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| Delaware                                                              | 20-5398955                       |
|-----------------------------------------------------------------------|----------------------------------|
| (State or other jurisdictionof incorporation or organization)         | (IRS EmployerIdentification No.) |
|                                                                  |                             |
| 761 Terminal Street, Building 1, Second Floor,Los Angeles, California | 90021                            |
| (Address of principal executive offices)                              | (Zip Code)                       |

| Title of each class  |   |  Name of each exchange onwhich registered  |
|---------------------------|--------|------------------------------------------------------|
| *                         |   | *                                                    |

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|  ItemNo. |                                                                                                                                                                                                                                                                                    | Form 10-KReportPage |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
|          | PART I                                                                                                                                                                                                                                                                                  |                |
|          |                                                                                                                                                                                                                                                                                    |                |
| 1.            | Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  | 3                   |
| 1A.           | Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    | 12                  |
| 1B.           | Unresolved Staff Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   | 26                  |
| 2.            | Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  | 26                  |
| 3.            | Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         | 29                  |
| 4.            | [Removed and Reserved] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                | 29                  |
|          |                                                                                                                                                                                                                                                                                    |                |
|          | PART II                                                                                                                                                                                                                                                                                 |                |
|          |                                                                                                                                                                                                                                                                                    |                |
| 5.            | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                              | 30                  |
| 6.            | Selected Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  | 33                  |
| 7.            | Management’s Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                          | 35                  |
| 7A.           | Quantitative and Qualitative Disclosures About Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                          | 58                  |
| 8.            | Financial Statements and Supplementary Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                               | 59                  |
| 9.            | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                      | 59                  |
| 9A.           | Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             | 59                  |
| 9B.           | Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       | 60                  |
|          |                                                                                                                                                                                                                                                                                    |                |
|          | PART III                                                                                                                                                                                                                                                                                |                |
|          |                                                                                                                                                                                                                                                                                    |                |
| 10.           | Directors, Executive Officers and Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                      | 61                  |
| 11.           | Executive Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              | 65                  |
| 12.           | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                            | 77                  |
| 13.           | Certain Relationships and Related Transactions, and Director Independence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                      | 78                  |
| 14.           | Principal Accountant Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          | 79                  |
|          |                                                                                                                                                                                                                                                                                    |                |
|          | PART IV                                                                                                                                                                                                                                                                                 |                |
|          |                                                                                                                                                                                                                                                                                    |                |
| 15.           | Exhibits and Financial Statement Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          | 80                  |

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|   | • | our ability to emerge from bankruptcy with a plan of reorganization that is acceptable to the bankruptcy court, our creditors, equity holders, who may receive no value for their shares, and other parties in interest; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our ability to raise additional cash to provide the company with sufficient liquidity to continue as a going concern; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------|

|   | • | our ability to extend our debt maturities and lower our interest rates; |
|--------|---------|-------------------------------------------------------------------------|

|   | • | our business and investment strategy; |
|--------|---------|---------------------------------------|

|   | • | our projected results of operations; |
|--------|---------|--------------------------------------|

|   | • | our proposed development and redevelopment of our projects and our uses of projects after such development or redevelopment; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------|

|   | • | our ability to obtain land use entitlements; |
|--------|---------|----------------------------------------------|

|   | • | our ability to maintain existing relationships with lenders and obtain future financing arrangements; |
|--------|---------|-------------------------------------------------------------------------------------------------------|

|   | • | our understanding of our competition and our ability to compete effectively; |
|--------|---------|------------------------------------------------------------------------------|

|   | • | market and industry trends in the United States; |
|--------|---------|--------------------------------------------------|

|   | • | projected capital and operating expenditures (including projected redevelopment costs); |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | • | state of the real estate industry, particularly with respect to commercial, residential and mixed-use projects; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------|

|   | • | availability and creditworthiness of current and prospective tenants; |
|--------|---------|-----------------------------------------------------------------------|

|   | • | interest rates; and |
|--------|---------|---------------------|

|   | • | lease rates and terms. |
|--------|---------|------------------------|

|   | • | confirmation and effectiveness of our proposed plan of reorganization; |
|--------|---------|------------------------------------------------------------------------|

|   | • | the fact that our common stock is not listed on any national securities exchange; |
|--------|---------|-----------------------------------------------------------------------------------|

|   | • | the fact that we are no longer required, and do not intend, to file reports with the Securities and Exchange Commission effective with fiscal year 2010;  |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the factors referenced in this report, including those set forth under the sections captioned “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | availability, terms and deployment of capital; |
|--------|---------|------------------------------------------------|

|   | • | lack of debt or equity financing, the possible acceleration of defaulted debt or that the acceleration of defaulted debt may not be stayed as a result of our Chapter 11 bankruptcy filings, and general volatility of the capital markets; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | changes in our business and investment strategy; |
|--------|---------|--------------------------------------------------|

|   | • | availability of qualified personnel; |
|--------|---------|--------------------------------------|

|   | • | perception of the commercial and residential subsegments of the real estate industry; |
|--------|---------|---------------------------------------------------------------------------------------|

|   | • | changes in supply and demand dynamics within the commercial and residential subsegments of the real estate industry; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------|

|   | • | availability of purchasers of our projects; |
|--------|---------|---------------------------------------------|

|   | • | change in costs associated with development or redevelopment and repositioning of projects; |
|--------|---------|---------------------------------------------------------------------------------------------|

|   | • | changes in interest rates; |
|--------|---------|----------------------------|

|   | • | changes in applicable laws and regulations (including land use entitlement processes); |
|--------|---------|----------------------------------------------------------------------------------------|

|   | • | changes in political climates that may affect our proposed development and redevelopment projects; |
|--------|---------|----------------------------------------------------------------------------------------------------|

|   | • | state of the general economy and the greater Los Angeles economy in which our projects are located; |
|--------|---------|----------------------------------------------------------------------------------------------------------|

|   | • | a taking of any of our rental properties or development projects by eminent domain; and |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | • | the degree and nature of our competition. |
|--------|---------|-------------------------------------------|

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| ·   | We have classified approximately $195.2 million of notes payable secured by real estate as liabilities subject to compromise on our consolidated balance sheet. For accounting purposes, we are accruing and deferring interest on these notes at the default rate claimed by lenders, even though we may dispute whether default interest may be charged and/or the amount of default interest. Recording default interest has increased our annual interest obligation by approximately $7.9 million. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | While in bankruptcy, we are incurring bankruptcy related costs of approximately $5.3 million annually. |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | These increases are partially offset by operational improvements of approximately $2.5 million annually. |
|--------------------|----------------------------------------------------------------------------------------------------------|

|   | • |   |  our ability to generate and maintain adequate cash; |
|--------|---------|--------|-----------------------------------------------------------|

|               | •  |   | the cost, duration and outcome of the reorganization process in the Chapter 11 proceedings; and |
|--------------------|---------------|--------|-------------------------------------------------------------------------------------------------|
|     | •       |   | our ability to retain key employees.                                                       |   |

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| •   | making it very difficult for us to refinance our maturing indebtedness or to obtain financing to fund our planned development and redevelopment; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | leading us to suspend substantially all of our development projects other than our 705 West Ninth Street project and therefore expense previously capitalized carrying costs; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | increasing our projected development costs and therefore the amount of equity we are required to contribute to our projects; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------|

| •   | moving sales and leasing revenue on our properties from earlier periods to later periods,  thereby delaying the reduction of associated negative cash flows and as a result reducing our liquidity more than anticipated; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | leading us to seek to sell several of our assets at a time when the market is experiencing significant negative impacts; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------|

| •   | leading us to seek to enter into joint venture agreements with respect to certain of our more capital intensive projects; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------|

| •   | leading us to seek potentially dilutive debt or equity-linked capital or to issue additional equity at unattractive prices or in exchange for outstanding debt at dilutive exchange rates; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | leading us to refocus certain previously anticipated longer-term development projects to produce more near-term income through leasing the project and thereby reducing capital outflows through the redevelopment process and increasing near-term cash flow; and |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | leading us to reduce our employee base. |
|---------------------|-----------------------------------------|

| ·   | In January 2009, we obtained $42.0 million in funds from our $84.0 million construction loan at our 705 W Ninth Street project. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | We completed construction on the residential portion of the Union Lofts project and began leasing the property in March 2008.  We are currently 89.1% leased as of June 18, 2010. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In August 2009, we extended our lease with American Apparel for 10 years (with a right by the tenant to terminate after 5 years) and increased its annual rents to $3.3 million with annual rent increases thereafter. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In October 2009, we substantially completed construction on our 214-unit luxury residential tower at 705 W. Ninth Street. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | On April 30, 2009, we successfully completed the sale of our rental project at 500 Mateo Street for approximately $1.9 million. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | On July 13, 2009, we successfully completed the sale of our development project at 146 E Front Street for approximately $1.1 million. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On September 18, 2009, we successfully completed the sale of our development project at Camfield Retail Center for approximately $5.0 million. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | We have incurred and will continue to incur significant costs associated with the reorganization.  The amount of these costs, which are being expensed as incurred, are expected to significantly impact our results of operations. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We may have difficulty continuing to obtain and maintain contracts necessary to continue our operations and at affordable rates with competitive terms. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We may have difficulty maintaining existing and building new tenant relationships or pursuing our planned development projects. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | Transactions outside the ordinary course of business will be subject to the prior approval of the court, which may limit our ability to respond timely to certain events or take advantage of certain opportunities. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We may not be able to obtain court approval or such approval may be delayed with respect to motions made in the reorganization cases. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We may be unable to retain and motivate key executives and associates through the process of reorganization, and we may have difficulty attracting new employees. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We may be unable to maintain or obtain sufficient financing sources to fund the reorganization plan and meet future obligations. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ·   | The value of our common stock could be reduced to zero as result of the bankruptcy filing. |
|--------------------|--------------------------------------------------------------------------------------------|

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| ·   | We may be unable to develop, prosecute, confirm and consummate a plan of reorganization that is acceptable to the bankruptcy court and our creditors, equity holders and other parties in interest. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | There can be no assurance that the Creditors’ Committee will support the Debtors’ positions or ultimate plan of reorganization for each entity, once proposed.  Disagreements between the Debtors and the Creditors’ Committee could protract the Chapter 11 proceedings, negatively impact the Debtors’ ability to operate and delay the Debtors’ emergence from the Chapter 11 proceedings. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We may encounter third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for us to propose and confirm a plan of reorganization, to obtain relief from the automatic stay in bankruptcy and to seek foreclosure or other remedy against our assets, to appoint a Chapter 11 trustee or to convert a case to a Chapter 7 case. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We may not be able to achieve confirmation of a plan of reorganization as to each Debtor.  While we believe that there is a strong likelihood of confirming a plan for most, if not all, Debtors, in the event one or more Debtors' cases are not confirmed, it may be necessary to re-evaluate the options available to a Debtor in light of its inability to confirm its proposed plan, which options would include without limitation, an alternative plan of reorganization, conversion of the case to a chapter 7 case or dismissal of the case. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Sell assets outside the ordinary course of business; |
|--------------------|------------------------------------------------------|

| ·   | Consolidate, merge, sell or otherwise dispose of all or substantially all of the assets of a particular Debtor; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | Grant liens; and |
|--------------------|------------------|

| ·   | Finance our operations, investments or other capital needs or to engage in other business activities that would be in our interest. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | our ability to generate and maintain adequate cash; |
|--------------------|-----------------------------------------------------|

| ·   | the cost, duration and outcome of the reorganization process in the Chapter 11 proceeding; |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | our ability to retain key employees; |
|--------------------|--------------------------------------|

| ·   | our successful implementation of the reorganization plan and the transactions contemplated thereby; and |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | maintaining the support of key vendors and customers. |
|--------------------|-------------------------------------------------------|

| ·   | We have classified approximately $195.2 million of notes payable secured by real estate as liabilities subject to compromise on our consolidated balance sheet. For accounting purposes, we are accruing and deferring interest on these notes at the default rate claimed by lenders, even though we may dispute whether default interest may be charged and/or the amount of default interest. Recording default interest has increased our annual interest obligation by approximately $7.9 million. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | While in bankruptcy, we are incurring bankruptcy related costs of approximately $5.3 million annually. |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | These increases are partially offset by operational improvements of approximately $2.5 million annually. |
|--------------------|----------------------------------------------------------------------------------------------------------|

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|   | • |   |  our ability to generate and maintain adequate cash; |
|--------|---------|--------|-----------------------------------------------------------|

|               | •  |   | the cost, duration and outcome of the reorganization process in the Chapter 11 proceedings; and |
|--------------------|---------------|--------|-------------------------------------------------------------------------------------------------|
|     | •       |   | our ability to retain key employees.                                                       |   |

| •   | we may be required to use a substantial portion of our cash flow from operations to pay principal and interest, which reduces the amount available for development; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | we may be at a competitive disadvantage compared to our competitors that have less debt; |
|---------------------|------------------------------------------------------------------------------------------|

| •   | our cash flow may be insufficient to meet our required principal and interest payments; |
|---------------------|-----------------------------------------------------------------------------------------|

| •   | we may be unable to borrow additional funds as needed or on favorable terms; |
|---------------------|------------------------------------------------------------------------------|

| •   | we may be forced to dispose of one or more of our projects, possibly on less than optimal terms; |
|---------------------|--------------------------------------------------------------------------------------------------|

| •   | we may experience increased vulnerability to economic and industry downturns, reducing our ability to respond to changing business and economic conditions; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | we may be restricted in our business activities and operations; |
|---------------------|-----------------------------------------------------------------|

| •   | we may violate restrictive covenants in our loan documents or otherwise default on our obligations, which would entitle the lenders or mortgagees to accelerate our debt obligations, collect additional fees and interest and foreclose on our projects that secure their loans and receive an assignment of lease payments; and |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | our default under any mortgage loan or other debt with cross-default or cross-collateralization provisions, if we enter into such arrangements, could result in default on other indebtedness or result in the foreclosures of other projects we own. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| •   | weak credit markets, which challenge our ability to obtain financing for our projects on favorable terms, or at all; |
|---------------------|----------------------------------------------------------------------------------------------------------------------|

| •   | cyclical overbuilding; |
|---------------------|------------------------|

| •   | cost overruns, including increases in the cost of materials because of increased global demand (particularly in the price of steel, lumber, drywall, copper and concrete, which are significant components of construction costs); |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | difficulties in obtaining or failures to obtain land use entitlements, occupancy and other government permits and authorizations; |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| •   | delays because of a number of factors, including unforeseen circumstances; |
|---------------------|----------------------------------------------------------------------------|

| •   | changes in political views toward the proposed development, redevelopment or use; |
|---------------------|-----------------------------------------------------------------------------------|

| •   | governmental restrictions on the nature or size of a project; |
|---------------------|---------------------------------------------------------------|

| •   | strikes, labor disputes or supply disruptions; |
|---------------------|------------------------------------------------|

| •   | condemnation and taking of any of our projects by the government under eminent domain; |
|---------------------|----------------------------------------------------------------------------------------|

| •   | shortages of qualified trade workers and building materials; |
|---------------------|--------------------------------------------------------------|

| •   | development costs for projects not pursued to completion; |
|---------------------|-----------------------------------------------------------|

| •   | earthquakes, floods, mudslides, fires, bad weather and other acts of God; |
|---------------------|---------------------------------------------------------------------------|

| •   | design and construction defects and unforeseen or underestimated environmental and engineering problems; |
|---------------------|----------------------------------------------------------------------------------------------------------|

| •   | contractor and subcontractor disputes and mechanics’ liens; and |
|---------------------|-----------------------------------------------------------------------|

| •   | lack of income until leasing or sale. |
|---------------------|---------------------------------------|

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| •   | vacancies on our Board of Directors may only be filled by the remaining directors; |
|---------------------|------------------------------------------------------------------------------------|

| •   | only the Board of Directors can change the number of directors; |
|---------------------|-----------------------------------------------------------------|

| •   | our directors may adopt, amend or repeal any of our bylaws; |
|---------------------|-------------------------------------------------------------|

| •   | the affirmative vote of holders of a majority of the total votes eligible to be cast in the election of directors is required for stockholders to adopt, amend or repeal any of our bylaws; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | there is no cumulative voting for directors; |
|---------------------|----------------------------------------------|

| •   | our stockholders are not permitted to act by written consent; and |
|---------------------|-------------------------------------------------------------------|

| •   | stockholders must comply with advance notice procedures to make proposals to be brought before stockholder meetings, including nominations of persons for election to the Board of Directors. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| •   | our knowledge of the contamination; |
|---------------------|-------------------------------------|

| •   | the timing of the contamination; |
|---------------------|----------------------------------|

| •   | the cause of the contamination; or |
|---------------------|------------------------------------|

| •   | the party responsible for the contamination of the property. |
|---------------------|--------------------------------------------------------------|

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| •   | the status of the Bankruptcy Cases and our reorganization plan filed pursuant to Chapter 11 of the Bankruptcy Code; |
|---------------------|---------------------------------------------------------------------------------------------------------------------|

| •   | actual or anticipated variations in our quarterly operating results or payment of dividends, or the lack thereof; |
|---------------------|-------------------------------------------------------------------------------------------------------------------|

| •   | changes in estimates of our earnings; |
|---------------------|---------------------------------------|

| •   | general market and economic conditions; |
|---------------------|-----------------------------------------|

| •   | redemptions of common units of our operating partnership; |
|---------------------|-----------------------------------------------------------|

| •   | adverse market reaction to any increased indebtedness that we may incur or any deterioration in our ability to obtain financing at all or on attractive terms; |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | future issuances and/or cancellations of our common or preferred stock; |
|---------------------|-------------------------------------------------------------------------|

| •   | publication of research reports about us or the real estate industry; |
|---------------------|-----------------------------------------------------------------------|

| •   | additions or departures of key management personnel; or |
|---------------------|---------------------------------------------------------|

| •   | changes in market valuations of similar companies. |
|---------------------|----------------------------------------------------|

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| Item 2. | Properties |
|---------|------------|

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|  Project                                     |  Current Use                               |   | # of Projects |   |   | Net Rentable Square Feet |      |      | %Leased |   |    | TotalAnnualizedRents (1) |   |   | AnnualizedRent$/RSF (2) |       |
|---------------------------------------------------|-------------------------------------------------|--------|---------------|--------|--------|--------------------------|-----------|-----------|---------|--------|---------|--------------------------|--------|--------|-------------------------|------------|
|                                              |                                            |   |          |   |   |                     |      |      |    |   |    |                     |   |   |                    |       |
| Commercial Projects                               |                                            |   |          |   |   |                     |      |      |    |   |    |                     |   |   |                    |       |
| 788 S Alameda (3)                                 | Small-tenant produce industry space with cooler |   |          | 1      |   |                     |      | 33,984    |    |   |    | 59.4                     | %      |   | $                       | 823,710    |   |   | $ | 40.82 |   |
| Washington Cold Storage (3)                       | Single-tenant cold storage facility             |   |          | 1      |   |                     |      | 59,000    |    |   |    | 100.0                    | %      |   |                    | 1,200,000  |   |   |   | 20.34 |   |
| Meruelo Wall Street (3)                           | Wholesale and office space                      |   |          | 1      |   |                     |      | 98,245    |    |   |    | 88.6                     | %      |   |                    | 1,747,242  |   |   |   | 20.07 |   |
| Washington at Central (6)                         | Small-tenant retail space                       |   |          | 1      |   |                     |      | 5,479     |    |   |    | 78.1                     | %      |   |                    | 52,284     |   |   |   | 12.22 |   |
| Southern California Institute of Architects (3)   | Architectural school                            |   |          | 1      |   |                     |      | 81,741    |    |   |    | 100.0                    | %      |   |                    | 1,212,000  |   |   |   | 14.83 |   |
| Washington Produce Market (3)                     | Small-tenant produce industry space with cooler |   |          | 1      |   |                     |      | 31,876    |    |   |    | 91.1                     | %      |   |                    | 611,183    |   |   |   | 21.04 |   |
| 905 E 8th Street (sold parking lot + 3,800 sq ft) | Small-tenant industrial space                   |   |          | 1      |   |                     |      | 28,200    |    |   |    | 27.0                     | %      |   |                    | 78,000     |   |   |   | 10.26 |   |
| 3rd and Omar Street                               | Small-tenant industrial and distribution space  |   |          | 1      |   |                     |      | 23,297    |    |   |    | 9.7                      | %      |   |                    | 32,760     |   |   |   | 14.43 |   |
| 1919 Vineburn Avenue (3)                          | Single-tenant industrial and distribution space |   |          | 1      |   |                     |      | 122,345   |    |   |    | 100.0                    | %      |   |                    | 506,520    |   |   |   | 4.14 |   |
| 1500 Griffith Avenue                              | Distribution space                              |   |          | 1      |   |                     |      | 50,058    |    |   |    | 100.0                    | %      |   |                    | 467,192    |   |   |   | 9.33 |   |
| 4th Street Center                                 | Single-tenant industrial and distribution space |   |          | 1      |   |                     |      | 14,472    |    |   |    | 53.2                     | %      |   |                    | 60,000     |   |   |   | 7.80 |   |
| Seventh Street Produce Market (3)                 | Wholesale produce distribution space            |   |          | 1      |   |                     |      | 122,120   |    |   |    | 65.3                     | %      |   |                    | 3,784,492  |   |   |   | 47.49 |   |
| Alameda Square (3)                                | Industrial, distribution and office space       |   |          | 1      |   |                     |      | 1,463,696 |    |   |    | 60.9                     | %      |   |                    | 4,001,885  |   |   |   | 4.49 |   |
| 620 Gladys Avenue                                 | Multi-tenant wholesale distribution space       |   |          | 1      |   |                     |      | 72,711    |    |   |    | 78.0                     | %      |   |                    | 372,027    |   |   |   | 6.56 |   |
| 1000 E Cesar Chavez                               | Single tenant industrial and distribution space |   |          | 1      |   |                     |      | 50,373    |    |   |    | 16.8                     | %      |   |                    | 58,200     |   |   |   | 6.86 |   |
| 306 North Avenue 21 (4)                           | Single tenant industrial and distribution space |   |          | 1      |   |                     |      | 80,712    |    |   |    | 26.5                     | %      |   |                    | 82,200     |   |   |   | 3.84 |   |
| Crown Commerce Center (3)                         | Multi-tenant industrial space                   |   |          | 1      |   |                     |      | 301,491   |    |   |    | 100.0                    | %      |   |                    | 1,660,845  |   |   |   | 5.51 |   |
| 420 Boyd Street                                   | Multi-tenant retail and office space            |   |          | 1      |   |                     |      | 47,806    |    |   |    | 57.8                     | %      |   |                    | 341,579    |   |   |   | 12.36 |   |
| 230 W Ave 26th                                    | Industrial and distribution space               |   |          | 1      |   |                     |      | 67,671    |    |   |    | 23.6                     | %      |   |                    | 123,145    |   |   |   | 7.72 |   |
| 5707 S Alameda                                    | Small-tenant industrial space                   |   |          | 1      |   |                     |      | 55,729    |    |   |    | 56.2                     | %      |   |                    | 94,342     |   |   |   | 3.01 |   |
| Santa Fe Plaza (3)                                | Small-tenant retail space                       |   |          | 1      |   |                     |      | 16,000    |    |   |    | 29.4                     | %      |   |                    | 112,800    |   |   |   | 23.99 |   |
| Barstow Produce Center                            | Small-tenant produce industry space with cooler |   |          | 1      |   |                     |      | 261,750   |    |   |    | 0.0                      | %      |   |                    | -          |   |   |   | - |   |
| 1211 E Washington Blvd                            | Manufacturing space                             |   |          | 1      |   |                     |      | 108,000   |    |   |    | 72.9                     | %      |   |                    | 463,860    |   |   |   | 5.89 |   |
|  Total Commercial Projects                   |                                            |   |          | 23     |   |                     |      | 3,196,756 |    |   |    | 62.2                     | %      |   |                    | 17,886,263 |   |   |   | 8.99 |   |
|                                              |                                            |   |          |   |   |                     |      |      |    |   |    |                     |   |   |                    |       |   |   |   |   |   |
| Residential Projects                              |                                            |   |          |   |   |                     |      |      |    |   |    |                     |   |   |                    |       |   |   |   |   |   |
| American Apartments (3)                           | Apartment building                              |   |          | 1      |   |                     |      | 13,550    |    |   |    | 79.3                     | %      |   |                    | 262,273    |   |   |   | 24.40 |   |
| Union Lofts (3)                                   | Apartment building                              |   |          | 1      |   |                     |      | 81,609    |    |   |    | 45.3                     | %      |   |                    | 1,230,190  |   |   |   | 33.25 |   |
| Southpark Tower - Phase 2 - J Restaurant          | Restaurant space                                |   | See Note (5)  |   |   |                     | 100.0     | %         |    |   | 300,000 |                     |   |   | 25.36                   |       |
| Center Village                                    | Industrial and cold storage                     |   |          | 1      |   |                     |      | 176,628   |    |   |    | 14.0                     | %      |   |                    | 343,200    |   |   |   | 13.90 |   |
| Pomona Park Village (2001-2021 Mission)           | Industrial building                             |   |          | 1      |   |                     |      | 242,042   |    |   |    | 0.0                      | %      |   |                    | -          |   |   |   | - |   |
|  Total Residential Projects                  |                                            |   |          | 4      |   |                     |      | 525,658   |    |   |    | 16.0                     | %      |   |                    | 2,135,662  |   |   |   | 25.34 |   |
|                                              |                                            |   |          |   |   |                     |      |      |    |   |    |                     |   |   |                    |       |   |   |   |   |   |
|  Total Rental Project Portfolio              |                                            |   | 27            |   |   |                     | 3,722,414 |      |    |   | 55.7    | %                        |   |   | 20,021,926              |       |   |   | 9.66 |   |

----

|  Project                         |   | # of Projects |   |   | Estimated Incidental Revenue per Year |    |
|---------------------------------------|--------|---------------|--------|--------|---------------------------------------|---------|
|                                  |   |          |   |   |                                  |    |
|                                  |   |          |   |   |                                  |    |
|  Commercial Projects             |   |          |   |   |                                  |    |
| 2131 Humboldt Street                  |   | See Note (1)  |   |   |                                  | 123,000 |   |
| Meruelo Baldwin Park                  |   |          | 1      |   |                                  |    | 59,400 |   |
| Ceres Street Produce Center           |   |          | 1      |   |                                  |    | - |   |
| Musica Latina Building                |   |          | 1      |   |                                  |    | - |   |
|   Total Commercial Projects |   |          | 3      |   |                                  |    | 182,400 |   |
|                                  |   |          |   |   |                                  |    |   |   |
| Residential Projects                  |   |          |   |   |                                  |    |   |   |
| Southpark Towers (2)                  |   |          | 1      |   |                                  |    | 402,000 |   |
| Ullman Tower One                      |   |          | 1      |   |                                  |    | 364,500 |   |
| Desmond Building                      |   |          | 1      |   |                                  |    | 201,235 |   |
| Sky Arc                               |   |          | 1      |   |                                  |    | 162,072 |   |
| Olive Street Towers                   |   |          | 1      |   |                                  |    | 144,000 |   |
| Pomona East                           |   |          | 1      |   |                                  |    | 102,000 |   |
| TransAmerica Lofts                    |   |          | 1      |   |                                  |    | 84,000 |   |
| Ullman Tower Two                      |   |          | 1      |   |                                  |    | 66,000 |   |
| 705 W Ninth Street                    |   |          | 1      |   |                                  |    | - |   |
| Meruelo Chinatown Tower               |   |          | 1      |   |                                  |    | - |   |
| Vignes Village                        |   |          | 1      |   |                                  |    | - |   |
| San Fernando Court                    |   |          | 1      |   |                                  |    | - |   |
| Citrus Gardens                        |   |          | 1      |   |                                  |    | - |   |
|                                  |   |          |   |   |                                  |    |   |   |
|  Total Residential Projects      |   |          | 13     |   |                                  |    | 1,525,807 |   |
|                                  |   |          |   |   |                                  |    |   |   |
|  Total Development Pipeline      |   |          | 16     |   |                                  |    | 1,708,207 |   |

----

| Tenant                                        |   | Number of Projects |   |   | Total Lease Square Feet (1) |   |      | Percentage of Our Portfolio's Total Rentable Square Feet (1) % |   |   | Annualized Base Rent (2) ($) |   |   | Percentage of Our Portfolio's Annualized Base Rent |      |   |   |   |
|-----------------------------------------------|--------|--------------------|--------|--------|-----------------------------|--------|-----------|----------------------------------------------------------------|--------|--------|-----------------------------------|--------|--------|----------------------------------------------------|-----------|--------|--------|--------|
| American Apparrel                             |   |               | 1      |   |                        |   | 788,273   |                                                           |   |   | 18.5                              | %      |   |                                               | 3,300,000 |   |   |   | 14.8 | % |   |   |   |
| Prestige Parking                              |   |               | 7      |   |                        |   | -         |                                                           |   |   | 0.0                               | %      |   |                                               | 1,374,000 |   |   |   | 6.2 | % |   |   | (4) |   |
| Southern California Institute of Architecture |   |               | 1      |   |                        |   | 81,741    |                                                           |   |   | 1.9                               | %      |   |                                               | 1,374,072 |   |   |   | 6.2 | % |   |   | (3) |   |
| Aztlan Cold Storage                           |   |               | 1      |   |                        |   | 59,000    |                                                           |   |   | 1.4                               | %      |   |                                               | 1,200,000 |   |   |   | 5.4 | % |   |   |   |   |
| Outdoor Recreation Group, The                 |   |               | 1      |   |                        |   | 122,345   |                                                           |   |   | 2.9                               | %      |   |                                               | 506,521   |   |   |   | 2.3 | % |   |   |   |   |
| M.X.F. Designs, Inc.                          |   |               | 1      |   |                        |   | 55,585    |                                                           |   |   | 1.3                               | %      |   |                                               | 394,800   |   |   |   | 1.8 | % |   |   |   |   |
| AJSE Inc / Santa Fe Finishing, Inc.           |   |               | 1      |   |                        |   | 87,404    |                                                           |   |   | 2.0                               | %      |   |                                               | 384,000   |   |   |   | 1.7 | % |   |   |   |   |
| Woodland Poultry Operations, Inc.             |   |               | 1      |   |                        |   | 24,694    |                                                           |   |   | 0.6                               | %      |   |                                               | 343,200   |   |   |   | 1.5 | % |   |   |   |   |
| J Lounge Restaurant                           |   |               | 1      |   |                        |   | 11,829    |                                                           |   |   | 0.3                               | %      |   |                                               | 300,000   |   |   |   | 1.3 | % |   |   |   |   |
| 26 International Inc.                         |   |               | 1      |   |                        |   | 30,058    |                                                           |   |   | 0.7                               | %      |   |                                               | 281,400   |   |   |   | 1.3 | % |   |   |   |   |
| TOTALS                                        |   |               |   |   |                        |   | 1,260,929 |                                                           |   |   | 29.5                              | %      |   | $                                                  | 9,457,993 |   |   |   | 42.5 | % |   |   |   |   |

| Year of Lease Termination |   | Number of Leases Expiring |   |   | Square Footage of Expiring Lease |   |      | Percentage of Total Rentable Square Feet(1) |   |   | Annualized Base Rent of Expiring Leases(2) |   |   | Percentage of Portfolio Annualized Base Rent (%) |       |
|---------------------------|--------|---------------------------|--------|--------|----------------------------------|--------|-----------|---------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------------------------------------|------------|
| Month to Month            |   |                      | 259    |   |                             |   | 594,923   |                                        |   |   | 13.9                                       | %      |   | $                                                | 11,590,505 |   |   |   | 52.1 | % |
| 2010                      |   |                      | 53     |   |                             |   | 358,129   |                                        |   |   | 8.4                                        | %      |   |                                             | 4,129,971  |   |   |   | 18.6 | % |
| 2011                      |   |                      | 6      |   |                             |   | 121,835   |                                        |   |   | 2.9                                        | %      |   |                                             | 873,840    |   |   |   | 3.9 | % |
| 2012                      |   |                      | 3      |   |                             |   | 161,039   |                                        |   |   | 3.8                                        | %      |   |                                             | 973,001    |   |   |   | 4.4 | % |
| 2013                      |   |                      | 2      |   |                             |   | 63,702    |                                        |   |   | 1.5                                        | %      |   |                                             | 1,312,800  |   |   |   | 5.9 | % |
| 2014                      |   |                      | 2      |   |                             |   | 790,664   |                                        |   |   | 18.5                                       | %      |   |                                             | 3,358,046  |   |   |   | 15.1 | % |
| Total/Weighted Average    |   |                      | 325    |   |                             |   | 2,090,292 |                                        |   |   | 49.0                                       | %      |   | $                                                | 22,238,163 |   |   |   | 100 | % |

----

|                             |   | High   |   |   | Low    |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|
| Quarter Ended March 31, 2008     |   | $      | 5.80   |   |   | $      | 2.31 |   |
| Quarter Ended June 30, 2008      |   |   | 3.28   |   |   |   | 1.60 |   |
| Quarter Ended September 30, 2008 |   |   | 2.62   |   |   |   | 0.85 |   |
| Quarter Ended December 31, 2008  |   |   | 1.30   |   |   |   | 0.33 |   |
| Quarter Ended March 31, 2009     |   |   | 1.24   |   |   |   | 0.03 |   |
| Quarter Ended June 30, 2009      |   |   | 0.47   |   |   |   | 0.03 |   |
| Quarter Ended September 30, 2009 |   |   | 0.57   |   |   |   | 0.24 |   |
| Quarter Ended December 31, 2009  |   |   | 0.58   |   |   |   | 0.03 |   |

----

----

|                                                         |               |         |         |         |         |         |         |         |         |         |         |         |         |
|--------------------------------------------------------------|--------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
|                                                         |   Jan-07 |  Mar-07 |  Jun-07 |  Sep-07 |  Dec-07 |  Mar-08 |  Jun-08 |  Sep-08 |  Dec-08 |  Mar-09 |  Jun-09 |  Sep-09 |  Dec-09 |
|                                                         |               |         |         |         |         |         |         |         |         |         |         |         |         |   |   |
|  Meruelo Maddux Properties                              |  100.00       |  82.55  | 76.98        |  55.75  |  37.74  |  23.96  |  20.57  |  11.51  |  11.70  |  0.69   |  3.11   |  3.96   |  0.26   |
|  NASDAQ Composite                                       |  100.00       |  100.39 |  108.15 |  110.52 |  108.51 |  92.81  |  93.66  |  83.67  |  64.13  |  62.16  |  74.64  |  86.43  |  92.63  |
|  Dow Jones US Real Estate Holding & Development TSM |  100.00       |  100.00 |  100.00 |  100.00 |  100.00 |  100.00 |  100.00 |  96.82  |  53.56  |  41.33  |  57.35  |  73.58  |  74.85  |

----

|                                                                            |   |                          |       |   |            |   |       |                                                     |   |   |                                                   |   |   |   |   |   |   |   |
|---------------------------------------------------------------------------------|--------|-------------------------------|------------|--------|-----------------|--------|------------|----------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                            |   | The Company                   |       |   | The Predecessor |   |
|                                                                            |   |                          |       |   |            |   |       |                                                     |   |   |                                                   |   |
|                                                                            |   |  Year ended December 31, |       |   |            |   |       |                                                     |   |   |  Year ended December 31,                          |   |
|                                                                            |   | 2009                          |       |   | 2008            |   |       |   Period from January 30, 2007 to December 31, 2007 |   |   |   Period from January 1, 2007 to January 29, 2007 |   |   | 2006   |   |   | 2005   |   |
| Revenue:                                                                        |   |                          |       |   |            |   |       |                                                     |   |   |                                                   |   |   |   |   |   |   |   |
| Rental income                                                                   |   | $                             | 23,311     |   |            | $      | 22,586     |                                                     |   | $      | 19,495                                                 |   |   | $      | 1,922  |   |   | $      | 22,327 |   |   | $ | 16,526 |   |
| Management fees                                                                 |   |                          | 41         |   |            |   | 285        |                                                     |   |   | 260                                                    |   |   |   | 12     |   |   |   | 285 |   |   |   | 602 |   |
| Interest income                                                                 |   |                          | 367        |   |            |   | 839        |                                                     |   |   | 2,823                                                  |   |   |   | 205    |   |   |   | 3,614 |   |   |   | 2,942 |   |
| Other income                                                                    |   |                          | 538        |   |            |   | 351        |                                                     |   |   | 493                                                    |   |   |   | 28     |   |   |   | 751 |   |   |   | 794 |   |
| Total Revenues                                                                  |   |                          | 24,257     |   |            |   | 24,061     |                                                     |   |   | 23,071                                                 |   |   |   | 2,167  |   |   |   | 26,977 |   |   |   | 20,864 |   |
| Expenses:                                                                       |   |                          |       |   |            |   |       |                                                     |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rental expenses                                                                 |   |                          | 15,375     |   |            |   | 15,084     |                                                     |   |   | 12,053                                                 |   |   |   | 992    |   |   |   | 10,097 |   |   |   | 7,673 |   |
| Interest expense                                                                |   |                          | 23,736     |   |            |   | 11,312     |                                                     |   |   | 8,540                                                  |   |   |   | 2,134  |   |   |   | 25,015 |   |   |   | 16,492 |   |
| Depreciation and amortization                                                   |   |                          | 6,197      |   |            |   | 7,077      |                                                     |   |   | 5,376                                                  |   |   |   | 363    |   |   |   | 3,960 |   |   |   | 2,502 |   |
| Impairment loss on real estate assets                                           |   |                          | 148,275    |   |            |   | 139,195    |                                                     |   |   | -                                                      |   |   |   | -      |   |   |   | - |   |   |   | - |   |
| General and administrative                                                      |   |                          | 13,093     |   |            |   | 9,504      |                                                     |   |   | 8,986                                                  |   |   |   | 628    |   |   |   | 6,045 |   |   |   | 4,222 |   |
| Total Expenses                                                                  |   |                          | 206,676    |   |            |   | 182,172    |                                                     |   |   | 34,955                                                 |   |   |   | 4,117  |   |   |   | 45,117 |   |   |   | 30,889 |   |
|  Loss from continuing operations before income taxes, reorganization items |   |                          | (182,419   | )      |            |   | (158,111   | )                                                        |   |   | (11,884                                                | )      |   |   | (1,950 | )      |   |   | (18,140 | ) |   |   | (10,025 | ) |
|  Benefit from income taxes                                                 |   |                          | -          |   |            |   | 51,933     |                                                     |   |   | -                                                      |   |   |   | -      |   |   |   | - |   |   |   | - |   |
|  Reorganization items                                                      |   |                          | (3,987     | )      |            |   | -          |                                                     |   |   | -                                                      |   |   |   | -      |   |   |   | - |   |   |   | - |   |
|  Loss from continuing operations                                           |   |                          | (186,406   | )      |            |   | (106,178   | )                                                        |   |   | (11,884                                                | )      |   |   | (1,950 | )      |   |   | (18,140 | ) |   |   | (10,025 | ) |
|  (Loss) income from discontinued operations                                |   |                          | (613       | )      |            |   | (3,188     | )                                                        |   |   | 15                                                     |   |   |   | (54    | )      |   |   | (252 | ) |   |   | - |   |
|  Gain on sale of real estate                                               |   |                          | 830        |   |            |   | 14,189     |                                                     |   |   | -                                                      |   |   |   | -      |   |   |   | 1,329 |   |   |   | - |   |
|  Income (loss)  from discontinued operations                     |   |                          | 217        |   |            |   | 11,001     |                                                     |   |   | 15                                                     |   |   |   | (54    | )      |   |   | 1,077 |   |   |   | - |   |
|  Net loss                                                                  |   | $                             | (186,189   | )      |            | $      | (95,177    | )                                                        |   | $      | (11,869                                                | )      |   | $      | (2,004 | )      |   | $      | (17,063 | ) |   | $ | (10,025 | ) |
|  Less: net income (loss) attributable to                                   |   |                          |       |   |            |   |       |                                                     |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  non-controlling interests                                                 |   |                          | (440       | )      |            |   | 843        |                                                     |   |   | -                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net loss attributable to common stockholders                              |   | $                             | (185,749   | )      |            | $      | (96,020    | )                                                        |   | $      | (11,869                                                | )      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |                          |       |   |            |   |       |                                                     |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Basic and diluted loss per share:                                         |   |                          |       |   |            |   |       |                                                     |   |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Loss from continuing operations                                           |   | $                             | (2.12      | )      |            | $      | (1.21      | )                                                        |   | $      | (0.14                                                  | )      |   |   |   |   |   |   |   |   |   |   |   |   |
|  Income (loss)  from discontinued operations                     |   | $                             | 0.00       |   |            |   | 0.13       |                                                     |   |   | 0.00                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net loss                                                                  |   | $                             | (2.12      | )      |            | $      | (1.09      | )                                                        |   | $      | (0.14                                                  | )      |   |   |   |   |   |   |   |   |   |   |   |   |
|  Weighted average common shares outstanding - basic and diluted            |   |                          | 87,951,260 |   |            |   | 86,866,699 |                                                     |   |   | 85,218,110                                             |   |   |   | N/A    |   |   |   | N/A |   |   |   | N/A |   |

----

|                                                      |   | The Company                    |     |   | The Predecessor |   |
|-----------------------------------------------------------|--------|--------------------------------|----------|--------|-----------------|--------|
|                                                      |   |                           |     |   |            |   |   |   |   |   |   |   |
|                                                      |   |   Year ended December 31, |     |   |            |   |   |   |   |   |   Year ended December 31, |   |
|                                                      |   | 2009                           |     |   | 2008            |   |   |   Period from January 30, 2007 to December 31, 2007 |   |   |   Period from January 1, 2007 to January 29, 2007 |   |   | 2006 |   |   | 2005 |   |
| Balance Sheet Data (at period end):                       |   |                           |     |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Investments in real estate                          |   | $                              | 537,287  |   |            | $      | 645,755 |   |   | $ | 767,885 |   |   |   | N/A |   |   | $ | 494,809 |   |   | $ | 407,649 |   |
|  Total assets                                        |   |                           | 571,327  |   |            |   | 681,769 |   |   |   | 784,180 |   |   |   | N/A |   |   |   | 508,057 |   |   |   | 427,352 |   |
|  CalPERS and mortgages notes                         |   |                           | 172,363  |   |            |   | 328,229 |   |   |   | 307,394 |   |   |   | N/A |   |   |   | 492,643 |   |   |   | 431,141 |   |
|  Liabilities subject to compromise                   |   |                           | 202,121  |   |            |   | - |   |   |   | - |   |   |   | N/A |   |   |   | - |   |   |   |   |   |
|  Total liabilities                                   |   |                           | 415,939  |   |            |   | 342,022 |   |   |   | 365,125 |   |   |   | N/A |   |   |   | 553,114 |   |   |   | 449,733 |   |
|  Owners' equity (deficit)                            |   |                           | -        |   |            |   | 503 |   |   |   | 419,055 |   |   |   | N/A |   |   |   | (45,057 | ) |   |   | (22,381 | ) |
|  Total liabilities and stockholders' / owners equity |   |                           | 155,388  |   |            |   | 339,747 |   |   |   | 784,180 |   |   |   | N/A |   |   |   | 508,057 |   |   |   | 427,352 |   |
|                                                      |   |                           |     |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Data:                                               |   |                           |     |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  EBITDA (1)                                          |   |                           | (6,972   | )      |            |   | 23,550 |   |   |   | 3,704 |   |   |   | 576 |   |   |   | 12,252 |   |   |   | 8,969 |   |
|  Cash flows from (used in) :                         |   |                           |     |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Operating activities                                |   |                           | 3,153    |   |            |   | (8,216 | ) |   |   | (7,292 | ) |   |   | 226 |   |   |   | (15,852 | ) |   |   | (17,169 | ) |
|  Investing activities                                |   |                           | (38,498  | )      |            |   | (26,240 | ) |   |   | (214,223 | ) |   |   | (5,963 | ) |   |   | (62,261 | ) |   |   | (276,182 | ) |
|  Financing activities                                |   |                           | 40,036   |   |            |   | 35,886 |   |   |   | 223,558 |   |   |   | 4,343 |   |   |   | 70,999 |   |   |   | 301,853 |   |
|                                                      |   |                           |     |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reconciliation of EBITDA to Net (Loss) Income:            |   |                           |     |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net (loss) income                                   |   | $                              | (186,189 | )      |            | $      | (95,177 | ) |   | $ | (11,869 | ) |   | $ | (2,004 | ) |   | $ | (17,063 | ) |   | $ | (10,025 | ) |
|  Plus:                                               |   |                           |     |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest expense                                    |   |                           | 23,746   |   |            |   | 12,037 |   |   |   | 9,510 |   |   |   | 2,206 |   |   |   | 25,333 |   |   |   | 16,492 |   |
|  Depreciation and amortization                       |   |                           | 6,202    |   |            |   | 7,569 |   |   |   | 6,063 |   |   |   | 374 |   |   |   | 3,982 |   |   |   | 2,502 |   |
|  Net tax benefit                                     |   |                           | -        |   |            |   | (42,331 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Non-Controlling interests                           |   |                           | 440      |   |            |   | (843 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Impairment on real estate assets                    |   |                           | 148,829  |   |            |   | 142,295 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                      |   |                           |     |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  EBITDA                                              |   | $                              | (6,972   | )      |            | $      | 23,550 |   |   | $ | 3,704 |   |   | $ | 576 |   |   | $ | 12,252 |   |   | $ | 8,969 |   |

| (1) | EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization. We believe it is a useful financial performance measure for us and for our stockholders and is a complement to net income and other financial performance measures provided in accordance with generally accepted accounting principles in the United States of America, or GAAP. We use EBITDA to measure the financial performance of our operating properties because it excludes expenses such as depreciation and amortization, taxes and interest expense, which are not indicative of operating performance. By excluding interest expense, EBITDA measures our financial performance irrespective of our capital structure or how we finance our properties and operations. By excluding depreciation and amortization expense, which can vary from property to property based on a variety of factors unrelated to the properties’ financial performance, we can more accurately assess the financial performance of our properties. Under GAAP, real estate properties are recorded at historical cost at the time of acquisition and are depreciated on a straight line basis. By excluding depreciation and amortization, we believe EBITDA provides a basis for measuring the financial performance of properties unrelated to historical cost. However, because EBITDA excludes depreciation and amortization, it does not measure the capital we require to maintain or preserve our fixed assets. In addition, because EBITDA does not reflect interest expense, it does not take into account the total amount of interest we pay on outstanding debt nor does it show trends in interest costs due to changes in our borrowings or changes in interest rates. EBITDA, as calculated by us, may not be comparable to EBITDA reported by other companies that do not define EBITDA exactly as we define the term. Because we use EBITDA to evaluate our financial performance, we reconcile it to net income (loss), which is the most comparable financial measure calculated and presented in accordance with GAAP. EBITDA does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to operating income or net income determined in accordance with GAAP as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of liquidity. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • |   | our ability to generate and maintain adequate cash; |
|--------|---------|--------|-----------------------------------------------------|

|   | • |   |   the cost, duration and outcome of the reorganization process in the Chapter 11 proceedings; and |
|--------|---------|--------|-------------------------------------------------------------------------------------------------------------|

|   | • |   | our ability to retain key employees.  |
|--------|---------|--------|--------------------------------------------|

----

|   | • | 788 South Alameda, LLC (788 S. Alameda) |
|--------|---------|-----------------------------------------|

|   | • | Merco Group — 3185 E. Washington Boulevard, LLC (Washington Cold Storage) |
|--------|---------|---------------------------------------------------------------------------------|

|   | • | Alameda Produce Market, LLC (Alameda Square & Seventh Street Produce Market) |
|--------|---------|---------------------------------------------------------------------------------------|

|   | • | Meruelo Wall Street, LLC (Meruelo Wall Street) |
|--------|---------|------------------------------------------------|

|   | • | Merco Group — 620 Gladys Avenue, LLC (620 Gladys Avenue) |
|--------|---------|----------------------------------------------------------------|

|   | • | Meruelo Maddux Properties — 1919 Vineburn Street, LLC (1919 Vineburn Avenue)   |
|--------|---------|-------------------------------------------------------------------------------------------|

|   | • | Merco Group — 1500 Griffith Avenue, LLC (1500 Griffith Avenue) |
|--------|---------|----------------------------------------------------------------------|

|   | • | Santa Fe Commerce Center, Inc. (Crown Commerce Center) |
|--------|---------|--------------------------------------------------------|

|   | • | 905 8th Street, LLC (905 E. 8th Street) |
|--------|---------|-----------------------------------------|

|   | • | Merco Group — 1211 E. Washington Boulevard, LLC (1211 E. Washington Blvd. & Washington at Central Retail) |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------|

|   | • | Meruelo Maddux — 3rd & Omar Street, LLC (3rd & Omar Street) |
|--------|---------|-------------------------------------------------------------------------------------|

|   | • | Merco Group, LLC (Sky Arc—Development Project and Southern California Institute of Architects—Operating Project) |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------|

|   | • | Santa Fe & Washington Market, Inc. (American Apartments) |
|--------|---------|-------------------------------------------------------------------|

|   | • | Merco Group — 2001-2021 West Mission Boulevard, LLC (Pomona West) |
|--------|---------|-------------------------------------------------------------------------|

|   | • | Meruelo Farms, LLC (Center Village) |
|--------|---------|-------------------------------------|

|   | • | Meruelo Maddux Properties — 306-330 N. Avenue 21, LLC (2131 Humboldt Street) |
|--------|---------|------------------------------------------------------------------------------------|

|   | • | Merco Group — 5707 S. Alameda, LLC (5707 S. Alameda) |
|--------|---------|------------------------------------------------------------|

|   | • | Meruelo Maddux — 1000 E. Cesar Chavez, LLC (1000 E. Cesar Chavez) |
|--------|---------|------------------------------------------------------------------------------|

|   | • | Merco Group — Little J, LLC (TransAmerica Lofts – Operating Project and Southpark Towers – Development Project) |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Meruelo Maddux — 420 Boyd Street, LLC (420 Boyd Street) |
|--------|---------|---------------------------------------------------------------|

|   | • | Meruelo Maddux — 230 W. Avenue 26, LLC (230 W. Ave. 26th) |
|--------|---------|-----------------------------------------------------------------|

|   | • | 2640 Washington Boulevard, LLC (Washington Produce Market) |
|--------|---------|------------------------------------------------------------|

|   | • | Meruelo Maddux — 2415 E. Washington Blvd., LLC (Crown Commerce Center) |
|--------|---------|------------------------------------------------------------------------------|

|   | • | Merco Group — 2529 Santa Fe Avenue, LLC (Santa Fe Plaza) |
|--------|---------|----------------------------------------------------------------|

|   |    |
|--------|--------------|

|   | • | Meruelo Maddux Properties — 2951 Lenwood Road, LLC (Barstow Produce Center) |
|--------|---------|-----------------------------------------------------------------------------------|

|   | • | Meruelo Maddux Properties — 760 S. Hill Street, LLC (The Union Lofts) |
|--------|---------|-----------------------------------------------------------------------------|

----

|   | • | Meruelo Maddux Properties — 2131 Humboldt Street, LLC (2131 Humboldt Street) |
|--------|---------|------------------------------------------------------------------------------------|

|   | • | Merco Group — Ceres Street Produce, LLC (Ceres Street Produce Market) |
|--------|---------|-----------------------------------------------------------------------------|

|   | • | Merco Group — 1225 E. Washington Boulevard, LLC (Crown Commerce Center) |
|--------|---------|-------------------------------------------------------------------------------|

|   | • | Merco Group — 4th Street Center, LLC (4th Street Center) |
|--------|---------|----------------------------------------------------------------|

|   |   |
|--------|--------|

|   | • | Merco Group — 425 West 11th Street, LLC (Desmond Building) |
|--------|---------|------------------------------------------------------------------|

|   | • | Merco Group — 1308 S. Orchard, LLC (Musica Latina Building) |
|--------|---------|-------------------------------------------------------------------|

|   | • | Meruelo Maddux — Mission Boulevard, LLC (Pomona East) |
|--------|---------|-------------------------------------------------------------|

|   | • | Merco Group — 801 E. 7th Street, LLC (801 E. 7th Street) |
|--------|---------|----------------------------------------------------------------|

|   |    |
|--------|--------------|

|   | • | Meruelo Maddux — 845 S. Flower Street, LLC (705 W. Ninth Street) |
|--------|---------|------------------------------------------------------------------------|

|   | • | Meruelo Maddux — 915-949 S. Hill Street, LLC (Ullman Tower One) |
|--------|---------|-----------------------------------------------------------------------|

|   | • | Meruelo Maddux — 817-825 S. Hill Street, LLC (Ullman Tower Two) |
|--------|---------|-----------------------------------------------------------------------|

|   | • | Merco Group — Southpark, LLC (Southpark Towers, TransAmerica Lofts & Olive Street Towers)   |
|--------|---------|-----------------------------------------------------------------------------------------------------------------|

|   | • | Meruelo Maddux — 336 W. 11th Street, LLC (Southpark Towers) |
|--------|---------|-------------------------------------------------------------------|

|   | • | Meruelo Chinatown, LLC (Meruelo Chinatown Village) |
|--------|---------|----------------------------------------------------|

|   | • | Meruelo Baldwin Park, LLC (Meruelo Baldwin Park) |
|--------|---------|--------------------------------------------------|

|   | • | Meruelo Maddux Properties — 1060 N. Vignes, LLC (Vignes Village) |
|--------|---------|------------------------------------------------------------------------|

|   | • | Meruelo Maddux Properties — 1009 North Citrus Avenue, Covina, LLC (Citrus Gardens) |
|--------|---------|------------------------------------------------------------------------------------------|

|   | • | Meruelo Maddux Properties — 12385 San Fernando Road, LLC (San Fernando Court) |
|--------|---------|-------------------------------------------------------------------------------------|

|   | • | Meruelo Maddux Construction, Inc. |
|--------|---------|-----------------------------------|

|   | • | Meruelo Maddux California Future Fund, LLC |
|--------|---------|--------------------------------------------|

|   | • | MMP Ventures, LLC |
|--------|---------|-------------------|

|   | • | Meruelo Maddux Properties, LP |
|--------|---------|-------------------------------|

|   | • | Meruelo Maddux Management, LLC |
|--------|---------|--------------------------------|

|   | • | Alameda North Parking, LLC |
|--------|---------|----------------------------|

|   | • | Funes Architecture, LLC |
|--------|---------|-------------------------|

|   | • | Santa Fe Commerce Center, Inc. |
|--------|---------|--------------------------------|

|   | • | Merco Group — 146 E. Front Street, LLC (Covina Gardens) |
|--------|---------|---------------------------------------------------------------|

|   | • | 1828 Oak Street, LLC (1828 Oak Street) |
|--------|---------|----------------------------------------|

|   |  • | Meruelo Maddux — 555 Central Avenue, LLC (American Fish) |
|--------|---------------|----------------------------------------------------------------|

|   | • | Meruelo Maddux — 5500 Flotilla Street, LLC (Camfield Retail Center) |
|--------|---------|---------------------------------------------------------------------------|

|   | • | Meruelo Maddux — 500 Mateo Street, LLC (500 Mateo Street) |
|--------|---------|-----------------------------------------------------------------|

|   | • | Merco Group — 2035 Camfield Avenue, LLC (Camfield Retail Center) |
|--------|---------|------------------------------------------------------------------------|

|   | • | Merco Group — 2040 Camfield Avenue, LLC (Gold’s Gym & Storage) |
|--------|---------|-------------------------------------------------------------------------------------|

----

----

----

| 1)   | A sale is consummated, |
|----------------|------------------------|

| 2)   | The buyer’s initial and continuing investments are adequate to demonstrate a commitment to pay for the property, |
|----------------|------------------------------------------------------------------------------------------------------------------------|

| 3)   | The seller’s receivable is not subject to future subordination, |
|----------------|-----------------------------------------------------------------------|

| 4)   | The seller has transferred to the buyer the usual risks and rewards of ownership in a transaction that is in substance a sale and does not have a substantial continuing involvement with the property. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | We have incurred and will continue to incur significant costs associated with the reorganization.  The amount of these costs, which are being expensed as incurred, are expected to significantly impact our results of operations. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We may have difficulty continuing to obtain and maintain contracts necessary to continue our operations and at affordable rates with competitive terms. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We may have difficulty maintaining existing and building new tenant relationships or pursuing our planned development projects. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | Transactions outside the ordinary course of business will be subject to the prior approval of the court, which may limit our ability to respond timely to certain events or take advantage of certain opportunities. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We may not be able to obtain court approval or such approval may be delayed with respect to motions made in the reorganization cases. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We may be unable to retain and motivate key executives and associates through the process of reorganization, and we may have difficulty attracting new employees. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We may be unable to maintain or obtain sufficient financing sources to fund the reorganization plan and meet future obligations. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ·   | The value of our common stock could be reduced to zero as result of the bankruptcy filing. |
|--------------------|--------------------------------------------------------------------------------------------|

----

| Year of Lease Termination |   | Number of Leases Expiring |   |   | Square Footage of Expiring Lease |   |      | Percentage of Total Rentable Square Feet(1) |   |   | Annualized Base Rent of Expiring Leases(2) |   |   | Percentage of Portfolio Annualized Base Rent (%) |       |
|---------------------------|--------|---------------------------|--------|--------|----------------------------------|--------|-----------|---------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------------------------------------|------------|
| Month to Month            |   |                      | 259    |   |                             |   | 594,923   |                                        |   |   | 13.9                                       | %      |   | $                                                | 11,590,505 |   |   |   | 52.1 | % |
| 2010                      |   |                      | 53     |   |                             |   | 358,129   |                                        |   |   | 8.4                                        | %      |   |                                             | 4,129,971  |   |   |   | 18.6 | % |
| 2011                      |   |                      | 6      |   |                             |   | 121,835   |                                        |   |   | 2.9                                        | %      |   |                                             | 873,840    |   |   |   | 3.9 | % |
| 2012                      |   |                      | 3      |   |                             |   | 161,039   |                                        |   |   | 3.8                                        | %      |   |                                             | 973,001    |   |   |   | 4.4 | % |
| 2013                      |   |                      | 2      |   |                             |   | 63,702    |                                        |   |   | 1.5                                        | %      |   |                                             | 1,312,800  |   |   |   | 5.9 | % |
| 2014                      |   |                      | 2      |   |                             |   | 790,664   |                                        |   |   | 18.5                                       | %      |   |                                             | 3,358,046  |   |   |   | 15.1 | % |
| Total/Weighted Average    |   |                      | 325    |   |                             |   | 2,090,292 |                                        |   |   | 49.0                                       | %      |   | $                                                | 22,238,163 |   |   |   | 100 | % |

|   | (1) There are current lease terminations for the years ending December 31, 2013 through December 31, 2014 |
|--------|-----------------------------------------------------------------------------------------------------------|

|   | (2) Based on total square footage of 4,279,363 which is the square footage of space leased or available or offered for lease and excludes substantial portions of square footage in the projects that is not available or offered for lease because of redevelopment or repositioning activities. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) Based on annualized base rent paid or payable as of December 31, 2007. Because annualized base rent is not derived from historical results that were accounted for in accordance with accounting principles generally accepted in the United States, historical results differ from the annualized amounts. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Projects                                          | Acquisition orConversion Date |   | Net Rentable SquareFootage |    |
|---------------------------------------------------|-------------------------------|--------|----------------------------|---------|
|                                              |                          |   |                       |    |
| Washington Produce Market (2640 Washington Blvd.) | March 7, 2007                 |   |                       | 31,876  |   |
| 230 W. Avenue 26th                                | April 1, 2007                 |   |                       | 67,671  |   |
| 2000 San Fernando Road                            | April 2, 2007                 |   |                       | 119,381 |   |
| 420 Boyd Street                                   | June 27, 2007                 |   |                       | 47,806  |   |
| 4th Street Center                                 | September 30, 2007            |   |                       | 14,472  |   |
| Union Lofts                                       | July 1, 2008                  |   |                       | 81,609  |   |
| Barstow Produce Center                            | July 1, 2008                  |   |                       | 261,750 |   |
| Santa Fe Plaza                                    | September 1, 2008             |   |                       | 16,000  |   |
| Overland Terminal                                 | September 3, 2008             |   |                       | 309,340 |   |
| Total                                             |                          |   |                       | 949,905 |   |

| Projects              | Date of Addition |   | Additional SquareFootage |
|-----------------------|------------------|--------|--------------------------|
|                  |             |   |                     |
| Crown Commerce Center | January 26, 2007 |   | 18,500                   |
| 905 E 8th Street      | March 23, 2007   |   | 3,597                    |
| Center Village        | March 27, 2007   |   | 66,135                   |
| 620 Gladys Avenue     | April 13, 2007   |   | 49,959                   |
| Total                 |             |   | 138,191                  |

| Projects                   | Date of Sale       |   | Sales Price (1) |    |
|----------------------------|--------------------|--------|-----------------|---------|
| Rental Projects:           |               |   |            |    |
| 2000 San Fernando Road (2) | August 15, 2008    |   |            | 35,000  |   |
| 1800 E. Washington Road    | September 12, 2008 |   |            | 14,200  |   |
| Overland Terminal          | November 14, 2008  |   |            | 19,702  |   |
| 500 Mateo Street           | April 30, 2009     |   |            | 1,900   |   |
| Total Rental Projects      |               |   | $               | 70,802  |   |
|                       |               |   |            |    |   |
| Development Projects:      |               |   |            |    |   |
| 9901 Alameda               | March 31, 2008     |   |            | 31,200  |   |
| 801 E. 7th Street          | November 21, 2008  |   |            | 9,500   |   |
| 816 Stanford (3)           | November 7, 2008   |   |            | 1,000   |   |
| 146 E. Front Street        | July 13, 2009      |   |            | 1,114   |   |
| Camfield Retail Center (4) | September 18, 2009 |   |            | 5,000   |   |
| Total Development Projects |               |   | $               | 47,814  |   |
| Total Projects Sold        |               |   | $               | 118,616 |   |

----

|                                                                            |   | Year Ended December 31, 2009 |     |   | Year Ended December 31, 2008 |   |     | Increase (Decrease) |   |
|---------------------------------------------------------------------------------|--------|------------------------------|----------|--------|------------------------------|--------|----------|---------------------|--------|
|  Revenue:                                                                  |   |                         |     |   |                         |   |     |                |   |   |   |   |
|  Rental income                                                             |   | $                            | 23,311   |   |                         | $      | 22,709   |                |   | $ | 602 |   |   |   | 2.7 | % |
|  Management fees                                                           |   |                         | 41       |   |                         |   | 285      |                |   |   | (244 | ) |   |   | -85.6 | % |
|  Interest income                                                           |   |                         | 367      |   |                         |   | 839      |                |   |   | (472 | ) |   |   | -56.3 | % |
|  Other income                                                              |   |                         | 538      |   |                         |   | 351      |                |   |   | 187 |   |   |   | 53.3 | % |
|  Total Revenues                                                            |   |                         | 24,257   |   |                         |   | 24,184   |                |   |   | 73 |   |   |   | 0.3 | % |
|  Expenses:                                                                 |   |                         |     |   |                         |   |     |                |   |   |   |   |   |   |   |   |
|  Rental expenses                                                           |   |                         | 15,375   |   |                         |   | 15,291   |                |   |   | 84 |   |   |   | 0.5 | % |
|  Interest expense                                                          |   |                         | 23,736   |   |                         |   | 11,445   |                |   |   | 12,291 |   |   |   | 107.4 | % |
|  Depreciation and amortization                                             |   |                         | 6,197    |   |                         |   | 7,091    |                |   |   | (894 | ) |   |   | -12.6 | % |
|  Impairment loss on assets                                                 |   |                         | 148,275  |   |                         |   | 142,295  |                |   |   | 5,980 |   |   |   | 4.2 | % |
|  General and administrative                                                |   |                         | 13,093   |   |                         |   | 9,524    |                |   |   | 3,569 |   |   |   | 37.5 | % |
|  Total Expenses                                                            |   |                         | 206,676  |   |                         |   | 185,646  |                |   |   | 21,030 |   |   |   | 11.3 | % |
|                                                                            |   |                         |     |   |                         |   |     |                |   |   |   |   |   |   |   |   |
|  Loss from continuing operations before income taxes, reorganization items |   |                         | (182,419 | )      |                         |   | (161,462 | )                   |   |   | (20,957 | ) |   |   | -13.0 | % |
|  Benefit from income taxes                                                 |   |                         | -        |   |                         |   | 51,933   |                |   |   | (51,933 | ) |   |   | 100.0 | % |
|  Reorganization items                                                      |   |                         | (3,987   | )      |                         |   | -        |                |   |   | (3,987 | ) |   |   | 100.0 | % |
|  Loss from continuing operations                                           |   |                         | (186,406 | )      |                         |   | (109,529 | )                   |   |   | (72,890 | ) |   |   | -66.5 | % |
|                                                                            |   |                         |     |   |                         |   |     |                |   |   |   |   |   |   |   |   |
|  (Loss) income from discontinued operations                                |   |                         | (613     | )      |                         |   | 163      |                |   |   | (776 | ) |   |   | -476.1 | % |
|  Gain on sale of real estate                                               |   |                         | 830      |   |                         |   | 14,189   |                |   |   | (13,359 | ) |   |   | -94.2 | % |
|  Income (loss) from discontinued operations                                |   |                         | 217      |   |                         |   | 14,352   |                |   |   | (14,135 | ) |   |   | 98.5 | % |
|  Net loss                                                                  |   | $                            | (186,189 | )      |                         | $      | (95,177  | )                   |   | $ | (87,025 | ) |   |   | -91.4 | % |
|  Less: net income (loss) attributable to non-controlling interests         |   |                         | (440     | )      |                         |   | 843      |                |   |   | (1,283 | ) |   |   | 152.2 | % |
|  Net loss attributable to common stockholders                              |   | $                            | (185,749 | )      |                         | $      | (96,020  | )                   |   | $ | (88,308 | ) |   |   | -92.0 | % |

----

----

|                                                                       |   | Year Ended December 31, |     |
|----------------------------------------------------------------------------|--------|-------------------------|----------|
|                                                                       |   | 2008                    |     |   | 2007 (1) |   |   | Increase (Decrease) |   |
| Revenues:                                                                  |   |                    |     |   |   |   |   |   |   |   |   |   |
| Rental income                                                              |   | $                       | 22,709   |   |   | $ | 21,539 |   |   | $ | 1,170 |   |   |   | 5.4 | % |
| Management fees                                                            |   |                    | 285      |   |   |   | 272 |   |   |   | 13 |   |   |   | 4.8 | % |
| Interest income                                                            |   |                    | 839      |   |   |   | 3,029 |   |   |   | (2,190 | ) |   |   | -72.3 | % |
| Other income                                                               |   |                    | 351      |   |   |   | 521 |   |   |   | (170 | ) |   |   | -32.6 | % |
|          Total revenues       |   |                    | 24,184   |   |   |   | 25,361 |   |   |   | (1,177 | ) |   |   | -4.6 | % |
| Expenses:                                                                  |   |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rental expenses                                                            |   |                    | 15,291   |   |   |   | 13,089 |   |   |   | 2,202 |   |   |   | 16.8 | % |
| Interest expense                                                           |   |                    | 11,445   |   |   |   | 10,764 |   |   |   | 681 |   |   |   | 6.3 | % |
| Depreciation and amortization                                              |   |                    | 7,091    |   |   |   | 5,753 |   |   |   | 1,338 |   |   |   | 23.3 | % |
| Impairment on real estate assets                                           |   |                    | 142,295  |   |   |   | - |   |   |   | 142,295 |   |   |   |   | (2) |
| General and administrative                                                 |   |                    | 9,524    |   |   |   | 9,619 |   |   |   | (95 | ) |   |   | -1.0 | % |
|           Total expenses |   |                    | 185,646  |   |   |   | 39,225 |   |   |   | 146,421 |   |   |   | 373.3 | % |
| Loss from continuing operations before minority interests and income taxes |   |                    | (161,462 | ) |   |   | (13,864 | ) |   |   | (147,598 | ) |   |   | -1,064.6 | % |
|     Minority interests                                 |   |                    | (843     | ) |   |   | - |   |   |   | (843 | ) |   |   |   | (2) |
|     Benefit for income taxes                           |   |                    | 51,933   |   |   |   | - |   |   |   | 51,933 |   |   |   |   | (2) |
| Loss from continuing operations                                            |   |                    | (110,372 | ) |   |   | (13,864 | ) |   |   | (96,508 | ) |   |   | -696.1 | % |
|                                                                       |   |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued operations                                                    |   |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Income (loss) from discontinued operations         |   |                    | 163      |   |   |   | (9 | ) |   |   | 172 |   |   |   |   | (2) |
|     Gain on sale of real estate                        |   |                    | 14,189   |   |   |   | - |   |   |   | 14,189 |   |   |   |   | (2) |
| Income (loss) from discontinued operations                                 |   |                    | 14,352   |   |   |   | (9 | ) |   |   | 14,361 |   |   |   |   | (2) |
| Net loss                                                                   |   | $                       | (96,020  | ) |   | $ | (13,873 | ) |   | $ | (82,147 | ) |   |   | -592.1 | % |

| (1)   | For purposes of comparison, 2007 amounts include the predecessor results for the period from January 1, 2007 to January 29, 2007 and our company results for the period from January 30, 2007 to December 31, 2007. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The calculated percentages are not meaningful. |
|-----------------|------------------------------------------------|

----

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|                                                              |   | Principal Balance |    |   | Weighted Average Interest Rate |   |   | Current Principal Due |   |
|-------------------------------------------------------------------|--------|-------------------|---------|--------|--------------------------------|--------|--------|-----------------------|--------|
| Fixed rate mortgage debt                                          |   | $                 | 150,909 |   |                           |   | 8.41   | %                     |   | $ | 84,000 |   |
| Variable rate mortgage debt                                       |   |              | 21,454  |   |                           |   | 3.25   | %                     |   |   | - |   |
| Total fixed and variable rate mortgage debt                       |   |              | 172,363 |   |                           |   | 7.77   | %                     |   |   | 84,000 |   |
| Fixed mortgage debt subject to compromise (1)                     |   |              | 26,712  |   |                           |   | 10.72  | %                     |   |   | 26,712 |   |
| Variable mortgage debt subject to compromise (1)                  |   |              | 168,475 |   |                           |   | 10.43  | %                     |   |   | 168,475 |   |
| Total fixed and variable rate mortgage debt subject to compromise |   |              | 195,187 |   |                           |   | 10.47  | %                     |   |   | 195,187 |   |
| Total consolidated debt                                           |   | $                 | 367,550 |   |                           |   | 9.21   | %                     |   | $ | 279,187 |   |

|   |                                                                                                                                                                                                                                                                                                                                                         |   |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|   | (1) The filing of the Chapter 11 petitions may have given rise to claims by lenders of defaults under our debt instruments and agreements. As a result, our debt obligations may have become immediately payable and default may be applicable. Accordingly, we are recording interest at the default rate for all mortgage debt subject to compromise. |   |

----

| ·   | We have classified approximately $195.2million of notes payable secured by real estate as liabilities subject to compromise on our consolidated balance sheet. For accounting purposes, we are accruing and deferring interest on these notes at the default rate claimed by lenders, even though we may dispute whether default interest may be charged and/or the amount of default interest. Recording default interest has increased our annual interest obligation by approximately $7.9 million. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | While in bankruptcy, we are incurring bankruptcy related costs of approximately $5.3 million annually. |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | These increases are partially offset by operational improvements of approximately $2.5 million annually. |
|--------------------|----------------------------------------------------------------------------------------------------------|

----

|   | • |   |  our ability to generate and maintain adequate cash; |
|--------|---------|--------|-----------------------------------------------------------|

|               | •  |   | the cost, duration and outcome of the reorganization process in the Chapter 11 proceedings; and |
|--------------------|---------------|--------|-------------------------------------------------------------------------------------------------|
|     | •       |   | our ability to retain key employees.                                                       |   |

|                                         |   |                       |    |
|----------------------------------------------|--------|----------------------------|---------|
|                                         |   | Payments due by period     |    |
|                                         |   |  Less than 1 year (1) |    |   |  1-3 years |   |   |  3-5 years |   |   |  More than 5 years |   |   |  Total |   |
| Contractual Obligations at December 31, 2009 |   |                       |    |   |   |   |   |   |   |   |   |   |   |
| Notes payable secured by real estate         |   | $                          | 279,187 |   |   | $ | 29,699 |   |   | $ | 58,664 |   |   | $ | - |   |   | $ | 367,550 |   |
| Interest payments on notes payable           |   |                       | 6,677   |   |   |   | 9,505 |   |   |   | 1,041 |   |   |   | - |   |   |   | 17,223 |   |
| Construction obligations (2)                 |   |                       | 7,000   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,000 |   |
| Total Contractual Obligations                |   | $                          | 292,864 |   |   | $ | 39,204 |   |   | $ | 59,705.00 |   |   | $ | - |   |   | $ | 391,773 |   |

| (1) These amounts include all payments due in calendar 2010.(2) Based upon executed contracts with general contractors as of December 31, 2009.  We have a construction loan in place to cover these costs. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                                                 |   | Principal due by year |    |   |   |   |   |   |   |
|------------------------------------------------------|--------|-----------------------|---------|--------|--------|--------|--------|--------|--------|
|                                                 |   | 2010                  |    |   | 2011   |   |   | 2012   |   |   | 2013 |   |   | 2014 |   |   | Thereafter |   |   | Total |   |
| Fixed rate debt instruments                          |   | $                     | 84,026  |   |   | $      | 58     |   |   | $ | 3,421 |   |   | $ | 4,740 |   |   | $ | 58,664 |   |   | $ | - |   |   | $ | 150,909 |   |
| Variable rate debt instruments                       |   |                  | -       |   |   |   | -      |   |   |   | - |   |   |   | 21,454 |   |   |   | - |   |   |   | - |   |   |   | 21,454 |   |
| Fixed rate debt instruments subject to compromise    |   |                  | 26,712  |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 26,712 |   |
| Variable rate debt instruments subject to compromise |   |                  | 168,475 |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 168,475 |   |
| Total debt                                           |   | $                     | 279,213 |   |   | $      | 58     |   |   | $ | 3,421 |   |   | $ | 26,194 |   |   | $ | 58,664 |   |   | $ | - |   |   | $ | 367,550 |   |

----

----

| · audit committee charter                               | · code of ethics                  |
|-------------------------------------------------------------------|---------------------------------------------|
| · compensation committee charter                        | · corporate governance guidelines |
| · nominating and corporate governance committee charter | · whistleblower policy            |
|                                                              |                                        |

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|  Richard MerueloChairman and Chief   Executive Officer Age: 45 Shares beneficially owned: 39,911,378 LTIP units owned: 30,000(1) | Mr. Meruelo has served as our Chief Executive Officer and Chairman of our Board of Directors since our IPO. Mr. Meruelo served as chairman of our predecessor business from 1987 until our IPO. During that time, Mr. Meruelo led the strategic planning for the business while managing project acquisitions, purchase negotiations and related financings totaling nearly $1.2 billion. In addition, Mr. Meruelo was responsible for maintaining the predecessor business’ relationships with CalPERS and local and state governmental bodies that had land-use jurisdiction over the contributed projects. Mr. Meruelo earned his degree in business administration from the University of Southern California, with an emphasis in finance and real estate. Mr. Meruelo currently serves as a board member for the Central City East Association and the Los Angeles Central Industrial Redevelopment Project.                                                                                                                                                                |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                | The Board has determined that it is in the best interests of the Company and its stockholders for Mr. Meruelo, in light of his significant acquisition and management experience, to continue to serve as a director on the Board.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| John Charles MadduxPresident, Chief Operating Officer and Director Age: 50 Shares beneficially owned: 5,797,588 LTIP units owned: 30,000(1)          | Mr. Maddux has served as our President and Chief Operating Officer, and as a director since our IPO.  Mr. Maddux served as president of our predecessor business from 2005 until our IPO. Before joining our predecessor business, Mr. Maddux served as a founder and shareholder of the law firm of Nevers, Palazzo, Maddux & Packard, PLC from 1998 to 2005, and practiced law with the firm of O’Melveny & Myers, LLP from 1986 to 1996, where he was a member of the real estate practice group.  While at each firm, Mr. Maddux served as our predecessor’s outside legal counsel. Mr. Maddux earned his bachelor’s degree in business management—finance from Brigham Young University’s Marriott School of Management and his J.D. from Brigham Young University’s J. Reuben Clark Law School.  His affiliations include the Urban Land Institute, the International Conference of Shopping Centers, the Los Angeles County Bar Association and the California Bar Association, Real Property Section. |
|                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                | The Board has determined that it is in the best interests of the Company and its stockholders for Mr. Maddux, in light of his Company-specific day-to-day operational and management experience, to continue to serve as a director on the Board.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Lynn BeckemeyerExecutive Vice President—Development and Director Age: 50 Shares beneficially owned: 0 LTIP units owned: 64,167(1)         | Mr. Beckemeyer has served as our Executive Vice President for Development and as a director since our IPO. Mr. Beckemeyer served as the senior vice president of development and construction of our predecessor business from 2006 until our IPO.  Before joining our predecessor business, Mr. Beckemeyer served in various real estate development and management positions with The Walt Disney Company for twelve years.  Mr. Beckemeyer managed the development, design and construction of urban projects in the Washington, DC metropolitan area and Dallas, Texas. He is an alumnus of Kansas State and Harvard GSD. The Board has determined that it is in the best interests of the Company and its stockholders for Mr. Beckemeyer, in light of his commercial real estate development and redevelopment experience, to continue to serve as a director on the Board.                                                                                                                                                                         |

| (1) | Long-Term Incentive Plan Units in our subsidiary Meruelo Maddux Properties, L.P., through which we conduct most of our business operations (our “Operating Partnership”), are subject to forfeiture over a three-year period. Upon achieving parity with the common units in our Operating Partnership and becoming “redeemable” in accordance with the terms of the partnership agreement of our Operating Partnership, LTIP units may be redeemed for cash or, at our option, an equal number of shares of our Common Stock. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| John B. HansenDirector Age: 52 Share beneficially owned: 10,100  Committees: · Audit· Compensation (Chair)                                                                                            | Since 1987, Mr. Hansen has served as president and chief executive officer of Glenwood Properties, Inc., a real estate company which acquires, develops and redevelops multi-family, retail and office projects in urban and suburban markets in Southern California, Arizona, and Utah.  In addition, since 1995, Mr. Hansen has served as vice president of Greenwood Interests Holding, Inc., an affiliate of Greenwood Companies, which was the second largest operator of childcare centers in the Los Angeles area. Since 2000, Mr. Hansen has been a founding shareholder and director of Tomato Bank, N.A., a national bank operating in the Southern California market.  Mr. Hansen is a member of the board of advisors for Royal Field Morningside Fund LLC, a fund that was organized in 2006 to specialize in the redevelopment of urban multi-family and mixed-use projects in New York City. Mr. Hansen received a B.A. in literature from Brigham Young University.  He also received a J.D. from the University of Utah College of Law.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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|                                                                                                                                                                                                                                                    | The Board has determined that it is in the best interests of the Company and its stockholders for Mr. Hansen, in light of his senior executive experience within the real estate industry, to continue to serve as a director on the Board.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| Philip S. PayneDirector Age: 58 Shares beneficially owned: 7,500 Committees: · Audit (Chair)· Compensation· Nominating and      corporate governance               | Mr. Payne currently serves as chief executive officer of Babcock & Brown Residential.  From 2004 until 2007, Mr. Payne served as chairman of BNP Residential Properties, Inc., an AMEX-listed real estate investment trust focused on owning and operating apartment communities. BNP Residential Properties was acquired by Babcock & Brown in 2007.  Mr. Payne joined BT Venture Corporation, which was subsequently purchased by BNP Residential Properties, in 1990 as vice president of capital market activities and became executive vice president and chief financial officer in 1994.  He was named treasurer BNP Residential Properties in 1995 and became a director in 1997.  In 2004, Mr. Payne became chairman of the Board of Directors of BNP Residential Properties.  From 1987 to 1990, he was a principal in Payne Knowles Investment Group, a financial planning firm. From 1983 to 1987, he was a registered representative with Legg Mason Wood Walker.  From 1978 to 1983, Mr. Payne practiced law, and he currently maintains his license to practice law in Virginia. He received B.S. and J.D. degrees from the College of William and Mary.  He is a member of the board of directors of the National Multi Housing Council and a member of the Urban Land Institute.  In addition, he serves on the board of directors of Ashford Hospitality Trust, a NYSE-listed real estate investment trust focused on the hospitality industry, and is chairman of its audit committee.                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                    | The Board has determined that it is in the best interests of the Company and its stockholders for Mr. Payne, in light of his senior executive real estate experience and financial reporting expertise, to continue to serve as a director on the Board.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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| Richard Garcia PolancoDirector Age: 59 Shares beneficially owned: 2,500 Committees: · Compensation· Nominating and      corporate governance     (Chair) | Mr. Polanco is a former California State Assembly Member and Senator, having been first elected in 1986. He served in the State Assembly for eight years.  In 1994, he was elected to the State Senate and served as Senate Majority Leader from 1998 until his retirement in 2002.  Mr. Polanco chaired the California Latino Legislative Caucus from 1990 to 2002.  In October 2002, Mr. Polanco established the California Latino Caucus Institute for Public Policy, a non-profit organization to serve as a broad based public policy, educational and leadership development organization.  Prior to elected office, Mr. Polanco served on the staff of Los Angeles County Supervisor Ed Edelman, Assemblyman Richard Alatorre and former Governor Jerry Brown. Mr. Polanco attended East Los Angeles College, the University of Redlands and the Universidad de Mexico where he majored in business administration.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                    | The Board has determined that it is in the best interests of the Company and its stockholders for Mr. Polanco, in light of his senior public leadership experience, to continue to serve as a director on the Board.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| Anthony A. WilliamsDirector Age: 58 Shares beneficially owned: 2,500 Committees: · Audit· Nominating and corporate governance                                                                                   |  Mr. Williams, the former Mayor of Washington, D.C. (1999 – 2007), is the Executive Director of the Global Government Practice at the Corporate Executive Board in Arlington, Virginia.  He also serves as the William H. Bloomberg Lecturer in Public Management at the Harvard Kennedy School.  In addition, Mr. Williams maintains his affiliation with Arent Fox LLP as its Director of State and Municipal Practice.  During his two terms as Mayor, he is widely credited with leading the comeback of Washington, restoring the finances of our nation’s capital and improving the performance of government agencies, all while lowering taxes and investing in infrastructure and human services. Before his election as Mayor, he was the independent Chief Financial Officer of the District from 1995 to 1998, working with and on behalf of local officials, the D.C. Financial Control Board, and the U.S. Congress. Before his service in local Washington, Mr. Williams worked in a variety of positions in federal, state, and local government, including as the first CFO for the U.S. Department of Agriculture, appointed by President Bill Clinton and confirmed by the U.S. Senate.  In addition to his work on company boards, Mr. Williams devotes his attention to issues of education and the environment, serving on the board of Fight for Children and the Chesapeake Bay Foundation. He holds a BA from Yale and an MPP from the Kennedy School and a J.D. from the Harvard Law School, as well as a number of awards and honorary degrees, including Governing Magazine Public Official of the Year in 1997.  He is a fellow of the National Academy of Public Administration and former President of the National League of Cities.   |
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|                                                                                                                                                                                                                                                    | The Board has determined that it is in the best interests of the Company and its stockholders for Mr. Williams, in light of his urban leadership and financial expertise, to continue to serve as a director on the Board.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

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| Andrew MurrayChief Financial Officer Age: 42 Shares beneficially owned: 72,800 LTIP units owned:95,000(1)                               | Since joining us in May 2008, Mr. Murray has been responsible for all corporate-level capital markets activities, oversight of the Company’s accounting and financial reporting functions, and management of our investor relations activities.  Prior to that time, Mr. Murray led the West Coast real estate investment banking activities for FBR Capital Markets Corporation (NASDAQ: FBCM), an investment banking, institutional brokerage and asset management firm, where he held the position of senior vice president.  Mr. Murray had been with FBR for four years and previous to that was a consultant for Prospect Financial Advisors, a registered broker dealer and financial advisor that provided capital access to companies to allow them to achieve significant corporate initiatives.  Prospect Financial Advisors was acquired by Galen Capital Corp., a merchant banking and private equity firm, in July 2007.  Mr. Murray began his career in 1989 at Salomon Brothers and is a graduate of the Wharton School of Business of the University of Pennsylvania.   |
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| Todd NielsenGeneral Counsel and Corporate Secretary Age: 41 Shares beneficially owned: 9,990 LTIP units owned: 81,667(1)                | Mr. Nielsen is responsible for all legal issues relating to compliance with SEC regulations, as well as overseeing real estate transactions and other legal matters. Mr. Nielsen served as the general counsel of our predecessor business from 2005 until our IPO.  Before joining our predecessor business, Mr. Nielsen served as our predecessor’s outside legal counsel with the law firm of Nevers, Palazzo, Maddux & Packard.  Prior to that, Mr. Nielsen practiced law privately including with Brobeck, Phleger & Harrison. Mr. Nielsen’s private practice experience included representation of developers, investors, corporate users and lenders in connection with the acquisition, financing, development, construction, sale and leasing of retail, office, industrial, hotel, and residential projects.  Mr. Nielsen graduated magna cum laude in 1995 from Brigham Young University’s J. Reuben Clark Law School, and thereafter served as a law clerk to the Hon. Howard M. Kirshbaum of the Colorado Supreme Court.                                          |
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|   Miguel Enrique EchemendiaChief Administrative Officer Age: 53 Shares beneficially owned: 7,250 LTIP units owned: 81,667(1)  |   Mr. Echemendia is responsible for all property management, leasing activities, property specific financing and other general administrative functions. Mr. Echemendia served as chief operating officer of our predecessor business from 2000 until our IPO and was responsible for strategic planning, acquisitions, finance and management.  Before joining our predecessor business, from 1989 to 2000, Mr. Echemendia served as a principal and chief financial officer of Villanueva Companies, a conglomerate involved in an array of investments including communications, real estate development, agriculture and management consulting. Prior to that, from 1987 to 1989, he served as business manager for KMEX-TV, the flagship station of the Univision Network with annual revenues in excess of $100 million.  In addition, Mr. Echemendia served in various managerial capacities at Security Pacific National Bank from 1979 to 1987, culminating as vice president of commercial lending.  He attended school in Spain and California State University, Los Angeles.  |

| (1) | Long-Term Incentive Plan Units in Meruelo Maddux Properties, L.P., through which we conduct most of our business operations (our “Operating Partnership”), are subject to forfeiture over a three-year period. Upon achieving parity with the common units in our Operating Partnership and becoming “redeemable” in accordance with the terms of the partnership agreement of our Operating Partnership, LTIP units may be redeemed for cash or, at our option, an equal number of shares of our Common Stock. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

| ·   | base salary; |
|--------------------|--------------|

| ·   | cash bonus; |
|--------------------|-------------|

| ·   | long-term equity incentive awards; and |
|--------------------|----------------------------------------|

| ·   | perquisites and other personal benefits. |
|--------------------|------------------------------------------|

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|                |   |              Minimum Awards Required Under Employment Agreements |
|---------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|
| Name                |   | LTIP Units Awarded                                                                                                                |                 Discretionary Equity Awards |
|                |   |                                                                                                                              |   |   |
| Richard Meruelo     |   | 10,000                                                                                                                            |   |                             - |
| John Charles Maddux |   | 10,000                                                                                                                            |   |                             - |
| Andrew Murray       |   | 60,000                                                                                                                            |   |                             - |

| Name and Principal Position             | Year   |   |  Salary                          |                                  | Stock Awards(1)                                                                                                     | Non-Equity Incentive Plan Compensation(2)                                                                           | All Other Compensation                                                                                                                                  | Total                                                                                                                                                   |
|-----------------------------------------|--------|--------|---------------------------------------|---------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                    |   |   |                                  |                                  |                                                                                                                |                                                                                                                |                                                                                                                                                    |                                                                                                                                                    |   |   |   |   |
| Richard Meruelo                         |   | 2009   |                                  |  $  450,000            |                                                                                                                |  $             200                            |                                                                                                                                                    |  $                      -            |   |  $           20,000 | (3) |  $      470,200 |
| Chairman and Chief Executive Officer    | 2008   |   |      450,000 |                                  |              9,052                                 |                                                                                                                |                225,000                                                       |                                                                                                                                                    | 20,000 | (3) |          704,052 |
|                                    |   | 2007   |                                  |      450,000 | (5)                                                                                                                 |            29,200                                            |                                                                                                                                                    |                225,000                                                       |   | 20,000 | (3) |          724,200 |
|                                    |   |   |                                  |                                  |                                                                                                                |                                                                                                                |                                                                                                                                                    |                                                                                                                                                    |   |   |   |   |
| John Charles Maddux                     |   | 2009   |                                  |      450,000 |                                                                                                                |                 200                 |                                                                                                                                                    |                          - |   | 20,000 | (3) |          470,200 |
| President and Chief Operating officer   | 2008   |   |      450,000 |                                  |              9,052                                 |                                                                                                                |                225,000                                                       |                                                                                                                                                    | 20,000 | (3) |          704,052 |
|                                    |   | 2007   |                                  | 450,000                               | (5)                                                                                                                 |            29,200                                            |                                                                                                                                                    |                225,000                                                       |   | 20,000 | (3) |          724,200 |
|                                    |   |   |                                  |                                  |                                                                                                                |                                                                                                                |                                                                                                                                                    |                                                                                                                                                    |   |   |   |   |
| Andrew Murray                           |   | 2009   |                                  |      275,000 |                                                                                                                |              1,200                                 |                                                                                                                                                    |                          - |   |                       - |   |          276,200 |
| Chief Financial Officer                 |   | 2008   |                                  |      163,942 |                                                                                                                |            79,150                                            |                                                                                                                                                    |                  68,750                                            |   | 200,000 | (4) |          511,842 |
|                                    |   |   |                                  |                                  |                                                                                                                |                                                                                                                |                                                                                                                                                    |                                                                                                                                                    |   |   |   |   |
| Todd Nielsen                            |   | 2009   |                                  |      275,000 |                                                                                                                |                    - |                                                                                                                                                    |                          - |   |                       - |   |          275,000 |
| General Counsel and Corporate Secretary | 2008   |   |      275,000 |                                  |                    - |                                                                                                                |                  68,750                                            |                                                                                                                                                    |                       - |   |          343,750 |
|                                    |   | 2007   |                                  | 275,000                               | (5)                                                                                                                 |          629,653                                                       |                                                                                                                                                    |                  68,750                                            |   |                       - |   |          973,403 |
|                                    |   |   |                                  |                                  |                                                                                                                |                                                                                                                |                                                                                                                                                    |                                                                                                                                                    |   |   |   |   |
| Miguel Enrique Enchemendia              | 2009   |   |      275,000 |                                  |                    - |                                                                                                                |                          - |                                                                                                                                                    |                       - |   |          275,000 |
| Chief Administrative Officer            | 2008   |   |      275,000 |                                  |                    - |                                                                                                                |                  68,750                                            |                                                                                                                                                    |                       - |   |          343,750 |
|                                    |   | 2007   |                                  | 275,000                               | (5)                                                                                                                 |          629,653                                                       |                                                                                                                                                    |                  68,750                                            |   |                       - |   |          973,403 |

| (1) | All awards consist of LTIP units in our Operating Partnership. The dollar value indicated is computed in accordance FASB ASC Topic 718 and reflects the grant date fair value of the awards.  The amount reported has been adjusted to eliminate service-based forfeiture assumptions used for financial reporting purposes. LTIP units initially have a liquidation value of zero. See Note 16 to our consolidated financial statements included herein for a discussion of our accounting of LTIP units and the assumptions used. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The amount shown in the Non-Equity Incentive Plan Compensation column equals the amount of the annual cash bonus for each named executive officer. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Per the terms of his employment agreement, the named executive officer is entitled to an annual automobile allowance of $20,000. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (4) | Per the terms of his employment agreement, the named executive officer received a signing bonus of $200,000 in connection with the execution of his employment agreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Salary amounts reflect the salary period to each officer for the period January 30, 2007 through December 31, 2007, annualized for the convenience of the reader. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                      | Grant Date        |   | All Other Shares Awards: Number of Shares |   |   | Grant Date Fair Value |   |
|---------------------------|-------------------|--------|------------------------------------------------|--------|--------|-----------------------|--------|
|                      |              |   |                                           |   |   |                  |   |
| Richard Meruelo           | December 31, 2009 |   |                                           | 10,000 | (1)    |                  |   | 200 |   |
| John Charles Maddux       | December 31, 2009 |   |                                           | 10,000 | (1)    |                  |   | 200 |   |
| Andrew Murray             | December 31, 2009 |   |                                           | 60,000 | (1)    |                  |   | 1,200 |   |
| Todd Nielsen              | December 31, 2009 |   |                                           | -      |   |                  |   | - |   |
| Miguel Enrique Echemendia | December 31, 2009 |   |                                           | -      |   |                  |   | - |   |

| (1) | Minimum LTIP unit award received annually pursuant to the officer’s employment agreement. |
|-----|-------------------------------------------------------------------------------------------------|

|                      |   |                                           |   |   |                                                     |   |   |                                                                                                      |   |   |                                                                                                                        |   |
|---------------------------|--------|------------------------------------------------|--------|--------|----------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|--------|
| Name                      |   | Stock Awards                                   |   |   |                                                     |   |   |                                                                                                      |   |   |                                                                                                                        |   |
|                      |   | Number of Shares or Units That Have Not Vested |   |   | Market Value of Shares or Unites That Have Not Vested(1) |   |   | Equity Incentive Plan Awards: Number of Unearned Shares, Unites or Other Rights That Have Not Vested |   |   | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested(1) |   |
|                      |   |                                           |   |   |                                                     |   |   |                                                                                                      |   |   |                                                                                                                        |   |
| Richard Meruelo           |   |                                           | 20,000 | (2)    |                                                     | $      | 600    |                                                                                                      |   |   | -                                                                                                                           |   |   |   | - |   |
| John Charles Maddux       |   |                                           | 20,000 | (2)    |                                                     |   | 600    |                                                                                                      |   |   | -                                                                                                                           |   |   |   | - |   |
| Andrew Murray             |   |                                           | 77,500 | (3)    |                                                     |   | 2,325  |                                                                                                      |   |   | 200,000                                                                                                                     | (5)    |   |   | 6,000 |   |
| Todd Nielsen              |   |                                           | 27,223 | (4)    |                                                     |   | 817    |                                                                                                      |   |   | -                                                                                                                           |   |   |   | - |   |
| Miguel Enrique Echemendia |   |                                           | 27,223 | (4)    |                                                     |   | 817    |                                                                                                      |   |   | -                                                                                                                           |   |   |   | - |   |

| (1) | Assumed market value is $0.03 per unit, which was the closing price on the OTC Bulletin Board of Common Stock on December 31, 2009. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| (2) | 10,000 of these LTIP units vest ratably over the next 3 years, 6,667 of these LTIP units vest ratably over the next two years and 3,333 vest next year. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | 60,000 of these LTIP units vest ratably over the next two years and 17,500 of these LTIP units vest next year. |
|-----|----------------------------------------------------------------------------------------------------------------|

| (4) | These LTIP units vest next year. |
|-----|----------------------------------|

| (5) | These LTIP units may be earned upon achievement of certain Company stock price thresholds.  See “—Employment Agreements—Agreement for Mr. Murray.”  If earned, these LTIP units will vest ratably over two years. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ·   | upon termination by us without “cause,” a lump-sum cash payment equal to three times the sum of: (1) the named executive officer’s then-current annual base salary; and (2) the greater of (i) the bonus paid to the named executive officer for the most recently completed fiscal year, and (ii) the minimum bonus that would have been paid to the named executive officer for the fiscal year in which the termination occurs; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | upon termination by the named executive officer for “good reason,” a lump-sum cash payment equal to three times the sum of (1) the named executive officer’s then-current annual base salary; and (2) the bonus paid to the named executive officer for the most recently completed fiscal year; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | for 18 months after termination of employment, continuing coverage under the group health plans the named executive officer would have received under his employment agreement, as would have been applied in the absence of such termination; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | immediate vesting of all outstanding equity-based awards held by the named executive officer. |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | upon termination by us without “cause,” a lump-sum cash payment equal to two times the sum of (1) Mr. Murray’s then-current annual base salary; and (2) the greater of (i) the bonus paid to Mr. Murray for the most recently completed fiscal year (excluding any signing bonus), and (ii) the minimum bonus that would have been paid to Mr. Murray for the fiscal year in which the termination occurs (excluding any signing bonus); |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | upon termination by Mr. Murray for “good reason,” a lump-sum cash payment equal to two times the sum of (1) Mr. Murray’s then-current annual base salary; and (2) the bonus paid to Mr. Murray for the most recently completed fiscal year (excluding any signing bonus); |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | for one year after termination of employment, continuing coverage under the group health plans Mr. Murray would have received under his employment agreement, as would have been applied in the absence of such termination; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | immediate vesting of all outstanding equity-based awards held by the named executive officer. |
|--------------------|-----------------------------------------------------------------------------------------------|

----

----

| Name                      |   | Value of Unforfeited LTIP Units |   |
|---------------------------|--------|---------------------------------|--------|
|                      |   |                            |   |
| Richard Meruelo           |   | $                               | 600    |   |
| John Charles Maddux       |   |                            | 600    |   |
| Andrew Murray             |   |                            | 2,325  |   |
| Todd Nielsen              |   |                            | 817    |   |
| Miguel Enrique Echemendia |   |                            | 817    |   |

| Richard Meruelo                    |   |                                |   |   |                                |   |   |                                                                       |   |   |                                                             |   |   |                |    |
|------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|---------------------|---------|
|                               |   |                                |   |   |                                |   |   |                                                                       |   |   |                                                             |   |   |                |    |
| Payments Upon Termination          |   | Voluntary Termination of Retirement |   |   | Involuntary "For Cause" Termination |   |   | Involuntary Termination Without "Cause/Termination for "Good Reason"(1)(2) |   |   | Termination for "Good Reason" Following Notice of Non-Renewal(2) |   |   | Death or Disability |    |
|                               |   |                                |   |   |                                |   |   |                                                                       |   |   |                                                             |   |   |                |    |
| Lump sum cash (salary & bonus) |   | $                                   | -      |   |                                | $      | -      |                                                                       |   | $      | 2,025,000                                                        |   |   | $                   | 675,000 |   |   | $ | 675,000 |   |
| Unforfeited LTIP units             |   |                                | -      |   |                                |   | -      |                                                                       |   |   | 600                                                              |   |   |                | 600     |   |   |   | - |   |
| Benefits continuation              |   |                                | -      |   |                                |   | -      |                                                                       |   |   | -                                                                |   |   |                | -       |   |   |   | - |   |
| Excise tax gross-up(3)             |   |                                | -      |   |                                |   | -      |                                                                       |   |   | -                                                                |   |   |                | -       |   |   |   | - |   |
| Total                              |   | $                                   | -      |   |                                | $      | -      |                                                                       |   | $      | 2,025,600                                                        |   |   | $                   | 675,600 |   |   | $ | 675,000 |   |

| (1) | Includes the named executive officer’s resignation for “good reason” following the Company’s notice of non-renewal of the employment agreement of the named executive officer during the 12-month period following the effective date of a change in control. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The remaining forfeiture periods applicable to outstanding LTIP units would lapse upon a change in control of the company. LTIP units will not become redeemable until the LTIP units achieve parity with the common units in the Operating Partnership, notwithstanding any termination or change in control. The indicated amount assumes a market value per LTIP unit of $0.03, which was the closing price on the OTC Bulletin Board per share of Common Stock on December 31, 2009. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Under the terms of his employment agreement, Mr. Meruelo is entitled to a tax gross-up payment under certain conditions in the event that his employment is terminated in connection with a change in control. However, the termination payment owing to Mr. Meruelo would not result in such a gross-up payment. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| John Charles Maddux                |   |                                |   |   |                                |   |   |                                                                       |   |   |                                                             |   |   |                |    |
|------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|---------------------|---------|
|                               |   |                                |   |   |                                |   |   |                                                                       |   |   |                                                             |   |   |                |    |
| Payments Upon Termination          |   | Voluntary Termination of Retirement |   |   | Involuntary "For Cause" Termination |   |   | Involuntary Termination Without "Cause/Termination for "Good Reason"(1)(2) |   |   | Termination for "Good Reason" Following Notice of Non-Renewal(2) |   |   | Death or Disability |    |
|                               |   |                                |   |   |                                |   |   |                                                                       |   |   |                                                             |   |   |                |    |
| Lump sum cash (salary & bonus) |   | $                                   | -      |   |                                | $      | -      |                                                                       |   | $      | 2,025,000                                                        |   |   | $                   | 675,000 |   |   | $ | 675,000 |   |
| Unforfeited LTIP units             |   |                                | -      |   |                                |   | -      |                                                                       |   |   | 600                                                              |   |   |                | 600     |   |   |   | - |   |
| Benefits continuation              |   |                                | -      |   |                                |   | -      |                                                                       |   |   | 2,712                                                            |   |   |                | 2,712   |   |   |   | - |   |
| Excise tax gross-up(3)             |   |                                | -      |   |                                |   | -      |                                                                       |   |   | -                                                                |   |   |                | -       |   |   |   | - |   |
| Total                              |   | $                                   | -      |   |                                | $      | -      |                                                                       |   | $      | 2,028,312                                                        |   |   | $                   | 678,312 |   |   | $ | 675,000 |   |

| (1) | Includes the named executive officer’s resignation for “good reason” following the Company’s notice of non-renewal of the employment agreement of the named executive officer.  This excludes the non-renewal of the employment agreement during the 12-month period following the effective date of a change in control. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The remaining forfeiture periods applicable to outstanding LTIP units would lapse upon a change in control of the company. LTIP units will not become redeemable until the LTIP units achieve parity with the common units in the Operating Partnership, notwithstanding any termination or change in control. The indicated amount assumes a market value per LTIP unit of $0.03, which was the closing price on the OTC Bulletin Board per share of Common Stock on December 31, 2009. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Under the terms of his employment agreement, Mr. Maddux is entitled to a tax gross-up payment under certain conditions in the event that his employment is terminated in connection with a change in control.  However, the termination payment owing to Mr. Maddux would not result in such a gross-up payment. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Andrew Murray                      |   |                                |   |   |                                |   |   |                                                                    |   |   |                |   |
|------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------------------------------------------------|--------|--------|---------------------|--------|
|                               |   |                                |   |   |                                |   |   |                                                                    |   |   |                |   |
| Payments Upon Termination          |   | Voluntary Termination of Retirement |   |   | Involuntary "For Cause" Termination |   |   | Involuntary Termination Without "Cause/Termination for "Good Reason"(1) |   |   | Death or Disability |   |
|                               |   |                                |   |   |                                |   |   |                                                                    |   |   |                |   |
| Lump sum cash (salary & bonus) |   | $                                   | -      |   |                                | $      | -      |                                                                    |   | $      | 343,750             |   |   | $ | 343,750 |   |
| Unforfeited LTIP units             |   |                                | -      |   |                                |   | -      |                                                                    |   |   | 2,325               |   |   |   | - |   |
| Benefits continuation              |   |                                | -      |   |                                |   | -      |                                                                    |   |   | 2,712               |   |   |   | - |   |
| Excise tax gross-up(2)             |   |                                | -      |   |                                |   | -      |                                                                    |   |   | -                   |   |   |   | - |   |
| Total                              |   | $                                   | -      |   |                                | $      | -      |                                                                    |   | $      | 348,787             |   |   | $ | 343,750 |   |

| (1) | The remaining forfeiture periods applicable to outstanding LTIP units would lapse upon a change in control of the company. LTIP units will not become redeemable until the LTIP units achieve parity with the common units in the Operating Partnership, notwithstanding any termination or change in control.  The indicated amount assumes a market value per LTIP unit of $0.03, which was the closing price on the OTC Bulletin Board per share of Common Stock on December 31, 2009. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Under the terms of his employment agreement, Mr. Murray is not entitled to a tax gross-up payment. |
|-----|----------------------------------------------------------------------------------------------------|

----

| Todd Nielsen                       |   |                                |   |   |                                |   |   |                                                                    |   |   |                |   |
|------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------------------------------------------------|--------|--------|---------------------|--------|
|                               |   |                                |   |   |                                |   |   |                                                                    |   |   |                |   |
| Payments Upon Termination          |   | Voluntary Termination of Retirement |   |   | Involuntary "For Cause" Termination |   |   | Involuntary Termination Without "Cause/Termination for "Good Reason"(1) |   |   | Death or Disability |   |
|                               |   |                                |   |   |                                |   |   |                                                                    |   |   |                |   |
| Lump sum cash (salary & bonus) |   | $                                   | -      |   |                                | $      | -      |                                                                    |   | $      | -                   |   |   | $ | 343,750 |   |
| Unforfeited LTIP units             |   |                                | -      |   |                                |   | -      |                                                                    |   |   | 817                 |   |   |   | - |   |
| Benefits continuation              |   |                                | -      |   |                                |   | -      |                                                                    |   |   | 2,580               |   |   |   | - |   |
| Excise tax gross-up(2)             |   |                                | -      |   |                                |   | -      |                                                                    |   |   | -                   |   |   |   | - |   |
| Total                              |   | $                                   | -      |   |                                | $      | -      |                                                                    |   | $      | 3,397               |   |   | $ | 343,750 |   |

| (1) | The remaining forfeiture periods applicable to outstanding LTIP units would lapse upon a change in control of the company. LTIP units will not become redeemable until the LTIP units achieve parity with the common units in the Operating Partnership, notwithstanding any termination or change in control. The indicated amount assumes a market value per LTIP unit of $0.03, which was the closing price on the OTC Bulletin Board per share of Common Stock on December 31, 2009. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Under the terms of his employment agreement, Mr. Nielsen is not entitled to a tax gross-up payment. |
|-----|-----------------------------------------------------------------------------------------------------|

| Miguel Enrique Echemendia          |   |                                |   |   |                                |   |   |                                                                    |   |   |                |   |
|------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------------------------------------------------|--------|--------|---------------------|--------|
|                               |   |                                |   |   |                                |   |   |                                                                    |   |   |                |   |
| Payments Upon Termination          |   | Voluntary Termination of Retirement |   |   | Involuntary "For Cause" Termination |   |   | Involuntary Termination Without "Cause/Termination for "Good Reason"(1) |   |   | Death or Disability |   |
|                               |   |                                |   |   |                                |   |   |                                                                    |   |   |                |   |
| Lump sum cash (salary & bonus) |   | $                                   | -      |   |                                | $      | -      |                                                                    |   | $      | -                   |   |   | $ | 343,750 |   |
| Unforfeited LTIP units             |   |                                | -      |   |                                |   | -      |                                                                    |   |   | 817                 |   |   |   | - |   |
| Benefits continuation              |   |                                | -      |   |                                |   | -      |                                                                    |   |   | 2,580               |   |   |   | - |   |
| Excise tax gross-up(2)             |   |                                | -      |   |                                |   | -      |                                                                    |   |   | -                   |   |   |   | - |   |
| Total                              |   | $                                   | -      |   |                                | $      | -      |                                                                    |   | $      | 3,397               |   |   | $ | 343,750 |   |

| (1) | The remaining forfeiture periods applicable to outstanding LTIP units would lapse upon a change in control of the company. LTIP units will not become redeemable until the LTIP units achieve parity with the common units in the Operating Partnership, notwithstanding any termination or change in control. The indicated amount assumes a market value per LTIP unit of $0.03, which was the closing price on the OTC Bulletin Board per share of Common Stock on December 31, 2009. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Under the terms of his employment agreement, Mr. Echemendia is not entitled to a tax gross-up payment. |
|-----|--------------------------------------------------------------------------------------------------------|

----

| ·   | Each non-employee director received an annual fee of $25,000, a fee of $1,250 for each Board of Directors meeting attended in person and a fee of $350 for each Board of Directors meeting attended telephonically. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The chairman of our audit committee was paid an annual fee of $12,500, and the chairmen of our compensation, and nominating and corporate governance committees each received an annual fee of $7,500. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Board committee members will each be paid a fee of $750 for committee meetings attended in person and a fee of $350 for committee meetings attended telephonically, in each case only for meetings held on dates different from the dates on which Board of Directors or other committee meetings are held. If a committee meeting is attended on the same day as a Board meeting or other committee meeting, we will pay only one meeting fee per day. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Each member of our Board of Directors was also reimbursed for reasonable out-of-pocket expenses associated with service on our behalf and with attendance at or participation in Board meetings or committee meetings, including reasonable travel expenses. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Each member of our Board of Directors was also reimbursed up to $7,000 for fees and expenses paid related to continuing director education programs. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                      |   | Fees Earned                                                                                                                                  |   | Stock Awards                                                                                                                                            |   | Total                                                                                                                                        |
|---------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|
|                      |   |                                                                                                                                         |   |                                                                                                                                                    |   |                                                                                                                                         |
| Lynn Beckemeyer(2)        |   |  $                      - |   |  $                      -            |   |  $                      - |
| John B. Hansen(3)         |   |                  41,100                                 |   |                          - |   |                  41,100                                 |
| Philip S. Payne(4)        |   |                  46,100                                 |   |                          - |   |                  46,100                                 |
| Richard Garcia Polanco(5) |   |                  41,100                                 |   |                          - |   |                  41,100                                 |
| Anthony A. Williams(5)    |   |                  33,600                                 |   |                          - |   |                  33,600                                 |

| (1) | In 2009, we did not issue any stock awards to our directors. |
|-----|--------------------------------------------------------------|

| (2) | Mr. Beckemeyer is paid for his services as an executive officer but does not receive any compensation for his services as a director.  Mr. Beckemeyer is not a named executive officer as defined under the rules of the federal securities laws.  Mr. Beckemeyer does not own any shares of the Company’s Common Stock. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Mr. Hansen owns 10,100 shares of Common Stock in total as of June 18, 2010. |
|-----|-----------------------------------------------------------------------------|

| (4) | Mr. Payne owns 7,500 shares of Common Stock in total as of June 18, 2010. |
|-----|---------------------------------------------------------------------------|

| (5) | The director owns 2,500 shares of Common Stock in total as of June 18, 2010. |
|-----|------------------------------------------------------------------------------|

----

| Name of Beneficial Owner                        |   | Shares of Common Stock(1) |       |   | Percent of Common Stock(2) |   |
|-------------------------------------------------|--------|---------------------------|------------|--------|----------------------------|--------|
|                                            |   |                      |       |   |                       |   |
| Richard Meruelo                                 |   |                      | 39,911,378 |   |                       |   | 45.43 | % |
| John Charles Maddux                             |   |                      | 5,797,588  |   |                       |   | 6.60 | % |
| Lynn Beckemeyer                                 |   |                      | -          |   |                       |   | 0.00 | % |
| Andrew Murray                                   |   |                      | 72,800     |   |                       |   | * |   |
| Todd Nielsen                                    |   |                      | 9,990      |   |                       |   | * |   |
| Miguel Enrique Echemendia                       |   |                      | 7,250      |   |                       |   | * |   |
| John B. Hansen                                  |   |                      | 10,100     |   |                       |   | * |   |
| Philip S. Payne                                 |   |                      | 7,500      |   |                       |   | * |   |
| Richard Garcia Polanco                          |   |                      | 2,500      |   |                       |   | * |   |
| Anthony A. Williams                             |   |                      | 2,500      |   |                       |   | * |   |
| Stephen S. Taylor(3)                            |   |                      | 12,343,687 |   |                       |   | 14.05 | % |
| All directors and executive officers as a group |   |                      | 45,831,606 |   |                       |   | 52.17 | % |

|  * | Represents ownership of less than 1.0%. |
|---------|-----------------------------------------|

| (1) | The number of shares of Common Stock beneficially owned is reported on the basis of regulations of the SEC governing the determination of beneficial ownership of securities.  Excludes ownership of LTIP units which, upon achieving parity with the common units in our Operating Partnership and becoming “redeemable” in accordance with the terms of the partnership agreement of our Operating Partnership, may be redeemed for cash or, at our option, an equal number of shares of our Common Stock.  Each of Messrs. Meruelo and Maddux owns 30,000 LTIP units; Mr. Beckemeyer owns 64,167 LTIP units; Mr. Murray owns 95,000 LTIP units; Mr. Skaggs owns 50,167 LTIP units; and each of Messrs. Echemendia and Nielsen owns 81,667 LTIP units. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Based on 88,054,443 shares of our Common Stock outstanding as of June 18, 2010, excluding shares that we have a contingent obligation to issue. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The business address for this stockholder is 714 South Dearborn Street, 2nd Floor, Chicago, Illinois 60605.  According to a Schedule 13D filed with the SEC on September 1, 2009, Mr. Taylor has sole voting and dispositive powers with respect to all of these shares of Common Stock. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Plan Category                                                  |    | Number of securities to be issued upon exercise of outstanding options, warrants and rights                                     | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remainig available for future issuance under equity copensation plans (1)                               |
|----------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|
| Equity compensation plans approved by security holders (2)     | 981,036 | (3)                                                                                                                             | 4.05                                                                        | (4)                                                                                                                          |                          1,071,267 |
| Equity compensation plans not approved by security holders (5) |    |                                                                                                                            |
| Total                                                          |    | None                                                                                                                            |                                                                        | None                                                                                                                         |   | None |
|                                                           |    |                     981,036 |                                                                        |                     4.05 |   |                          1,071,267 |

| (1) | The amounts indicated in this column exclude securities listed in the column titled “Number of securities to be issued upon exercise of outstanding options, warrants and rights.”                                                                                                                                                                                                                                                                                                                                                                    |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The 2007 Equity Incentive Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |
| (3) | Includes Long-Term Incentive Plan Units in Meruelo Maddux Properties, L.P., through which we conduct most of our   business operations (our “Operating Partnership”), are subject to forfeiture over a three-year period. Upon achieving parity with the common units in our Operating Partnership and becoming “redeemable” in accordance with the terms of the partnership agreement of our Operating Partnership, LTIP units may be redeemed for cash or, at our option, an equal number of shares of our Common Stock. |   |   |
| (4) | The exercise price is the weighted average exercise price of the outstanding options, warrants and rights described in the column to the left.                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| (5) | The Company does not have any equity compensation plans that have not been approved by its stockholders.                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |

----

|               |   | Year Ended December 31, 2009 |    |   | Year Ended December 31, 2008 |   |
|--------------------|--------|------------------------------|---------|--------|------------------------------|--------|
|               |   |                         |    |   |                         |   |
| Audit Fees         |   | $                            | 425,000 |   |                         | $      | 651,874 |   |
| Audit-Related Fees |   |                         | -       |   |                         |   | - |   |
| Tax Fees           |   |                         | 177,934 |   |                         |   | 239,878 |   |
| All Other Fees     |   |                         | -       |   |                         |   | 141,584 |   |
| Total              |   | $                            | 602,934 |   |                         | $      | 1,033,336 |   |

----

|   | Meruelo Maddux Properties, Inc. Debtor-in-Possession and Subsidiary (the “Company”) and Meruelo Maddux Properties (the “Predecessor”):                                                                                                                                                                             |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                       |
|   | Reports of Independent Registered Public Accounting Firm                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                       |
|   | Consolidated Balance Sheets of the Company as of December 31, 2009 and 2008                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                       |
|   | Consolidated Statements of Operations of the Company for Years Ended December 31, 2009 and 2008 and the Period from January 30, 2007 through December 31, 2007 and Combined Statements of Operations of the Predecessor for the Period from January 1, 2007 through January 29, 2007                                                       |
|   |                                                                                                                                                                                                                                                                                                                                       |
|   | Consolidated Statements of Stockholders’ Equity (Deficit) of the Company for the Years Ended December 31, 2009 and 2008 and the Period from January 30, 2007 through December 31, 2007 and the Combined Statements of Owners’ Equity (Deficit) of the Predecessor for the Period from January 1, 2007 through January 29, 2007 |
|   |                                                                                                                                                                                                                                                                                                                                       |
|   | Consolidated Statements of Stockholders’ Equity (Deficit) of the Company for the Years Ended December 31, 2009 and 2008 and the Period from January 30, 2007 through December 31, 2007 and the Combined Statements of Owners’ Equity (Deficit) of the Predecessor for the Period from January 1, 2007 through January 29, 2007 |
|   |  Notes to Consolidated and Combined Financial Statements                                                                                                                                                                                                                                                                              |

|   2.   | Financial Statement Schedules |
|-----------------------|-------------------------------|

----

|   |   |
|--------|--------|

| ExhibitNumber |   |  Description of Exhibit                                                                                                                                                                                                                                                                                                                           |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1           |   | Form of Amended and Restated Certificate of Incorporation (1)                                                                                                                                                                                                                                                                                          |
| 3.2           |   | Form of Bylaws (1)                                                                                                                                                                                                                                                                                                                                     |
| 4             |   | Form of Common Stock Certificate  (1)                                                                                                                                                                                                                                                                                                        |
| 10.1          |   | Form of Amended and Restated Agreement of Limited Partnership of Meruelo Maddux Properties, L.P. (1)                                                                                                                                                                                                                                                   |
| 10.2          |   | 2007 Equity Incentive Plan* (1)                                                                                                                                                                                                                                                                                                                        |
| 10.3          |   | Form of LTIP Unit Agreement* (1)                                                                                                                                                                                                                                                                                                                       |
| 10.4          |   | Form of Restricted Stock Agreement* (1)                                                                                                                                                                                                                                                                                                                |
| 10.5          |   | Form of Employment Agreement with Mr. Meruelo* (1)                                                                                                                                                                                                                                                                                                     |
| 10.6          |   | Form of Employment Agreement with Mr. Maddux* (1)                                                                                                                                                                                                                                                                                                      |
| 10.7          |   | Form of Employment Agreement with Mr. Beckemeyer* (1)                                                                                                                                                                                                                                                                                                  |
| 10.8          |   | Form of Employment Agreement with Mr. Skaggs* (1)                                                                                                                                                                                                                                                                                                      |
| 10.9          |   | Form of Employment Agreement with Mr. Nielsen* (1)                                                                                                                                                                                                                                                                                                     |
| 10.10         |   | Form of Employment Agreement with Mr. Echemendia* (1)                                                                                                                                                                                                                                                                                                  |
| 10.11         |   | Form of Employment Agreement with Mr. Murray* (2)                                                                                                                                                                                                                                                                                                      |
| 10.12         |   | Contribution Agreement dated September 19, 2006, by and among Meruelo Maddux Properties, Inc., Meruelo Maddux Properties, L.P., Richard Meruelo, as Trustee of the Richard Meruelo Living Trust U/D/T dated September 15, 1989, Merco Group – Roosevelt Building, LLC, and Sunstone Bella Vista, LLC (1)                                         |
| 10.13         |   | Merger Agreement dated September 19, 2006, by and among Meruelo Maddux Properties, Inc., Santa Fe & Washington Market, Inc., Santa Fe & Washington Market, LLC, and Richard Meruelo, as Trustee of the Richard Meruelo Living Trust U/D/T dated September 15, 1989 (1)                                                                         |
| 10.14         |   | Merger Agreement dated September 19, 2006, by and among Meruelo Maddux Properties, Inc., Alameda Produce Market, Inc., Alameda Produce Market, LLC, Richard Meruelo, as Trustee of the Richard Meruelo Living Trust U/D/T dated September 15, 1989 (1)                                                                                                 |
| 10.15         |   | Form of Indemnification Agreement between Meruelo Maddux Properties, Inc. and its directors and officers (1)                                                                                                                                                                                                                                           |
| 10.16         |   | Form of Registration Rights Agreement (1)                                                                                                                                                                                                                                                                                                              |
| 10.17         |   | Form of Non-Competition Agreement with Messrs. Meruelo and Maddux (1)                                                                                                                                                                                                                                                                                  |
| 10.18         |   | First Amendment to Contribution Agreement dated as of September 19, 2006, by and among Meruelo Maddux Properties, Inc., Meruelo Maddux Properties, L.P., Richard Meruelo, as Trustee of the Richard Meruelo Living Trust U/D/T dated September 15, 1989, Merco Group – Roosevelt Building, LLC, and Sunstone Bella Vista, LLC (1) |
| 10.19         |   | First Amendment to Merger Agreement dated as of September 19, 2006, by and among Meruelo Maddux Properties, Inc., Alameda Produce Market, Inc., Alameda Produce Market, LLC, and Richard Meruelo, as Trustee of the Richard Meruelo Living Trust U/D/T dated September 15, 1989 (1)                                                          |

| 10.20 |   | First Amendment to Merger Agreement dated as of September 19, 2006, by and among Meruelo Maddux Properties, Inc., Alameda Produce Market, Inc., Alameda Produce Market, LLC, and Richard Meruelo, as Trustee of the Richard Meruelo Living Trust U/D/T dated September 15, 1989 (1) |
|-------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ExhibitNumber |   |  Description of Exhibit                                                                                                                                                  |
|---------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.21         |   | Loan Agreement with exhibits, dated as of July 31, 2008, by and among Meruelo Maddux – 845 S Flower Street, LLC and Canpartners Realty Holding Company IV LLC (3)  |
| 10.22         |   | Form of Note by Meruelo Maddux – 845 S. Flower Street, LLC in favor of Canpartners Realty Holding Company IV LLC (3)                                                    |
| 21            |   | List of subsidiaries                                                                                                                                                          |
| 23            |   | Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm                                                                                               |
| 24.1          |   | Power of Attorney (included in Part IV of this Annual Report on Form 10-K)                                                                                                    |
| 31.1          |   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                            |
| 31.2          |   | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                            |
| 32.1          |   | Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002                                              |
| 32.2          |   | Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002                                              |
|          |   |                                                                                                                                                                          |
| *             |   | Represents management contract or compensatory plan or agreement                                                                                                              |
|          |   |                                                                                                                                                                          |
| (1)           |   | Previously filed as an exhibit to the Registrant’s Registration Statement on Form S-11 (No. 333-137457) and incorporated herein by reference.                           |
| (2)           |   | Previously filed as an exhibit to the Registrant’s Current Report on Form 8-K on May 14, 2008 and incorporated herein by reference.                                     |
| (3)           |   | Previously filed as an exhibit to the Registrant’s Current Report on Form 8-K on August 4, 2008 and incorporated herein by reference.                                   |

----

|                      | MERUELO MADDUX PROPERTIES, INC.DEBTOR-IN-POSSESSION |                                                                 |
|---------------------------|-----------------------------------------------------|----------------------------------------------------------------------|
|                      |                                                |                                                                 |   |
| Date:  June 21, 2010 | By:                                                 | /s/ Richard Meruelo                                                  |   |
|                      |                                                | Richard Meruelo                                                      |   |
|                      |                                                | Chief Executive Officer and Chairman of the Board of Directors  |   |
|                      |                                                |                                                                 |   |

| Date                 | Signature                    |   |                                                                                         |
|----------------------|------------------------------|--------|----------------------------------------------------------------------------------------------|
|                 |                         |   |                                                                                         |
|   June 21, 2010 |   /s/ Richard Meruelo   |   | Chief Executive Officer (Principal Executive Officer) and Chairman of the Board of Directors |
|                 | Richard Meruelo              |   |                                                                                         |
|                 |                         |   |                                                                                         |
| June 21, 2010        | /s/ John Charles Maddux      |   | Director                                                                                     |
|                 | John Charles Maddux          |   |                                                                                         |
|                 |                         |   |                                                                                         |
| June 21, 2010        | /s/ Lynn Beckemeyer          |   | Director                                                                                     |
|                 | Lynn Beckemeyer              |   |                                                                                         |
|                 |                         |   |                                                                                         |
| June 21, 2010        | /s/ John B. Hansen           |   | Director                                                                                     |
|                 | John B. Hansen               |   |                                                                                         |
|                 |                         |   |                                                                                         |
| June 21, 2010        | /s/ Philip S. Payne          |   | Director                                                                                     |
|                 | Philip S. Payne              |   |                                                                                         |
|                 |                         |   |                                                                                         |
| June 21, 2010        | /s/ Richard Garcia Polanco   |   | Director                                                                                     |
|                 |  Richard Garcia Polanco |   |                                                                                         |
|                 |                         |   |                                                                                         |
| June 21, 2010        | /s/ Anthony A. Williams      |   | Director                                                                                     |
|                 | Anthony A. Williams          |   |                                                                                         |
|                 |                         |   |                                                                                         |
|   June 21, 2010 |   /s/ Andrew Murray     |   | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)       |
|                 | Andrew Murray                |   |                                                                                         |
|                 |                         |   |                                                                                         |

----

| Meruelo Maddux Properties, Inc. Debtor-in-possession and Subsidiaries and Meruelo Maddux Properties Predecessor:                                                                                                                                                                                                                                                                                                                                                                        | Page   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                                                                                                                                                    | F-2    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Report of Independent Registered Public Accounting Firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                                                                                                   | F-3    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Consolidated Balance Sheets of the Company as of December 31, 2009 and 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                                                                                                                    | F-4    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Consolidated Statements of Operations for the Years Ended December 31, 2009 and 2008 and the Period from January 30, 2007 through December 31, 2007 and Combined Statement of Operations of the Predecessor for the Period from January 1, 2007 through January 29, 2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | F-5    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Consolidated Statements of Stockholders’ Equity (Deficit) for the Years Ended December 31, 2009 and 2008 and the Period from January 30, 2007 through December 31, 2007 and the Combined Statement of Owners’ Equity (Deficit) of the Predecessor for the Period from January 1, 2007 through January 29, 2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            | F-6    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Consolidated Statements of Cash Flow for the Years Ended December 31, 2009 and 2008 and the Period from January 30, 2007 through December 31, 2007 and the Combined Statement of Cash Flow of the Predecessor for the Period from January 1, 2007 through January 29, 2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        | F-7    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Notes to Consolidated and Combined Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                                                                                                       | F-8    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Schedule III – Consolidated Real Estate and Accumulated Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                                                                                                          | F-34   |

----

|                          |   |                                |
|-------------------------------|--------|-------------------------------------|
|                          |   |                                |   |
|                          |   | /s/ Ernst & Young LLP |   |
|  Los Angeles, California |   |                                |   |
|  June 21, 2010           |   |                                |   |
|                          |   |                                |   |

----

|                          |   |                                |
|-------------------------------|--------|-------------------------------------|
|                          |   |                                |   |
|                          |   | /s/ Ernst & Young LLP |   |
|  Los Angeles, California |   |                                |   |
|  June 21, 2010           |   |                                |   |
|                          |   |                                |   |

----

|                                                                                                                                |   | December 31, 2009 |          |   | December 31, 2008 |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------------|--------|-------------------|--------|
|                                                                                                                                |   |              |          |   |              |   |
|  Assets                                                                                                                        |   |              |          |   |              |   |
|  Cash                                                                                                                          |   | $                 | 9,151         |   |              | $      | 4,460 |   |
|  Restricted cash                                                                                                               |   |              | 21,111        |   |              |   | 27,220 |   |
|  Accounts receivable                                                                                                           |   |              | 1,411         |   |              |   | 1,246 |   |
|  Rental properties, net                                                                                                        |   |              | 256,302       |   |              |   | 297,809 |   |
|  Real estate held for development                                                                                              |   |              | 280,985       |   |              |   | 347,946 |   |
|  Other assets, net                                                                                                             |   |              | 2,367         |   |              |   | 3,088 |   |
|  Total Assets                                                                                                                  |   | $                 |  571,327 |   |              | $      | 681,769 |   |
|                                                                                                                                |   |              |          |   |              |   |   |   |
|  Liabilities and Equity                                                                                                        |   |              |          |   |              |   |   |   |
|  Accounts payable                                                                                                              |   | $                 | 990           |   |              | $      | 1,660 |   |
|  Accrued expenses and other liabilities                                                                                        |   |              | 40,465        |   |              |   | 12,133 |   |
|  Notes payable secured by real estate                                                                                          |   |              | 172,363       |   |              |   | 328,229 |   |
|                                                                                                                                |   |              | 213,818       |   |              |   | 342,022 |   |
|                                                                                                                                |   |              |          |   |              |   |   |   |
|  Liabilities subject to compromise                                                                                             |   |              | 202,121       |   |              |   | – |   |
|  Total Liabilities                                                                                                             |   |              | 415,939       |   |              |   | 342,022 |   |
|                                                                                                                                |   |              |          |   |              |   |   |   |
|  Commitments and contingencies                                                                                                 |   |              | –       |   |              |   | – |   |
|  Common stock, $.01 par value, 200,000,000 shares                                                                              |   |              |          |   |              |   |   |   |
|  authorized, 87,964,784 and 87,852,083 shares issued and outstanding as of December 31, 2009 and  2008, respectively |   |              | 880           |   |              |   | 879 |   |
|  Additional paid-in capital                                                                                                    |   |              | 448,146       |   |              |   | 446,254 |   |
|  Accumulated deficit                                                                                                           |   |              | (293,638      | )      |              |   | (107,889 | ) |
|  Total Stockholders' Equity                                                                                                    |   |              | 155,388       |   |              |   | 339,244 |   |
|                                                                                                                                |   |              |          |   |              |   |   |   |
|  Non-controlling interests                                                                                                     |   |              | –       |   |              |   | 503 |   |
|  Total Equity                                                                                                                  |   |              | 155,388       |   |              |   | 339,747 |   |
|                                                                                                                                |   |              |          |   |              |   |   |   |
|  Total Liabilities and Equity                                                                                                  |   | $                 | 571,327       |   |              | $      | 681,769 |   |

----

|                                                                                                     |   | Meruelo Maddux Properties, Inc. |       |   | Predecessor                  |   |
|----------------------------------------------------------------------------------------------------------|--------|---------------------------------|------------|--------|------------------------------|--------|
|                                                                                                     |   | Year Ended December 31, 2009    |       |   | Year Ended December 31, 2008 |   |   | Period January 30, 2007 through December 31, 2007 |   |   | Period January 1, 2007 through January 29, 2007 |   |
|                                                                                                     |   |                            |       |   |                         |   |   |   |   |   |   |   |
|  Revenues:                                                                                          |   |                            |       |   |                         |   |   |   |   |   |   |   |
|  Rental income                                                                                      |   | $                               | 23,311     |   |                         | $      | 22,586 |   |   | $ | 19,495 |   |   | $ | 1,922 |   |
|  Management fees                                                                                    |   |                            | 41         |   |                         |   | 285 |   |   |   | 260 |   |   |   | 12 |   |
|  Interest income                                                                                    |   |                            | 367        |   |                         |   | 839 |   |   |   | 2,823 |   |   |   | 205 |   |
|  Other income                                                                                       |   |                            | 538        |   |                         |   | 351 |   |   |   | 493 |   |   |   | 28 |   |
|                Total Revenues |   |                            | 24,257     |   |                         |   | 24,061 |   |   |   | 23,071 |   |   |   | 2,167 |   |
|  Expenses:                                                                                          |   |                            |       |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|  Rental expenses                                                                                    |   |                            | 15,375     |   |                         |   | 15,084 |   |   |   | 12,053 |   |   |   | 992 |   |
|  Interest expense                                                                                   |   |                            | 23,736     |   |                         |   | 11,312 |   |   |   | 8,540 |   |   |   | 2,134 |   |
|  Depreciation and amortization                                                                      |   |                            | 6,197      |   |                         |   | 7,077 |   |   |   | 5,376 |   |   |   | 363 |   |
|  Impairment loss on real estate assets                                                              |   |                            | 148,275    |   |                         |   | 139,195 |   |   |   | - |   |   |   | - |   |
|  General and administrative                                                                         |   |                            | 13,093     |   |                         |   | 9,504 |   |   |   | 8,986 |   |   |   | 628 |   |
|                Total Expenses |   |                            | 206,676    |   |                         |   | 182,172 |   |   |   | 34,955 |   |   |   | 4,117 |   |
|  Loss from continuing operations before income  taxes and reorganization items            |   |                            | (182,419   | )      |                         |   | (158,111 | ) |   |   | (11,884 | ) |   |   | (1,950 | ) |
|  Benefit from income taxes                                                                          |   |                            | -          |   |                         |   | 51,933 |   |   |   | - |   |   |   | - |   |
|  Reorganization items, net                                                                          |   |                            | (3,987     | )      |                         |   | - |   |   |   |   |   |   |   |   |   |
|  Loss from continuing operations                                                                    |   |                            | (186,406   | )      |                         |   | (106,178 | ) |   |   | (11,884 | ) |   |   | (1,950 | ) |
|  (Loss) income from discontinued operations                                                         |   |                            | (613       | )      |                         |   | (3,188 | ) |   |   | 15 |   |   |   | (54 | ) |
|  Gain on sale of real estate                                                                        |   |                            | 830        |   |                         |   | 14,189 |   |   |   | - |   |   |   | - |   |
|  Income (loss)  from discontinued operations                                              |   |                            | 217        |   |                         |   | 11,001 |   |   |   | 15 |   |   |   | (54 | ) |
|  Net loss                                                                                           |   | $                               | (186,189   | )      |                         | $      | (95,177 | ) |   | $ | (11,869 | ) |   | $ | (2,004 | ) |
|  Less:  net (loss) income attributable to non-controlling interests                       |   |                            | (440       | )      |                         |   | 843 |   |   |   | - |   |   |   | - |   |
|  Net loss attributable to common stockholders                                                       |   | $                               | (185,749   | )      |                         | $      | (96,020 | ) |   | $ | (11,869 | ) |   | $ | (2,004 | ) |
|                                                                                                     |   |                            |       |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|  Basic and diluted loss per share:                                                                  |   |                            |       |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|  Loss from continuing operations                                                                    |   | $                               | (2.12      | )      |                         | $      | (1.22 | ) |   | $ | (0.14 | ) |   |   |   |   |
|  Income from discontinued operations                                                                |   |                            | 0.00       |   |                         |   | 0.12 |   |   |   | 0.00 |   |   |   |   |   |
|  Net loss                                                                                           |   | $                               | (2.12      | )      |                         | $      | (1.10 | ) |   | $ | (0.14 | ) |   |   |   |   |
|  Weighted average common shares outstanding - basic and diluted                                     |   |                            | 87,951,260 |   |                         |   | 86,866,699 |   |   |   | 85,218,110 |   |   |   | N/A |   |

----

|                                                    |   | Number of Shares |       |   | Common Stock |   |   | Additional Paid-in Capital |   |   | Affiliate Notes Receivable |   |   | Non-Controlling Interests |    |   | Accumulated Deficit |   |   | Total Equity |   |
|---------------------------------------------------------|--------|------------------|------------|--------|--------------|--------|--------|----------------------------|--------|--------|----------------------------|--------|--------|---------------------------|---------|--------|---------------------|--------|--------|--------------|--------|
|                                                    |   |             |       |   |         |   |   |                       |   |   |                       |   |   |                      |    |   |                |   |   |         |   |
| The Predecessor                                         |   |             |       |   |         |   |   |                       |   |   |                       |   |   |                      |    |   |                |   |   |         |   |
| Balance at January 1, 2007                              |   |             | -          |   |         | $      | 4      |                       |   | $      | 11,662                     |   |   | $                         | (24,673 | )      |                | $      | -      |         |   | $ | (32,051 | ) |   | $ | (45,058 | ) |
| Contributions                                           |   |             | -          |   |         |   | -      |                       |   |   | -                          |   |   |                      | -       |   |                |   | -      |         |   |   | - |   |   |   | - |   |
| Distributions                                           |   |             | -          |   |         |   | -      |                       |   |   | -                          |   |   |                      | -       |   |                |   | -      |         |   |   | - |   |   |   | - |   |
| Affiliate Notes Receivable                              |   |             | -          |   |         |   | -      |                       |   |   | -                          |   |   |                      | (693    | )      |                |   | -      |         |   |   | - |   |   |   | (693 | ) |
| Net loss                                                |   |             | -          |   |         |   | -      |                       |   |   | -                          |   |   |                      | -       |   |                |   | -      |         |   |   | (2,004 | ) |   |   | (2,004 | ) |
| Balance at January 29, 2007                             |   |             | -          |   |         |   | 4      |                       |   |   | 11,662                     |   |   |                      | (25,366 | )      |                |   | -      |         |   |   | (34,055 | ) |   |   | (47,755 | ) |
| The Company                                             |   |             |       |   |         |   |   |                       |   |   |                       |   |   |                      |    |   |                |   |   |         |   |   |   |   |   |   |   |   |
| Reclassify Predecessor common stock and owners' deficit |   |             | -          |   |         |   | (4     | )                          |   |   | 11,462                     |   |   |                      | -       |   |                |   | -      |         |   |   | 34,055 |   |   |   | 45,513 |   |
| Net proceeds from sale of common stock                  |   |             | 85,202,957 |   |         |   | 852    |                       |   |   | 418,444                    |   |   |                      | -       |   |                |   | -      |         |   |   | - |   |   |   | 419,296 |   |
| Issuance of unvested restricted common stock            |   |             | 359,736    |   |         |   | 3      |                       |   |   | 3,594                      |   |   |                      | -       |   |                |   | -      |         |   |   | - |   |   |   | 3,597 |   |
| Issuance of contingent shares                           |   |             | 275,207    |   |         |   | 3      |                       |   |   | (2,755                     | )      |   |                      | 2,752   |   |                |   | -      |         |   |   | - |   |   |   | - |   |
| Affiliate Notes Receivable, net                         |   |             | -          |   |         |   | -      |                       |   |   | -                          |   |   |                      | 8,400   |   |                |   | -      |         |   |   | - |   |   |   | 8,400 |   |
| LTIP and restricted stock compensation                  |   |             |       |   |         |   |   | 1,873                      |   |   |                       |   |   |                      |    | -      |                |   |   | -            |   |   |   | 1,873 |   |
| Net loss                                                |   |             | -          |   |         |   | -      |                       |   |   | -                          |   |   |                      | -       |   |                |   | -      |         |   |   | (11,869 | ) |   |   | (11,869 | ) |
| Balance at December 31, 2007                            |   |             | 85,837,900 |   |         | $      | 858    |                       |   | $      | 444,280                    |   |   | $                         | (14,214 | )      |                | $      | -      |         |   | $ | (11,869 | ) |   | $ | 419,055 |   |
| Issuance of contingent shares                           |   |             | 2,261,423  |   |         |   | 23     |                       |   |   | (14                        | )      |   |                      | 14,214  |   |                |   | -      |         |   |   | - |   |   |   | 14,223 |   |
| Forfeiture of unvested restricted common stock, net     |   |             | (247,240   | )      |         |   | (2     | )                          |   |   | 5                          |   |   |                      | -       |   |                |   | -      |         |   |   | - |   |   |   | 3 |   |
| LTIP and restricted stock compensation                  |   |             | -          |   |         |   | -      |                       |   |   | 1,983                      |   |   |                      | -       |   |                |   | -      |         |   |   | - |   |   |   | 1,983 |   |
| Non-controlling interests                               |   |             | -          |   |         |   | -      |                       |   |   | -                          |   |   |                      | -       |   |                |   | (340   | )            |   |   | - |   |   |   | (340 | ) |
| Net income (loss)                                       |   |             | -          |   |         |   | -      |                       |   |   | -                          |   |   |                      | -       |   |                |   | 843    |         |   |   | (96,020 | ) |   |   | (95,177 | ) |
| Balance at December 31, 2008                            |   |             | 87,852,083 |   |         | $      | 879    |                       |   | $      | 446,254                    |   |   | $                         | -       |   |                | $      | 503    |         |   | $ | (107,889 | ) |   | $ | 339,747 |   |
| Issuance of unvested restricted common stock, net       |   |             | 112,701    |   |         |   | 1      |                       |   |   | (1                         | )      |   |                      | -       |   |                |   | -      |         |   |   | - |   |   |   | - |   |
| LTIP and restricted stock compensation                  |   |             | -          |   |         |   | -      |                       |   |   | 1,893                      |   |   |                      | -       |   |                |   | -      |         |   |   | - |   |   |   | 1,893 |   |
| Non-controlling interests                               |   |             | -          |   |         |   | -      |                       |   |   | -                          |   |   |                      | -       |   |                |   | (63    | )            |   |   | - |   |   |   | (63 | ) |
| Net loss                                                |   |             | -          |   |         |   | -      |                       |   |   | -                          |   |   |                      | -       |   |                |   | (440   | )            |   |   | (185,749 | ) |   |   | (186,189 | ) |
| Balance at December 31, 2009                            |   |             | 87,964,784 |   |         | $      | 880    |                       |   | $      | 448,146                    |   |   | $                         | -       |   |                | $      | -      |         |   | $ | (293,638 | ) |   | $ | 155,388 |   |

----

|                                                                                      |   |   |                                |   |                         |   |    |                                           |   |
|-------------------------------------------------------------------------------------------|--------|--------|-------------------------------------|--------|------------------------------|--------|---------|------------------------------------------------|--------|
|                                                                                      |   |   |   Year Ended December 31, 2009 |   | Year Ended December 31, 2008 |   |    | Period January 30, 2007 thru December 31, 2007 |   |   | Period January 1, 2007 thru January 29, 2007 |   |
| Cash flows from operating activities:                                                     |   |   |                                |   |                         |   |    |                                           |   |   |   |   |
| Net loss                                                                                  |   | $      | (186,189                            | )      |                         | $      | (95,177 | )                                              |   | $ | (11,869 | ) |   | $ | (2,004 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |   |
| Gain on sale of real estate                                                               |   |   | (830                                | )      |                         |   | (14,189 | )                                              |   |   | – |   |   |   | – |   |
| Impairment loss on real estate assets including discontinued operations                   |   |   | 148,828                             |   |                         |   | 142,295 |                                           |   |   | – |   |   |   | – |   |
| Benefit for income taxes                                                                  |   |   | –                             |   |                         |   | (51,933 | )                                              |   |   | – |   |   |   | – |   |
| Depreciation and amortization                                                             |   |   | 6,202                               |   |                         |   | 7,377   |                                           |   |   | 6,064 |   |   |   | 374 |   |
| Stock-based compensation expense                                                          |   |   | 1,893                               |   |                         |   | 1,995   |                                           |   |   | 1,873 |   |   |   | – |   |
| Interest income on affiliate notes receivable                                             |   |   | –                             |   |                         |   | (359    | )                                              |   |   | (626 | ) |   |   | (205 | ) |
| Amortization of deferred loan costs                                                       |   |   | 661                                 |   |                         |   | 379     |                                           |   |   | 333 |   |   |   | 75 |   |
| Excess tax benefit from stock-based compensation                                          |   |   | (776                                | )      |                         |   | (818    | )                                              |   |   | (749 | ) |   |   | – |   |
| Changes in assets and liabilities:                                                        |   |   |                                |   |                         |   |    |                                           |   |   |   |   |   |   |   |   |
| Accounts receivable                                                                       |   |   | (165                                | )      |                         |   | 1,165   |                                           |   |   | (1,374 | ) |   |   | 167 |   |
| Other assets                                                                              |   |   | (553                                | )      |                         |   | (709    | )                                              |   |   | (255 | ) |   |   | 126 |   |
| Accounts payable                                                                          |   |   | 2,333                               |   |                         |   | (263    | )                                              |   |   | (3,063 | ) |   |   | 1,398 |   |
| Accrued expenses and other liabilities                                                    |   |   | 31,749                              |   |                         |   | 2,021   |                                           |   |   | 2,374 |   |   |   | 295 |   |
| Net cash provided by (used in) operating activities                                       |   |   | 3,153                               |   |                         |   | (8,216  | )                                              |   |   | (7,292 | ) |   |   | 226 |   |
|                                                                                      |   |   |                                |   |                         |   |    |                                           |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                     |   |   |                                |   |                         |   |    |                                           |   |   |   |   |   |   |   |   |
| Acquisition of real estate                                                                |   |   | –                             |   |                         |   | (39,231 | )                                              |   |   | (101,607 | ) |   |   | (1,875 | ) |
| Expenditures for improvements to real estate                                              |   |   | (52,938                             | )      |                         |   | (77,495 | )                                              |   |   | (74,924 | ) |   |   | (4,368 | ) |
| Proceeds from sale of real estate                                                         |   |   | 8,331                               |   |                         |   | 110,602 |                                           |   |   | – |   |   |   | – |   |
| Payment of deferred interest on notes payable to CalPERS                                  |   |   | –                             |   |                         |   | – |                                           |   |   | (32,635 | ) |   |   | – |   |
| Change in restricted cash                                                                 |   |   | 6,109                               |   |                         |   | (20,116 | )                                              |   |   | (5,057 | ) |   |   | 280 |   |
| Net cash used in investing activities                                                     |   |   | (38,498                             | )      |                         |   | (26,240 | )                                              |   |   | (214,223 | ) |   |   | (5,963 | ) |
|                                                                                      |   |   |                                |   |                         |   |    |                                           |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                     |   |   |                                |   |                         |   |    |                                           |   |   |   |   |   |   |   |   |
| Proceeds from equity offering                                                             |   |   | –                             |   |                         |   | – |                                           |   |   | 455,500 |   |   |   | – |   |
| Payment of offering costs                                                                 |   |   | –                             |   |                         |   | – |                                           |   |   | (35,985 | ) |   |   | (273 | ) |
| Distribution to predecessor                                                               |   |   | –                             |   |                         |   | – |                                           |   |   | (2,752 | ) |   |   | – |   |
| Investment in affiliate notes receivable                                                  |   |   | –                             |   |                         |   | 14,573  |                                           |   |   | 625 |   |   |   | (376 | ) |
| Proceeds from interim financing transactions                                              |   |   | –                             |   |                         |   | – |                                           |   |   | (5,628 | ) |   |   | 1,290 |   |
| Payments to LTIP unitholders                                                              |   |   | (63                                 | )      |                         |   | (340    | )                                              |   |   | – |   |   |   | – |   |
| Proceeds from notes payable                                                               |   |   | 42,123                              |   |                         |   | 118,575 |                                           |   |   | 112,063 |   |   |   | 3,702 |   |
| Principal payments on notes payable                                                       |   |   | (2,800                              | )      |                         |   | (97,740 | )                                              |   |   | (151,014 | ) |   |   | – |   |
| Repayment of CalPERS note payable                                                         |   |   | –                             |   |                         |   | – |                                           |   |   | (150,000 | ) |   |   | – |   |
| Excess tax benefit from stock-based compensation                                          |   |   | 776                                 |   |                         |   | 818     |                                           |   |   | 749 |   |   |   | – |   |
| Net cash provided by financing activities                                                 |   |   | 40,036                              |   |                         |   | 35,886  |                                           |   |   | 223,558 |   |   |   | 4,343 |   |
| Net increase (decrease) in cash                                                           |   |   | 4,691                               |   |                         |   | 1,430   |                                           |   |   | 2,043 |   |   |   | (1,394 | ) |
| Cash at beginning of period                                                               |   |   | 4,460                               |   |                         |   | 3,030   |                                           |   |   | 987 |   |   |   | 2,381 |   |
| Cash at end of period                                                                     |   | $      | 9,151                               |   |                         | $      | 4,460   |                                           |   | $ | 3,030 |   |   | $ | 987 |   |

| Supplemental disclosure of cash flow information:                                                            |   |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Cash paid for interest, net of amounts capitalized                                                           |   | $      | 8,182  |   |   | $      | 10,780 |   |   | $      | 40,939 |   |   | $ | 2,130 |   |
| Supplemental disclosure of noncash investing and financing activities:                                       |   |   |   |   |   |
| Accrual for real estate improvements and purchases included in real estate held for development              |   | $      | 6,650  |   |   | $      | 1,488  |   |   | $      | 9,640 |   |   | $ | 40,619 |   |
| Fair market value of rental properties acquired from non-controlling interests of predecessor                |   | $      | -      |   |   | $      | -      |   |   | $      | (25,657 | ) |   | $ | - |   |
| Fair market value of real estate held for development acquired from non-controlling interests of predecessor |   | $      | -      |   |   | $      | -      |   |   | $      | (64,479 | ) |   | $ | - |   |
| Decrease in affiliate notes receivable due to Taylor Yards bond release                                      |   | $      | -      |   |   | $      | -      |   |   | $      | - |   |   | $ | - |   |
| Accounts receivable from non-controlling interests of predecessor included in additional paid in capital     |   | $      | -      |   |   | $      | -      |   |   | $      | 700 |   |   | $ | - |   |
| Unamortized predecessor loan costs included in additional paid in capital                                    |   | $      | -      |   |   | $      | -      |   |   | $      | 2,425 |   |   | $ | - |   |
| Recognition of deferred revenue related to affiliate note receivable                                         |   | $      | -      |   |   | $      | -      |   |   | $      | 2,752 |   |   | $ | - |   |
| Deferred tax adjustment related to rental properties                                                         |   | $      | -      |   |   | $      | -      |   |   | $      | 8,954 |   |   | $ | - |   |
| Deferred tax adjustment related to real estate held for development                                          |   | $      | -      |   |   | $      | -      |   |   | $      | (13,099 | ) |   | $ | - |   |

----

----

----

|                                   |   | December 31, 2009 |    |
|----------------------------------------|--------|-------------------|---------|
|                                   |   |              |    |
| Notes payable secured by real estate   |   | $                 | 189,009 |   |
| Unsecured note payable                 |   |              | 6,179   |   |
| Accrued interest                       |   |              | 3,578   |   |
| Accounts payable                       |   |              | 3,083   |   |
| Accrued expenses and other liabilities |   |              | 272     |   |
|                                   |   | $                 | 202,121 |   |

----

----

----

|                                       |   | As of December 31, 2009 |    |
|--------------------------------------------|--------|-------------------------|---------|
|                                       |   |                    |    |
| Assets                                     |   |                    |    |
| Cash                                       |   | $                       | 9,150   |   |
| Restricted cash                            |   |                    | 21,111  |   |
| Accounts receivable                        |   |                    | 1,411   |   |
| Rental properties, net                     |   |                    | 256,302 |   |
| Real estate held for development           |   |                    | 280,901 |   |
| Other assets, net                          |   |                    | 2,367   |   |
| Total assets                               |   | $                       | 571,242 |   |
|                                       |   |                    |    |   |
| Liabilities and Stockholders' Equity       |   |                    |    |   |
| Accounts payable                           |   | $                       | 986     |   |
| Accrued expenses and other liabilites      |   |                    | 40,356  |   |
| Due to affiliates, net                     |   |                    | 5,813   |   |
| Notes payable secured by real estate       |   |                    | 172,363 |   |
|                                       |   |                    | 219,518 |   |
| Liabilities subject to compromise          |   |                    | 202,121 |   |
| Total liabilities                          |   |                    | 421,639 |   |
| Stockholders' equity                       |   |                    | 149,603 |   |
| Total liabilities and stockholders' equity |   | $                       | 571,242 |   |

|                                              |   |                              |     |   |                                 |   |    |     |   |
|---------------------------------------------------|--------|-----------------------------------|----------|--------|--------------------------------------|--------|---------|----------|--------|
|                                              |   | March 27 to December 31, 2009 (1) |     |   | September 4 to December 31, 2009 (2) |   |    | Combined |   |
|                                              |   |                              |     |   |                                 |   |    |     |   |
| Total Revenue                                     |   | $                                 | 18,146   |   |                                 | $      | 153     |     |   | $ | 18,299 |   |
| Expenses                                          |   |                              |     |   |                                 |   |    |     |   |   |   |   |
| Rental expenses                                   |   |                              | 11,284   |   |                                 |   | 18      |     |   |   | 11,302 |   |
| Interest expense                                  |   |                              | 18,890   |   |                                 |   | -       |     |   |   | 18,890 |   |
| Depreciation and amortization                     |   |                              | 4,718    |   |                                 |   | -       |     |   |   | 4,718 |   |
| Impairment loss on real estate assets             |   |                              | 130,761  |   |                                 |   | 18,068  |     |   |   | 148,829 |   |
| General and administrative                        |   |                              | 10,130   |   |                                 |   | -       |     |   |   | 10,130 |   |
| Total expenses                                    |   |                              | 175,783  |   |                                 |   | 18,086  |     |   |   | 193,869 |   |
| Loss before reorganization items and gain on sale |   |                              | (157,637 | )      |                                 |   | (17,933 | )        |   |   | (175,570 | ) |
| Gain on sale of real estate                       |   |                              | 830      |   |                                 |   | -       |     |   |   | 830 |   |
| Reorganization items, net                         |   |                              | (3,935   | )      |                                 |   | (52     | )        |   |   | (3,987 | ) |
| Net loss                                          |   | $                                 | (160,742 | )      |                                 | $      | (17,985 | )        |   | $ | (178,727 | ) |

----

|                                                                                      |   | MMPI Debtors                      |     |   | Flower Debtors                       |   |    |     |   |
|-------------------------------------------------------------------------------------------|--------|-----------------------------------|----------|--------|--------------------------------------|--------|---------|----------|--------|
|                                                                                      |   | March 27 to December 31, 2009 (1) |     |   | September 4 to December 31, 2009 (2) |   |    | Combined |   |
|                                                                                      |   |                              |     |   |                                 |   |    |     |   |
| Net loss                                                                                  |   | $                                 | (160,742 | )      |                                 | $      | (17,985 | )        |   | $ | (178,727 | ) |
| Adjustments to reconcile net loss to cash (used in) cash provided by operating activities |   |                              | 149,765  |   |                                 |   | 3,524   |     |   |   | 153,289 |   |
| Net cash used in operating activities                                                     |   |                              | (10,977  | )      |                                 |   | (14,461 | )        |   |   | (25,438 | ) |
| Net cash provided by investing activities                                                 |   |                              | 17,223   |   |                                 |   | 14,461  |     |   |   | 31,684 |   |
| Net cash used in financing activities                                                     |   |                              | (376     | )      |                                 |   | -       |     |   |   | (376 | ) |
| Net increase in cash and cash equivalents                                                 |   |                              | 5,870    |   |                                 |   | -       |     |   |   | 5,870 |   |
| Cash and cash equivalents at beginning of period                                          |   |                              | 3,278    |   |                                 |   | 2       |     |   |   | 3,280 |   |
| Cash and cash equivalents at end of period                                                |   | $                                 | 9,148    |   |                                 | $      | 2       |     |   | $ | 9,150 |   |

| (1)   | On March 26 and 27, 2009, MMPI Debtors filed for Chapter 11 protection. The condensed combined statement of operations and the condensed combined statement of cash flows for the year ended December 31, 2009 represent the financial results after the bankruptcy filings. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | On September 3, 2009, the Flower Debtors filed for Chapter 11 protection. The condensed combined statement of operations and the condensed combined statement of cash flows for the year ended December 31, 2009 represent the financial results after the bankruptcy filings. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| 1)   | A sale is consummated, |
|----------------|------------------------|

| 2)   | The buyer’s initial and continuing investments are adequate to demonstrate a commitment to pay for the property, |
|----------------|------------------------------------------------------------------------------------------------------------------------|

| 3)   | The seller’s receivable is not subject to future subordination, |
|----------------|-----------------------------------------------------------------------|

| 4)   | The seller has transferred to the buyer the usual risks and rewards of ownership in a transaction that is in substance a sale and does not have a substantial continuing involvement with the property. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | Reclassifications |
|--------|-------------------|

|                           |   | December 31, 2009 |    |   | December 31, 2008 |   |
|--------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                           |   |              |    |   |              |   |
| Rental Properties              |   |              |    |   |              |   |
| Land                           |   | $                 | 124,277 |   |              | $      | 144,778 |   |
| Building and improvements      |   |              | 162,745 |   |              |   | 178,203 |   |
|                           |   |              | 287,022 |   |              |   | 322,981 |   |
| Less: Accumulated Depreciation |   |              | (30,720 | )      |              |   | (25,172 | ) |
|                           |   | $                 | 256,302 |   |              | $      | 297,809 |   |

----

|                             |   | December 31, 2009 |    |   | December 31, 2008 |   |
|----------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                             |   |              |    |   |              |   |
| Real estate held for development |   |              |    |   |              |   |
| Land                             |   | $                 | 201,077 |   |              | $      | 263,155 |   |
| Building and improvements        |   |              | 455     |   |              |   | 1,783 |   |
| Construction in progress         |   |              | 79,453  |   |              |   | 83,008 |   |
|                             |   | $                 | 280,985 |   |              | $      | 347,946 |   |

|                                      |   | December 31, 2009 |   |   | December 31, 2008 |   |
|-------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                                      |   |              |   |   |              |   |
| Other assets                              |   |              |   |   |              |   |
| Deferred loan costs                       |   | $                 | 2,817  |   |              | $      | 2,829 |   |
| Intangible assets - in-place leases       |   |              | 1,493  |   |              |   | 1,209 |   |
| Machinery and equipment                   |   |              | 2,493  |   |              |   | 2,459 |   |
| Deposits and prepaid expenses             |   |              | 1,256  |   |              |   | 997 |   |
|                                      |   |              | 8,059  |   |              |   | 7,494 |   |
| Accumulated depreciation and amortization |   |              | (5,692 | )      |              |   | (4,406 | ) |
|                                      |   | $                 | 2,367  |   |              | $      | 3,088 |   |

|                                   |   | December 31, 2009 |   |   | December 31, 2008 |   |
|----------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                                   |   |              |   |   |              |   |
| Accrued expenses and other liabilities |   |              |   |   |              |   |
| Accrued property taxes                 |   | $                 | 9,190  |   |              | $      | 6,104 |   |
| Accrued interest - mortgage debt       |   |              | 15,446 |   |              |   | 1,975 |   |
| Accrued default interest               |   |              | 6,514  |   |              |   | - |   |
| Tenant security deposits               |   |              | 1,392  |   |              |   | 1,878 |   |
| Other                                  |   |              | 7,923  |   |              |   | 2,176 |   |
|                                   |   | $                 | 40,465 |   |              | $      | 12,133 |   |

----

| Project Name                                         |   | Interest Rate                    |            | Maturity Date (3) |              | Balance at 12/31/09 (2) |   |    | Balance at 12/31/08 |   |
|------------------------------------------------------|--------|----------------------------------|-----------------|-------------------|-------------------|-------------------------|--------|---------|---------------------|--------|
| Fixed rate mortgage note                             |   |                             |            |              |              |                    |   |    |                |   |
| 1500 Griffith Avenue                                 |   |                             | 3.75            | %                 | January 26, 2013  |                    | $      | 2,945   |                |   | $ | - |   |
| Center Village                                       |   |                             | 2.50            | %                 | August 7, 2012    |                    |   | 3,350   |                |   |   | - |   |
| Seventh Street Produce Market/Alameda Square         |   |                             | 4.00            | %                 | June 17, 2014     |                    |   | 48,816  |                |   |   | 48,946 |   |
| 705 W. Ninth Street                                  |   |                             | 12.00           | %                 | April 26, 2010    |                    |   | 84,000  |                |   |   | 42,000 |   |
| Crown Commerce Center (1)                            |   |                             | 7.48            | %                 | September 5, 2011 |                    |   | -       |                |   |   | 10,182 |   |
| Seventh Street Produce Market/Alameda Square         |   |                             | 4.00            | %                 | June 17, 2014     |                    |   | 9,848   |                |   |   | 9,861 |   |
| Washington Cold Storage (1)                          |   |                             | 6.93            | %                 | April 13, 2016    |                    |   | -       |                |   |   | 9,555 |   |
| 2131 Humboldt Street (1)                             |   |                             | 6.50            | %                 | January 1, 2011   |                    |   | -       |                |   |   | 7,000 |   |
| 420 Boyd Street (1)(4)                               |   |                             | 7.49            | %                 | June 15, 2012     |                    |   | -       |                |   |   | 5,950 |   |
| 1500 Griffith Avenue                                 |   |                             | 7.00            | %                 | January 24, 2013  |                    |   | -       |                |   |   | 3,000 |   |
| 905 E. 8th Street                                    |   |                             | 4.00            | %                 | May 6, 2013       |                    |   | 1,950   |                |   |   | 1,950 |   |
| 500 Mateo Street                                     |   |                             | 7.00            | %                 | March 1, 2011     |                    |   | -       |                |   |   | 460 |   |
| Total Fixed Rate Mortgage Notes                      |   |                             |            | $                 | 150,909           |                    |   | $       | 138,904             |   |
|                                                 |   |                             |            |              |              |                    |   |    |                |   |   |   |   |
| Variable rate mortgage note                          |   |                             |            |              |              |                    |   |    |                |   |
| 1919 Vineburn Avenue                                 |   | 3.25% (8.25% contingent)         | January 1, 2013 |              | $                 | 5,468                   |   |    | $                   | -      |   |
| Center Village                                       |   | 3.25% (8.25% contingent)         | January 1, 2013 |              |              | 6,978                   |   |    |                | -      |   |
| Ullman Tower One                                     |   | 3.25% (8.25% contingent)         | January 1, 2013 |              |              | 9,008                   |   |    |                | -      |   |
| Union Lofts Mini Permanent Loan (1)(4)               |   | 1-Month LIBOR plus 1.65%         | March 1, 2009   |              |              | -                       |   |    |                | 28,108 |   |
| Meruelo Wall Street (1)                              |   | Prime plus 2.00%                 |            | November 5, 2011  |              |                    | -      |    |                |   | 20,878 |   |
| South Park Towers (1)(4)                             |   | Prime Rate                       |            | July 14, 2009     |              |                    | -      |    |                |   | 20,000 |   |
| Sky Arc (1)(4)                                       |   | Prime plus 2.00%                 |            | June 15, 2009     |              |                    | -      |    |                |   | 17,000 |   |
| Southern California Institute of Architecture (1)(4) |   | Prime plus 0.25%                 |            | August 1, 2011    |              |                    | -      |    |                |   | 10,114 |   |
| Barstow Produce Center Construction Loan (1)(4)      |   | Prime plus 0.75%                 |            | January 9, 2013   |              |                    | -      |    |                |   | 8,999 |   |
| Ullman Tower One (4)                                 |   | Prime Rate plus 1.00%            | June 1, 2009    |              |              | -                       |   |    |                | 8,885  |   |
| Pomona Park Village (1)(4)                           |   | Prime plus 7.00%                 |            | June 26, 2011     |              |                    | -      |    |                |   | 8,800 |   |
| 1875 W. Mission Blvd. (1)                            |   | 6-Month LIBOR plus 6.25%         | April 1, 2009   |              |              | -                       |   |    |                | 8,480  |   |
| 788 South Alameda Street (1)(4)                      |   | Prime plus 0.50%                 |            | April 1, 2013     |              |                    | -      |    |                |   | 7,165 |   |
| Center Village                                       |   | Prime plus 1.00%                 |            | October 1, 2009   |              |                    | -      |    |                |   | 6,985 |   |
| 4th Street Center and 1500 Griffith Avenue (1)(4)    |   | Prime plus 1.00%                 |            | August 1, 2009    |              |                    | -      |    |                |   | 6,397 |   |
| Barstow Produce Center Construction Loan (1)(4)      |   | Prime plus 1.00%                 |            | January 9, 2010   |              |                    | -      |    |                |   | 6,190 |   |
| Washington Produce Market (1)                        |   | Prime plus 0.50%                 |            | December 5, 2012  |              |                    | -      |    |                |   | 6,072 |   |
| 1919 Vineburn Avenue                                 |   | Prime plus 1.00%                 |            | July 1, 2009      |              |                    | -      |    |                |   | 5,473 |   |
| 620 Gladys Avenue (1)(4)                             |   | Prime Rate                       |            | October 1, 2009   |              |                    | -      |    |                |   | 5,383 |   |
| Desmond Buidling (1)(4)                              |   | Prime plus 1.00%                 |            | May 1, 2009       |              |                    | -      |    |                |   | 5,340 |   |
| Center Village (4)                                   |   | Prime Rate                       |            | November 7, 2010  |              |                    | -      |    |                |   | 3,350 |   |
| Santa Fe Plaza (1)(4)                                |   | 6-Month U.S. Treasury plus 2.88% | October 1, 2017 |              |              | -                       |   |    |                | 3,137  |   |
| 3rd & Omar (1)(4)                                |   | Prime plus 0.25%                 |            | August 15, 2010   |              |                    | -      |    |                |   | 2,569 |   |
| Total Variable Rate Mortgage Notes                   |   |                             |            | $                 | 21,454            |                    |   | $       | 189,325             |   |
|                                                 |   |                             |            |              |              |                    |   |    |                |   |   |   |   |
| Grand Total                                          |   |                             |            |              |              |                    | $      | 172,363 |                |   | $ | 328,229 |   |

----

|  2010 |  $                84,026 |
|------------|---------------------------------------------------------------------------------------------------------------|
|  2011 |  58                                                                                                      |
|  2012 |  3,421                                                                                                   |
|  2013 |  26,194                                                                                                  |
|  2014 |  58,664                                                                                                  |
|       |    $             172,363      |

----

----

|                                                           |
|----------------------------------------------------------------|
|                                                           |   | Year Ended December 31, 2009 |   |   | Year Ended December 31, 2008 |   |   | Period from January 30, to December 31, 2007 |   |   | Period from January 1, to January 29, 2007 |   |
| Revenue:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Rental income                                                  |   | $ | 53 |   |   | $ | 2,195 |   |   | $ | 2,152 |   |   | $ | 36 |   |
|         Total Revenue  |   |   | 53 |   |   |   | 2,195 |   |   |   | 2,152 |   |   |   | 36 |   |
| Expenses:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Rental expenses                                          |   |   | 72 |   |   |   | 922 |   |   |   | 471 |   |   |   | 7 |   |
|  Interest expense                                         |   |   | 10 |   |   |   | 725 |   |   |   | 970 |   |   |   | 72 |   |
|  Income tax expense                                       |   |   | - |   |   |   | 112 |   |   |   | - |   |   |   | - |   |
|  Depreciation and amortization                            |   |   | 5 |   |   |   | 492 |   |   |   | 687 |   |   |   | 11 |   |
|  Impairment loss on real estate assets                    |   |   | 554 |   |   |   | 3,100 |   |   |   | - |   |   |   | - |   |
|  General and administrative                               |   |   | 25 |   |   |   | 32 |   |   |   | 9 |   |   |   | - |   |
|         Total Expenses |   |   | 666 |   |   |   | 5,383 |   |   |   | 2,137 |   |   |   | 90 |   |
| Total (Loss) Income from Discontinued Operations               |   | $ | (613 | ) |   | $ | (3,188 | ) |   | $ | 15 |   |   | $ | (54 | ) |

| 2010       | ................................................................................................... |  $              9,396 |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|
| 2011       | ................................................................................................... |          7,206                                 |
| 2012       | ................................................................................................... |          6,405                                 |
| 2013       | ................................................................................................... |          5,679                                 |
| 2014       | ................................................................................................... |          4,612                                 |
| Thereafter | ................................................................................................... |                - |
|       |                                                                                                                                                                                                                                    |  $            33,298            |

----

|                                                             |   | For the year ended December 31, |       |
|------------------------------------------------------------------|--------|---------------------------------|------------|
|                                                             |   | 2009                            |       |   | 2008 |   |
| Loss from continuing operations before income taxes,             |   |                            |       |   |
|   reorganization items                                 |   | $                               | (182,419   | ) |   | $ | (158,111 | ) |
|  Benefit from income taxes                                  |   |                            | -          |   |   |   | 51,933 |   |
|  Reorganization items                                       |   |                            | (3,987     | ) |   |   | - |   |
|  Loss from continuing operations                            |   | $                               | (186,406   | ) |   | $ | (106,178 | ) |
|  (Loss) income from discontinued operations                 |   |                            | (613       | ) |   |   | (3,188 | ) |
|  Gain on sale of real estate                                |   |                            | 830        |   |   |   | 14,189 |   |
|  Income (loss)  from discontinued operations      |   |                            | 217        |   |   |   | 11,001 |   |
|  Net loss                                                   |   | $                               | (186,189   | ) |   | $ | (95,177 | ) |
|  Less: net income (loss) attributable to                    |   |                            |       |   |   |   |   |   |
|  non-controlling interests                                  |   |                            | (440       | ) |   |   | 843 |   |
|  Net loss attributable to common stockholders               |   | $                               | (185,749   | ) |   | $ | (96,020 | ) |
|                                                             |   |                            |       |   |   |   |   |   |
|  Weighted average common shares outstanding – basic   |   |                            | 87,951,260 |   |   |   | 86,866,699 |   |
|  Weighted average common shares outstanding – diluted |   |                            | 87,951,260 |   |   |   | 86,866,699 |   |
|  Net income (loss) per share - basic                        |   | $                               | (2.12      | ) |   | $ | (1.10 | ) |
|  Net income (loss) per share - diluted                      |   | $                               | (2.12      | ) |   | $ | (1.10 | ) |

----

| Restricted Stock                 |   | Number of Restricted Stock Shares |     |   | Weighted Average Issuance Date Fair Value |    |
|----------------------------------|--------|-----------------------------------|----------|--------|-------------------------------------------|---------|
| Outstanding at January 1, 2008   |   |                              | 359,736  |   |                                      |  $ |                       10.09 |   |
| Issued                           |   |                              | 22,500   |   |                                      |    | 2.74 |   |
| Vested                           |   |                              | (112,496 | )      |                                      |    | 10.20 |   |
| Forfeited                        |   |                              | (44,836  | )      |                                      |    | 6.90 |   |
| Outstanding at December 31, 2008 |   |                              | 224,904  |   |                                      |    | 9.94 |   |
| Issued                           |   |                              | -        |   |                                      |    | - |   |
| Vested                           |   |                              | (112,701 | )      |                                      |    | 10.13 |   |
| Forfeited                        |   |                              | (19,002  | )      |                                      |    | 8.55 |   |
| Outstanding at December 31, 2009 |   |                              | 93,201   |   |                                      |  $ |                         9.98 |   |

| LTIP Units                       |   | Number of Units |    |   | Weighted Average Grant Date Fair Value |   |
|----------------------------------|--------|-----------------|---------|--------|----------------------------------------|--------|
| Outstanding at January 1, 2008   |   |            | 347,835 |   |                                   |   | 7.43 |   |
| Granted                          |   |            | 55,000  |   |                                   |   | 1.20 |   |
| Redeemed                         |   |            | -       |   |                                   |   | - |   |
| Outstanding at December 31, 2008 |   |            | 402,835 |   |                                   |   | 6.58 |   |
| Granted                          |   |            | 80,000  |   |                                   |   | 1.03 |   |
| Redeemed                         |   |            | -       |   |                                   |   | - |   |
| Outstanding at December 31, 2009 |   |            | 482,835 |   |                                   |   | 5.66 |   |

----

|      |   | Stock Price Threshold |   |   | Issuance DateFair Value |   |
|-----------|--------|-----------------------|--------|--------|-------------------------|--------|
| Tranche 1 |   | $                     | 10     |   |                    | $      | 0.21 |   |
| Tranche 2 |   |                  | 11     |   |                    |   | 0.18 |   |
| Tranche 3 |   |                  | 12     |   |                    |   | 0.15 |   |
| Tranche 4 |   |                  | 13     |   |                    |   | 0.13 |   |
| Tranche 5 |   |                  | 14     |   |                    |   | 0.11 |   |
|      |   |                  |   |   |                    |   |   |   |

----

|                                                                                    |   | Consolidated Financial Statements |       |
|-----------------------------------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                                                    |   | Quarter Ended                     |       |
|                                                                                    |   | March 31, 2009                    |       |   | June 30, 2009 |   |   | September 30, 2009 |   |   | December 31, 2009 |   |
| Total revenue                                                                           |   | $                                 | 6,002      |   |   | $ | 6,349 |   |   | $ | 5,923 |   |   | $ | 5,983 |   |
| Loss from continuing operations before income  taxes and reorganization items |   |                              | (127,021   | ) |   |   | (10,077 | ) |   |   | (10,293 | ) |   |   | (35,028 | ) |
| Loss from continuing operations                                                         |   |                              | (127,479   | ) |   |   | (10,539 | ) |   |   | (11,746 | ) |   |   | (36,642 | ) |
| (Loss) Income from discontinued operations                                              |   |                              | (546       | ) |   |   | (1 | ) |   |   | 767 |   |   |   | (3 | ) |
| Net (loss)                                                                              |   |                              | (128,025   | ) |   |   | (10,540 | ) |   |   | (10,979 | ) |   |   | (36,645 | ) |
|  Net loss attributable to non-controlling interests                                |   |                              | 440        |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Net loss attributable to common stockholders                                      |   |                              | (127,585   | ) |   |   | (10,540 | ) |   |   | (10,979 | ) |   |   | (36,645 | ) |
|                                                                                    |   |                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income per share - basic                                                     |   |                              | (1.45      | ) |   |   | 0.12 |   |   |   | (0.12 | ) |   |   | (2.12 | ) |
| Net (loss) income per share - diluted                                                   |   |                              | (1.45      | ) |   |   | 0.12 |   |   |   | (0.12 | ) |   |   | (2.12 | ) |
| Weighted average shares outstanding - basic                                             |   |                              | 87,919,704 |   |   |   | 87,956,798 |   |   |   | 87,960,791 |   |   |   | 87,964,784 |   |
| Weighted average shares outstanding - diluted                                           |   |                              | 87,919,704 |   |   |   | 87,956,798 |   |   |   | 87,960,791 |   |   |   | 87,964,784 |   |
|                                                                                    |   |                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                    |   | Consolidated Financial Statements |       |
|                                                                                    |   | Quarter Ended                     |       |
|                                                                                    |   | March 31, 2008                    |       |   | June 30, 2008 |   |   | September 30, 2008 |   |   | December 31, 2008 |   |
| Total revenue                                                                           |   | $                                 | 5,972      |   |   | $ | 6,130 |   |   | $ | 6,108 |   |   | $ | 5,851 |   |
| Loss from continuing operations before income  taxes, reorganization items    |   |                              | (13,715    | ) |   |   | (7,281 | ) |   |   | (15,523 | ) |   |   | (121,592 | ) |
| Loss from continuing operations                                                         |   |                              | (9,986     | ) |   |   | (6,503 | ) |   |   | (15,523 | ) |   |   | (74,166 | ) |
| Income (loss) from discontinued operations                                              |   |                              | 7,307      |   |   |   | 66 |   |   |   | 15,701 |   |   |   | (12,073 | ) |
| Net (loss) income                                                                       |   |                              | (2,679     | ) |   |   | (6,437 | ) |   |   | 178 |   |   |   | (86,239 | ) |
|  Net loss (income) attributable to non-controlling interests                       |   |                              | (1,360     | ) |   |   | 29 |   |   |   | (1 | ) |   |   | 2,175 |   |
|  Net (loss) income attributable to common stockholders                             |   |                              | (4,039     | ) |   |   | (6,408 | ) |   |   | 177 |   |   |   | (85,750 | ) |
|                                                                                    |   |                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income per share - basic                                                     |   |                              | (1.45      | ) |   |   | (0.07 | ) |   |   | (0.18 | ) |   |   | (0.98 | ) |
| Net (loss) income per share - diluted                                                   |   |                              | (1.45      | ) |   |   | (0.07 | ) |   |   | 0.18 |   |   |   | (0.98 | ) |
| Weighted average shares outstanding - basic                                             |   |                              | 85,746,786 |   |   |   | 86,422,172 |   |   |   | 86,931,457 |   |   |   | 87,852,200 |   |
| Weighted average shares outstanding - diluted                                           |   |                              | 85,746,786 |   |   |   | 86,422,172 |   |   |   | 88,031,465 |   |   |   | 87,852,200 |   |

----

----

----

| Continuing Operations                                        |   | 2009   |    |   | 2008   |   |   | 2007   |   |
|--------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Federal tax benefit on pretax loss at statutory rates        |   | $      | 64,952  |   |   |   | 35.00  | %      |   | $ | 56,745 |   |   |   | 35.00 | % |   | $ | 4,154 |   |   |   | 35.00 | % |
| State tax, net of federal benefit                            |   |   | 10,287  |   |   |   | 5.54   | %      |   |   | 9,253 |   |   |   | 5.71 | % |   |   | 676 |   |   |   | 5.70 | % |
| Permanent items                                              |   |   | (2,291  | )      |   |   | -1.23  | %      |   |   | (402 | ) |   |   | -0.25 | % |   |   | (34 | ) |   |   | -0.29 | % |
| Valuation allowance                                          |   |   | (72,948 | )      |   |   | -39.31 | %      |   |   | (13,663 | ) |   |   | -8.43 | % |   |   | (4,796 | ) |   |   | -40.41 | % |
| Benefit (provision) for income taxes - continuing operations |   | $      | -       |   |   |   | 0.00   | %      |   | $ | 51,933 |   |   |   | 32.03 | % |   | $ | - |   |   |   | 0.00 | % |
|                                                         |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued Operations                                      |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax on income from discontinued operations            |   | $      | 249     |   |   |   | 40.75  | %      |   | $ | (112 | ) |   |   | -40.75 | % |   |   | N/A |   |   |   | N/A |   |
| Income tax on gain on sale of assets                         |   |   | -       |   |   |   | 0.00   | %      |   |   | (9,490 | ) |   |   | -40.75 | % |   |   | N/A |   |   |   | N/A |   |
| Valuation allowance                                          |   |   | (249    | )      |   |   | -40.75 | %      |   |   | - |   |   |   | 0.00 | % |   |   | N/A |   |   |   | N/A |   |
| Provision for income taxes - discontinued operations         |   |   | -       |   |   |   | 0.00   | %      |   |   | (9,602 | ) |   |   | -40.75 | % |   |   | N/A |   |   |   | N/A |   |
| Net tax benefit (provision)                                  |   | $      | -       |   |   |   | 0.00   | %      |   | $ | 42,331 |   |   |   | 30.55 | % |   |   | N/A |   |   |   | N/A |   |

| Deferred tax assets:                  |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|---------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| NOL carryforwards                     |   | $      | 28,787  |   |   | $      | 18,094  |   |   | $ | 7,473 |   |
| State taxes                           |   |   | -       |   |   |   | -       |   |   |   | 2,737 |   |
| Property and equipment basis          |   |   | 62,016  |   |   |   | -       |   |   |   | - |   |
| Allowance accounts                    |   |   | 241     |   |   |   | 237     |   |   |   | 121 |   |
| Deferred compensation                 |   |   | 749     |   |   |   | 411     |   |   |   | 748 |   |
| Other                                 |   |   | -       |   |   |   | 109     |   |   |   | - |   |
| Prepaid rent                          |   |   | 65      |   |   |   | 76      |   |   |   | 68 |   |
| Total deferred tax assets             |   |   | 91,858  |   |   |   | 18,927  |   |   |   | 11,147 |   |
| Less: valuation allowance             |   |   | (91,656 | )      |   |   | (18,459 | )      |   |   | (4,796 | ) |
| Net deferred tax assets               |   | $      | 202     |   |   | $      | 468     |   |   | $ | 6,351 |   |
|                                  |   |   |    |   |   |   |    |   |   |   |   |   |
| Deferred tax liabilities:             |   |   |    |   |   |   |    |   |   |   |   |   |
| Property and equipment basis          |   | $      | -       |   |   | $      | (360    | )      |   | $ | (43,517 | ) |
| Capitalized interest                  |   |   | -       |   |   |   | -       |   |   |   | (3,225 | ) |
| Deferred rent                         |   |   | (141    | )      |   |   | (108    | )      |   |   | (203 | ) |
| Other                                 |   |   | (61     | )      |   |   |    |   |   |   | (507 | ) |
| Total deferred tax liabilities        |   |   | (202    | )      |   |   | (468    | )      |   |   | (47,452 | ) |
| Net deferred tax assets (liabilities) |   | $      | -       |   |   | $      | -       |   |   | $ | (41,101 | ) |

----

|             | 2009                                                                           | 2008                                                                           | 2007                                                                           |
|------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|
| American Apparel |  $           3,467 |  $           2,823 |  $           2,882 |

----

----

|                                 |                                                                                                                                                                                                                                  | Initial Cost (1)                                                                                                                                                                                                          |                                                                                                                                                                                                    |   | Costs Capitalized Subsequent to Original Acquisition                                                  |   Gross Carrying Amount at December 31, 2009                                                                                |                                                                                                                      |
|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
| Project/Property Name                |   Encumbrances at December 31, 2009                                                                                                                                                                                              | Land                                                                                                                                                                                                                      | Building & Improvements                                                                                                                                                                             |   |    Land(4)                                                                             | Building & Improvements (4)                                                                                                  | Land                                                                                                                      | Building & Improvements | Total |   Accumulated Depreciation at December 31, 2009 | Year Built / Renovated | Year Acquired(2) |
|                                 |                                                                                                                                                                                                                                  |                                                                                                                                                                                                                      |                                                                                                                                                                                                    |   |                                                                                                  |                                                                                                                             |                                                                                                                      |   |   |   |   |   |   |
| Center Village                       |                              10,328                                                  |                            16,370                                                  |                              989                       |   |                                                                                                  |              (3,134)                                            |                   74            |           13,236 |                     1,063 |             14,299 |                              641 | 1937 | 2005 |
| 717 W. 9th Street                    |                             84,000                                                        |                             21,106                                            |                              309                       |   |                                                                                                  |               (9,511)                                      |          90,588                                                              |             11,595 |                  90,897 |           102,492 |                                 - | - | 2005 |
| 1500 Griffith Avenue                 |                                 6,143                                 |                              6,857                                       |                          4,888                                             |   |                                                                                                  |                   (231)                     |                    15      |             6,626 |                    4,903 |               11,529 |                              607 | 1978 | 2005 |
| Barstow Produce Center               |                                15,163                                      |                              2,598                                       |                           5,398                                       |   |                                                                                                  |                  (598)                      |             (1,158)                                           |             2,000 |                    4,240 |               6,240 |                             366 | 1974 | 2005 |
| Pomona Park Village                  |                               17,263                                            |                           38,349                                                        |                          2,804                                             |   |                                                                                                  |             (12,351)                                                 |              3,158                                       |           25,998 |                     5,962 |             31,960 |                           2,170 | 1985 | 2005 |
| The Union Lofts                      |                              28,108                                                  |                               1,914                                 |                          8,843                                             |   |                                                                                                  |                      -  |            15,679                                                  |               1,914 |                  24,522 |            26,436 |                          2,330 | 1928 | 2005 |
| Washington Cold Storage              |                                 9,541                                 |                              3,122                                       |                            9,110                                 |   |                                                                                                  |                      -  |                  38                  |              3,122 |                     9,148 |              12,270 |                              857 | 2006 | 2006 |
| Washington Produce Market            |                                6,066                                       |                                  126                 |                                  - |   |                                                                                                  |                 1,147                            |            6,264                                                   |              1,273 |                    6,264 |                7,537 |                             498 | 2007 | 2007 |
| Citrus Gardens                       |                                       - |                              4,124                                       |                                  - |   |                                                                                                  |                1,852                                  |           (2,856)                                                       |              5,976 |                   (2,856) |                3,120 |                                 - | - | 2005 |
| Covina Gardens                       |                                       - |                               1,801                                 |                                  - |   |                                                                                                  |              (2,601)                                            |                800                             |              (800) |                        800 |                      - |                                 - | 1970 | 2004 |
| San Fernando Court                   |                                       - |                              9,520                                       |                                  - |   |                                                                                                  |                (820)                                  |                428                             |             8,700 |                        428 |                9,128 |                                 - | - | 2005 |
| Sky Arc (Development)                |                               15,000                                            |                           27,269                                                        |                                  - |   |                                                                                                  |               2,425                                        |                    -       |          29,694 |                            - |            29,694 |                                 - | 1907 | 2004 |
| Sci Arc (Rental)                     |                               10,108                                            |                               3,165                                 |                          12,146                                            |   |                                                                                                  |                      -  |                    -       |              3,164 |                    12,146 |               15,310 |                            1,133 | - | 2004 |
| Meruelo Baldwin Park                 |                                       - |                              6,321                                       |                                86            |   |                                                                                                  |               2,220                                        |            (1,104)                                                 |              8,541 |                    (1,018) |                7,523 |                                 - | OPEN | 2007 |
| Meruelo Wall Street                  |                               20,851                                            |                             17,738                                            |                         13,937                                                  |   |                                                                                                  |                      -  |                 143                       |            17,738 |                   14,080 |              31,818 |                           2,154 | 2000 | 2004 |
| 5707 S Alameda                       |                                       - |                              3,568                                       |                                  - |   |                                                                                                  |                  230                        |                672                             |             3,798 |                        672 |               4,470 |                                83 | 1944 | 2005 |
| Vignes Tower                         |                                       - |                              11,071                                      |                                  - |   |                                                                                                  |              (3,195)                                            |                934                             |              7,876 |                        934 |                8,810 |                                 - | - | 2005 |
| 1211 E Washington Blvd               |                                       - |                              2,508                                       |                           4,881                                       |   |                                                                                                  |                      -  |                  98                  |             2,508 |                     4,979 |                7,487 |                               611 | 1951 | 2005 |
| 4th Street Center                    |                                 3,199                                 |                              6,035                                       |                                 53      |   |                                                                                                  |             (3,426)                                                  |             1,060                                             |             2,609 |                       1,113 |               3,722 |                                65 | 1919 | 2005 |
| Desmond Building                     |                                5,340                                       |                            13,786                                                  |                                  - |   |                                                                                                  |                3,357                                  |          (4,943)                                                             |             17,143 |                  (4,943) |             12,200 |                                 - | 1917 | 2005 |
| 620 Gladys Ave                       |                                 5,381                                 |                              3,148                                       |                               145                 |   |                                                                                                  |                 5,515                            |                429                             |             8,663 |                         574 |               9,237 |                              525 | 1986 | 2005 |
| 801 E 7th Street (3)                 |                                       - |                             6,496                                             |                            1,504                                 |   |                                                                                                  |              (6,091)                                            |            (1,504)                                                 |                 405 |                            - |                   405 |                                 - | 1951 | 2007 |
| Ceres Street Produce Center          |                                       - |                              2,122                                       |                                  - |   |                                                                                                  |                   164                  |                    -       |             2,286 |                            - |               2,286 |                                 - | 1977 | 2005 |
| 1000 E Cesar Chavez                  |                                       - |                              4,563                                       |                            1,025                                 |   |                                                                                                  |              (1,736)                                            |                 759                       |             2,827 |                      1,784 |                 4,611 |                              194 | 1960 | 2005 |
| 230 W Ave 26th                       |                                       - |                             3,646                                             |                          2,008                                             |   |                                                                                                  |                 (687)                            |                437                             |             2,959 |                     2,445 |               5,404 |                               251 | 1945 | 2005 |
| 1919 Vineburn Avenue                 |                                5,468                                       |                             4,388                                             |                           3,616                                       |   |                                                                                                  |                 (254)                            |                    17      |              4,134 |                    3,633 |                7,767 |                              373 | 1984 | 2005 |
| 2131 Humboldt Street                 |                                       - |                             3,049                                             |                              249                       |   |                                                                                                  |                (1,112)                                |                   14            |              1,937 |                        263 |               2,200 |                              231 | 1946 | 2005 |
| Olive Street Towers                  |                                                                                                                                                                                                                                  |                            13,039                                                  |                                  - |   |                                                                                                  |              (5,707)                                            |           (2,925)                                                       |             7,332 |                   (2,925) |               4,407 |                                 - | - | 2005 |
| 500 Mateo Street                     |                                       - |                               1,728                                 |                              530                       |   |                                                                                                  |              (1,728)                                            |              (529)                                       |                    - |                              1 |                        1 |                                 - | 1953 | 2006 |
| 420 Boyd Street                      |                                 5,950                                 |                              7,988                                       |                               612                 |   |                                                                                                  |              (1,908)                                            |                    -       |             6,080 |                         612 |               6,692 |                              353 | OPEN | 2007 |
| 3rd & Omar Street                |                                2,560                                       |                             4,338                                             |                               375                 |   |                                                                                                  |              (1,693)                                            |                    15      |             2,645 |                        390 |               3,035 |                                43 | 1958 | 2005 |
| 2131 Humboldt Street                 |                                7,000                                       |                            19,609                                                  |                                  - |   |                                                                                                  |            (13,654)                                                       |             4,559                                             |              5,955 |                     4,559 |               10,514 |                                 - | 1990 | 2005 |
| 2415 Washington Blvd                 |                               1,491                                             |                              549                                         |                                                                                                                                                                                                    |   |                 (788) |                  43                         |                 703                       |                        592 |                1,295 |                                 - | 1931 | 2007 |
| Ullman Tower One                     |                                9,008                                       |                             25,141                                            |                                  - |   |                                                                                                  |             (6,280)                                                  |          (6,322)                                                             |            18,861 |                  (6,322) |              12,539 |                                 - | - | 2005 |
| South Park Towers                    |                             20,000                                                        |                           47,292                                                        |                                  - |   |                                                                                                  |            22,398                                                         |        (20,497)                                                                        |          69,690 |                (20,497) |             49,193 |                                 - | - | 2005 |
| TransAmerica Lofts                   |                                                                                                                                                                                                                                  |                              5,458                                       |                                  - |   |                                                                                                  |                  860                        |              1,661                                       |              6,318 |                      1,661 |                7,979 |                            1,001 | 1970 | 2004 |
| Ullman Tower Two                     |                                       - |                            14,923                                                  |                                  - |   |                                                                                                  |              (4,612)                                            |            (3,351)                                                 |             10,311 |                    (3,351) |               6,960 |                                 - | - | 2005 |
| 788 S Alameda                        |                                  7,154                           |                              2,799                                       |                                  - |   |                                                                                                  |                      10 |            6,088                                                   |             2,809 |                    6,088 |               8,897 |                              647 | 2006 | 2003 |
| Meruelo Chinatown Towers             |                              5,273                                                   |                                  -                   |                                                                                                                                                                                                    |   |               2,465             |                    -              |              7,738                                       |                            - |                7,738 |                                 - | - | 2003 |
| Alameda Square (apmi2)               |                              30,506                                                  |                              4,491                                       |                         13,729                                                  |   |                                                                                                  |                      -  |              6,125                                       |              4,491 |                   19,854 |             24,345 |                           6,152 | 1923 | 1998 |
| Seventh Street Produce Market (apmi) |                               28,159                                            |                              2,702                                       |                         12,646                                                  |   |                                                                                                  |                      -  |           10,048                                                        |             2,702 |                  22,694 |             25,396 |                           5,801 | 1923 | 1998 |
| Crown Commerce Center                |                                 10,171                                |                                  106                 |                           7,329                                       |   |                                                                                                  |                   549                  |                (171)                           |                 655 |                      7,158 |                7,813 |                          2,582 | 1988 | 2000 |
| American Apartments                  |                                       - |                              3,182                                       |                           3,504                                       |   |                                                                                                  |                 (754)                            |               (705)                                 |             2,428 |                     2,799 |                5,227 |                              472 | 1906 | 1999 |
| 905 E 8th Street                     |                                 1,950                                 |                                 893                       |                            1,768                                 |   |                                                                                                  |                (623)                                  |               1,317                                 |                 270 |                     3,085 |                3,355 |                              425 | 2004 | 2003 |
| Musica Latina Building               |                                       - |                                  618                 |                                  - |   |                                                                                                  |                     83       |                    -       |                  701 |                            - |                    701 |                                 - | 1926 | 1990 |
| American Fish Building               |                                       - |                                     - |                                  - |   |                                                                                                  |                  349                        |              (350)                                       |                349 |                      (350) |                      (1) |                                 - | 1981 | - |
| Santa Fe Plaza                       |                                 3,135                                 |                              4,027                                       |                            1,742                                 |   |                                                                                                  |             (2,930)                                                  |                968                             |              1,097 |                     2,709 |               3,806 |                                89 | 2008 | 2007 |
| 1828 Oak Street                      |                                       - |                                   181           |                                  - |   |                                                                                                  |                  (181)                      |                    -       |                    - |                            - |                      - |                                 - | 1925 | - |
| 2035 & 2040 Camfield Avenue      |                                       - |                              5,500                                       |                                  - |   |                                                                                                  |             (6,500)                                                  |                 999                       |            (1,000) |                        999 |                      (1) |                                 - | - | 2007 |
| Alameda Parking                      |                                       - |                                     - |                                  - |   |                                                                                                  |                      -  |                  84                  |                    - |                          84 |                     84 |                                 - | - | - |
| MMLP & MMCF                      |                                       - |                    -                                                                                                       |                 -                                                                                                       |   |                                                                                                  |                      71 |                     6 |                    71 |                             6 |                      77 |                                66 | - | - |
|                                 |           367,551                                                                                                                                                                   |       395,539                                                                                                                                                                               |      114,775                                                                                                                                                                   |   |                                                                                                  |           (49,410)                                                             |         107,105                                                                   |         346,128 |                221,879 |          568,007 |                       30,720 |   |   |

| (1)   | Includes non-cash purchase accounting adjustments made as a result of the IPO. |
|-----------------|--------------------------------------------------------------------------------|

| (2)   | The indicated year in this column is the first year in which an acquisition of a parcel constituting part of the entity’s project closed, if the closing occurred on or before December 31, 2009. If no closing occurred on or before December 31, 2009, no year is indicated in this column. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | We sold most of this project.  However, we have the parking lot remaining. |
|-----------------|--------------------------------------------------------------------------------------|

| (4) | Includes impairment loss. |
|-----|---------------------------|

----

|                                                                                                         |   | Years Ended December 31, |     |
|--------------------------------------------------------------------------------------------------------------|--------|--------------------------|----------|
|                                                                                                         |   | 2009                     |     |   | 2008 |   |   | 2007 |   |
| Real Estate Assets                                                                                           |   |                     |     |   |   |   |   |   |   |
| Balance, beginning of period                                                                                 |   | $                        | 670,927  |   |   | $ | 787,510 |   |   | $ | 508,968 |   |
| Non-cash purchase accounting adjustments (1)                                                                 |   |                     | -        |   |   |   | 1,230 |   |   |   | 94,281 |   |
| Non-cash impairment losses                                                                                   |   |                     | (148,828 | ) |   |   | (142,295 | ) |   |   | - |   |
| Additions - property acquisitions                                                                            |   |                     | -        |   |   |   | 39,231 |   |   |   | 100,237 |   |
|                - improvements (2) |   |                     | 45,908   |   |   |   | 70,861 |   |   |   | 84,024 |   |
| Deductions - property dispositions                                                                           |   |                     | -        |   |   |   | (85,610 | ) |   |   | - |   |
| Balance, end of period                                                                                       |   | $                        | 568,007  |   |   | $ | 670,927 |   |   | $ | 787,510 |   |
|                                                                                                         |   |                     |     |   |   |   |   |   |   |   |   |   |
| Accumulated Depreciation                                                                                     |   |                     |     |   |   |   |   |   |   |   |   |   |
| Balance, beginning of period                                                                                 |   | $                        | 25,172   |   |   | $ | 19,625 |   |   | $ | 14,159 |   |
| Additions - depreciations                                                                                    |   |                     | 5,563    |   |   |   | 6,740 |   |   |   | 5,662 |   |
| Deductions - disposals                                                                                       |   |                     | (15      | ) |   |   | (1,193 | ) |   |   | (196 | ) |
| Balance, end of period                                                                                       |   | $                        | 30,720   |   |   | $ | 25,172 |   |   | $ | 19,625 |   |

| (1)   | Represents purchase accounting adjustments made to the asset base due to the IPO. |
|-----------------|-----------------------------------------------------------------------------------|

| (2)   | Includes non-cash accruals for capital items. |
|-----------------|-----------------------------------------------|

| Building and improvements | 2-39 years                         |
|---------------------------|------------------------------------|
| Tenant improvements       | Term of respective lease |
| Tenant origination costs  | Term of respective lease           |

----