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TRINET ACQUIRES VOLKSWAGEN DISTRIBUTION CENTERS FOR $26 MILLION

 SAN FRANCISCO, Jan. 5 /PRNewswire/ -- In its largest single sale/leaseback transaction since becoming a public company in May, 1993, TriNet Corporate Realty Trust, Inc. (NYSE: TRI) announced today that it has acquired three distribution facilities from Volkswagen of America, the leading importer of European cars in the United States.
 The three warehouse/distribution properties, with a combined total of 629,000 square feet, are located in the metropolitan areas of Los Angeles, Chicago, and Jacksonville. TriNet paid $26 million for the facilities, which will continue to be occupied by Volkswagen under 15-year triple net leases with TriNet. The sales price represents an 11 percent capitalization rate on the first year's lease rent.
 "The completion of the Volkswagen transaction concludes a year in which TriNet has achieved significant positive spreads by acquiring properties leased to corporate tenants with excellent credit quality," said Mark Whiting, president and chief operating officer of TriNet. "Our $100 million revolving credit facility enabled TriNet to react quickly and meet Volkswagen's year end closing objectives," he added.
 Including this acquisition, TriNet has completed $65 million of net leased property acquisitions during the fourth quarter of 1993. Other recent acquisitions include the PNC Mortgage corporate headquarters located near Chicago for $11.1 million; Northern States Power Company's Minneapolis customer operations center, purchased for $5.1 million; and a 1.2 million square foot distribution facility in New Orleans, net leased to MacFrugal's Bargains - Close-outs, Inc. (formerly Pic 'N' Save), acquired in a $23.5 million transaction.
 A wholly-owned subsidiary of Volkswagen AG of Germany, Volkswagen of America has approximately 950 Volkswagen and Audi dealers in the U.S. and recorded sales of $1.8 billion in 1992. Volkswagen AG is the fourth largest automotive manufacturer in the world.
 "Through substantial investments in these distribution facilities and its dealer network, Volkswagen continues its significant commitment to the U.S. market," said Whiting. "With this acquisition," he continued, "TriNet now owns three facilities which are important to Volkswagen's U.S. operations and are located in major distribution markets. At the same time, we have added another high quality tenant to our portfolio in a transaction which provides us excellent current yield and greater diversification."
 The Los Angeles-area property is a single-story 287,000 square foot distribution center with a small office component. Built in 1967, the property was purchased and upgraded by Volkswagen in 1985. The Chicago distribution facility is a 10-year-old, 162,000 square foot property, and the Jacksonville warehouse is 180,000 square foot property built in 1988.
 TriNet also announced today that it has modified its debt policy and plans to limit its debt-to-total-capitalization to a maximum of 50 percent. "We feel this change is appropriately conservative for TriNet's strategy, and is clearly in our shareholders' best interest," said Robert Holman, chief executive officer of TriNet.
 TriNet is a San Francisco-based real estate investment trust specializing in the acquisition and management of long-term net leased corporate real estate, including strategically important distribution and headquarters facilities. TriNet's current portfolio consists of 67 properties in 19 states, all of which are 100 percent leased and occupied, and have an average primary term of 14 years.
 -0- 1/5/94
 /CONTACT: Mark Whiting, president of TriNet Corporate Realty Trust, Inc., 415-391-4300/
 (TRI)


CO: TriNet Corporate Realty Trust, Inc.; Volkswagen of America ST: California IN: AUT SU: REA

TM-LD -- NY009 -- 9162 01/05/94 08:01 EST
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Publication:PR Newswire
Date:Jan 5, 1994
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