Bedford Property Investors Completes Acquisition.

LAFAYETTE, Calif.--(BUSINESS WIRE)--Dec. 19, 1996--Bedford Property Investors, Inc. (NYSE:BED) announced today the purchase of O'Toole Business Center, a 122,000 sq. ft. service center/flex project located in San Jose, California.

The purchase price was $9,520,000, or $77.83 PSF. The project is located in the "heart" of the Silicon Valley and is occupied by 21 tenants, with an occupancy rate of 92%.

"This is an exceptional asset," stated Peter B. Bedford, Chairman of the Board of Bedford Property Investors. "We purchased the property at substantially under its replacement cost, with rental rates that are 30% below current market; we envision significant upside potential for this asset." Bedford now owns 11 buildings in the Silicon Valley totaling approximately 800,000 sq. ft.

This acquisition marks the fourteenth property Bedford has acquired this year, bringing their total acquisitions and development activities year-to-date to an excess of $92MM.

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."

CONTACT: Bedford Property Investors, Inc.

Peter B. Bedford or Donald A. Lorenz, 510/283-8910