FALCON R E I M ,L P

1 REAL ESTATE INVESTMENT management , REALESTATEINVESTMENTMANAGEMENT,LTD. York Chicago Dallas San FranciscoREAL ESTATE INVESTMENT management , Sampling ofProperty Acquisitions made byFalcon Real Estate Investment management , : FALCON Real Estate Investment management , Ltd.. 2 Northeast.. 4 Connecticut, Delaware, Maine, Maryland, Massachusetts,New Hampshire, New Jersey, New York State, Pennsylvania,Rhode Island, Vermont, Washington .. 18 Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi,North Carolina, South Carolina, Virginia, West VirginiaMidwest.. 28 Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri,Nebraska, Ohio, Tennessee, WisconsinSouth Central .. 38 Colorado, Kansas, New Mexico, Oklahoma, TexasPacific Southwest.. 48 Arizona, Southern California, Nevada, UtahPacific Northwest.. 60 Northern California, Idaho, Oregon, WashingtonContentsFalcon Real Estate Investment management , Ltd.

2 Was formed in 1991to provide advice to individual and institutional investors in realestate. From the beginning of the company, FALCON has focused onproviding a complete and comprehensive service particularly to overseasinvestors in real estate. Many of the services provided to our clientsare similar to those provided by international private banks. The real estateprofessionals on FALCON s staff are selected because they understand theneed to provide expert real estate advice, while at the same time providinga very high level of service. This fundamental approach has successfullyattracted individual and institutional investors from around the world,enabling FALCON to carry out transactions on behalf of our clients totaling $7 billion since the formation of the its inception in 1991, the company has expanded to have fourprimary offices across the United States, from New York to Chicago toCalifornia staffed by a team of senior real estate professionals.

3 From these offices, FALCON offers investors professional advice with respect topurchases, financings and sales. In addition, FALCON has a nationwide assetmanagement service that provides supervisory management for all types of real estate. 2 For more information on FALCON s assets under management , portfolio, and transactions, go to are especially proud of the investment results that we have achievedfor our clients since our inception. Taking into consideration all of theproperties that we have purchased and for which we have provided assetmanagement, FALCON has earned a reputation for providing world classadvisory services in real estate. For more information on our firm andupdates on all of the other activities in which the company is engaged,please visit our website at have prepared this booklet to give potential investors an opportunityto review many of the properties that we have bought and managed over theyears.

4 On the following pages are photographs of many of the propertiesand some brief factual information on them that may be helpful inillustrating how our results were E. HallengrenChairmanJack D. Miller President3 FALCON propertyNortheastNortheastBritish Aerospace SystemsReston, Virginia .. 1377 Hudson Development ProjectJersey City, New Jersey.. 14 Novo NordiskPrinceton, New Jersey .. 15 Park Crest Development ProjectTysons Corner, Virginia .. 161201 and 1225 New York AvenueWashington, .. 6 Philips ElectronicsSomerset, New Jersey .. 8 Cox Communications BuildingHerndon, Virginia .. 9 Crescent at CarlyleAlexandria, Virginia .. 10AT&TMorristown, New Jersey .. 12 Washington, , and 1225 New York AvenueWashington, Office1201 and 1225 New York AvenueWashington, OfficeNortheast Highlighted Property6 New York Avenue combines two properties thatwere previously under separate ownership 1201 and 1225 New York Avenue.

5 1201 wasthe original building and 1225 was built as an additionto it, but they ended up under separate ownership andmanagement. FALCON negotiated the purchase of 1201 in 1999 and 1225 in 2001, combining the managementand significantly improving the operational efficiencyof both. The combined building, located in the rapidlygrowing East side office market of Washington, ,contains over 400,000 square feet of net rentable building has twelve floors, plus a penthouse level,and three floors of parking A. Hill of FALCON Real Estate, was optimisticconcerning the purchase of this property. By combiningthese two entities, prospective tenants will only have towork with one leasing agent and there will be obvioussavings in operating expenses. In addition, we will beINVESTMENTSUMMARY Two attractive, adjoining multi-tenantoffice buildings containing over 400,000 sq. ft. Located in rapidly growing East sideoffice market of Washington, DCPURCHASERATIONALE Adjoining buildings, but under separateownership and management 1201 purchased in 1999 and 1225 in2001, and two buildings then combined,significantly improving operationalefficiency of both Physical renovation and complete re-leasing of both buildings required Excellent capital appreciation prospectsEXITSTRATEGY Consider sale after buildings were combined and renovation and re-leasingprograms completedTRANSACTIONSTATISTICS Purchase Date 1999 and 2001 Combined Purchase Price $114 MM Combined Equity $ MM Date of Sale Sept.

6 2006 Sale Price $215 MM IRR 12%Highlighted Property Northeast7able to carry out a comprehensive renovation programfor the entire property. Shortly after the two buildingshad been purchased and combined, it was necessary to carry out a major re-tenanting of the property, andleases were quickly written with tenants such as Department of Homeland Security, the FederalElections Commission and the Office of GovernmentEthics., bringing the combined property to 100% total purchase price for 1201 and 1225 NewYork Avenue was $114 million. There was $50 millionof equity involved in these purchases, including fundsrequired for renovation and leasing expenses. The combined building was sold in September 2006 for$215 million, equal to an Internal Rate of Return of 12%.8 NortheastPhilips Electronics Somerset, New Jersey OfficeINVESTMENTSUMMARY An attractive, modern four-storyoffice building of 200,000 sq.

7 Ft. on 12 acres of land 100% leased to a subsidiary ofRoyal Philips Electronics ,to serve as the North Americanheadquarters of Philips Lighting Located in a major business park,with convenient access to New York CityPURCHASERATIONALE Prestigious headquarters facilitywith 20-years remaining on lease to Philips Lease is on an absolute,triple-net basis Rent increases by specifiedamounts every five years Property acquired primarily for its long-term stable cash flow andits strong credit tenantEXITSTRATEGY Hold and sell based on increasedrental in Year 6 TRANSACTIONSTATISTICS Purchase Date Oct. 21, 2001 Purchase Price $ MM Initial Equity $15 MM Date of Sale Sept. 1, 2005 Sale Price $ MM IRR Communications Bldg. Herndon, Virginia OfficeNortheast9 INVESTMENTSUMMARY Two-story office building situatedon seven-acre site 94,170 sq. ft. 100% leased to Cox Communi-cations, which is rated investmentgrade (BBB)

8 Located in Herndon, Virginia,immediately adjacent to DullesInternational AirportPURCHASERATIONALE Building was under constructionat time of purchase, providingattractive purchase price Leased to Cox on a 15-year,absolute, triple-net lease Rent increases by 14% at beginning of year 6 EXITSTRATEGY Hold for five years and sell with10-years still remaining on leaseTRANSACTIONSTATISTICS Purchase Date June 28, 2002 Purchase Price $ MM Initial Equity $7 MM Date of Sale August 29, 2007 Sale Price $ MM IRR at Carlyle Alexandria, Virginia OfficeINVESTMENTSUMMARY Two attractive office buildings situated at the entrance to the CarlyleDevelopment in Alexandria, Virginia Carlyle Development is the new homefor the 2 million square foot campusof the US Patent & Trademark OfficePURCHASERATIONALE 1940 Duke Street was purchased inJanuary 2003. This is a single tenantbuilding on a long-term lease to one of the leading patent law firms in the US.

9 1940 Duke Street was purchased forhigh yield and security of income 3% rental increases will resultin increased income annually. 2000 Duke Street was purchased all-cash in March 2004. This buildingwas being vacated by Time-Life and the entire building would have to be re-leased 2000 Duke Street was purchased for appreciation possibilities upon re-leasing Combined buildings provided both secure income and excellentappreciation possibilitiesEXITSTRATEGY Sale of combined buildings to be considered after 2000 Duke Street had been completely re-leasedTRANSACTIONSTATISTICS Purchase Date 2003 and 2004 Combined Purchase Price $121 MM Combined Equity $73 MM Date of Sale June 2007 Sale Price $217 MM IRR Duke Street, left2000 Duke St, right12 Northeast* based on FALCON estimateAT&T Morristown, New Jersey OfficeINVESTMENTSUMMARY Two connected Class A officebuildings 385,274 sq.

10 Ft. 100% leased to AT&T Research Labs Located in Rockefeller Group sPark Place campus, and formerlythe headquarters of ExxonCorporationPURCHASERATIONALE Prestigious headquarters facilitywith 10-years remaining on lease to AT&T AT&T s credit one notch belowinvestment grade, providing somewhat lower purchase price andhigher yield for investor Priced well below replacement costEXITSTRATEGY Hold for five years until rentincreases in Year 6. Sale will benefit from AT&T s credit ratingbeing restored to investment grade Sale to be based on increased netoperating incomeTRANSACTIONSTATISTICS Purchase Date Oct, 5, 2004 Purchase Price $77 MM Initial Equity $ MM Current Estimated Value $86 MM*British Aerospace Systems Reston, Virginia OfficeNortheast* based on FALCON estimate13 INVESTMENTSUMMARY Newly constructed Class A officebuilding 133,800 sq. ft. 100% leased to BAE Systems ofNorth America, a wholly ownedsubsidiary of BAE Systems, PLC Located in master-planned community of Reston, Virginia,near Dulles International AirportPURCHASERATIONALE New building, with excellent tenant in a desirable market 100% leased space provides excellent cash flow for life of lease Lease provides annual 21/2% rentalincreases that support increasedvaluation for the property Specifically designed for BAE with upgraded security systemEXITSTRATEGY Hold for original ten-year term of the lease to realize growingincome stream and increased value of property Sale would occur following re-leasing of propertyTRANSACTIONSTATISTICS Purchase Date Sept.