NEWPORT BEACH, Calif., Jan. 14 /PRNewswire/ -- Pacific Gulf Properties
Inc. (NYSE: PAG) announced that as of December 31, 1997, its portfolio of
industrial properties increased by 141% over the prior year.  At year-end
1997, Pacific Gulf's industrial portfolio consisted of approximately
11,800,000 square feet in 53 properties, compared with 12 properties
containing 4,901,000 square feet at year-end 1996.  During its most successful
year to date in terms of portfolio growth and market presence, Pacific Gulf
now owns a total of 35 industrial properties in Southern California containing
approximately 7,800,000 square feet; 12 industrial properties in Northern
California containing approximately 2,800,000 square feet; and 1,100,000
square feet in six industrial properties in the state of Washington.
    The Company invested a total of approximately $340,000,000 during 1997,
completing the acquisition of approximately 7,000,000 square feet of
industrial space and one active seniors apartment community in Riverside,
California consisting of 273 units.  During the month of December alone,
Pacific Gulf enjoyed significant growth in its portfolio, adding 2,100,000
square feet in 13 industrial properties for a total investment of
$115,600,000, and adding to its multifamily portfolio the 273-unit active
seniors property mentioned above, for a total investment of $13,400,000.
    Glenn L. Carpenter, Chairman of the Board and Chief Executive Officer,
stated that all properties in the Company's industrial portfolio offer good
upside potential.  Not only did Pacific Gulf purchase many properties which
exhibited strong potential for growth in value, but the properties acquired
fit into the Company's existing business strategy of working specifically with
small to mid-size industrial tenants in a given submarket.  As such, Pacific
Gulf has established a strong presence in all of its submarkets, positioning
itself to attract interest from a more diverse base of potential sellers of
real estate as well as tenants.
    In addition to its industrial portfolio, Pacific Gulf also owns 25
multifamily properties containing 4,821 units located in Southern California
and the state of Washington.  Of this total, 1,438 units in eight properties
located in Southern California are devoted exclusively to active seniors 55
and older.  Carpenter emphasized that Pacific Gulf continues to focus on the
senior communities in the multifamily division, noting that the Company
recently completed construction on a 166-unit rental community for active
seniors located in Southern California.  Carpenter added that the Company
received strong interest regarding the seniors rental community, evidenced by
the fact that the project was 89% pre-leased at completion of construction.
    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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