Mid-America Apartment Communities makes announcement

Business Wire, June 6, 1996

MEMPHIS, Tenn.--(BUSINESS WIRE)--June 6, 1996--Mid-America Apartment Communities, Inc. (NYSE:MAA) today announced the sale of two apartment communities totaling 484 units acquired last year through its merger with America First REIT, Inc. and previously identified as candidates for disposition.

The 384-unit Laguna Pointe Apartment Community in Mesa, Ariz. sold June 4 for $7.6 million and assumption of bond indebtedness of $7.7 million. The Company had a gross investment in this property of $13.4 million.

The Company sold its 100-unit Park at 58 Apartment Community in Chattanooga, Tenn. in early May for $1.9 million, in which the Company had a gross investment of $1.8 million.

Eric Bolton, MAA's Chief Operating Officer said, "These sales reinforce our commitment to our long term strategy of owning properties where our intense management focus can add value. The Mesa property is geographically outside our primary management area and the Chattanooga property is positioned below our target market. We plan to replace these shortly with one or more properties which better fit our present operations."

MAA CFO Simon Wadsworth said, "The sales will result in a total capital gain for book purposes of approximately $1.9 million. We anticipate that the tax gain from the Laguna transaction will be deferred through a like-kind exchange. Based on our current analysis, the replacement properties will be added at a similar NOI yield."

MAA is a self-advised, self-managed REIT which owns 18,410 apartment units (including 234 development units) in 12 states, primarily in the southeast.

CONTACT: Mid-America Apartment Communities, Inc., Memphis

Louise Bagby, 901/682-6668, ext. 105.