Bay Apartment Communities acquires 252-apartment home community in Campbell.

SAN JOSE, Calif.--(BUSINESS WIRE)--April 21, 1997--Bay Apartment Communities, Inc. (NYSE/PSE:BYA), a multifamily real estate company, said today it has acquired Cardiff Gardens, a 252-apartment home community in Campbell, California.

Bay paid approximately $18.9 million for the community. As part of the transaction, Bay is assuming seven year seller financing of $12,870,000 secured by the community. The rate on the interest only note is 7.25 percent. Bay expects to invest approximately $6.2 million for a major repositioning program at the community. The community's current return on cost is approximately 8.5 percent.

Bay's repositioning program will include new roofs, siding and walkway repairs, painting of the community's exterior and replacement of galvanized pipe. In addition, Bay plans interior upgrades, such as kitchen and bathroom renovations, new appliances and carpets, the painting of existing cabinetry and the creation of private patios and balconies.

Bay also plans to add fitness and business centers, remodel existing carports, upgrades to the entry and leasing office area and extensive courtyard landscape renovation.

Built in 1966, Cardiff Gardens is located at 225 Union Avenue and has frontage on Highway 17. The community has 40 units with two bedrooms and one and one-half bathrooms and 212 with one bedroom and one bathroom. Current resident amenities include a pool, two tennis courts, barbecue area, volleyball and basketball courts and a billiard room/lounge.

"Cardiff Gardens is a highly attractive addition to the company's large San Francisco Bay Area apartment home community portfolio," noted Gilbert M. Meyer, chairman and chief executive officer of the company. "The community has good access to three major freeways and is within easy reach of downtown San Jose. It is also located within 20 minutes of many of Silicon Valley's major employment centers and within blocks of the Pruneyard, a major retail and office complex," he added.

Job growth and housing demand in Santa Clara County continue to be strong, noted Max L. Gardner, Bay's executive vice president and chief operating officer. "Demand continues to outpace supply and the apartment market in the area remains very favorable," he noted. "We believe that we can capitalize on this market environment and increase returns on this well-located community through our repositioning program and property leasing and management capabilities," he added.

Bay Apartment Communities is a fully integrated, multifamily real estate investment trust focused on the acquisition, development, construction, reconstruction and management of high quality apartment home communities. With this transaction, the company owns 38 apartment communities containing 9,839 apartment homes. The company's portfolio consists of 32 apartment home communities in the San Francisco Bay Area and Northern California, four communities in Orange County and one each in Los Angeles and San Diego Counties.

The statements which are not historical facts contained in this release are forward looking statements that involve risks and uncertainties, including, but not limited to, market demand, the effect of economic conditions, the impact of competition and competitive pricing, changes in construction scope or cost, the result of financing efforts, actual purchases under agreements, the effect of the company's accounting policies and other risks detailed in the company's Securities and Exchange Commission filings.

CONTACT: Bay Apartment Communities

Gilbert M. Meyer/Max L. Gardner/Jeffrey B. Van Horn,

408/983-1500