.com). For more information, contact Bill Reed at 415/445-6542 or Nick Chapman at 415/445-6532.

CONTACT: BRE Properties Inc., San Francisco

Lauren L. Barr, 415/445-6523

or

Denise Resnik & Assoc., Phoenix

Denise Resnik or Nick Quan, 602/956-8834