<PAGE>
 
                                                                    EXHIBIT 10.1

                                 PURCHASE AND
                                SALE AGREEMENT
                                --------------

     This PURCHASE AND SALE AGREEMENT (the "AGREEMENT") is entered into as of
this 17 day of April, 1998, by and among WREP 1998-1 LLC, A DELAWARE LIMITED
LIABILITY COMPANY (the "PURCHASER"), G.I. JOE'S, INC., an Oregon corporation
(the "SELLER"), and PD PROPERTIES, L.L.C., an Oregon limited liability company
("PD").

                                   RECITALS
                                   --------

     A.   Seller owns fee title or (as to the Gresham property) a ground 
leasehold estate in certain real property, the legal descriptions of which are 
attached as Exhibit A, which are currently improved with retail stores, 
warehouses and offices operated by Seller (each such property, together with all
improvements located thereon, is hereinafter individually referred to as a 
"PROPERTY", and all such properties collectively referred to as the 
"PROPERTIES"). 

     B.   PD and an affiliate of Purchaser previously entered into a letter 
commitment dated February 10, 1998, concerning a prospective bridge financing 
and option to acquire the Properties, which is being superseded by this 
Agreement.

     C.   Purchaser desires to acquire all of the Property from Seller and 
simultaneously lease the same to Seller, upon and subject to the terms of this 
Agreement and a Lease Agreement ("LEASE") in the form attached hereto as Exhibit
C, to be entered into by Purchaser as landlord/lessor and Seller as 
tenant/lessee, with PD as one of the guarantors of such Lease.

     D.   Seller is willing to sell and convey all of the Properties to 
Purchaser and to simultaneously lease the same from Purchaser, on and subject to
the terms, covenants and conditions of this Agreement and the Lease.

                                   AGREEMENT
                                   ---------

1.   PURCHASE AND SALE OF THE PROPERTY. Seller agrees to sell the Properties to 
     ---------------------------------
Purchaser, and Purchaser agrees to purchase the Properties from Seller, on the 
terms and conditions set forth in this Agreement. The Properties consists of:

          (a)  All of the land described in EXHIBIT A attached hereto (the
     "LAND") and all easements, rights and interests appurtenant thereto, if
     any;

          (b)  All of the improvements and fixtures (which excludes the
     inventory, display cases, equipment, furniture, fixtures and equipment
     ("FF&E") and other personal

                                      -1-
<PAGE>
 
     property of Seller, but includes, without limitation, all fire and safety
     systems and other fixtures and equipment as part of the improvements that
     are necessary to operate the improvements in accordance with applicable law
     as building structures) currently situated on the Land (the
     "IMPROVEMENTS"); and
     
          (c)  All of Seller's rights in all of the following intangible
     property now or hereafter existing with respect to the Property (the
     "INTANGIBLE PROPERTY"); provided, however, the Intangible Property and all
     payments and proceeds derived therefrom may be retained and used by Seller
     so long as the Lease (defined below) remains in effect:

          (1)  All plans and specifications, all building permits and other
               permits required in connection with the construction of the
               Improvements and all warranties, guaranties and sureties now or
               hereafter received in connection with the construction of the
               Improvements, if any, including, without limitation, all rights
               of Seller under any plans, specifications, drawings and permits
               and all architectural, engineering or construction contracts with
               respect to the Improvements and all additions and alterations
               thereto;
               
          (2)  All licenses, permits, approvals and certificates of occupancy
               relating to the zoning, land use, ownership, operation,
               occupancy, construction or maintenance of the Improvements
               running to or in favor of the Seller or the Improvements, and all
               deposits to governmental authorities relating to the Seller or
               the Improvements;
               
          (3)  All service and maintenance contracts and equipment leases in
               connection with or used by the Seller (if any) in the operation
               of the Improvements for any lawful use (as opposed to Seller's
               particular use in its business) and which are accepted by
               Purchaser; and
     
          (4)  All accounts, books, records, studies, documents, tests, surveys,
               assessments, audits, appraisals, contracts, contract rights,
               claims and warranties related to the Property, but excluding any
               of the foregoing which relate to Seller's business conducted from
               the Property and any insurance policies and insurance policy
               proceeds.

2.   PURCHASE PRICE.  The total purchase price for all of the Property (the 
     --------------
"PURCHASE PRICE") is Twenty-Eight Million Four Hundred Fifty Thousand Dollars 
($28,450,000).  Subject to the adjustments, credits and holdbacks set forth in 
this Agreement, the entire purchase price shall be paid to the Seller on the 
Closing Date (defined below).  The parties have agreed on an allocation of the
total Purchase Price to the Properties, as shown on the schedule attached as
Exhibit D ("ALLOCATION SCHEDULE").

                                     -2-
<PAGE>
 
3.   PURCHASER'S CONTINGENCIES
     -------------------------

     3.1  SUBMISSION OF REVIEW INFORMATION. After the date of mutual execution 
          --------------------------------
of this Agreement (said execution date being hereinafter referred to as the 
"EFFECTIVE DATE"), Seller shall submit to Purchaser true and complete copies of 
the following information ("SELLER'S REPORTS"), all of which shall be subject to
Purchaser's review and approval prior to the Closing Date provided below:

          (a)  Seller's Organizational Documents. The entity documents for
               ---------------------------------
     Seller. Such documents shall include Seller's articles of incorporation,
     bylaws, an incumbency certificate certified by its secretary which
     identifies its current directors and officers and a current certificate of
     good standing issued by the Oregon Corporation Division/Secretary of State.

          (b)  Seller's Authorizations. Corporate resolutions adopted by
               -----------------------
     Seller's Board of Directors authorizing Seller's execution and delivery of
     this Agreement and the Lease.

          (c)  Seller's Financial Statements. An updated financial statement or 
               -----------------------------
     confirmation in form and substance satisfactory to Purchaser that Seller's
     financial statements provided to Purchaser in connection with the Loan
     remain accurate in all material respects.

          (d)  Title Report. Current title report(s) (collectively, the "TITLE 
               ------------
     REPORT") showing the status of and all exceptions to title and containing
     the title company's commitment to issue the title insurance policy or
     policies to be provided by Seller to Purchaser in connection with this
     transaction and the related financing transaction by Purchaser as
     borrower/grantor and Credit Suisse First Boston Mortgage Capital LLC or its
     affiliates ("LENDER") to be secured by the Property (the "LOAN").

          (e)  Environmental Questionnaire. An environmental questionnaire
               ---------------------------
     relating to the Land and Improvements in a form provided by Purchaser or
     Lender (if required), and completed by Seller.

          (f)  Environmental Assessment. Such environmental assessments or
               ------------------------
     updates of environmentals as Purchaser and Lender may require, which
     reflect the current environmental status of the Land and Improvements and
     the property adjacent thereto, including the current condition of the soils
     and groundwater including, an assessment by one or more qualified
     registered professional engineers, hydrologists, or other scientists that
     there exists no evidence of past or ongoing release at, upon, under, or
     within, or of past or ongoing migration from neighboring lands to, the
     Property, of hazardous materials and there exists no evidence that asbestos
     or asbestos-containing materials,

                                      -3-

<PAGE>
 
     polychlorinated biphenyl's (PCBs), radon gas, or urea formaldehyde foam 
     insulation is present (the "ASSESSMENTS").

          (g)  Remediation Confirmation.  Confirmation in form and substance
               ------------------------
     satisfactory to Purchaser that all monitoring and further assessments
     recommended in the Assessments have been completed and that the results
     thereof verify that no hazardous substances, wastes or materials regulated
     by any federal or state environmental laws ("ENVIRONMENTAL LAWS") exist in
     concentrations above the legal maximum limits and to the extent any
     remediation of the Land or the Improvements have been undertaken the same
     have been completed and accepted by the governing agency.

          (h)  Summary of Capital Repairs and Rights of Recoupment or Abatement.
               ----------------------------------------------------------------
     A summary of all capital repairs, improvements and alterations made to the
     Improvements within the ninety (90) day period immediately before the
     closing date, and/or that are required of Purchaser as landlord/lessor
     under the Lease or that are subject to rights of reimbursement, offset or
     recoupment by Seller from Purchaser after the date of the closing of the
     purchase (the "CLOSING DATE"), and/or any "free rent" or reduced rent or
     other rights of reimbursement, offset, abatement or recoupment under the
     Lease that would be applicable after the Closing Date, together with
     evidence satisfactory to Purchaser that all of the costs thereof have been
     paid or that the parties have reserved from disbursement of proceeds to
     Seller sufficient funds to pay for such work or to reimburse Seller for any
     such rights of reimbursement, offset, recoupment or abatement.

          (i)  Litigation Confirmation.  If there is any current litigation or 
               -----------------------
     claims made against or involving Seller or with respect to the Property
     which are pending or threatened, a written disclosure by Seller summarizing
     the nature of such litigation or claims, or, with respect to any claims
     which have been filed or served, Seller will deliver (on Purchaser's
     request) a complete copy of the complaints, answers and any amendments
     thereof.

          (j)  Citations.  All notices of violations and citations, including 
               ---------
     any criminal citations or allegations of criminal activity on or about the
     Property, currently pending or which have been received by Seller with
     respect to any of the Properties prior to Closing Date.

          (k)  Additional Reports.  Such other reports, tests, information and 
               ------------------
     data as Purchaser may reasonably request prior to the Closing Date, if any.

     3.2  PURCHASER'S REPORTS.  In addition to Seller's Reports, Purchaser shall
          --------------------
obtain and shall have the right to obtain and approve any other reports 
regarding Seller or the Property (the "PURCHASER'S REPORTS"), including, without
limitation, the following, IF AND TO THE EXTENT required by Purchaser:
                           --------------------

                                      -4-
<PAGE>
 
          (a)  Appraisal.  An appraisal confirming that the current fair market 
               ---------
     value of the Property is not less than the Purchase Price.

          (b)  Survey.  A survey or update to survey, certified to Purchaser and
               ------
     Lender (to the extent such certification to Lender is required in
     connection with the Loan), in form sufficient to satisfy Lender's
     requirements and to obtain the issuance of the Title Policy.

          (c)  UCC Report.  The UCC Report (defined below).
               ----------

          (d)  Structural Inspection Report.  A certification by an engineering 
               ----------------------------
     firm as to (a) the adequacy of the structural design and mechanical 
     specifications of the improvements, and (b) the adequacy and quality of the
     improvements and the materials and workmanship employed therein.

          (e)  Disability Laws.  Evidence or an updated certificate from an 
               ---------------
     engineer or the appropriate governmental agency, in form and substance
     acceptable to Purchaser, that no work on the Property is presently required
     to place them in compliance with The Americans with Disabilities Act of 
     1990.

          (f)  Litigation Report.  A report provided by commercial litigation 
               -----------------
     service, if required by Purchaser, which identifies any litigation or other
     adversarial proceedings involving Seller or the Property.

     3.3  SUPPLEMENTAL INFORMATION.  Seller agrees that to the extent Seller 
          ------------------------
obtains any other information, reports, assessments or data, if any, which in
any manner relate to or amend any of the Seller's Reports, or if Seller becomes
aware that any information contained in any of Seller's or Purchaser's Reports
becomes incorrect in any material respect, Seller shall promptly furnish
Purchaser with such additional reports or amendments or contrary or conflicting
information.

     3.4  PURCHASER'S INSPECTION RIGHTS.  In addition to reviewing the Seller's 
          -----------------------------
and Purchaser's Reports (collectively, the "DUE DILIGENCE REPORTS"), Purchaser 
shall have the right, prior to the Closing Date and at Purchaser's expense, to 
inspect the Property and any other books and records related to the Property 
from time to time; provided, however, any intrusive tests into the Land or 
                   -------- 
Improvements shall require Seller's prior written approval, which approval shall
not be unreasonably withheld, conditioned or delayed.  Pursuant to Section 3.6, 
Seller shall reimburse Purchaser for the reasonable out-of-pocket costs of such 
inspections.  Except for any damage caused by wrongful misconduct or negligence 
by Purchaser or its contractors or agents, any restoration of the Property to 
substantially the same condition immediately preceding such inspection shall be 
undertaken and paid for by Seller.  In no event shall Purchaser be liable or

                                      -5-

<PAGE>
 
responsible for the contents or results of any reports or the discovery of any 
information resulting from its inspections. 

     3.5  PAYMENTS FOR DUE DILIGENCE REPORTS.  All costs and expenses of all of 
          ----------------------------------
the Due Diligence Reports and other tests, inspections and studies of the
Property for which Seller is liable under this Agreement shall be paid by Seller
when due or reimbursed to Purchaser within five (5) days after written demand
therefor, regardless of whether this sale closes.

     3.6  SELLERS'S EXPENSE REIMBURSEMENTS.  Seller agrees that Seller shall 
          --------------------------------
reimburse Purchaser for up to $100,000 of its actual out-of-pocket expenses paid
to unrelated third parties in good faith in connection with this Agreement. Such
costs may include, but shall not be limited to, fees paid to Purchaser's 
consultants, brokers, accountants, attorneys, assessors, appraisers, surveyors, 
architects, title companies and planners (collectively, "PURCHASER'S SERVICE 
PROVIDERS"). Seller's obligations under this Section shall survive a 
cancellation, forfeiture or termination of this Agreement.

     3.7  OTHER HOLDBACKS AND FUNDED RESERVES.  The parties will holdback at 
          -----------------------------------
closing, or will place into a funded reserve, any additional amounts required by
Lender as holdbacks or reserves under the Loan (for property taxes, insurance,
tenant improvement and leasing commissions, seismic, capital expenditures, and
other matters), which will be in accordance with the schedule attached or to be
attached as Exhibit E (the "EXPENSE SCHEDULE").

     3.8  REMOVAL OF INSPECTION CONTINGENCIES.  The following procedure shall be
          -----------------------------------
employed in connection with Purchaser's removal of its inspection contingencies:

          (a)  Purchaser shall have until the Closing Date (the "REVIEW PERIOD")
     within which to accept the Property. If, by the end of the Review Period,
     Purchaser has not notified Seller in writing that Purchaser accepts the
     Property in its then current condition, this Agreement shall automatically
     terminate. This Agreement thereafter shall be null and void and neither
     party shall have any obligation to the other except as otherwise stated
     herein.

          (b)  If Purchaser elects, Purchaser may offer Seller the opportunity 
     to correct any items Purchaser determines to be unacceptable at Seller's
     expense by providing Seller with written notice prior to the end of the
     Review Period of what must be corrected, by what dates and in what manner.
     The foregoing includes any requirement to adjust the purchase price if the
     appraisal obtained by Purchaser indicates that the current fair market
     value of the Property is less that the purchase price stated herein.

          (c)  Within five (5) days after Seller is given such notice Seller 
     shall notify Purchaser in writing of whether and to the extent Seller will
     effect and pay for such corrections or agree to such purchase price
     adjustment. Unless otherwise stated in

                                      -6-
<PAGE>
 
     Purchaser's notice, any such items which are in the nature of repairs,
     alterations, corrections or remediations shall be completed prior to the
     Closing Date. If Seller fails to give such notice within said five (5)
     days, Seller will be deemed to have refused to agree to such corrections
     and purchase price adjustment.

          (d)  Within five (5) days after Seller gives such notice (or after the
     last day of the period within which such notice is to be given if it is
     not), Purchaser may elect to (i) cancel this Agreement, or (ii) agree to
     waive its contingencies as provided in this Section. The failure of
     Purchaser to give such notice within such five (5) day period shall be
     deemed an election to cancel this Agreement. If this Agreement is not so
     canceled Seller shall promptly commence and proceed with diligence to
     completion prior to the Closing Date with the correction of the items which
     Seller agreed to undertake in its notice to Purchaser.

4.   SELLER'S TITLE TO THE PROPERTY.
     ------------------------------

     4.1  TITLE REPORT.  Seller shall, at Seller's expense, provide a Title 
          ------------
Report on each Property from a title insurance company approved by Purchaser
(the "TITLE AGENT"). The Title Report shall include a commitment for an extended
ALTA form of owner's (or with respect to the Gresham Property ground leased by
Seller, a leasehold) policy of title insurance (collectively, the "TITLE
POLICY"). The Title Report shall be accompanied by legible copies of all special
exceptions listed therein and shall confirm the willingness of the Title Agent
to issue such endorsements as Purchaser may require after review of the Title
Reports (the "ENDORSEMENTS").

Purchaser shall have until the end of the Review Period in which to notify
Seller in writing of Purchaser's disapproval of any exceptions shown in the
Title Report, other than any liens to be satisfied by Seller by the Closing
Date.

     4.2  UCC SEARCH.  Purchaser may, at Seller's expense, obtain from a 
          ----------
commercial search service a report disclosing the existence of any UCC financing
statements or liens recorded or filed against any portion of the Property (the
"UCC REPORT"). Purchaser shall notify Seller as to whether it objects to any
security interests or liens reflected in the UCC Report. Seller will cause any
security interests that are encumbrances against the buildings or Property to be
released (other than any security interests that encumber only the furniture,
fixtures and equipment of Seller and other assets that Seller is not selling to
Purchaser).

     4.3  TITLE DEFECTS.  If Purchaser does not elect to cancel this Agreement, 
          -------------
Purchaser's objections to the disapproved exceptions Seller elects not to
eliminate shall be deemed waived and the Property shall be conveyed to the
Purchaser with such defects without credit against the purchase price. The
foregoing notwithstanding, Seller agrees that except for the lien for any
nondelinquent taxes and the lien for any nondelinquent special assessments
accepted by

                                      -7-
<PAGE>
 
Purchaser, it shall cause all monetary liens against the Property which are not 
accepted by Purchaser to be released of record by the Closing Date.

5.   SELLER'S REPRESENTATIONS.
     ------------------------

     5.1  CONTENT OF REPRESENTATIONS.  Seller represents, warrants and covenants
          --------------------------
to Purchaser as follows:

          (a)  Delivery of Seller's Reports.  Except to the extent otherwise 
               ----------------------------
     expressly waived by Purchaser in writing, Seller shall deliver all of
     Seller's Reports and any amendments or corrections thereof to Purchaser as
     and when required by this Agreement.

          (b)  Accuracy of Seller's Reports.  To the best of Seller's knowledge,
               ----------------------------
     all of the Seller's Report Seller has provided and hereafter provides to
     Purchaser in connection with this Agreement are and shall be true and
     accurate in all material respects.
     
          (c)  No Additional Title Defects.  There are no title defects in or 
               ---------------------------
     encumbrances against the Property which will not be shown in the Title
     Report, no person has any adverse, prescriptive rights or rights of
     possession except as stated in this Agreement, and no encroachments exist
     upon or from the Land.

          (d)  No Violation of Zoning and Other Laws.  The existing use and 
               -------------------------------------
     condition of the Property is not a nonconforming use and does not violate
     any subdivision, zoning, building, health, environmental, personal
     disabilities, fire or safety statute, ordinance, regulation or code in any
     material respect. As of the date hereof, neither Seller nor, to the best of
     Seller's knowledge, any of Seller's agents and employees have received any
     written notice from any governmental agency alleging violations of any
     building codes, building or use restrictions, zoning ordinances, rules and
     regulations. All licenses, permits and other approvals required for the
     construction and operation of the Improvements have been issued and are in
     good standing. If, between the date of this Agreement and the Closing Date
     Seller receives any written notice or written citation of any alleged
     violation of any statute, code or ordinance with respect to the Property or
     Seller's use thereof, it shall promptly provide Purchaser with a true and
     correct copy thereof.

          (e)  No Litigation.  There is no pending or threatened litigation or 
               -------------
     administrative action with respect to Seller or, to the best of Seller's 
     knowledge, the Property.

          (f)  Eminent Domain.  There is no pending or contemplated eminent 
               --------------
     domain, condemnation or other governmental taking of the Property or any
     portion thereof.

                                      -8-

<PAGE>
 
          (g)  Access to Property.  The Property has vehicular and pedestrian
               ------------------
     access to public rights of way.

          (h)  Separate Tax Parcel.  The Land and Improvements constitute a 
               -------------------
     separate tax parcel or parcels which does or do not include any other 
     property.

          (i)  Assessments.  To the best of Seller's knowledge, there are no 
               -----------
     special or general assessments which are in addition to those which will be
     disclosed in the Title Report which have been levied against or are
     proposed for the Property.

          (j)  No Breach of Agreements.  This Agreement and the consummation of
               -----------------------
     the transaction evidenced by this Agreement will not violate any other
     agreement to which Seller is a party or their respective organizational
     documents, or any law, statute or ordinance which is binding upon the
     Property or Seller.

          (k)  Contract Default.  Three exist no material defaults under any
               ----------------
     management, maintenance or service contracts executed in connection with
     the Property.

          (l)  Nonforeign Status.  Seller warrants that it is not a "foreign
               ----------------- 
     person" as defined in Section 1445 of the Internal Revenue Code of 1954, as
     amended. Seller shall deliver to Purchaser at Closing a Certificate of
     Nonforeign Status setting forth Seller's address and United States taxpayer
     identification number and certifying that it is not a foreign person as so
     defined.

          (m)  Executory Agreements.  Attached to this Agreement as EXHIBIT B is
               --------------------
     the list of all management, service and maintenance and equipment leases
     for the Property (the "SERVICE CONTRACTS"), together with their expiration
     dates or the notice period which must precede their termination. To the
     best of Seller's knowledge, no default exists under any of the Service
     Contracts and all Service Contracts are currently in full force and effect.
     
          (n)  Government Obligations.  There are no unperformed obligations 
               ----------------------
     which are currently due relative to the Property to any governmental or
     quasi-governmental body or authority. All water and sewer hook-up fees and
     other fees payable in connection with the annexation, zoning or improvement
     of the Land and which are now due have been paid.

          (o)  Utility Services.  The Improvements are serviced by public 
               ----------------
     electric, gas, water, sewer and telephone utilities sufficient to operate
     full-time Seller's current business in and from the Improvements and there
     exist no unpaid connection, hook-up or similar charges with respect
     thereto. All utilities serving the Improvements are on meters which do not
     monitor any other property.

                                      -9-
<PAGE>
 
          (p)  Environmental Matters.  No portion of the Property lies within a 
               ---------------------
     designated wetland or other environmentally sensitive area. Except as
     stated in the Assessments, Seller has not caused nor, to the best of
     Seller's knowledge, has any other person caused, any hazardous substance,
     waste or material to be used, generated, stored or disposed of on or
     transported to or from the Land or Improvements in violation of any
     Environmental Laws, nor have any underground storage tanks or transformers
     existed on or under the Land nor are there any asbestos-containing
     materials present in the Improvements. Except as stated in the Assessments,
     there are presently no hazardous waste, substance or material on, under or
     within the Property. For the purposes of this Agreement, "HAZARDOUS
     SUBSTANCE, WASTE OR MATERIAL" shall mean petroleum-based products,
     asbestos, asbestos-containing material, lead paint, PCBs and all other
     hazardous substances, wastes or substances which are so defined in any
     Environmental Laws.

          (q)  Condition of Improvements.  There are no material defects in any 
               -------------------------
     portion of the Improvements and the Improvements are not infested with
     termite or other insects or animals. Conditions caused by ordinary wear and
     tear and depreciation and which ordinarily arise during the course of
     owning and operating Seller's business at the Property shall not be
     considered material defects for the purposes of this representation.

          (r)  Insurability of Property.  Seller has not received any formal or 
               ------------------------
     informal notice from any insurance company of any defect or inadequacies in
     the Property which would adversely affect the insurability of the
     Improvements or which would increase the cost of any insurance beyond that
     which would ordinarily and customarily be charged for insuring comparable
     property used for similar purposes in the vicinity of the Property.

          (s)  Soil Conditions.  The surface and subsurface condition of the 
               ---------------
     Land is such that it will support the Improvements without present need for
     additional subsurface excavation, fill, footing, caissons or other
     installations, and the Improvements have been constructed in a manner which
     is compatible with the soil conditions at the time of construction.

          (t)  No Other Adverse Conditions.  There are no other facts, 
               ---------------------------     
     circumstances or conditions which could have a material, adverse impact
     upon the physical condition, value or permitted use of the Property or
     Seller's ability to perform its obligations under this Agreement or which
     would be likely to cause any other representation hereto to become
     incorrect in any material respect.

     5.2  SELLER'S KNOWLEDGE.  To the extent that any of the foregoing 
          ------------------
representations are limited "TO THE BEST OF SELLER'S KNOWLEDGE" (or words of 
similar effect), such knowledge shall (i) include the knowledge of the 
principals of Seller that have been involved in the negotiation

                                     -10-

<PAGE>
 
of this Agreement or that are regularly involved in the operation or management 
of real estate of Seller, and (ii) will presume and assume familiarity by Seller
with Seller's records and files.

     5.3  SURVIVAL OF WARRANTIES.  All of Seller's warranties in this Agreement 
          ----------------------
shall be deemed given only as of the date of this Agreement, but shall be 
updated in a certificate provided to Purchaser at and as of the Closing Date.

6.   CONDITIONS TO CLOSING.
     ---------------------

     6.1  PURCHASER'S CONDITIONS.  Purchaser's obligation to close this 
          ----------------------
transaction is subject to the satisfaction of all the following conditions:

          (a)  Seller's Compliance.  Seller's fulfillment of each of its 
               -------------------
     obligations under this Agreement in all material respects, including,
     without limitation, the delivery of all of the Seller's Reports to
     Purchaser within the Report Period.

          (b)  Seller's Representations.  The continuing accuracy of all of 
               ------------------------
     Seller's warranties and representations in this Agreement in all material
     respects, including the lack of discovery of any fact or circumstance of
     which Seller did not have knowledge on the date Seller executes this
     Agreement (regardless of whether such fact or circumstance arose or was
     discovered thereafter).

          (c)  Status of Title.  The absence of any monetary lien or other 
               ---------------
     material defect in title to the Property which was not permitted by this 
     Agreement or approved in writing by Purchaser.

          (d)  Permitted Uses.  The absence of any material violation of any
               --------------
     applicable statute, law or regulation regarding the physical condition of 
     the Property or Seller's use thereof for its current business purpose or of
     any change in any laws or statutes which materially affect the Seller's
     ability to use the Property for its current business purposes.

          (e)  Hazardous Waste.  The absence of Purchaser's discovery of any
               ---------------
     hazardous material, waste or substance on or about the Property (i) which
     was not reported to Purchaser in writing at least ten (10) days prior to
     the end of the Review Period, (ii) which violates any applicable statute,
     law or ordinance, and (iii) the cost of the abatement, removal or disposal
     of which, to the full extent required by any applicable statue, law or
     ordinance or which, in Purchaser's reasonable judgment, is needed to avoid
     additional contamination or pollution of the Property or any adjoining
     property, is likely to exceed Ten Thousand Dollars ($10,000).

          (f)  Material Condemnation.  The absence of any condemnation or the 
               ---------------------
     institution of condemnation proceedings which results in the taking of any
     of the 

                                     -11-
<PAGE>
 
Improvements with a value of more than Ten Thousand Dollars ($10,000), or a 
reduction in the number of any parking spaces below the minimum level required 
by law for the current use of the Property or the Property becoming a 
nonconforming use under applicable law. If this transaction closes, Seller 
shall assign to Purchaser on the Closing Date all condemnation awards and rights
to awards which were not used by Seller to pay the costs of any restorations of 
the Land or Improvements necessitated by any such condemnation.

     (g)  Material Casualty. The absence of any material damage by casualty to 
          -----------------
the Improvements which has not been repaired by Seller by the Closing Date. For 
the purposes hereof, a "MATERIAL DAMAGE BY CASUALTY" shall be deemed any damage 
by fire or other casualty which has not been repaired and paid for by the 
Closing Date and for which the estimated cost of the remaining repairs exceeds 
Ten Thousand Dollars ($10,000). If the Improvements suffer any material damage 
by casualty Purchaser shall have the right and option to terminate this 
Agreement within fifteen (15) days after the date Purchaser is notified of the 
casualty in writing or by the Closing Date, whichever first occurs. Seller shall
also have the right to cancel this Agreement if such material damage by casualty
is not covered by Seller's insurance policy unless Purchaser is willing to 
reduce the purchase price by the amount estimated to be necessary to pay the 
labor and material costs to restore the damage. If Purchaser does not elect to 
terminate this Agreement by such date, this transaction shall close without 
increase or decrease in the purchase price, Seller shall proceed to effect such 
repairs to return the damaged portions of the Property to the condition existing
immediately prior to the casualty and shall complete the same as soon as 
reasonably possible prior to or after the Closing Date and shall be entitled to
all insurance proceeds which are paid because of the casualty. If the estimated
cost to repair any damage by casualty as of the Closing Date is less than Ten
Thousand dollars ($10,000), Purchaser shall not have the right to terminate this
Agreement because of such casualty and Seller shall promptly proceed to effect
the repairs as stated above. All repair cost estimates referred to in this
paragraph shall be made by reference to a fixed price construction contract
which Seller shall obtain as promptly as is reasonably possible after the date
of the casualty.

     (h)  Seller's Financial Condition. If there occurs any material adverse 
          ----------------------------
change in the financial condition of Seller, as indicated in the financial 
statements approved by the Purchaser, or if Seller generally becomes unable to 
pay its debts as they become due, make any assignment for the benefit of 
creditors or file or have filed against it any bankruptcy or other insolvency 
proceeding. Any reduction in the net worth of Seller by more than ten percent 
(10%) from that which is reflected in a financial statement approved by 
Purchaser shall be deemed a material adverse change for the purpose of this 
Section.

                                     -12-

<PAGE>
 
          (i)  Execution and Delivery of Lease. If the Lease is not executed or 
               -------------------------------
     delivered by Seller for any reason.

     6.2  SELLER'S CONDITIONS. Seller's obligation to close this transaction is 
          -------------------
subject to Purchaser's fulfillment of each of its obligations under this 
Agreement.

     6.3  FAILURE OF CLOSING CONDITIONS. In the event any one or more of the 
          -----------------------------
above conditions is not satisfied as of the Closing Date, or if the party whom 
such condition is intended to benefit reasonably determines that the same are 
not capable of being so satisfied by the Closing Date, such party may:

          (a)  waive such condition by so advising the other party in writing,
     whereupon this sale shall close in accordance with the terms hereof and the
     purchase price shall be adjusted if and to the extent the condition relates
     to a misrepresentation by the other party to this Agreement and the waiving
     party incurs or reasonably expects to incur any expense to remedy or
     satisfy any of such conditions;

          (b)  extend the Closing Date for up to thirty (30) days and, to the
     extent constituting a misrepresentation or default of the other party,
     require the other party to satisfy the condition to the extent feasible or
     if capable of being satisfied by monetary payment; or

          (c)  elect to cancel this Agreement, in which event, and except to the
     extent the parties' remedies are otherwise limited by this Agreement, the
     nonperforming party, if any, shall continue to be liable to the other party
     hereto for its damages and expenses caused by such failure or inability to
     close this transaction with all conditions satisfied.

7.   CLOSING.
     -------

     7.1  CLOSING DATE. This transaction will be closed on a date selected by 
          ------------
Purchaser and reasonably acceptable to Seller, after the execution and delivery 
to the Escrow Agent of the Seller's deed and the Lease, the deposit of the 
purchase price and the fulfillment of the other closing obligations (the 
"CLOSING"). The date on which the Closing occurs is referred to as the "CLOSING 
DATE."

     7.2  MANNER AND PLACE OF CLOSING. This transaction will be closed at the 
          ---------------------------
offices of the Title Agent in Portland, Oregon, or in the office of the Seller's
counsel, or by such other person as the parties may mutually agree to in 
writing. Closing shall take place in the manner and in accordance with the 
provisions set forth in this Agreement.

     7.3  PRORATIONS, ADJUSTMENTS.
          -----------------------

                                     -13-
<PAGE>
 
          (a)  All ad valorem real property taxes and special assessments, 
     insurance premiums, utility expenses and obligations under all repair and
     maintenance contracts shall be paid by Seller as and when due and shall
     continue to be paid by Seller pursuant to the terms of the Lease. Any such
     expense or rights of recoupment, abatement or offset will be prorated and
     adjusted and adequate reserves or holdbacks set up to cover the expense, or
     right of recoupment, abatement or offset, in a manner satisfactory to
     Purchaser.

          (b)  Seller shall pay all documentary and conveyance excise and sales
     taxes (including, without limitation, the entire Washington County
     documentary tax) in connection with this sale and the Lease and the
     recording fees for Seller's deed. Subject to the limits set forth in
     Section 3.6, to the extent not previously paid by Seller, Seller shall pay
     or reimburse Purchaser for all Seller's Reports, Purchaser's Reports,
     Purchaser's Service Providers and all other third-party costs incurred by
     Purchaser in connection with this Agreement. To the extent not paid at
     Closing, Seller shall pay such costs or reimburse Purchaser therefor upon
     demand after Closing.

          (c)  Seller shall pay the premium(s) for Purchaser's owner's title 
     insurance policy and all of the Endorsements.

          (d)  Subject to the limits set forth in Section 3.6, Seller shall pay 
     all other costs, expenses, fees and charges incurred in connection with the
     Closing, including all of Purchaser's attorneys' fees and expenses for the
     negotiation, documentation and closing of this transaction at such
     attorneys' standard hourly rate.

          (e)  At closing, the Title Agent shall hold back an amount equal to
     120% of estimates of costs for improvements that will be required for
     seismic modifications and other repairs to the Property that have been
     identified as of the Closing Date, if any, to be held and disbursed in
     accordance with such escrow instructions as may be acceptable to Purchaser,
     Seller and Title Agent.

     7.4  EVENTS OF CLOSING.  This transaction will be closed on the Closing 
          -----------------
Date as follows:

          (a)  If there have been any changes in Seller's warranties under this 
     Agreement, Seller will provide a written disclosure of the matters that
     have arisen that are inconsistent with the warranties of Seller in this
     Agreement.

          (b)  Seller shall provide Purchaser with the Certificate of Nonforeign
     Status as provided in I.R.C. (S) 1445.

                                     -14-
<PAGE>
 
          (c)   Seller shall provide Purchaser with the written opinion of legal
     counsel(s) for Seller, in form and substance satisfactory to Purchaser and
     its counsel, to the effect that: (i) Seller is a duly organized and validly
     existing corporation, with full authority to enter into and perform this
     Agreement and the Lease; (ii) this Agreement and the Lease have been duly
     executed by a person properly authorized to do so on behalf of Seller;
     (iii) to the best of such counsel's knowledge, this Agreement does not
     violate the terms or provisions of any other contract or agreement to which
     Seller is a party; (iv) such counsel has no knowledge of any pending or
     threatened litigation or citations relating to the Seller or the Property;
     (v) to the best of such counsel's knowledge, the Land and Improvements
     comply with all applicable laws, ordinances and regulations, including all
     environmental laws; and (vi) subject to such assumptions and exceptions as
     may be approved by Purchaser's counsel, this Agreement and the Lease are
     enforceable against Seller in accordance with their terms.

          (d)  Seller shall assign to Purchaser any insurance proceeds and 
     condemnation awards as and to the extent required by this Agreement.

          (e) The Title Agent shall calculate the expenses to be paid at Closing
     and the parties shall be charged and credited accordingly.

          (f)  Purchaser shall pay the entire purchase price to Seller in cash,
     as adjusted the charges, credits and holdbacks set forth in this Agreement.

          (g)  Any liens to be paid by Seller at closing shall be paid and
     satisfied of record at Seller's expense.

          (h)  The existing lease of the Gresham Property by Seller, as lessee,
     shall be assigned to Purchaser, by warranty assignment of lease, and the
     Lease will constitute a sublease under such underlying lease.

          (i)  Seller shall convey the real property to Purchaser or its
     affiliated entity (as Purchaser direst) by statutory warranty deed, subject
     only to the matters accepted by Purchaser in writing pursuant to this
     Agreement.

          (j)  Seller shall convey the Intangible Property to Purchaser by good
     and sufficient assignment

          (k)  Purchaser and Seller shall execute and deliver the Lease.

          (l)  The Title Agent shall be committed to issuing the policy herein 
     described upon recordation of the closing documents.

                                     -15-
<PAGE>
 
          (m)  The Title Agent shall record the Seller's deed and assignment of 
     lease to Purchaser.

     7.5  TITLE INSURANCE. As soon as possible after the Closing Date, Seller 
          ---------------
shall furnish Purchaser an extended ALTA form of owner's (as to Gresham, 
leasehold) policy of title insurance in the amount of the Purchase Price with 
the Endorsements, subject only to the Title Agent's standard preprinted 
exceptions for such form and except for the matters accepted by Purchaser in 
writing pursuant to this Agreement.

     7.6  LEASE. Concurrently with the closing of this sale, Purchaser and 
          -----
Seller shall execute one or more leases covering all of the Properties from 
Purchaser, as landlord, to Seller, as tenant, on the terms and in the form of 
the Lease attached hereto as EXHIBIT C. The rent under each such Lease will be 
in accordance with the Allocation Schedule attached as EXHIBIT D. Each Lease 
will be guaranteed by PD and the other guarantors shown on the Guaranty attached
to the Lease.

     7.7  COMMITMENT FEE. Seller agrees that a commitment fee in the amount set 
          --------------
forth on the Expense Schedule attached as Exhibit E will be owed to Purchaser at
Closing. Seller agrees to pay the commitment fee to Purchaser within 12 months 
of the Closing Date, at the closing of an initial public offering by Seller, or 
at the closing of a sale of 10% of the common or preferred stock of Seller, 
whichever occurs first.

8.   DEFAULTS AND FAILURE TO CLOSE.
     -----------------------------

     8.1  SELLER'S REMEDIES. If Purchaser fails to complete this purchase 
          -----------------
without legal excuse, Seller shall have the right to recover the greater of the
expense reimbursements paid by Seller pursuant to Section 3 of this Agreement or
Ten Thousand Dollars ($10,000), either of such sums being hereby specifically
agreed to be liquidated damages; that such amount constitutes the parties' best
reasonable attempt to estimate Seller's actual and consequential damages that
would be incurred in the event of such default; that any such damages would be
extremely difficult and impractical to quantify; and that such damages are
expressly intended to and shall constitute Seller's sole and exclusive remedy
for such default.

     8.2  PURCHASER'S REMEDIES. If this transaction fails to close because of 
          --------------------
Seller's fault or Seller's inability to close, Purchaser shall be entitled to 
such remedies for breach of contract as may be available under applicable law, 
including (without limitation) the remedy of specific performance of this 
Agreement and the Lease and the right to recover its actual and consequential 
damages.  Purchaser shall also have the right to enjoin any violations of 
Seller's covenants herein.

     8.3  DEFAULTS. Except for Seller's obligation to provide Seller's Reports 
          --------
to Purchaser within the Report Period or the parties' wrongful failure to close 
or to satisfy any condition to 

                                     -16-
<PAGE>
 
closing by the required Closing Date, no party shall be deemed in default under 
this Agreement unless such party is given written notice of its failure to 
comply with this Agreement and such failure continues for a period of ten (10) 
days following the date such notice is given.

     8.4  COSTS AND ATTORNEYS' FEES. In the event suit, action, arbitration or 
          -------------------------
mediation is instituted to interpret or enforce the terms of this Agreement, the
prevailing party shall be entitled to recover from the other party such sum as
the court, arbitrator or mediator may adjudge reasonable as costs and expert
witness and attorneys' fees at trial, on any appeal, and on any petition for
review, in addition to all other sums provided by law.

9.   CONDUCT OF BUSINESS.
     -------------------

     9.1  CONTRACTS. From the date of this Agreement until the Closing Date, 
          ---------
Seller shall perform all of its obligations as and when required by any
agreements or contracts with respect to the Property and shall continue to 
operate the Property in accordance with customary and prudent management and 
operating standards and practices and will take no steps or actions which it 
knows would be detrimental to the value or future potential of the Property.

     9.2  INSURANCE. Seller shall continue to maintain its current casualty and 
          ---------
liability insurance policies on the Property until the Closing Date.

     9.3  LEASES. Between the date of this Agreement and the Closing Date Seller
          ------
shall not enter into any leases of the Property or any portion thereof without 
Purchaser's prior written consent.

     9.4  PROPERTY MAINTENANCE. Seller agrees to maintain and repair the 
          --------------------
Property between the date of this Agreement and the Closing Date so as to cause 
the same to be delivered to Purchaser in substantially the same conditions 
existing as of end the Review Period, ordinary wear and tear excepted.  Prior to
the Closing Date, Seller shall promptly notify Purchaser regarding any item of 
repair, replacement or maintenance of which Seller becomes aware and which 
requires an expenditure in excess of Five Thousand Dollars ($5,000).

     9.5  BOOKS AND RECORDS. Seller agrees to continue to maintain its current 
          ------------------
books and records relating to the Property, plus such additional records as 
Purchaser may reasonably require.

     9.6  NO MARKETING. Seller shall not offer the Property for sale or solicit 
          ------------
or accept offers to purchase the Property or any portion thereof so long as this
Agreement is in effect.

10.  INDEMNIFICATION.
     ---------------                     

                                     -17-
<PAGE>
 
     10.1 SELLER'S INDEMNIFICATION. Seller agrees to defend, indemnify and hold 
          ------------------------
Purchaser harmless from and against and reimburse Purchaser for all claims, 
damages, losses and attorneys' fees which are caused by Seller's failure to 
perform any obligation under any lease or contract for the Property prior to the
Closing Date or for which Seller is responsible in accordance with the terms of 
this Agreement.

     10.2 SURVIVAL OF INDEMNIFICATION. The indemnifications contained in this 
          ---------------------------
Section shall survive the closing of this transaction.

11.  LEGAL RELATIONSHIPS.
     -------------------

     11.1 PARTIES' AUTHORITY. The act, instruction, waiver, consent, knowledge 
          ------------------
and giving and receipt of notices of or by _________________ and _____________ 
[indicate person(s) authorized to bind Seller] shall be deemed that of Seller, 
and Purchaser shall have no duty to inquire into such person's authority.

     11.2 DESCRIPTION OF TRANSACTION. This Agreement creates only the 
          --------------------------
relationship of seller and buyer and no joint venture, partnership or other
joint undertaking is intended hereby, and neither party hereto shall have any
rights to make any representations or incur any obligations on behalf of the
other. Neither Seller nor Purchaser has authorized any agent to make any
representations, admit any liability or undertake any obligation on its behalf.
No party is executing this Agreement on behalf of an undisclosed principal, and
no third party is intended to be benefitted by this contract. No entity or
person who controls, is controlled by or under the common control with Purchaser
shall be liable for Purchaser's acts, omissions or obligations hereunder unless
and to the extent such liability is expressly undertaken in a guaranty or other
agreement executed by the party to be charged. The parties agree that this
Agreement involves only the sale and lease of the Property, that Purchaser is
not acquiring any business or ongoing liability of Seller, and except to the
limited extent assumed by Purchaser in writing, Purchaser shall have no
successor liability to any employee, agent or other person with whom Seller has
contracted or to whom Seller is liable. The parties hereto specifically intend
that this Agreement and the Lease constitute a true sale and lease of the
Property and is not a financing transaction, and Seller shall convey and
Purchaser shall acquire fee simple absolute title to the Property on the Closing
Date and all residual interests therein which exist upon the termination or
expiration of the Lease.

     11.3 REAL ESTATE COMMISSIONS. Each party shall indemnify, defend and hold 
          -----------------------
the other harmless against all claims made for any commission or finder's fee in
connection herewith to which the indemnified party did not agree in writing.

     11.4 INDEMNIFIED PARTIES. Any indemnification contained in this Agreement 
          -------------------
for the benefit of Purchaser shall extend to Purchaser's officers, employees,
and agents.

                                     -18-
<PAGE>
 
     11.5 ASSIGNMENTS AND SUCCESSORS. Seller shall not assign this Agreement or 
          --------------------------
Seller's right and obligation to execute the Lease without Purchaser's prior 
written consent in each instance. Subject to the foregoing, this Agreement shall
bind and inure to the benefit of the parties hereto and their respective 
successors and assigns.

12.  CONSTRUCTION OF AGREEMENT.
     -------------------------

     12.1 CONSIDERATION. Seller and Purchaser agree that while Purchaser retains
          -------------
the right to disapprove of any of the Due Diligence Reports or the results of 
Property-related tests of inspections as stated in this Agreement and as a 
result elect not to purchase the Property, Seller and Purchaser will each be 
incurring certain nonreimbursable expenses and foregoing other transactional 
opportunities and that such provides sufficient consideration for the 
enforceability of this Agreement and each of the parties hereto waives any right
to claim or allege that there exists insufficient consideration therefor.

     12.2 TAX AND ACCOUNTING CONSEQUENCES. Each of the parties hereto 
          --------------------------------
acknowledges and agrees that neither party has made any representation as to how
this Agreement, the Lease or any given income, expense, liability, deduction, or
credit related thereto shall be treated or characterized for any federal, state 
or local income or other tax or accounting purposes, and each party shall rely 
solely upon its own tax advisors and accountants with respect thereto. Neither 
this Agreement nor the Lease is or shall be conditioned upon how this 
transaction or any portion thereof or any interests in the Property are treated 
for any tax or accounting purposes under any past, existing or future tax 
statute, ordinance, regulation or standard.

     12.3 NOTICES. Notices under this Agreement shall be in writing and if 
          -------
personally delivered or telefaxed shall be effective when received. If mailed, a
notice shall be deemed effective on the second day after deposited as registered
or certified mail, postage prepaid, directed to the other party. Notices shall 
be delivered, mailed or telefaxed to the following address and telephone 
numbers:

          Seller:        G. I. JOE'S INC.
                         Attention: Norm Daniels
                         c/o 9725 SW Beaverton Hillsdale Hwy., Suite 350
                         Beaverton, Oregon 97005-3366
                         Telefax No.: (503) 350-0672

                         WITH A COPY TO:
                         Josselson, Potter & Roberts
                         53 SW Yamhill Street
                         Portland, Or 97204
                         Attention: Irving W. Potter
                         Telefax: (503) 227-0171

                                     -19-
<PAGE>
 
          Purchaser:     WREP 1998-1 LLC
                         1776 SW Madison Street
                         Portland, Oregon 97205
                         Attn: Peter O'Kane, Peter Menefee and William D. Schaub
                         Telefax No.: (503) 776-6599

                         with a copy to:
                         --------------
                         Stoel Rives /LLP/
                         900 SW Fifth Avenue, Suite 2300
                         Portland, Oregon 97204-1268
                         Attn: David W. Green and Mark H. Peterman
                         Telefax No.: (503) 220-2480

Any person may change its address for notices by at least five (5) days' advance
written notice to the other.

     12.4 TIME OF ESSENCE. Except as otherwise specifically provided in this 
          ---------------
Agreement, time is of the essence of each and every provision of this Agreement.

     12.5 INVALIDITY OF PROVISIONS. If any provision of this Agreement, or any 
          ------------------------
instrument to be delivered by Purchaser at closing pursuant to this Agreement,
is declared invalid or is unenforceable for any reason, such provision shall be
deleted from such document and shall not invalidate any other provision
contained in the document.

     12.6 NEUTRAL CONSTRUCTION. This Agreement has been negotiated with each 
          --------------------
party having the opportunity to consult with legal counsel and shall not be 
construed against either party.

     12.7 CAPTIONS. The captions of the Sections are used solely for convenience
          --------
and are not intended to alter or confine the provisions of this Agreement.

     12.8 WAIVER. The failure of any party at any time to require performance of
          ------
any provision of this Agreement shall not limit the party's right to enforce 
such provision. Waiver of any breach of any provision shall not be a waiver of 
any succeeding breach of the provision or a waiver of the provision itself or 
any other provision.

     12.9 SUBSEQUENT MODIFICATIONS. This Agreement and any of its terms may only
          ------------------------
be changed, waived, discharged or terminated by a written instrument signed by 
the party against whom enforcement of the change, waiver, discharge or 
termination is sought.

                                     -20-
<PAGE>
 
     12.10  SATURDAY, SUNDAY AND LEGAL HOLIDAYS. If the time for performance of 
            -----------------------------------
any of the terms, conditions and provisions hereof shall fall on a Saturday, 
Sunday or legal holiday, then the time of such performance shall be extended to 
the next business day thereafter.

     12.11  VENUE. In any action brought to interpret or enforce any of the 
            -----
provisions of this Agreement, the venue of the same shall be laid in any county 
in which the Property is located or in Multnomah County, Oregon, at the option 
of the person instituting the suit.

     12.12  APPLICABLE LAW. This Agreement shall be construed, applied and 
            --------------
enforced in accordance with the laws of the State of Oregon. All sums referred
to in this Agreement shall be calculated by and payable in the lawful currency
of the United States.

     12.13  NO OFFER. The presentation and negotiation of this Agreement shall 
            --------
not be construed as an offer by Purchaser to acquire the Property or obligate 
either party unless and until this Agreement has been executed by both parties.

     12.14  ENTIRE AGREEMENT. This Agreement constitutes the entire agreement of
            ---------------- 
the parties with respect to Seller's sale of the Property to Purchaser and
supersedes and replaces all written and oral agreements previously made or
existing between the parties.

     12.15  COUNTERPARTS. This Agreement may be executed simultaneously or in 
            ------------
counterparts, each of which shall be deemed an original, but all of which 
together shall constitute one and the same contract.

                          [NO MORE TEXT ON THIS PAGE]

                                     -21-
<PAGE>
 
     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed 
as of the day and year first above written.

SELLER:                                 PURCHASER:

G. I. JOE'S, INC.,                      WREP 1998-1 LLC,
AN OREGON CORPORATION                   A DELAWARE LIMITED LIABILITY COMPANY


By /s/ Norman Daniels                   By /s/ Peter O'Kane
  ---------------------------------       ----------------------------------
     Printed Name: NORMAN DANIELS            Printed Name: PETER O'KANE
                  -----------------                       ------------------
     Its President                           Its            SVP
        ---------------------------             ----------------------------


PD:

PD PROPERTIES, L.L.C.


By /s/ Daniel J. Alderman 
  ---------------------------------
Printed Name: DANIEL J. ALDERMAN
             ----------------------
Its  MANAGER
   --------------------------------

                                     -22-
<PAGE>
 
                                   EXHIBIT A

                               Legal description


300 NW EASTMAN AVENUE
GRESHAM, OREGON

     A tract of land situate in the Northeast one-quarter of Section 9 and
     Northwest one-quarter of Section 10, Township 1 South, Range 3 East, of the
     Willamette Meridian, in the City of Gresham, County of Multnomah and State
     of Oregon, being more particularly described as follows, to-wit:

     Beginning at the Southwest corner of the plat of CLANAHAN'S ADDITION marked
     by a one and one-quarter inch (1 1/4") iron pipe; thence North
     89(degrees)44'39" East along the South line of the plat of CLANAHAN'S
     ADDITION a distance of 66.65 feet to the most Easterly Northeast corner of
     a parcel conveyed to Real Property Resources, Inc. (RPR) from the
     International Church of the Foursquare Gospel, said corner is marked by a
     5/8-inch iron rod; thence South 0(degrees)08'04" East along the Easterly
     line of said (RPR) parcel a distance of 15.67 feet to the true point of
     beginning of the herein described tract, located on the centerline of a
     30.00 feet wide driving aisle; thence South 0(degrees)08'04" East along the
     Easterly line of said RPR parcel a distance of 305.00 feet; thence South
     89(degrees)51'56" West a distance of 315.00 feet to the centerline of a
     30.00 feet wide driving aisle; thence South 0(degrees)08'04" East along the
     centerline of said driving aisle, parallel with the East line of said RPR
     parcel, a distance of 131.00 feet; thence South 89(degrees)51'56" West a
     distance of 196.80 feet to the center of a 30.00 feet wide driving aisle;
     thence North 0(degrees)08'04" West along the centerline of said driving
     aisle, parallel with the East line of said RPR parcel a distance of 421.00
     feet; thence South 89(degrees)51'56" West a distance of 210.46 feet to a
     point on the Easterly right-of-way line of Northwest Eastman Avenue; thence
     North 0(degrees)25'51" East along said Easterly right-of-way line a
     distance of 15.00 feet to a point of intersection with the centerline of a
     30.00 feet wide driving aisle; thence North 89(degrees)51'56" East along
     said driving aisle centerline a distance of 722.11 feet to the point of
     beginning.

15600 SE MCLOUGHLIN BLVD.
OAK GROVE, OREGON

     A part of the S.H Walker Donation Land Claim, a part of Tract 1, SPAULDING
     ACRES, a part of Tracts 17, 19 and all of Tract 18, CONCORD, in the County
     of Clackamas and State of Oregon, more particularly described as follows;
     
     BEGINNING at the intersection of the Easterly right of way line of Oregon
     State Highway 99 E. (McLoughlin Blvd.) and the Northerly right of way line
     of Concord Avenue; thence North 28(degrees)05' West, along the Easterly
     right of way line of said Highway 1073.28 feet to a 5/8-inch iron rod in
     the Southeasterly line of Risley Avenue; thence tracing said Southeasterly
     line North 52(degrees)59'20" East 473.78 feet to a 5/8-inch iron rod in the
     Southwesterly line of Olive Avenue, as it presently exists; thence tracing
     the said Southwesterly line of Olive Avenue, as presently exists, South
     40(degrees)07'39" East 410.24 feet to a 5/8-inch iron rod: thence South
     37(degrees)00'37" East 291.92 feet; along the Southwesterly right of way
     line of Olive Avenue, as it exists, to an iron rod at the most Northerly
     corner of a tract conveyed to School District No. 28, by deed recorded in
     Book 36, Page 311, Deed Records of Clackamas County; thence South
     62(degrees)51'43" West 106.72 feet to the most Northerly corner of the said
     Walker Donation Land Claim; thence South 27(degrees)19'14" East along the
     Northeasterly line of said Donation Land Claim, 214.82 feet to an iron rod;
     thence South 66(degrees)26'22" West 263.74 feet to an iron rod; thence
     South 27(degrees)19'14" East 250 feet to the Northerly right of way line of
     Concord Avenue; thence South 66(degrees)26'38" West 231 feet to the place
     of beginning.

                                                              Exhibit A - Page 1



<PAGE>
 
  TOGETHER WITH that portion of vacated Olive Avenue which attached thereto
  pursuant to vacation thereof by Ordinance No. 77-879 of Clackamas County a
  certified copy of which recorded June 20, 1977 as Recorder's Fee No. 77 23737.

  EXCEPTING THEREFROM a tract of land in Lots 17 and 18, CONCORD, in the County
  of Clackamas and State of Oregon, being more particularly described as
  follows: 

  BEGINNING at the intersection of the Easterly right of way line of Oregon
  State Highway 99 E. (McLoughlin Blvd.) and the Southeasterly line of Risley
  Avenue; thence tracing said Southeasterly line North 52 degrees 59'20" East a
  distance of 150 feet to a point; thence South 28 degrees 05' East parallel
  with the Easterly line of said McLoughlin Blvd., a distance of 200 feet to a
  point; thence South 52 degrees 59'20" West parallel with the Southeasterly
  line of Risley Avenue 150 feet to a point on the Easterly line of McLoughlin
  Blvd.; thence North 28 degrees 05' West along said Easterly line 200 feet to
  the point of beginning.

  ALSO EXCEPTING THEREFROM a tract of land in the East one-half of Section 12,
  Township 2 South, Range 1 East, of the Willamette Meridian, in the County of
  CLackamas and State of Oregon, further described as follows: 

  BEGINNING at a point in the Southeasterly line of Risley Avenue that is 150.00
  feet Northeasterly from the intersection of said line with the Northeasterly
  line of McLoughlin Blvd.; thence North 52 degrees 59'20" East along the
  Southeasterly line of Risley Avenue 323.78 feet to an iron rod at the
  intersection of said line with the Southwesterly line of Olive Avenue as it
  presently exists; thence South 40 degrees 07'39" East along said Southwesterly
  line of Olive Avenue as it presently exists, 410.24 feet to a 5/8-inch iron
  rod; thence South 37 degrees 00'37" East along the Southwesterly line of Olive
  Avenue, as it presently exists, 125.56 feet; thence South 63 degrees 55' West
  574.96 feet to a point in the Northeasterly line of McLoughlin Blvd.; thence
  North 28 degrees 05' West along said Northeasterly line 251.39 feet to a point
  that is 200.00 feet Southeasterly from the intersection of said line with the
  Southeasterly line of Risley Avenue; thence North 52 degrees 59'20" East,
  parallel with the Risley Avenue, 150.00 feet; thence North 28 degrees 05'
  West, parallel with McLoughlin Blvd., 200.00 feet to the place of beginning.

17799 SW BOONES FERRY ROAD
LAKE OSWEGO, OREGON

  A parcel of land in the Southwest quarter of the Northwest quarter of Section
  18, Township 2 South, Range 1 East, of the Willamette Meridian, in the County
  of Clackamas and State of Oregon, said parcel being a portion of Lots 26 and
  27, ROSEWOOD Subdivision, said parcel being more particularly described as
  follows:

  BEGINNING at a point on the North line of Lot 27 which bears North 89 degrees
  02'37" West a distance of 276.04 feet from a 1/2-inch iron rod at the
  Northeast corner of said Lot 27; running thence South 0 degrees 04'27" East a
  distance of 186.60 feet, parallel with the East line of Lot 27; thence South
  89 degrees 55'33" West a distance of 89.39 feet; thence South 0 degrees 04'27"
  East a distance of 412.47 feet; thence South 89 degrees 55'33" West a distance
  of 292.08 feet to a point that is 40.00 feet Easterly from (when measured at
  right angles) the West line of Section 18, as measured from the West quarter
  corner and the Northwest corner of Section 18; thence North 0 degrees 03'38"
  West, parallel with the West line of said Section 18, a distance of 605.93
  feet to the North line of Lot 26, ROSEWOOD; thence South 89 degrees 02'37"
  East, along the North line of Lots 26 and 27, a distance of 381.39 feet to the
  point of beginning.

                                                              Exhibit A - Page 2
<PAGE>
 
9805 SW Boeckman Road
Wilsonville, Oregon

     A tract of land in the South half of the Southwest quarter of Section 11,
     Township 3 South, Range 1 West, of the Willamette Meridian, in the City of
     Wilsonville, County of Clackamas and State of Oregon, said tract being a
     portion of those tracts of land conveyed to Edward W. Boeckman as recorded
     in Book 106, Page 316, Deed Records, and Ernst A. Boeckman, Jr. as recorded
     in Book 106, Page 317, Deed Records; said tract is described as follows:

     BEGINNING at a 5/8 inch iron rod on the North line of that 25.00 foot wide
     tract of land conveyed to the City of Wilsonville, for road purposes, as
     recorded as Recorder's Fee No. 72-33376, Film Records, said beginning point
     bears South 89(degrees)34'52" West 1330.42 feet and North 00(degrees)27'08"
     West 25.00 feet from the quarter corner on the South line of Section 11,
     said beginning point also being on the Easterly line of that Transmission
     Line Easement conveyed to the United States of America as recorded in Book
     522, Page 49 and in Book 515, Page 231, Deed Records; thence North
     00(degrees)27'08" West 1292.97 feet along the East line of said easement to
     a 5/8 inch iron rod on the South line of that tract of land conveyed to
     George F. Boeckman as recorded in Book 105, Page 454, Deed Records; thence
     North 89(degrees)28'53" East 556.25 feet along the said South line of
     George Boeckman tract to a 5/8 inch iron rod on the Westerly line of the
     Oregon Electric Railway Company right of way; thence following the Westerly
     line thereof, South 32(degrees)07'22" East 337.01 feet to a 5/8 inch iron
     rod at a point of curve; thence on a 2639.93 foot radius curve to the right
     1083.79 feet along the arc (the long chord bears South 21(degrees)11'24"
     East 1077.23 feet) to a 5/8 inch iron rod on the North line of the
     aforesaid City of Wilsonville tract; thence South 89(degrees)34'52" West
     1114.63 feet to the point of beginning.

     EXCEPTING THEREFROM the Southerly 18 feet conveyed to the City of 
     Wilsonville for roadway purposes by instrument recorded February 27, 1979 
     as Fee No. 79-8026, Clackamas County Records.

     ALSO EXCEPTING the Westerly 31 feet dedicated to the City of Wilsonville 
     for road purposes, said dedication parcel being more particularly described
     as follows:

     A tract of land in the South half of the Southwest quarter of Section 11,
     Township 3 South, Range 1 West, of the Willamette Meridian, in the County 
     of Clackamas and State of Oregon, said tract being a portion of those 
     tracts of land conveyed to Edward W. Boeckman as recorded in Book 106, Page
     316, Deed Records and Ernst A. Boeckman, Jr., as recorded in Book 106, Page
     317, Deed Records; said tract is described as follows:

     Beginning at a 5/8 inch iron rod on the North line of that 25.00 foot wide
     tract of land conveyed to the City of Wilsonville, for road purposes, as
     recorded as Recorder's Fee No.72-33376, Film Records, said beginning point
     bears South 89(degrees)34'52" West 1330.42 feet and North 00(degrees)27'08"
     West 25.00 feet from the quarter corner on the South line of Section 11,
     said beginning point also being on the Easterly line of that Transmission
     Line Easement conveyed to the United States of America as recorded in Book
     522, Page 49, and in Book 515, Page 231, Deed Records; thence North 
     00(degrees)27'08" West 1292.97 feet along the East line of said easement to
     a 5/8 inch iron rod on the South line of that tract of land conveyed to
     George F. Boeckman as recorded in Book 105, Page 454, Deed Records; thence
     North 89(degrees)28'53" East 31.00 feet along the said South line of the
     George Boeckman tract; thence South 00(degrees)27'08" East 1293.02 feet to
     the North line of the aforesaid City of Wilsonville tract; thence South 
     89(degrees)34'52" West 31.00 feet to the point of beginning.

                                                              Exhibit A - Page 3

<PAGE>
 
255 LANCASTER DRIVE NE
SALEM, OREGON

Parcel 2 of PARTITION PLAT NO. 93-106, recorded November 3, 1993 in Reel 1117 at
Page 580, Marion County, Oregon.


275 LANCASTER DRIVE NE   
SALEM, OREGON

Parcel 1 of PARTITION PLAT NO. 93-106, recorded November 3, 1993 in Reel 1117 at
Page 580, Marion County, Oregon.

                                                              EXHIBIT A - PAGE 4
<PAGE>
 
                                   EXHIBIT B

          LIST OF SERVICE CONTRACTS (IF ANY ARE BINDING ON PURCHASER)
          -----------------------------------------------------------

                                     NONE

                                      B-1
<PAGE>
 
                                   EXHIBIT C

                               FORM OF THE LEASE
                               -----------------

                                      C-1
<PAGE>
 
                                   EXHIBIT D

                              ALLOCATION SCHEDULE
                              -------------------

                                      D-1
<PAGE>
 
                                   EXHIBIT E

                               EXPENSE SCHEDULE
                               ---------------- 

                                      D-2