Avalon: Acquires Minneapolis Property

Avalon Properties, Inc.
15 River Road, Suite 210
Wilton, CT 06897-4064
203 761-6500




June 2, 1998
For Immediate Release


AVALON PROPERTIES ACQUIRES APARTMENT COMMUNITY
IN MINNEAPOLIS FOR $17,950,000


AVALON PROPERTIES, INC. (NYSE: "AVN") announced today that it has purchased The
Gates at Edinburgh located in Minneapolis for $17,950,000.

The Gates of Edinburgh is located in Brooklyn Park, approximately 10 miles
north of downtown Minneapolis. The community is adjacent to an 18 hole public
golf course, ranked in the Top 100 Public Golf Courses by Golf Digest.  The
Gates of Edinburgh, completed in 1991, contains 198 apartment homes in one
four-story  building with one level of underground structured parking.  The
community features a club room with full kitchen, a golfers lounge (second club
room), fitness room, outdoor pool, whirlpool, sauna and putting green. Each
apartment features a patio or balcony, oversize picture/bay windows, full size
washers and dryers, track lighting and a fully equipped eat-in kitchen
including a built-in microwave oven, disposal and frost-free refrigerator with
icemaker. Fireplaces are included in one of the two-bedroom floorplans and the
three-bedroom floorplans. The weighted average net square footage and leased
rent, respectively, are 1,122 and $924 ($0.82 per net square foot).   The
projected stabilized yield is 8.5%        

Avalon now owns a portfolio of 1,102 apartment homes in the Minneapolis market
with an additional community of 224 apartments under construction and subject
to a pre-sale agreement.  Minneapolis is listed as one of the top ten apartment
markets in the United States by the National Multi-housing Council.

This announcement contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934.  The words "expect", "anticipate," "estimate",
"projected", "budgeted" and other similar expressions which are predictions of
or indicate future events and trends and which do not relate solely to
historical matters, including information concerning the Company's future FFO
estimates, identify forward-looking statements.  Reliance should not be placed
on forward-looking statements because they involve known and unknown risks,
uncertainties and other factors, which are in some cases beyond the control of
the Company and may cause the actual results, performance or achievements of
the Company to differ materially from anticipated future results.  Factors that
impact the Company's ability to meet these forward-looking statements include,
but are not limited to, the market acceptance of the Company's new
developments, local market conditions, the ability to achieve projected costs
and other factors discussed periodically in the Company's reports filed with
the Securities and Exchange Commission.

Avalon Properties, Inc. is an equity REIT in the business of developing,
acquiring and managing multifamily apartment communities in the high
barrier-to-entry markets of the United States.  Avalon, named Development Firm
of the Year in 1998 by NAHB, owns or holds an ownership interest in 68
stabilized communities containing 20,404 apartments homes in thirteen states
and the District of Columbia.  An additional 12 apartment communities,
representing 3,029 apartment homes, are currently under construction.  For
information on Avalon Properties, Inc., contact Richard L. Michaux, CEO at
(703) 317-4602 or Bryce Blair, Senior Vice President at (617) 847-1250.


Ends.