Bedford Property Investors Announces Bay Area and Arizona Acquisition.

LAFAYETTE, Calif.--(BUSINESS WIRE)--Feb. 19, 1998--Bedford Property Investors, Inc. (NYSE:BED) announced today the purchase of the Parkpoint Business Center in Santa Rosa, Calif., a 5 building 67,869 sq. ft. office/flex complex.

The property was purchased for $6,350,000 or $93.56 PSF, an estimated 87% of replacement cost. The occupancy at purchase was 97%, and the property had an initial return of 9.23% after allowing for vacancy and credit loss, as well as deferred maintenance and lease-up costs.

"We were able to acquire this property at a price that allows us to underwrite over $500,000 of deferred maintenance to rehabilitate this asset to a first class standard," stated Peter B. Bedford, "and as Santa Rosa has a very restrictive growth environment, we are confident that our rental growth will be substantial in this property."

The Company also disclosed that it acquired a 3.978 acre parcel of land in the Pointe South Mountain, a master planned resort office development located in Phoenix. The site was purchased for $823,000. The Company plans to construct an approximate two story 50,000 sq. ft. office building on the property.

Bedford Property Investors is a self-administered equity real estate investment trust (REIT) with investments in suburban office buildings and industrial properties concentrated in the western United States. It is traded on the New York and Pacific Exchanges under the symbol "BED" and its web site is www.bedfordproperty.com.

CONTACT: Bedford Property Investors

Peter B. Bedford/Robert Pester, 510/283-8910