NEWPORT BEACH, Calif., Aug. 30 /PRNewswire/ -- Pacific Gulf Properties
Inc. (NYSE: PAG) announced today the acquisition of a 68,134 square-foot
distribution facility and three acres of vacant land located in Tempe,
Arizona. The Company paid a total of $3,100,000 for the distribution facility
and vacant land.
Pacific Gulf Properties plans to renovate the existing vacant building,
and to develop the land which, when completed, will consist of an industrial
facility up to 40,000 square feet in size. The project offers practical
freeway access, dock-high loading and distribution capabilities, and also
increases Pacific Gulf's presence in Tempe, a desirable industrial submarket
of Phoenix. The Company anticipates construction of the new building to begin
during the fourth quarter of 1999.
Glenn L. Carpenter, Chairman of the Board and Chief Executive Officer of
Pacific Gulf Properties, said, "The acquisition of this distribution facility
and adjacent land in Arizona adds value to our portfolio of industrial
facilities. It also provides the Company an excellent opportunity, within a
strong market, to lease the existing facility and to develop the three-acre
site." Carpenter noted that preliminary interest in leasing both the existing
building and the land, when developed, has been strong.
J.R. Wetzel, Pacific Gulf Properties' Executive Vice President, indicated
that the Tempe and Phoenix industrial markets remain healthy, with overall
vacancy at 6.8 percent as of June 30, 1999. According to CB Commercial,
construction activity in the area is down approximately 20 percent, compared
to the same period in 1998. The slower construction pace, coupled with net
absorption on pace to exceed eight million square feet, should result in
rising rental rates in the Tempe submarket.
Pacific Gulf Properties Inc. is a real estate investment trust (REIT) 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 is comprised of 72 properties encompassing
more than 15.4 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, California.
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 1999 and Form 10-Q, filed in August of 1999. 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.
SOURCE Pacific Gulf Properties Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/671475.html or fax,
800-758-5804, ext. 671475
CONTACT:
Donald G. Herrman, Chief Financial Officer,
949-223-5000, or Victoria J. Baker, General Information,
703-370-8652, both of Pacific Gulf Properties Inc.
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