Company Signs 150,762 Square-Foot Lease with Factory 2-U at Its
               Newly-Rehabilitated Miramar Distribution Center

    NEWPORT BEACH, Calif., April 13 /PRNewswire/ -- Pacific Gulf Properties
Inc. (NYSE: PAG), a real estate investment trust that owns, develops and
manages industrial properties in the West, has completed a 150,762 square-foot
lease with Factory 2-U Stores, Inc.  Factory 2-U operates approximately
170 discount apparel stores in seven western states.  Cushman Realty
represented Factory 2-U, and Pacific Gulf was represented by CB Commercial.
    The lease, which is Pacific Gulf's largest this year, marks the successful
rehabilitation of Pacific Gulf's Miramar Distribution Center.  The 376,000
square foot building is currently 84% leased, and proposals are under
consideration for the remaining space.
    "The Miramar Distribution Center has enjoyed strong initial leasing
activity reflecting healthy demand for industrial space in the San Diego
market, and particularly within the Miramar submarket," said Robert Dewey,
Pacific Gulf's senior vice president of industrial operations.  "Within this
submarket, vacancy is currently under 6%.  Moreover, less than 200,000
square feet of new industrial product is being built in Miramar, which
suggests a healthy outlook for projects such as our distribution center."
    "The strong leasing activity at this property is just one example of the
continuing stability of our strong western markets in general," said Executive
Vice President of Operations J.R. Wetzel.  "In fact, during the first three
months of 1999 Pacific Gulf has completed 349 new leases or renewals totaling
over 1.5 million square feet.
    "We continue to experience strong demand for the company's product in all
of our markets, as strong job and population growth in the region appear to be
offsetting any impact from the Asia crisis," Mr. Wetzel said.  "This growth,
coupled with moderate new construction in most of our markets, suggests that
there is little chance of an increase in vacancy rates in the near term."
    Pacific Gulf Properties is a real estate investment trust that owns,
develops and manages a growing portfolio of industrial properties targeting
small to mid-size tenants in selected high-growth western markets.  The
company's industrial portfolio includes 73 properties encompassing more than
15.5 million square feet of space.  Pacific Gulf also maintains a smaller
multifamily portfolio that includes eight rental communities comprising almost
1,500 units designed for the burgeoning population of active seniors age 55
and older.  The company is headquartered in Newport Beach, Calif.
    Forward-looking statements and comments in this press release are made
pursuant to the safe harbor provisions of Section 21E of the Securities
Exchange Act of 1934.  Such statements relating to, among other things,
events, conditions, prospects and financial trends that may affect the
company's future plans of operations, business strategy, growth of operations
and financial position are not guarantees of future performance and are
necessarily subject to risks and uncertainties, some of which are significant
in scope and nature, including without limitation, increased competition,
adverse economic trends, increasing interest rates and other factors.  Please
refer to documents the company files from time to time with the Securities and
Exchange Commission, specifically the company's last filed Form 10-K, filed in
March of 1998, Form 10-Q, filed in November of 1998, and Form 8-K, filed in
December of 1998.  These documents contain and identify important factors that
could cause the actual results to differ materially from those contained in
any projections or forward-looking statements contained in this press release.

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