NEWPORT BEACH, Calif., Jan. 20 /PRNewswire/ -- Pacific Gulf Properties
Inc. (NYSE: PAG), continuing to expand its operations, announced today that as
of December 31, 1997, its Northern California portfolio of industrial
properties totaled approximately 2,800,000 square feet contained in 14
properties, as compared to its holding of just one property consisting of
193,000 square feet at year-end 1996.  In addition to expanding its holdings
in the Bay Area, Pacific Gulf entered the Sacramento market during 1997.
Currently, the Company owns five industrial properties in the Sacramento
market containing approximately 1,300,000 square feet, and nine properties
containing approximately 1,500,000 square feet in the Bay Area.  Pacific
Gulf's industrial portfolio, in its entirety, consists of approximately
11,800,000 total square feet in 55 properties.  In addition to the Northern
California portfolio described above, the Company has 35 properties with
approximately 7,800,000 square feet in Southern California, and 1,124,000
square feet in six properties in the state of Washington.
    Due to the increase in the size of this portion of its portfolio and to
accommodate anticipated growth, Pacific Gulf has opened two additional
regional offices.  Along with its existing office in Hayward, California, the
Company now boasts regional offices in Santa Clara and Sacramento, California.
Doug Kniveton, Pacific Gulf's Director of Real Estate Operations -Northern
California, has assumed responsibility for the entire Northern California
portfolio.
    Glenn L. Carpenter, Chairman of the Board and Chief Executive Officer,
stated that "our growth in Northern California demonstrates our commitment to
this region, and we are optimistic about the future."
    Carpenter also stated that Pacific Gulf will continue with its corporate
strategy to focus on the small to mid-size tenant, noting the Company's
ability to accommodate its tenants' needs by expanding or contracting a
tenant's space as business conditions dictate.
    In addition to its industrial portfolio, Pacific Gulf owns 4,821
multifamily units in 25 properties, located in Southern California and the
state of Washington.  Of the total, approximately 1,438 units in eight
communities are dedicated exclusively to active seniors 55 and older who do
not require assisted living.
    This release contains forward looking statements based on the Company's
current expectations and judgment.  Actual results could vary from those
stated here.  Numerous factors will affect actual results, some of which are
beyond the Company's control.  These factors include the strength of regional
economic conditions, the timing of economic changes, the strength of
industrial and residential rental markets, future entitlement decisions by
regulatory authorities, future trends in the prices of labor and materials,
competition, future interest rate levels and capital market conditions.
    Pacific Gulf Properties Inc., a self-administered and self-managed equity
real estate investment trust, owns, operates, leases, acquires, rehabilitates
and develops industrial and multifamily properties located in selected markets
within the western United States.

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