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TRINET CORPORATE REALTY TRUST ACQUIRES MACFRUGAL'S BARGAINS -- CLOSE-OUT DISTRIBUTION FACILITY

 SAN FRANCISCO, Oct. 4 /PRNewswire/ -- TriNet Corporate Realty Trust Inc. (NYSE: TRI) and MacFrugal's Bargains -- Close-out Inc. (NYSE: MFI) jointly announced today the sale of MacFrugal's 1.2-million-square-foot New Orleans distribution center to TriNet. TriNet paid $23.5 million for the property. MacFrugal's will continue to operate in this facility and will now lease the property from TriNet under a 16-year triple net lease. MacFrugal's, formerly known as Pic 'N' Save Corporation, 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 MacFrugal's Bargains -- Close-Outs to generate cash and further pay down debt," said Len Williams, president and chief executive officer of MacFrugal's. "As one of only two distribution facilities in the country, the New Orleans Distribution Center is the cornerstone to our expansion plans over the next few years.
 "We plan to add 36 permanent new stores per year as well as expand our temporary Christmas Stores chain -- the majority of which will be serviced out of this facility. 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 objective to add premier corporate tenants and their important operating properties to our portfolio," noted Robert Holman, chief executive officer of TriNet. "This transaction meets the investment objectives of TriNet by providing an excellent current and steady increasing lease rent yield from a tenant with quality credit and a net worth in excess of $230 million. Additionally, TriNet is purchasing an important operating asset of MacFrugal's at a price below replacement cost," Holman said.
 Headquartered in Dominguez, Calif., MacFrugal's specializes in the sale of close-out merchandise. The company changed its corporate name from Pic 'N' Save Corporation in June 1992 and currently operates 91 stores in southern California under the Pic 'N' Save name and 131 stores in 11 additional states under the name of MacFrugal's Bargains -- Close-outs.
 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 heaquarter facilities. TriNet's portfolio currently consists of 62 properties in 19 states which are leased to corporate tenants for an average term of 14 years.
 -0- 10/4/93
 /CONTACT: Mark Whiting, president, TriNet Corporate Reality Trust, 415-391-4300; or Phil Carter, chief financial officer, MacFrugal's Bargains, 310-761-4167/
 (TRI MFI)


CO: TriNet Corporate Realty Trust; MacFrugal's Bargains ST: California, Louisiana IN: SU: TNM

RB-JH -- SE005 -- 8147 10/04/93 08:10 EDT
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Publication:PR Newswire
Date:Oct 4, 1993
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