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MAC FRUGAL'S BARGAINS - CLOSE-OUTS INC. ANNOUNCES SALE AND LEASEBACK OF ITS NEW ORLEANS DISTRIBUTION CENTER TO TRINET CORPORATE REALTY TRUST

 DOMINGUEZ, Calif., Oct 5 /PRNewswire/ -- Mac Frugal's Bargains - Close-outs Inc. (NYSE: MFI) and TriNet Corporate Realty Trust Inc. (NYSE: TRI) jointly announced today the sale of Mac Frugal's Bargains - Close-outs' 1.2 million-square-foot New Orleans distribution center to TriNet. TriNet paid $23.5 million for the property and will lease the facility back to Mac Frugal's Bargains - Close-outs Inc. under a 16-year, triple net lease. Mac Frugal's Bargains Close-outs Inc., formerly known as Pic 'N' Save Corp., will continue to be responsible for all operating costs associated with the property. The sale price represents a 10.35 percent capitalization rate on the first year's lease rent with future rent increases based upon increases in the Consumer Price Index.
 "This transaction is an attractive opportunity for Mac Frugal's Bargains - Close-outs to generate cash and further pay down debt," said Len Williams, president and chief executive officer of Mac Frugal's Bargains - Close-outs Inc. "As one of only two distribution facilities for Mac Frugal's Bargains - Close-outs Inc. in the country, the New Orleans distribution center is the cornerstone to Mac Frugal's Bargains - Close-outs' expansion plans over the next few years. The company plans to add 36 permanent new stores per year as well as to expand its temporary Christmas Close-outs stores chain. At the end of the year, the New Orleans Distribution Center will be servicing more than 225 permanent and temporary stores across 12 states."
 "This transaction fully reflects the strategic focus of TriNet and our aggressive acquisition program," noted Robert Holman, chief executive officer of TriNet. "This transaction meets the investment objectives of TriNet by providing an excellent current and steadily increasing lease rent yield from a quality credit tenant with a net worth in excess of $230 million. Additionally, TriNet is purchasing an important operating asset of Mac Frugal's Bargains - Close-outs Inc. at a price below replacement cost," Holman said.
 TriNet is a San Francisco-based real estate investment trust specializing in the acquisition and management of long-term leased corporate real estate, including critical distribution and headquarter facilities. Upon completion of the Mac Frugal's acquisition, TriNet's portfolio will consist of 62 properties in 19 states which are leased to corporate tenants for an average term of 14 years.
 Mac Frugal's Bargain Close-outs Inc. operates a chain of 222 retail stores in 12 states. These stores, which do business as Pic 'N' Save and Mac Frugal's Bargains - Close-outs, feature a wide variety of first- quality general merchandise obtained through manufacturer close-outs, overruns, discontinued lines and packaging changes. An ever-changing assortment of merchandise is typically sold at 40 percent to 70 percent off regular retail prices.
 -0- 10/5/93
 /CONTACT: Phil Carter, executive VP & CFO, Mac Frugal's Bargains - Close-outs, 310-761-4167; or Mark Whiting, president, TriNet Corporate Realty Trust, 415-391-4300/
 (MFI TRI) CO: Mac Frugal's Bargains Close-outs Inc.; TriNet Corporate Realty
 Trust Inc. ST: California, Louisiana IN: REA SU: RLE


NY-LS -- LA003 -- 8637 10/05/93 06:01 EDT
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Publication:PR Newswire
Date:Oct 5, 1993
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