| þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)                                                                              |
|--------|----------------------------------------------------------------------------------------------------------------------------|
|   | OF THE SECURITIES EXCHANGE ACT OF 1934                                                                                     |
|   | For the fiscal year ended December 31, 2010                                                                                |
| or     |
| o      | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934                                    |
|   | For the transition period from               to |

| Maryland                                                       | 86-0602478                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

| Title of each class                       | Name of exchange on which registered |
|-------------------------------------------|--------------------------------------|
| Common Stock, par value $0.0001 per share | NYSE Amex                            |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Page  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
| PART I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Business                                                                                                                                                                                                                              | 1          |
| Item 1A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Risk Factors                                                                                                                                                                                                                          | 4          |
| Item 1B.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Unresolved Staff Comments                                                                                                                                                                                                             | 20         |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Properties                                                                                                                                                                                                                            | 21         |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Legal Proceedings                                                                                                                                                                                                                     | 31         |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | (Removed and Reserved)                                                                                                                                                                                                                | 31         |
|  PART II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Item 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchasesof Equity Securities                                                                                                                     | 32         |
| Item 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Selected Financial Data                                                                                                                                                                                                               | 33         |
| Item 7.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 33         |
| Item 7A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Quantitative and Qualitative Disclosures about Market Risk                                                                                                                                                                            | 51         |
| Item 8.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Financial Statements and Supplementary Data                                                                                                                                                                                           | 51         |
| Item 9.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 51         |
| Item 9A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Controls and Procedures                                                                                                                                                                                                               | 51         |
| Item 9B.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Other Information                                                                                                                                                                                                                     | 51         |
|  PART III                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Item 10.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Directors, Executive Officers and Corporate Governance                                                                                                                                                                                | 52         |
| Item 11.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Executive Compensation                                                                                                                                                                                                                | 52         |
| Item 12.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 52         |
| Item 13.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Certain Relationships and Related Transactions, and Director Independence                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 52         |
| Item 14.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Principal Accountant Fees and Services                                                                                                                                                                                                | 52         |
|  PART IV                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Item 15.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Exhibits and Financial Statement Schedules                                                                                                                                                                                            | 53         |
| Signatures                                                                                                                                      | 58                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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BUSINESS

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RISK FACTORS

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| ·   | our cash flow may be insufficient to meet our required principal and interest payments; |
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| ·   | we may be unable to borrow additional funds as needed or on favorable terms, which could adversely affect our liquidity; |
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| ·   | we may be forced to dispose of one or more of our properties, possibly on disadvantageous terms; and |
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| ·   | we will be exposed to interest and future interest rate volatility with respect to indebtedness that is variable rate. |
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| ·   | adverse changes in economic and demographic conditions; |
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| ·   | vacancies or our inability to rent space on favorable terms; |
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| ·   | adverse changes in financial conditions of buyers, sellers and tenants of properties; |
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| ·   | inability to collect rent from tenants; |
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| ·   | competition from other real estate investors with significant capital, including other real estate operating companies, publicly traded REITs and institutional investment funds; |
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| ·   | reductions in the level of demand for office space, including trends such as telecommuting and flexible workplaces, and changes in the relative popularity of properties; |
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| ·   | increases in the supply of office space; |
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| ·   | declining real estate valuations and impairment charges; |
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| ·   | fluctuations in interest rates, which could adversely affect our ability, or the ability of buyers and tenants of properties, to obtain financing on favorable terms or at all; |
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| ·   | increases in expenses, including insurance costs, labor costs, energy prices, real estate assessments and other taxes and costs of compliance with laws, regulations and governmental policies, and our inability to pass on some or all of these increases to our tenants; and |
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| ·   | changes in, and changes in enforcement of, laws, regulations and governmental policies, including, without limitation, health, safety, environmental, zoning and tax laws, governmental fiscal policies and the ADA. |
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| ·   | competitive pricing pressure in our markets; |
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| ·   | adverse conditions in the southern California, Honolulu or Phoenix real estate markets; |
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| ·   | general economic downturn; and |
|--------------------|--------------------------------|

| ·   | the desirability of our properties compared to other properties in our markets. |
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| ·   | joint venture partners may control or share certain approval rights over major decisions, such as decisions related to the development, financing, leasing, management and other aspects of the project, which may prevent us from taking actions that are opposed by our joint venture partners; |
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| ·   | joint venture partners may fail to fund their share of any required capital commitments; |
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| ·   | joint venture partners might have economic or other business interests or goals that are inconsistent with our business interests or goals that would affect our ability to operate the property; |
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| ·   | joint venture partners may have the power to act contrary to our instructions and policies, including our current policy with respect to maintaining our REIT qualification; |
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| ·   | joint venture agreements often restrict the transfer of a member’s or joint venture partner’s interest, provide for a buyout of a joint venture partner’s interest in certain instances or may otherwise restrict our ability to sell the interest when we desire or on advantageous terms; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our relationships with our joint venture partners are contractual in nature and may be terminated or dissolved under the terms of the applicable joint venture agreements and, in such event, we may not continue to own or operate the interests or assets underlying such relationship or may need to purchase such interests or assets at a premium to the market price to continue ownership; |
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| ·   | disputes between us and our joint venture partners may result in litigation or arbitration that would increase our expenses and divert attention from other elements of our business and result in subjecting the properties owned by the applicable joint venture to additional risk; and |
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| ·   | we may in certain circumstances be liable for the actions of our joint venture partners. |
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| ·   | In the event that the sale by us of any of the Contributed Properties would be beneficial to us but would negatively impact the tax treatment of Venture, it is possible that any of our directors or officers with a financial interest in Venture may experience a conflict of interest. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In the registration rights agreement we entered into with Venture, we retained certain rights to defer registration in circumstances where such registration would be detrimental to us. It is possible that any of our directors or officers having a financial interest in Venture or its affiliates may experience a conflict of interest in circumstances where a registration would be advantageous to such persons, but detrimental to us. |
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| ·   | Certain entities affiliated with us hold promissory notes payable by our Operating Partnership. Those entities have rights under the promissory notes, and their exercise of these rights and pursuit of remedies may be affected by their relationship with each other. |
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| ·   | The debt encumbering certain of our properties and, in the case of our Honolulu property known as “Clifford Center,” obligations under the ground lease, are secured, in part, by certain guaranty and indemnity obligations of Messrs. Shidler and Reynolds. Our Operating Partnership has entered into certain indemnity agreements with Messrs. Shidler and Reynolds in order to indemnify each of them under these guaranties and indemnities. Our Operating Partnership’s specific indemnity obligation in each of these indemnity agreements is basically to defend, indemnify and hold harmless Mr. Shidler or Mr. Reynolds from and against any and all demands, claims, causes of action, judgments, losses, costs, damages and expenses, including attorneys’ fees and costs of litigation arising from or relating to any or all of the guaranty or indemnity obligations of Mr. Shidler or Mr. Reynolds following formation. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An entity controlled by Mr. Shidler has pledged a certificate of deposit in the amount of $25 million as security for our Operating Partnership’s credit agreement with First Hawaiian Bank, for which the Operating Partnership has agreed to pay certain fees and provide certain indemnification rights. |
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| ·   | investments in which Mr. Shidler obtained an interest prior to our formation transactions; |
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| ·   | investments by Mr. Shidler in areas in which we do not own office property at the time of such investment; |
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| ·   | activities of First Industrial Realty Trust, Inc., Corporate Office Properties Trust and their respective affiliates; |
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| ·   | investment opportunities considered and rejected by us; and |
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| ·   | investments by Mr. Shidler in any entity as long as Mr. Shidler does not own more than 4.9% of the entity and is not actively engaged in the management of such entity. |
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| ·   | the financial condition and/or operating results of the issuer appear to be unsatisfactory, |
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| ·   | it appears that the extent of public distribution or the aggregate market value of the security has become so reduced as to make further dealings on the NYSE Amex inadvisable, |
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| ·   | the issuer has sold or otherwise disposed of its principal operating assets or has ceased to be an operating company, |
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| ·   | the issuer has failed to comply with its listing agreements with the NYSE Amex, or |
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| ·   | any other event occurs or any condition exists which makes further dealings on the NYSE Amex unwarranted. |
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| ·   | removal of directors; |
|--------------------|-----------------------|

| ·   | limitation on stockholder-requested special meetings; |
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| ·   | advance notice provisions for stockholder nominations and proposals; |
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| ·   | exclusive power of our board to amend our bylaws; |
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| ·   | issuance of preferred stock; |
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| ·   | restrictions on transfer and ownership of shares of our stock; and |
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| ·   | duties of directors with respect to unsolicited takeovers; |
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| ·   | we would not be required to make distributions to our stockholders; |
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| ·   | we would not be allowed to deduct distributions to our stockholders in computing our taxable income; |
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| ·   | we would be subject to federal income tax, including any applicable alternative minimum tax, at regular corporate rates; and |
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| ·   | any resulting tax liability could be substantial and could require us to borrow money or sell assets to pay such liability, and would reduce the amount of cash available for distribution to stockholders. Unless we were entitled to relief under applicable statutory provisions, we would be disqualified from treatment as a REIT for the subsequent four taxable years following the year during which we lost our qualification, and thus, our cash available for distribution to stockholders would be reduced for each of the years during which we did not qualify as a REIT. |
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UNRESOLVED

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PROPERTIES

|   PROPERTY                |   | NO. OF BUILDINGS |   |   | YEAR BUILT/RENOVATED |   |      | RENTABLE SQ. FT. (1) |   |   | ANNUALIZED RENT (2)(3) |   |   | PERCENTAGE OWNERSHIP |       |   INTEREST |
|-------------------------------------|--------|------------------|--------|--------|----------------------|--------|-----------|----------------------|--------|--------|------------------------|--------|--------|----------------------|------------|----------------------|
|                                |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |
| Wholly-Owned Properties             |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |
|                                |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |
| Waterfront Plaza                    |   |             | 1      |   |                 |   | 1988/2006 |                 |   |   | 554,695                |   |   | $                    | 18,733,757 |                 |   |   | 100.00 | % | Leasehold |
| 500 Ala Moana Boulevard             |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| Honolulu, HI 96813                  |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
|                                |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| Davies Pacific Center               |   |             | 1      |   |                 |   | 1972/2006 |                 |   |   | 375,021                |   |   |                 | 10,274,961 |                 |   |   | 100.00 | % | Fee Simple |
| 841 Bishop Street                   |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| Honolulu, HI 96813                  |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
|                                |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| Pan Am Building                     |   |             | 1      |   |                 |   | 1969/2005 |                 |   |   | 225,847                |   |   |                 | 6,829,432  |                 |   |   | 100.00 | % | Fee Simple |
| 1600 Kapiolani Boulevard            |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| Honolulu, HI 96814                  |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
|                                |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| First Insurance Center              |   |             | 1      |   |                 |   | 1960      |                 |   |   | 215,527                |   |   |                 | 7,293,007  |                 |   |   | 100.00 | % | Fee Simple |
| 1100 Ward Avenue                    |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| Honolulu, HI 96814                  |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
|                                |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| Pacific Business News Building      |   |             | 1      |   |                 |   | 1964/2006 |                 |   |   | 96,309                 |   |   |                 | 2,043,970  |                 |   |   | 100.00 | % | Fee Simple |
| 1833 Kalakaua Avenue                |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| Honolulu, HI 96815                  |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
|                                |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| Clifford Center                     |   |             | 1      |   |                 |   | 1964/2005 |                 |   |   | 77,655                 |   |   |                 | 1,798,751  |                 |   |   | 100.00 | % | Leasehold |
| 810 Richards Street                 |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| Honolulu, HI 96813                  |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
|                                |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| City Square                         |   |             | 3      |   |                 |   | 1961/1988 |                 |   |   | 742,304                |   |   |                 | 10,809,501 |                 |   |   | 100.00 | % | Fee Simple |
| 3800 North Central Avenue           |   |             |   |   |                 |   | 1971/1994 |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| 3838 North Central Avenue           |   |             |   |   |                 |   | 1965/2000 |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| 4000 North Central Avenue           |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| Phoenix, AZ 85012                   |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
|                                |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| Sorrento Technology Center          |   |             | 2      |   |                 |   | 1985      |                 |   |   | 63,363                 |   |   |                 | 1,557,514  |                 |   |   | 100.00 | % | Fee Simple |
| 10140 Barnes Canyon Road            |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| 10180 Barnes Canyon Road            |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
| San Diego, CA 92121                 |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
|                                |   |             |   |   |                 |   |      |                 |   |   |                   |   |   |                 |       |                 |   |   |   |   |   |
|  Total Wholly-Owned Properties |   |             | 11     |   |                 |   |      |                 |   |   | 2,350,721              |   |   | $                    | 59,340,893 |                 |   |   |   |   |   |

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|   PROPERTY             |   | NO. OF BUILDINGS |   |   | YEAR BUILT/RENOVATED |   |         | RENTABLE SQ. FT. (1) |   |   | ANNUALIZED RENT (2)(3) |   |   | PERCENTAGE OWNERSHIP |      |   INTEREST |
|----------------------------------|--------|------------------|--------|--------|----------------------|--------|--------------|----------------------|--------|--------|------------------------|--------|--------|----------------------|-----------|----------------------|
|                             |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |
| Joint Venture Properties         |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |
|                             |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |
| Seville Plaza                    |   |             | 3      |   |                 |   | 1976/2002    |                 |   |   | 139,335                |   |   | $                    | 2,477,365 |                 |   |   | 7.50 | % | Fee Simple |
| 5469 Kearny Villa Road           |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| 5471 Kearny Villa Road           |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| 5473 Kearny Villa Road           |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| San Diego, CA 92123              |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
|                             |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| U.S. Bank Center                 |   |             | 2      |   |                 |   | 1976/2000-05 |                 |   |   | 372,606                |   |   |                 | 6,234,127 |                 |   |   | 7.50 | % | Fee Simple |
| 101 North First Avenue           |   |             |   |   |                 |   | 1954         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| 21 West Van Buren Street         |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| Phoenix, AZ 85003                |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
|                             |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| Bank of Hawaii Waikiki Center    |   |             | 1      |   |                 |   | 1980/1989    |                 |   |   | 152,288                |   |   |                 | 7,403,672 |                 |   |   | 17.50 | % | Leasehold |
| 2155 Kalakaua Avenue             |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| Honolulu, HI 96815               |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
|                             |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| Black Canyon Corporate Center    |   |             | 1      |   |                 |   | 1980/2006    |                 |   |   | 218,694                |   |   |                 | 3,011,979 |                 |   |   | 17.50 | % | Fee Simple |
| 16404 North Black Canyon Highway |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| Phoenix, AZ 85053                |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
|                             |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| Palomar Heights Corporate Center |   |             | 1      |   |                 |   | 1999         |                 |   |   | 67,862                 |   |   |                 | 1,467,590 |                 |   |   | 32.17 | % | Fee Simple |
| 5857 Owens Avenue                |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| Carlsbad, CA 92008               |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
|                             |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| Torrey Hills Corporate Center    |   |             | 1      |   |                 |   | 1998         |                 |   |   | 23,478                 |   |   |                 | 107,916   |                 |   |   | 32.17 | % | Fee Simple |
| 11250 El Camino Real             |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| San Diego, CA 92130              |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
|                             |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| Scripps Ranch Business Park      |   |             | 2      |   |                 |   | 1984/2006    |                 |   |   | 47,441                 |   |   |                 | 576,736   |                 |   |   | 32.17 | % | Fee Simple |
| 9775 Business Park Avenue        |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| 10021 Willow Creek Road          |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| San Diego, CA 92131              |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
|                             |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| Palomar Heights Plaza            |   |             | 3      |   |                 |   | 2001         |                 |   |   | 45,538                 |   |   |                 | 830,047   |                 |   |   | 32.17 | % | Fee Simple |
| 5860 Owens Avenue                |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| 5868 Owens Avenue                |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| 5876 Owens Avenue                |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| Carlsbad, CA 92008               |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
|                             |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| Carlsbad Corporate Center        |   |             | 1      |   |                 |   | 1996         |                 |   |   | 120,483                |   |   |                 | 2,385,812 |                 |   |   | 10.00 | % | Fee Simple |
| 1950 Camino Vida Roble           |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |
| Carlsbad, CA 92008               |   |             |   |   |                 |   |         |                 |   |   |                   |   |   |                 |      |                 |   |   |   |   |   |

----

|   PROPERTY                 |   | NO. OF BUILDINGS |   |   | YEAR BUILT/RENOVATED |   |       | RENTABLE SQ. FT. (1) |   |   | ANNUALIZED RENT (2)(3) |   |   | PERCENTAGE OWNERSHIP |        |   INTEREST |
|--------------------------------------|--------|------------------|--------|--------|----------------------|--------|------------|----------------------|--------|--------|------------------------|--------|--------|----------------------|-------------|----------------------|
| Via Frontera Business Park           |   |             | 2      |   |                 |   | 1979/1996  |                 |   |   | 75,651                 |   |   |                 | 703,432     |                 |   |   | 10.00 | % | Fee Simple |
| 10965 Via Frontera Drive             |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| 10993 Via Frontera Drive             |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| San Diego, CA 92127                  |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
|                                 |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| Poway Flex                           |   |             | 1      |   |                 |   | 1991       |                 |   |   | 111,258                |   |   |                 | 1,487,442   |                 |   |   | 10.00 | % | Fee Simple |
| 13550 Stowe Drive                    |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| Poway, CA 92064                      |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
|                                 |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| Savi Tech Center                     |   |             | 4      |   |                 |   | 1989       |                 |   |   | 371,098                |   |   |                 | 7,232,310   |                 |   |   | 10.00 | % | Fee Simple |
| 22705 Savi Ranch Parkway             |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| 22715 Savi Ranch Parkway             |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| 22725 Savi Ranch Parkway             |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| 22745 Savi Ranch Parkway             |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| Yorba Linda, CA 92887                |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
|                                 |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| Yorba Linda Business Park            |   |             | 5      |   |                 |   | 1988       |                 |   |   | 164,121                |   |   |                 | 1,396,828   |                 |   |   | 10.00 | % | Fee Simple |
| 22833 La Palma Avenue                |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| 22343 La Palma Avenue                |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| 22345 La Palma Avenue                |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| 22347 La Palma Avenue                |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| 22349 La Palma Avenue                |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| Yorba Linda, CA 92887                |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
|                                 |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| South Coast Executive Center         |   |             | 1      |   |                 |   | 1980/1997  |                 |   |   | 60,703                 |   |   |                 | 775,246     |                 |   |   | 10.00 | % | Fee Simple |
| 1503 South Coast Dr.                 |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| Costa Mesa, CA 92626                 |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
|                                 |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| Gateway Corporate Center             |   |             | 1      |   |                 |   | 1987       |                 |   |   | 84,996                 |   |   |                 | 2,024,731   |                 |   |   | 10.00 | % | Fee Simple |
| 1370 Valley Vista Drive              |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| Diamond Bar, CA 91765                |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| Yorba Linda Business Park            |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
|                                 |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| Seaview Corporate Center             |   |             | 5      |   |                 |   | 1983-2001/ |                 |   |   | 356,504                |   |   |                 | 9,947,425   |                 |   |   | 5.00 | % | Fee Simple |
| 10180 Telesis Court                  |   |             |   |   |                 |   | 2005       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| 10190 Telesis Court                  |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| 10182 Telesis Court                  |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| 10188 Telesis Court                  |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| Parking Structure/Café          |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
| San Diego, CA 92121                  |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
|                                 |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
|  Total Joint Venture Properties |   |             | 34     |   |                 |   |       |                 |   |   | 2,412,056              |   |   | $                    | 48,062,658  |                 |   |   |   |   |   |
|                                 |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |
|  Total Portfolio(4)             |   |             | 45     |   |                 |   |       |                 |   |   | 4,762,777              |   |   | $                    | 107,403,551 |                 |   |   |   |   |   |
|                                 |   |             |   |   |                 |   |       |                 |   |   |                   |   |   |                 |        |                 |   |   |   |   |   |

| (1)   Based on Building Owners and Managers Association (BOMA) 1996 remeasurement.                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  Annualized rent represents the monthly contractual rent under commenced leases as of December 31, 2010. This amount reflects total rent before abatements and includes contractual expense reimbursements, which are estimated by annualizing December 2010 actual expense reimbursement billings. Total abatements committed to as of December 31, 2010 for the 12 months ending December 31, 2011 were approximately $0.7 million for our wholly-owned properties and $2.5 million for our joint venture properties. |
| (3)  Annualized rent for the joint venture properties is reported with respect to each property in its entirety, rather than the portion of the property represented by our ownership interest. No portion of the joint venture properties’ annualized rent is consolidated in our consolidated financial statements because our interests in our joint venture properties are accounted for under the equity method of accounting.                                                                                   |
| (4)  Rentable square feet and annualized rent for the Total Portfolio are reported as the sum of the amounts reported for each property in its entirety, rather than the portion of the property represented by our ownership interest.                                                                                                                                                                                                                                                                                          |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Percent Leased(1)(2) |   |   | Annualized Rent Per Leased SF(3) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------------------|--------|
| PROPERTY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2006                 |   |   | 2007                             |   |   | 2008 |   |   | 2009 |   |   | 2010 |   |   | 2006 |   |   | 2007 |   |   | 2008 |   |   | 2009 |   |   | 2010 |   |
| Wholly-Owned Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Waterfront Plaza                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                 | 94     | %      |                             |   | 91 | % |   |   | 86 | % |   |   | 94 | % |   |   | 93 | % |   | $ | 29.41 |   |   | $ | 31.37 |   |   | $ | 33.95 |   |   | $ | 37.12 |   |   | $ | 37.71 |   |
| Davies Pacific Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 | 90     | %      |                             |   | 85 | % |   |   | 87 | % |   |   | 86 | % |   |   | 81 | % |   |   | 30.10 |   |   |   | 31.54 |   |   |   | 35.93 |   |   |   | 35.12 |   |   |   | 35.79 |   |
| Pan Am Building                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                 | 93     | %      |                             |   | 98 | % |   |   | 97 | % |   |   | 93 | % |   |   | 88 | % |   |   | 31.60 |   |   |   | 31.73 |   |   |   | 38.83 |   |   |   | 38.57 |   |   |   | 36.97 |   |
| First Insurance Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                 | 97     | %      |                             |   | 97 | % |   |   | 97 | % |   |   | 99 | % |   |   | 99 | % |   |   | 30.59 |   |   |   | 33.07 |   |   |   | 35.82 |   |   |   | 34.61 |   |   |   | 36.10 |   |
| Pacific Business News Building                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 | 75     | %      |                             |   | 72 | % |   |   | 73 | % |   |   | 73 | % |   |   | 68 | % |   |   | 27.92 |   |   |   | 29.06 |   |   |   | 31.36 |   |   |   | 32.33 |   |   |   | 32.64 |   |
| Clifford Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                 | 79     | %      |                             |   | 79 | % |   |   | 81 | % |   |   | 83 | % |   |   | 74 | % |   |   | 24.36 |   |   |   | 27.18 |   |   |   | 29.39 |   |   |   | 31.95 |   |   |   | 33.09 |   |
| City Square                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 | 73     | %      |                             |   | 77 | % |   |   | 77 | % |   |   | 72 | % |   |   | 71 | % |   |   | 18.39 |   |   |   | 18.29 |   |   |   | 20.35 |   |   |   | 20.64 |   |   |   | 20.64 |   |
| Sorrento Technology Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                 | 100    | %      |                             |   | 100 | % |   |   | 100 | % |   |   | 100 | % |   |   | 100 | % |   |   | 21.41 |   |   |   | 22.14 |   |   |   | 23.70 |   |   |   | 24.47 |   |   |   | 24.58 |   |
| Weighted Average: Wholly-Owned Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                 | 86     | %      |                             |   | 86 | % |   |   | 85 | % |   |   | 85 | % |   |   | 83 | % |   | $ | 26.33 |   |   | $ | 27.27 |   |   | $ | 30.39 |   |   | $ | 31.26 |   |   | $ | 31.64 |   |
| Joint Venture Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Hawaii Waikiki Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 | -      |   |                             |   | 88 | % |   |   | 87 | % |   |   | 86 | % |   |   | 87 | % |   | $ | - |   |   | $ | 38.90 |   |   | $ | 54.05 |   |   | $ | 52.25 |   |   | $ | 56.21 |   |
| U.S. Bank Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                 | 77     | %      |                             |   | 79 | % |   |   | 80 | % |   |   | 80 | % |   |   | 72 | % |   |   | 18.64 |   |   |   | 20.53 |   |   |   | 22.37 |   |   |   | 22.26 |   |   |   | 23.32 |   |
| Black Canyon Corporate Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 | -      |   |                             |   | 65 | % |   |   | 65 | % |   |   | 65 | % |   |   | 76 | % |   |   | - |   |   |   | 15.60 |   |   |   | 16.43 |   |   |   | 17.85 |   |   |   | 17.99 |   |
| Seville Plaza                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 | 90     | %      |                             |   | 92 | % |   |   | 77 | % |   |   | 75 | % |   |   | 67 | % |   |   | 24.93 |   |   |   | 26.94 |   |   |   | 26.84 |   |   |   | 27.04 |   |   |   | 26.72 |   |
| Seaview Corporate Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 | -      |   |                             |   | - |   |   |   | - |   |   |   | 92 | % |   |   | 97 | % |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 31.05 |   |   |   | 31.09 |   |
| Scripps Ranch Business Park                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 | -      |   |                             |   | - |   |   |   | 85 | % |   |   | 44 | % |   |   | 49 | % |   |   | - |   |   |   | - |   |   |   | 18.89 |   |   |   | 26.20 |   |   |   | 25.04 |   |
| Torrey Hills Corporate Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 | -      |   |                             |   | - |   |   |   | 100 | % |   |   | 89 | % |   |   | 11 | % |   |   | - |   |   |   | - |   |   |   | 40.00 |   |   |   | 41.81 |   |   |   | 40.80 |   |
| Palomar Heights Corporate Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                 | -      |   |                             |   | - |   |   |   | 90 | % |   |   | 87 | % |   |   | 82 | % |   |   | - |   |   |   | - |   |   |   | 27.67 |   |   |   | 28.85 |   |   |   | 27.53 |   |
| Palomar Heights Plaza                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 | -      |   |                             |   | - |   |   |   | 88 | % |   |   | 70 | % |   |   | 74 | % |   |   | - |   |   |   | - |   |   |   | 25.08 |   |   |   | 23.07 |   |   |   | 24.19 |   |
| Via Frontera Business Park                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                 | 70     | %      |                             |   | 93 | % |   |   | 93 | % |   |   | 100 | % |   |   | 51 | % |   |   | 17.21 |   |   |   | 16.47 |   |   |   | 19.39 |   |   |   | 18.68 |   |   |   | 18.08 |   |
| Poway Flex                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                 | 100    | %      |                             |   | 100 | % |   |   | 100 | % |   |   | 100 | % |   |   | 100 | % |   |   | 8.40 |   |   |   | 9.49 |   |   |   | 9.00 |   |   |   | 9.36 |   |   |   | 13.28 |   |
| Carlsbad Corporate Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                 | 44     | %      |                             |   | 44 | % |   |   | 67 | % |   |   | 95 | % |   |   | 100 | % |   |   | 15.15 |   |   |   | 15.42 |   |   |   | 16.47 |   |   |   | 17.60 |   |   |   | 19.63 |   |
| South Coast Executive Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 | 100    | %      |                             |   | 80 | % |   |   | 60 | % |   |   | 51 | % |   |   | 65 | % |   |   | 24.34 |   |   |   | 24.10 |   |   |   | 25.43 |   |   |   | 25.82 |   |   |   | 19.51 |   |
| Savi Tech Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                 | 97     | %      |                             |   | 97 | % |   |   | 97 | % |   |   | 97 | % |   |   | 100 | % |   |   | 16.87 |   |   |   | 18.39 |   |   |   | 18.80 |   |   |   | 19.26 |   |   |   | 20.03 |   |
| Yorba Linda Business Park                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                 | 94     | %      |                             |   | 95 | % |   |   | 87 | % |   |   | 94 | % |   |   | 81 | % |   |   | 9.99 |   |   |   | 10.79 |   |   |   | 11.65 |   |   |   | 11.66 |   |   |   | 10.41 |   |
| Gateway Corporate Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 | 84     | %      |                             |   | 94 | % |   |   | 94 | % |   |   | 91 | % |   |   | 90 | % |   |   | 24.62 |   |   |   | 25.90 |   |   |   | 27.45 |   |   |   | 26.65 |   |   |   | 27.47 |   |
| Weighted Average: Joint Venture  Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 | 85     | %      |                             |   | 84 | % |   |   | 84 | % |   |   | 85 | % |   |   | 83 | % |   | $ | 17.21 |   |   | $ | 19.95 |   |   | $ | 22.39 |   |   | $ | 23.73 |   |   | $ | 24.35 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average: Total Portfolio                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                 | 85     | %      |                             |   | 85 | % |   |   | 85 | % |   |   | 85 | % |   |   | 83 | % |   | $ | 22.70 |   |   | $ | 23.98 |   |   | $ | 26.60 |   |   | $ | 27.33 |   |   | $ | 27.91 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| (1) Based on leases signed as of December 31 of each historical year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| (2) Based on rentable square footage.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| (3) Annualized Rent represents the monthly contractual rent under commenced leases as of December 31, 2010. This amount reflects total rent before abatements and includes contractual expense reimbursements, which are estimated by annualizing December 2010 actual expense reimbursement billings. Annualized rent for the joint venture properties is reported with respect to each property in its entirety, rather than the portion of the property represented by our ownership interest. Annualized Rent per Leased Square Foot represents Annualized Rent divided by square feet of commenced leases as of December 31, 2010. |   |

----

|   Tenant                                    |  LeaseExpiration | RentableSquareFeet |   | AnnualizedRent(1) |       | % of TotalAnnualizedRent |   |   Property |   Industry          |
|-------------------------------------------------------|-----------------------|--------------------|--------|-------------------|------------|--------------------------|--------|----------------------|-------------------------------|
|                                                  |                  |               |   |              |       |                     |   |                 |                          |
| Wholly-Owned Properties                               |                  |               |   |              |       |                     |   |                 |                          |
| First Insurance Company of Hawaii Ltd.                | 2/28/18               | 109,755            |   | $                 | 4,148,186  |                     | 6.99   | %                    | First Insurance Center        | Insurance – Direct Property and Casualty Ins. Carriers |
| Hawaii Insurance Consultants  Ltd           | 12/31/12              | 76,828             |   | $                 | 2,972,395  |                     | 5.00   | %                    | Waterfront Plaza              | Insurance – Agencies and Brokerages |
| AZ Dept of Economic Security                          | 12/31/12              | 104,059            |   | $                 | 1,974,856  |                     | 3.33   | %                    | City Square                   | Government – State |
| Straub Clinic & Hospital                          | 1/31/13               | 55,910             |   | $                 | 1,825,926  |                     | 3.08   | %                    | First Insurance Center        | Health Care |
| General Services Administration                       | 6/20/25               | 30,994             |   | $                 | 1,371,361  |                     | 2.31   | %                    | Waterfront Plaza              | Government – Federal |
| Oahu Publications  Inc.                     | 1/31/18               | 30,399             |   | $                 | 1,238,562  |                     | 2.09   | %                    | Waterfront Plaza              | Publishing  Printing |
| McCorriston Miho Miller Mukai                         | 12/31/11              | 34,543             |   | $                 | 1,067,717  |                     | 1.80   | %                    | Waterfront Plaza              | Legal services |
| AT&T Corp.                                        | 6/30/15               | 26,160             |   | $                 | 1,061,472  |                     | 1.79   | %                    | Waterfront Plaza              | Communications – All Other |
| Hilton Grand Vacations Company  LLC         | 4/16/13               | 19,263             |   | $                 | 942,388    |                     | 1.59   | %                    | Pan Am Building               | Travel and tourism services |
| Fujitsu Transaction Solutions  Inc.         | 12/31/10              | 37,886             |   | $                 | 918,178    |                     | 1.55   | %                    | Sorrento Technology Center    | Information |
| Total Annualized Rent for                             |                  |               |   |              |       |                     |   |                 |                          |   |
| Top 10 Tenants-Wholly-Owned Properties                |                  |               |   | $                 | 17,521,041 |                     | 29.53  | %                    |                          |   |
|                                                  |                  |               |   |              |       |                     |   |                 |                          |   |
| Total Annualized Rent - Wholly-Owned Properties       |                  |               |   | $                 | 59,340,893 |                     |   |                 |                          |   |
|                                                  |                  |               |   |              |       |                     |   |                 |                          |   |
| Joint Venture Properties                              |                  |               |   |              |       |                     |   |                 |                          |   |
| Carefusion  Inc                             | 2/28/15               | 130,000            |   | $                 | 2,807,397  |                     | 5.84   | %                    | Savi Tech Center              | Health Care |
| Nobel Biocare USA  Inc.                     | 10/31/17              | 122,361            |   | $                 | 2,506,798  |                     | 5.22   | %                    | Savi Tech Center              | Health Care |
| Pfizer  Inc.                                | 7/31/13               | 61,211             |   | $                 | 2,124,994  |                     | 4.42   | %                    | Seaview Corporate Center      | Pharmaceuticals |
| Bank of Hawaii                                        | 1/31/38               | 6,971              |   | $                 | 2,002,771  |                     | 4.18   | %                    | Bank of Hawaii Waikiki Center | Banking/Finance - Commercial Banking |
| Adobe Systems  Inc.                         | 1/31/13               | 61,211             |   | $                 | 1,948,099  |                     | 4.05   | %                    | Seaview Corporate Center      | Computer & Data Services |
| The Active Network  Inc.                    | 10/31/17              | 61,587             |   | $                 | 1,703,401  |                     | 3.55   | %                    | Seaview Corporate Center      | Information |
| High-Tech Institute  Inc./Anthem College    | 4/4/18                | 92,974             |   | $                 | 1,631,625  |                     | 3.39   | %                    | Black Canyon Corporate Center | Educational Services |
| JTB Hawaii  Inc.                            | 12/31/12              | 35,623             |   | $                 | 1,535,558  |                     | 3.19   | %                    | Bank of Hawaii Waikiki Center | Travel and tourism services |
| General Atomics Aeronautical Systems Inc.             | 5/31/15               | 112,000            |   | $                 | 1,487,442  |                     | 3.09   | %                    | Poway Flex                    | Information |
| Valley Metro Rail  Inc.                     | 6/30/16               | 57,007             |   | $                 | 1,254,782  |                     | 2.61   | %                    | U.S. Bank Center              | Commuter Rail Systems |
| Total Annualized Rent for                             |                  |               |   |              |       |                     |   |                 |                          |   |
| Top 10 Tenants – Joint Venture Properties       |                  |               |   | $                 | 19,002,867 |                     | 39.54  | %                    |                          |   |
|                                                  |                  |               |   |              |       |                     |   |                 |                          |   |
| Total Annualized Rent –Joint Venture Properties |                  |               |   | $                 | 48,062,658 |                     |   |                 |                          |   |

|   | (1) Annualized Rent represents the monthly contractual rent under commenced leases as of December 31, 2010. This amount reflects total rent before abatements and includes contractual expense reimbursements, which are estimated by annualizing December 2010 actual expense reimbursement billings.  Annualized rent for the tenants of our joint venture properties is reported with respect to each lease in its entirety, rather than the portion of the lease represented by our ownership interest. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|    Property/Tenant                    |    Industry                                   |   Lease Expiration(1) |  RenewalOption |   | TotalLeasedSquare feet | % ofRentableSquare Feet |   |   | AnnualizedRent(2) |      | % ofAnnualizedRent |   |
|------------------------------------------------------|--------------------------------------------------------------|---------------------------------|---------------------|--------|------------------------|-------------------------|--------|--------|-------------------|-----------|--------------------|--------|
|   Wholly-Owned Properties                  |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |
| Waterfront Plaza                                     |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |
|  - Hawaii Insurance Consultants  Ltd  | Insurance – Agencies and Brokerages                    | 12/31/12                        | (3                  | )      | 76,828                 | 13.85                   | %      |   | $                 | 2,972,395 |               | 15.87  | % |
| First Insurance Center                               |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |   |
| - First Insurance Company of Hawaii Ltd.             | Insurance – Direct Property and Casualty Ins. Carriers | 02/28/18                        | (4                  | )      | 109,755                | 50.92                   | %      |   |              | 4,148,186 |               | 56.88  | % |
| - Straub Clinic & Hospital                       | Health Care                                                  | 01/31/13                        | (5                  | )      | 55,910                 | 25.94                   | %      |   |              | 1,825,926 |               | 25.04  | % |
| Pacific Business News Building                       |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |   |
| - Business Journal Publications  Inc.      | Publishing  Printing                               | MTM                             | None                |   | 9,632                  | 10.00                   | %      |   |              | 273,982   |               | 13.40  | % |
| Clifford Center                                      |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |   |
| - Clifford Projects Inc.                        | Architectural & engineering                              | 02/29/16                        | (6                  | )      | 10,503                 | 13.53                   | %      |   |              | 383,901   |               | 21.34  | % |
| City Square                                          |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |   |
|  - AZ Dept of Economic Security                 | Government – State                                     | 12/31/12                        | (7                  | )      | 104,059                | 14.02                   | %      |   |              | 1,974,856 |               | 18.27  | % |
| Sorrento Technology Center                           |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |   |
| - Fujitsu Transaction Solutions  Inc.      | Information                                                  | 12/31/10                        | None                |   | 37,886                 | 59.79                   | %      |   |              | 918,177   |               | 58.95  | % |
| - Information Systems Laboratories  Inc.   | Information                                                  | 11/30/11                        | (8                  | )      | 25,477                 | 40.21                   | %      |   |              | 623,377   |               | 40.02  | % |
|   Joint Venture Properties                 |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |   |
| Bank of Hawaii Waikiki Center                        |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |   |
|  -JTB Hawaii  Inc.                    | Travel and tourism services                                  | 12/31/12                        | (9                  | )      | 35,623                 | 23.39                   | %      |   |              | 1,535,558 |               | 20.74  | % |
| - Teddy Bear Museum Inc.                             | Food Services  Beverage & Drug Stores          | 11/30/20                        | (10                 | )      | 17,795                 | 11.69                   | %      |   |              | 988,002   |               | 13.34  | % |
|  -Aston Hotels & Resorts  LLC     | Travel and tourism services                                  | 10/31/19                        | (11                 | )      | 17,747                 | 11.65                   | %      |   |              | 626,659   |               | 8.46   | % |
| U.S. Bank Center                                     |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |   |
| - Valley Metro Rail  Inc.                  | Commuter Rail Systems                                        | 06/30/16                        | (12                 | )      | 57,007                 | 15.30                   | %      |   |              | 1,254,782 |               | 20.13  | % |
| - Jacobs Engineering Group  Inc.           | Architectural & engineering                              | 01/31/15                        | None                |   | 40,235                 | 10.80                   | %      |   |              | 925,405   |               | 14.84  | % |
| Black Canyon Corporate Center                        |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |   |
| - High-Tech Institute  Inc./Anthem College | Educational Services                                         | 04/04/18                        | (13                 | )      | 92,974                 | 42.51                   | %      |   |              | 1,631,625 |               | 54.17  | % |
| - Paychex North America  Inc.              | Accounting & management consulting                       | 06/30/12                        | (14                 | )      | 48,427                 | 22.14                   | %      |   |              | 964,707   |               | 32.03  | % |
| - Direct Alliance Corporation                        | Miscellaneous – Services                               | 09/30/17                        | (15                 | )      | 25,978                 | 11.88                   | %      |   |              | 415,648   |               | 13.80  | % |
| Seaview Corporate Center                             |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |   |
| - The Active Network  Inc.                 | Information                                                  | 10/31/17                        | (16                 | )      | 61,587                 | 17.28                   | %      |   |              | 1,703,401 |               | 17.12  | % |
| - Adobe Systems  Inc.                      | Computer & Data Services                                 | 01/31/13                        | (17                 | )      | 61,211                 | 17.17                   | %      |   |              | 1,948,099 |               | 19.58  | % |
| - Pfizer  Inc.                             | Pharmaceuticals                                              | 07/31/13                        | (18                 | )      | 61,211                 | 17.17                   | %      |   |              | 2,124,994 |               | 21.36  | % |
| - Computer Associates International  Inc.  | Computer & Data Services                                 | 08/31/13                        | (19                 | )      | 38,302                 | 10.74                   | %      |   |              | 1,130,209 |               | 11.36  | % |
| Scripps Ranch Business Park                          |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |   |
| - Jones & Stokes Associates  Inc.      | Architectural & engineering                              | 03/31/15                        | (20                 | )      | 15,356                 | 32.37                   | %      |   |              | 406,417   |               | 70.47  | % |
| - Centerbeam  Inc.                         | Architectural & engineering                              | 05/31/16                        | (21                 | )      | 5,484                  | 11.56                   | %      |   |              | 121,745   |               | 21.11  | % |
| Torrey Hills Corporate Center                        |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |   |
| - Pacific Hospitality Group  Inc.          | Real Estate – Other Activities                         | 04/30/15                        | (22                 | )      | 2,645                  | 11.27                   | %      |   |              | 107,916   |               | 100.00 | % |
| Palomar Heights Corporate Center                     |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |   |
| - Irdeto USA  Inc.                         | Computer & Data Services                                 | 02/28/11                        | None                |   | 22,247                 | 32.78                   | %      |   |              | 627,365   |               | 42.75  | % |
| - Yahoo! Inc.                                        | Advertising services                                         | 04/30/11                        | (23                 | )      | 17,824                 | 26.27                   | %      |   |              | 427,776   |               | 29.15  | % |
| - Wells Fargo Bank Corp Properties Group             | Banking/Finance - Commercial Banking                         | 06/30/12                        | (24                 | )      | 7,583                  | 11.17                   | %      |   |              | 241,070   |               | 16.43  | % |
| Palomar Heights Plaza                                |                                                         |                            |                |   |                   |                    |   |   |              |      |               |   |   |
| - LMR Solutions  LLC                       | Computer & Data Services                                 | 11/30/12                        | (25                 | )      | 8,758                  | 19.23                   | %      |   |              | 219,651   |               | 26.46  | % |

----

| Via Frontera Business Park                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                            |     |   |   |    |   |   |   |   |      |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|----------|--------|--------|---------|--------|--------|--------|--------|-----------|--------|--------|
| - Xpress Data  Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Publishing  Printing                  | 09/30/15 | (26    | )      | 15,298  | 20.22  | %      |   |   | 238,464   |   | 33.90  | % |
| - Panasonic Corp of North America                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Electronics  Electrical Equipment     | 11/30/11 | None   |   | 8,064   | 10.66  | %      |   |   | 163,567   |   | 23.25  | % |
| Poway Flex                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                            |     |   |   |    |   |   |   |   |      |   |   |   |
| - General Atomics Aeronautical Systems Inc                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Information                                     | 05/31/15 | (27    | )      | 112,000 | 100.67 | %      |   |   | 1,487,442 |   | 100.00 | % |
| Carlsbad Corporate Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                            |     |   |   |    |   |   |   |   |      |   |   |   |
| - Linear  LLC                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Architectural & engineering                 | 09/30/13 | (28    | )      | 53,022  | 44.01  | %      |   |   | 935,190   |   | 39.20  | % |
| -Greatcall  DBA: Jitterbug                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Communications – Wireless                 | 05/31/14 | (29    | )      | 23,358  | 19.39  | %      |   |   | 503,118   |   | 21.09  | % |
| - San Diego Golf Academy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Educational Services                            | 01/31/15 | (30    | )      | 20,254  | 16.81  | %      |   |   | 450,728   |   | 18.89  | % |
| Savi Tech Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                            |     |   |   |    |   |   |   |   |      |   |   |   |
| - Carefusion  Inc                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Health Care                                     | 02/28/15 | (31    | )      | 130,000 | 35.03  | %      |   |   | 2,807,397 |   | 38.82  | % |
| - Nobel Biocare USA  Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Health Care                                     | 10/31/17 | (32    | )      | 122,361 | 32.97  | %      |   |   | 2,506,798 |   | 34.66  | % |
| - First American Real Estate Facilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Real Estate - Rental and Leasing Services       | 10/31/12 | (33    | )      | 47,198  | 12.72  | %      |   |   | 934,520   |   | 12.92  | % |
| - Ashley Furniture Homestore                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Retail – All other home furnishing stores | 09/30/16 | (34    | )      | 46,176  | 12.44  | %      |   |   | 946,718   |   | 13.09  | % |
| Yorba Linda Business Park                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                            |     |   |   |    |   |   |   |   |      |   |   |   |
| - AJ Oster West  Inc                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | General Merchandisers                           | 03/31/14 | (35    | )      | 50,282  | 30.64  | %      |   |   | 351,631   |   | 25.17  | % |
| Gateway Corporate Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                            |     |   |   |    |   |   |   |   |      |   |   |   |
| - University of Phoenix                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Educational Services                            | 09/30/14 | None   |   | 27,893  | 32.82  | %      |   |   | 738,723   |   | 36.49  | % |
| - Kleinfelder  Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Architectural & engineering                 | 07/31/11 | (36    | )      | 11,171  | 13.14  | %      |   |   | 313,251   |   | 15.47  | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                            |     |   |   |    |   |   |   |   |      |   |   |   |
| 1) Expiration dates assume no exercise of renewal, extension or termination options.                                                                                                                                                                                                                                                                                                                                                                                                                           |                                            |
| 2) Annualized rent represents the monthly contractual rent under commenced leases as of December 31, 2010. This amount reflects total rent before abatements and includes contractual expense reimbursements, which are estimated by annualizing December 2010 actual expense reimbursement billings. Annualized rent for the tenants of our joint venture properties is reported with respect to each lease in its entirety, rather than the portion of the lease represented by our ownership interest. |                                            |
| 3) Hawaii Insurance Consultants has an option to extend its term for two 5-year periods, with base rent set at an agreed upon negotiated base rental rate of 95% of the fair market rental rate at the time of the extension.                                                                                                                                                                                                                                                                                  |                                            |
| 4) First Insurance Company of Hawaii has an option to extend its term for three 10-year periods, with base rent set at an agreed upon negotiated base rental rate of 95% of the fair market rental rate at the time of the extension                                                                                                                                                                                                                                                                           |                                            |
| 5) Straub Clinic & Hospital has an option to extend its term for a one 5-year period, with base rent set at an agreed upon negotiated base rental rate not to exceed 90% of the fair market rental rate at the time of the extension.                                                                                                                                                                                                                                                                      |                                            |
| 6) Clifford Projects has an option to extend its term for 5 years at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                                         |                                            |
| 7) The Arizona Dept. of Economic Security has an option to extend its term for 5 years at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                    |                                            |
| 8) Information Systems Laboratories has an option to extend its term for 5 years at the higher of fair market rent or a 3.5% increase above the tenant’s rent at expiration.                                                                                                                                                                                                                                                                                                                             |                                            |
| 9) JTB Hawaii has an option to extend its term for one 5-year period at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                                      |                                            |
| 10) Teddy Bear Museum has an option to extend its term for one 10-year period at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                             |                                            |
| 11) Aston Hotels & Resorts has an option to extend its term for one 5-year period at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                     |                                            |
| 12) Valley Metro Rail has an option to extend its term for two 5-year periods at 95% of fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                      |                                            |
| 13) High Tech Institute has an option to extend its term for two 5-year priods at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                            |                                            |
| 14) Paychex has an option to extend its term for three 3-year periods at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                                          |                                            |
| 15) Direct Alliance has an option to extend its term for one 5-year period at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                                |                                            |
| 16) The Active Network has an option to extend its term for one 5-year period at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                             |                                            |
| 17) Adobe Systems has an option to extend its term for one 5-year period at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                                  |                                            |
| 18) Pfizer, Inc. has an option to extend its term for one 5-year period at 95% of the fair market rent at the time of extension.                                                                                                                                                                                                                                                                                                                                                                               |                                            |
| 19) Computer Associates International, Inc. has an option to extend its term for one 5-year period at 95% of the fair market rent at the time of extension.                                                                                                                                                                                                                                                                                                                                                    |                                            |
| 20) Jones & Stokes Associates has an option to extend its term for one 5-year period at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                  |                                            |
| 21) Centerbeam has an option to extend its term for one 5-year period at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                                     |                                            |
| 22) Pacific Hospitality Group has an option to extend its term for one 5-year period at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                      |                                            |
| 23) Yahoo! has an option to extend its term for one 2-year period at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                                         |                                            |
| 24) Wells Fargo has an option remaining to extend its term for one 5-year periods at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                         |                                            |
| 25) LMR Solutions has an option to extend its term for one 5-year period at an annual increase of 3% over the last year rental rate of the original term.                                                                                                                                                                                                                                                                                                                                                      |                                            |
| 26) Xpress Data has an option to extend its term for one 5-year period at fair market rent                                                                                                                                                                                                                                                                                                                                                                                                                     |                                            |
| 27) General Atomics Aeronautical Systems Inc. has an option to extend its term for three 5-year periods. Base rent for the first period is set at 4% annual increases, while base rent for the second and third period are set at fair market rent.                                                                                                                                                                                                                                                  |                                            |
| 28) Linear LLC has an option to extend its term for two 5-year periods at 95% of the fair market rent at the time of extension.                                                                                                                                                                                                                                                                                                                                                                                |                                            |
| 29) Jitterbug has an option to extend its term for one 5-year period at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                                      |                                            |
| 30) San Diego Golf Academy has an option to extend its term for one 5-year period at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                         |                                            |
| 31) CareFusion Corp. has an option to extend its term for one 5-year period at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                               |                                            |
| 32) Nobel Biocare USA Inc. has an option to extend its term for two 5-year periods at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                   |                                            |
| 33) First American Real Estate Facilities has an option to extend its term for one 5-year period at fair market rent.                                                                                                                                                                                                                                                                                                                                                                                          |                                            |
| 34) Ashley Furniture Homestore has an option to extend its term for two 5-year periods, with base rent set at an increase of 12% at the time of extension.                                                                                                                                                                                                                                                                                                                                           |                                            |
| 35) AJ Oster West, Inc. has an option to extend its term for one 5-year period at 95% of fair market rent.                                                                                                                                                                                                                                                                                                                                                                                                |                                            |
| 36) Kleinfelder, Inc. has option to extend its term for one 5-year period, with base rent set at the higher of fair market rent or the monthly rental rate during the month immediately preceding the lease expiration date.                                                                                                                                                                                                                                                                                   |                                            |

----

| Square FeetUnder Lease                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Number ofLeases |   |   | Leases as a %of Total |   |   | RentableSquare Feet(1) |   |   | Square FeetAs a %of Total |   |   | AnnualizedRent(2) |       |   | AnnualizedRent as a %of Total |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|--------|--------|-----------------------|--------|--------|------------------------|--------|--------|---------------------------|--------|--------|-------------------|------------|--------|-------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |            |   |   |                  |   |   |                   |   |   |                      |   |   |              |       |   |                          |   |
| Wholly-Owned Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |            |   |   |                  |   |   |                   |   |   |                      |   |   |              |       |   |                          |   |
| 2,500 or less                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 356             |   |   | 69.67                 | %      |   | 306,654                |   |   | 13.04                     | %      |   | $                 | 10,705,375 |   |                          | 18.04  | % |
| 2,501-10,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 114             |   |   | 22.31                 | %      |   | 542,734                |   |   | 23.09                     | %      |   |              | 16,610,620 |   |                          | 27.99  | % |
| 10,001-20,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 25              |   |   | 4.89                  | %      |   | 331,274                |   |   | 14.09                     | %      |   |              | 11,106,966 |   |                          | 18.72  | % |
| 20,001-40,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 12              |   |   | 2.35                  | %      |   | 348,046                |   |   | 14.80                     | %      |   |              | 9,996,568  |   |                          | 16.84  | % |
| 40,001-100,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2               |   |   | 0.39                  | %      |   | 132,738                |   |   | 5.65                      | %      |   |              | 4,798,321  |   |                          | 8.09   | % |
| Greater than 100,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2               |   |   | 0.39                  | %      |   | 213,814                |   |   | 9.10                      | %      |   |              | 6,123,043  |   |                          | 10.32  | % |
| Subtotal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 511             |   |   | 100.00                | %      |   | 1,875,260              |   |   | 79.77                     | %      |   | $                 | 59,340,893 |   |                          | 100.00 | % |
| Signed Leases Not Commenced                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | -               |   |   | -                     |   |   | 4,901                  |   |   | 0.21                      | %      |   |              | -          |   |                          | -      |   |
| Available for Lease                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | -               |   |   | -                     |   |   | 389,593                |   |   | 16.58                     | %      |   |              | -          |   |                          | -      |   |
| Building Management Use                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | -               |   |   | -                     |   |   | 3,057                  |   |   | 0.13                      | %      |   |              | -          |   |                          | -      |   |
| BOMA Adjustment (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | -               |   |   | -                     |   |   | 77,910                 |   |   | 3.31                      | %      |   |              | -          |   |                          | -      |   |
| Wholly-Owned Properties Total/Weighted Average                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 511             |   |   | 100.00                | %      |   | 2,350,721              |   |   | 100.00                    | %      |   | $                 | 59,340,893 |   |                          | 100.00 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |            |   |   |                  |   |   |                   |   |   |                      |   |   |              |       |   |                          |   |   |
| Joint Venture Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |            |   |   |                  |   |   |                   |   |   |                      |   |   |              |       |   |                          |   |   |
| 2,500 or less                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 110             |   |   | 49.77                 | %      |   | 136,538                |   |   | 5.66                      | %      |   | $                 | 2,935,620  |   |                          | 6.11   | % |
| 2,501-10,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 68              |   |   | 30.77                 | %      |   | 334,495                |   |   | 13.87                     | %      |   |              | 10,492,419 |   |                          | 21.83  | % |
| 10,001-20,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 19              |   |   | 8.60                  | %      |   | 260,149                |   |   | 10.78                     | %      |   |              | 7,175,600  |   |                          | 14.93  | % |
| 20,001-40,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 10              |   |   | 4.53                  | %      |   | 258,753                |   |   | 10.73                     | %      |   |              | 6,936,310  |   |                          | 14.43  | % |
| 40,001-100,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 11              |   |   | 4.98                  | %      |   | 619,330                |   |   | 25.68                     | %      |   |              | 13,721,072 |   |                          | 28.55  | % |
| Greater than 100,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 3               |   |   | 1.36                  | %      |   | 364,361                |   |   | 15.10                     | %      |   |              | 6,801,637  |   |                          | 14.15  | % |
| Subtotal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 221             |   |   | 100.00                | %      |   | 1,973,626              |   |   | 81.82                     | %      |   | $                 | 48,062,658 |   |                          | 100.00 | % |
| Signed Leases Not Commenced                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | -               |   |   | -                     |   |   | 24,535                 |   |   | 1.02                      | %      |   |              | -          |   |                          | -      |   |
| Available for Lease                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | -               |   |   | -                     |   |   | 400,129                |   |   | 16.59                     | %      |   |              | -          |   |                          | -      |   |
| Building Management Use                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | -               |   |   | -                     |   |   | 4,862                  |   |   | 0.20                      | %      |   |              | -          |   |                          | -      |   |
| BOMA Adjustment (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | -               |   |   | -                     |   |   | 8,904                  |   |   | 0.37                      | %      |   |              | -          |   |                          | -      |   |
| Joint Venture Properties Total/Weighted Average                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 221             |   |   | 100.00                | %      |   | 2,410,056              |   |   | 100.00                    | %      |   | $                 | 48,062,658 |   |                          | 100.00 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |            |   |   |                  |   |   |                   |   |   |                      |   |   |              |       |   |                          |   |   |
| (1) Based on BOMA 1996 remeasurement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| (2) Annualized Rent represents the monthly contractual rent under commenced leases as of December 31, 2010. This amount reflects total rent before abatements and includes contractual expense reimbursements, which are estimated by annualizing December 2010 actual expense reimbursement billings. Annualized rent for the joint venture properties is reported with respect to each property in its entirety, rather than the portion of the property represented by our ownership interest. |   |
| (3)  Represents square footage adjustments for leases that do not reflect BOMA 1996 remeasurement.                                                                                                                                                                                                                                                                                                                                                                                                     |   |

----

|   Year of Lease Expiration |   | Number ofLeasesExpiring |   |   | RentableSquareFeet (1) |   |      | Expiring Square Feet as a %of Total |   |   | AnnualizedRent(2) |   |   | AnnualizedRent as a %of Total |       |   | AnnualizedRentPer LeasedSquare Foot(3) |   |   | AnnualizedRentat Expiration |   |   | AnnualizedRentPer Leased Square Foot at Expiration(4) |   |
|--------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|-----------|-------------------------------------|--------|--------|-------------------|--------|--------|-------------------------------|------------|--------|----------------------------------------|--------|--------|-----------------------------|--------|--------|-------------------------------------------------------|--------|
|                                 |   |                    |   |   |                   |   |      |                                |   |   |              |   |   |                          |       |   |                                   |   |   |                        |   |   |                                                  |   |
|                                 |   |                    |   |   |                   |   |      |                                |   |   |              |   |   |                          |       |   |                                   |   |   |                        |   |   |                                                  |   |
| Month to Month                       |   |                    | 95     |   |                   |   | 132,743   |                                |   |   | 5.65              | %      |   | $                             | 3,784,974  |   |                                   |   | 6.38   | %                           |   | $      | 28.51                                                 |   |   | $ | 3,806,671 |   |   | $ | 28.68 |   |
| 2011                                 |   |                    | 108    |   |                   |   | 296,271   |                                |   |   | 12.60             | %      |   |                          | 9,685,928  |   |                                   |   | 16.32  | %                           |   |   | 32.69                                                 |   |   |   | 9,801,365 |   |   |   | 33.08 |   |
| 2012                                 |   |                    | 88     |   |                   |   | 379,668   |                                |   |   | 16.15             | %      |   |                          | 11,343,474 |   |                                   |   | 19.11  | %                           |   |   | 29.88                                                 |   |   |   | 11,644,762 |   |   |   | 30.67 |   |
| 2013                                 |   |                    | 72     |   |                   |   | 264,134   |                                |   |   | 11.24             | %      |   |                          | 7,985,374  |   |                                   |   | 13.45  | %                           |   |   | 30.23                                                 |   |   |   | 8,181,205 |   |   |   | 30.97 |   |
| 2014                                 |   |                    | 52     |   |                   |   | 181,719   |                                |   |   | 7.73              | %      |   |                          | 5,553,508  |   |                                   |   | 9.36   | %                           |   |   | 30.56                                                 |   |   |   | 5,751,708 |   |   |   | 31.65 |   |
| 2015                                 |   |                    | 50     |   |                   |   | 231,276   |                                |   |   | 9.84              | %      |   |                          | 6,918,743  |   |                                   |   | 11.66  | %                           |   |   | 29.92                                                 |   |   |   | 7,564,679 |   |   |   | 32.71 |   |
| 2016                                 |   |                    | 25     |   |                   |   | 108,866   |                                |   |   | 4.63              | %      |   |                          | 3,179,176  |   |                                   |   | 5.36   | %                           |   |   | 29.20                                                 |   |   |   | 3,534,331 |   |   |   | 32.46 |   |
| 2017                                 |   |                    | 2      |   |                   |   | 18,074    |                                |   |   | 0.77              | %      |   |                          | 647,725    |   |                                   |   | 1.09   | %                           |   |   | 35.84                                                 |   |   |   | 704,282 |   |   |   | 38.97 |   |
| 2018                                 |   |                    | 6      |   |                   |   | 156,391   |                                |   |   | 6.65              | %      |   |                          | 6,003,668  |   |                                   |   | 10.12  | %                           |   |   | 38.39                                                 |   |   |   | 6,684,993 |   |   |   | 42.75 |   |
| 2019                                 |   |                    | 6      |   |                   |   | 31,765    |                                |   |   | 1.35              | %      |   |                          | 1,164,633  |   |                                   |   | 1.96   | %                           |   |   | 36.66                                                 |   |   |   | 1,332,561 |   |   |   | 41.95 |   |
| 2020                                 |   |                    | 2      |   |                   |   | 15,720    |                                |   |   | 0.67              | %      |   |                          | 638,037    |   |                                   |   | 1.08   | %                           |   |   | 40.59                                                 |   |   |   | 679,123 |   |   |   | 43.20 |   |
| Thereafter                           |   |                    | 5      |   |                   |   | 58,633    |                                |   |   | 2.49              | %      |   |                          | 2,435,653  |   |                                   |   | 4.11   | %                           |   |   | 41.54                                                 |   |   |   | 2,573,420 |   |   |   | 43.89 |   |
| Subtotal                             |   |                    | 511    |   |                   |   | 1,875,260 |                                |   |   | 79.77             | %      |   | $                             | 59,340,893 |   |                                   |   | 100.00 | %                           |   | $      | 31.64                                                 |   |   | $ | 62,259,100 |   |   | $ | 33.20 |   |
| Signed Leases Not Commenced          |   |                    | -      |   |                   |   | 4,901     |                                |   |   | 0.21              | %      |   |                          | -          |   |                                   |   | -      |                        |   |   | -                                                     |   |   |   | - |   |   |   | - |   |
| Available for Lease                  |   |                    | -      |   |                   |   | 389,593   |                                |   |   | 16.57             | %      |   |                          | -          |   |                                   |   | -      |                        |   |   | -                                                     |   |   |   | - |   |   |   | - |   |
| Building Management Use              |   |                    | -      |   |                   |   | 3,057     |                                |   |   | 0.13              | %      |   |                          | -          |   |                                   |   | -      |                        |   |   | -                                                     |   |   |   | - |   |   |   | - |   |
| BOMA Adjustment (5)                  |   |                    | -      |   |                   |   | 77,910    |                                |   |   | 3.32              | %      |   |                          | -          |   |                                   |   | -      |                        |   |   | -                                                     |   |   |   | - |   |   |   | - |   |
| Total/Weighted Average               |   |                    | 511    |   |                   |   | 2,350,721 |                                |   |   | 100.00            | %      |   | $                             | 59,340,893 |   |                                   |   | 100.00 | %                           |   | $      | 25.24                                                 |   |   | $ | 62,259,100 |   |   | $ | 26.49 |   |
|                                 |   |                    |   |   |                   |   |      |                                |   |   |              |   |   |                          |       |   |                                   |   |   |                        |   |   |                                                  |   |   |   |   |   |   |   |   |   |

| (2) | Annualized Rent represents the monthly contractual rent under commenced leases as of December 31, 2010. This amount reflects total rent before abatements and includes contractual expense reimbursements, which are estimated by annualizing December 2010 actual expense reimbursement billings. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Represents annualized rent divided by leased square feet. |
|-----|-----------------------------------------------------------|

| (4) (5) | Represents annualized rent at expiration divided by leased square feet. Represents square footage adjustments for leases that do not reflect BOMA 1996 remeasurement. |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   Year of Lease Expiration |   | ExpiringNumber ofLeases |   |   | RentableSquareFeet (1) |   |      | Expiring Square Feet as a %of Total |   |   | AnnualizedRent(2) |   |   | AnnualizedRent as a %of Total |       |   | Annualized Rent Per LeasedSquare Foot(3) |   |   | AnnualizedRentat Expiration |   |   | AnnualizedPer Leased Square Foot at Expiration(4) |   |
|--------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|-----------|-------------------------------------|--------|--------|-------------------|--------|--------|-------------------------------|------------|--------|------------------------------------------|--------|--------|-----------------------------|--------|--------|---------------------------------------------------|--------|
|                                 |   |                    |   |   |                   |   |      |                                |   |   |              |   |   |                          |       |   |                                     |   |   |                        |   |   |                                              |   |
|                                 |   |                    |   |   |                   |   |      |                                |   |   |              |   |   |                          |       |   |                                     |   |   |                        |   |   |                                              |   |
| Month to Month                       |   |                    | 19     |   |                   |   | 15,572    |                                |   |   | 0.65              | %      |   | $                             | 474,087    |   |                                     |   | 0.99   | %                           |   | $      | 30.00                                             |   |   | $ | 481,138 |   |   | $ | 31.00 |   |
| 2011                                 |   |                    | 64     |   |                   |   | 208,557   |                                |   |   | 8.65              | %      |   |                          | 4,883,354  |   |                                     |   | 10.16  | %                           |   |   | 23.41                                             |   |   |   | 4,953,863 |   |   |   | 23.75 |   |
| 2012                                 |   |                    | 35     |   |                   |   | 255,992   |                                |   |   | 10.61             | %      |   |                          | 6,629,112  |   |                                     |   | 13.79  | %                           |   |   | 25.90                                             |   |   |   | 6,902,606 |   |   |   | 26.96 |   |
| 2013                                 |   |                    | 43     |   |                   |   | 360,003   |                                |   |   | 14.93             | %      |   |                          | 9,860,892  |   |                                     |   | 20.52  | %                           |   |   | 27.39                                             |   |   |   | 10,543,815 |   |   |   | 29.29 |   |
| 2014                                 |   |                    | 16     |   |                   |   | 183,032   |                                |   |   | 7.59              | %      |   |                          | 3,480,279  |   |                                     |   | 7.24   | %                           |   |   | 19.01                                             |   |   |   | 3,737,704 |   |   |   | 20.42 |   |
| 2015                                 |   |                    | 22     |   |                   |   | 430,797   |                                |   |   | 17.86             | %      |   |                          | 8,847,444  |   |                                     |   | 18.41  | %                           |   |   | 20.54                                             |   |   |   | 9,840,983 |   |   |   | 22.84 |   |
| 2016                                 |   |                    | 9      |   |                   |   | 163,317   |                                |   |   | 6.77              | %      |   |                          | 3,633,567  |   |                                     |   | 7.56   | %                           |   |   | 22.25                                             |   |   |   | 3,978,425 |   |   |   | 24.36 |   |
| 2017                                 |   |                    | 5      |   |                   |   | 215,859   |                                |   |   | 8.95              | %      |   |                          | 4,796,718  |   |                                     |   | 9.98   | %                           |   |   | 22.22                                             |   |   |   | 5,724,246 |   |   |   | 26.52 |   |
| 2018                                 |   |                    | 1      |   |                   |   | 92,974    |                                |   |   | 3.86              | %      |   |                          | 1,631,625  |   |                                     |   | 3.40   | %                           |   |   | 17.55                                             |   |   |   | 1,972,456 |   |   |   | 21.22 |   |
| 2019                                 |   |                    | 1      |   |                   |   | 17,747    |                                |   |   | 0.74              | %      |   |                          | 626,659    |   |                                     |   | 1.30   | %                           |   |   | 35.31                                             |   |   |   | 691,425 |   |   |   | 38.96 |   |
| 2020                                 |   |                    | 1      |   |                   |   | 17,795    |                                |   |   | 0.74              | %      |   |                          | 988,002    |   |                                     |   | 2.06   | %                           |   |   | 55.52                                             |   |   |   | 1,143,609 |   |   |   | 64.27 |   |
| Thereafter                           |   |                    | 5      |   |                   |   | 11,981    |                                |   |   | 0.50              | %      |   |                          | 2,210,919  |   |                                     |   | 4.60   | %                           |   |   | 184.54                                            |   |   |   | 3,597,545 |   |   |   | 300.27 |   |
| Subtotal                             |   |                    | 221    |   |                   |   | 1,973,626 |                                |   |   | 81.82             | %      |   | $                             | 48,062,658 |   |                                     |   | 100.00 | %                           |   | $      | 24.35                                             |   |   | $ | 53,567,815 |   |   | $ | 27.14 |   |
| Signed Leases Not Commenced          |   |                    | -      |   |                   |   | 24,535    |                                |   |   | 1.02              | %      |   |                          | -          |   |                                     |   | -      |                        |   |   | -                                                 |   |   |   | - |   |   |   | - |   |
| Available for Lease                  |   |                    | -      |   |                   |   | 400,129   |                                |   |   | 16.59             | %      |   |                          | -          |   |                                     |   | -      |                        |   |   | -                                                 |   |   |   | - |   |   |   | - |   |
| Building Management Use              |   |                    | -      |   |                   |   | 4,862     |                                |   |   | 0.20              | %      |   |                          | -          |   |                                     |   | -      |                        |   |   | -                                                 |   |   |   | - |   |   |   | - |   |
| BOMA Adjustment (5)                  |   |                    | -      |   |                   |   | 8,904     |                                |   |   | 0.37              | %      |   |                          | -          |   |                                     |   | -      |                        |   |   | -                                                 |   |   |   | - |   |   |   | - |   |
| Total/Weighted Average               |   |                    | 221    |   |                   |   | 2,412,056 |                                |   |   | 100.00            | %      |   | $                             | 48,062,658 |   |                                     |   | 100.00 | %                           |   | $      | 19.93                                             |   |   | $ | 53,567,815 |   |   | $ | 22.21 |   |

| (1)(2) | Based on BOMA 1996 remeasurement.Annualized Rent represents the monthly contractual rent under commenced leases as of December 31, 2010. This amount reflects total rent before abatements and includes contractual expense reimbursements, which are estimated by annualizing December 2010 actual expense reimbursement billings.  Annualized rent for the leases of our joint venture properties is reported with respect to each lease in its entirety, rather than the portion of the lease represented by our ownership interest |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Represents annualized rent divided by leased square feet. |
|-----|-----------------------------------------------------------|

| (4)(5) | Represents annualized rent at expiration divided by leased square feet.Represents square footage adjustments for leases that do not reflect BOMA 1996 remeasurement. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

LEGAL 

REMOVED 

----

|   | ITEM 5.  -  MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER |
|--------|-------------------------------------------------------------------------------------------------------|

|   |    MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
|--------|---------------------------------------------------------------------|

|           |   | HIGH   |   |   | LOW    |   |   | DIVIDENDS |   |
|----------------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|
| 2010           |   |   |   |   |   |   |   |      |   |
| Fourth Quarter |   | $      | 4.94   |   |   | $      | 3.85   |      |   | $ | 0.011 |   |
| Third Quarter  |   | $      | 5.43   |   |   | $      | 3.95   |      |   | $ | 0.05 |   |
| Second Quarter |   | $      | 4.81   |   |   | $      | 3.60   |      |   | $ | 0.05 |   |
| First Quarter  |   | $      | 4.40   |   |   | $      | 3.40   |      |   | $ | 0.05 |   |
| 2009           |   |   |   |   |   |   |   |      |   |   |   |   |
| Fourth Quarter |   | $      | 4.34   |   |   | $      | 2.92   |      |   | $ | 0.05 |   |
| Third Quarter  |   | $      | 4.82   |   |   | $      | 3.36   |      |   | $ | 0.05 |   |
| Second Quarter |   | $      | 5.10   |   |   | $      | 3.37   |      |   | $ | 0.05 |   |
| First Quarter  |   | $      | 5.50   |   |   | $      | 4.29   |      |   | $ | 0.05 |   |

----

SELECTED

MANAGEMENT

----

----

----

----

----

|   | • | persuasive evidence of an arrangement exists; |
|--------|---------|-----------------------------------------------|

|   | • | the delivery has occurred or services rendered; |
|--------|---------|-------------------------------------------------|

|   | • | the fee is fixed and determinable; and |
|--------|---------|----------------------------------------|

|   | • | collectability is reasonably assured. |
|--------|---------|---------------------------------------|

----

----

|                                                 |   |   |    |   |   |   |    |     |   |   |     |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|--------|----------|--------|
|                                                 |   | 2010   |    |   | 2009   |   |    | $ Change |   |   | % Change |   |
|                                                 |   |   |    |   |   |   |    |     |   |   |     |   |
| Revenue:                                             |   |   |    |   |   |   |    |     |   |   |     |   |
| Rental                                               |   | $      | 42,515  |   |   | $      | 42,462  |     |   | $      | 53       |   |   |   | 0.1 | % |
| Tenant reimbursements                                |   |   | 22,086  |   |   |   | 21,662  |     |   |   | 424      |   |   |   | 2.0 | % |
| Parking                                              |   |   | 8,109   |   |   |   | 8,150   |     |   |   | (41      | )      |   |   | (0.5 | %) |
| Other                                                |   |   | 357     |   |   |   | 365     |     |   |   | (8       | )      |   |   | (2.2 | %) |
| Total revenue                                        |   |   | 73,067  |   |   |   | 72,639  |     |   |   | 428      |   |   |   | 0.6 | % |
|                                                 |   |   |    |   |   |   |    |     |   |   |     |   |   |   |   |   |
| Expenses:                                            |   |   |    |   |   |   |    |     |   |   |     |   |   |   |   |   |
| Rental property operating                            |   |   | 40,309  |   |   |   | 39,480  |     |   |   | 829      |   |   |   | 2.1 | % |
| General and administrative                           |   |   | 2,936   |   |   |   | 2,649   |     |   |   | 287      |   |   |   | 10.8 | % |
| Depreciation and amortization                        |   |   | 22,891  |   |   |   | 27,240  |     |   |   | (4,349   | )      |   |   | (16.0 | %) |
| Interest                                             |   |   | 30,173  |   |   |   | 27,051  |     |   |   | 3,122    |   |   |   | 11.5 | % |
| Loss from extinguishment of debt                     |   |   | -       |   |   |   | 171     |     |   |   | (171     | )      |   |   | (100.0 | %) |
| Abandoned offering costs                             |   |   | 6,684   |   |   |   | -       |     |   |   | 6,684    |   |   |   | 100.0 | % |
| Acquisition costs                                    |   |   | 7,874   |   |   |   | -       |     |   |   | 7,874    |   |   |   | 100.0 | % |
| Impairment of long-lived assets                      |   |   | 40,284  |   |   |   | -       |     |   |   | 40,284   |   |   |   | 100.0 | % |
| Total expenses                                       |   |   | 151,151 |   |   |   | 96,591  |     |   |   | 54,560   |   |   |   | 56.5 | % |
|                                                 |   |   |    |   |   |   |    |     |   |   |     |   |   |   |   |   |
| Loss before equity in net earnings of unconsolidated |   |   |    |   |   |   |    |     |   |   |     |   |   |
| joint ventures and non-operating income              |   |   | (78,084 | )      |   |   | (23,952 | )        |   |   | (54,132  | )      |   |   | (226.0 | %) |
| Equity in net earnings of unconsolidated             |   |   |    |   |   |   |    |     |   |   |     |   |   |   |   |   |
| joint ventures                                       |   |   | 198     |   |   |   | 313     |     |   |   | (115     | )      |   |   | (36.7 | %) |
| Non-operating income                                 |   |   | -       |   |   |   | 434     |     |   |   | (434     | )      |   |   | (100.0 | %) |
| Net loss                                             |   | $      | (77,886 | )      |   | $      | (23,205 | )        |   | $      | (54,681  | )      |   |   | (235.6 | %) |
|                                                 |   |   |    |   |   |   |    |     |   |   |     |   |   |   |   |   |

----

----

----

| ·   | Unrestricted and restricted cash on hand; |
|--------------------|-------------------------------------------|

| ·   | Net cash flow generated from operations; |
|--------------------|------------------------------------------|

| ·   | Contribution of existing wholly-owned assets to joint ventures; |
|--------------------|-----------------------------------------------------------------|

| ·   | Asset dispositions; and/or |
|--------------------|----------------------------|

| ·   | Proceeds from additional secured or unsecured debt financings. |
|--------------------|----------------------------------------------------------------|

|                                              |   |   |   |
|---------------------------------------------------|--------|--------|--------|
| Tax, insurance and other working capital reserves |   | $      | 3,666  |   |
| Leasing and capital expenditure reserves          |   |   | 1,541  |   |
| Ground lease reserves                             |   |   | 1,055  |   |
| Collateral accounts                               |   |   | 2,015  |   |
| Funding for letter of credit                      |   |   | 1,574  |   |
|                                              |   | $      | 9,851  |   |
|                                              |   |   |   |   |

----

----

| ·   | Property operating and corporate expenses; |
|--------------------|--------------------------------------------|

| ·   | Capital expenditures (including building and tenant improvements and leasing commissions); |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | Debt maturities and financing costs; and/or |
|--------------------|---------------------------------------------|

| ·   | Dividends to stockholders and distributions to limited partners of our Operating Partnership. |
|--------------------|-----------------------------------------------------------------------------------------------|

----

----

| PROPERTY                                  |   | AMOUNT |    | INTEREST RATE |          | MATURITY DATE |          | BALANCE DUE AT MATURITY DATE |   |   PREPAYMENT/DEFEASANCE |
|-------------------------------------------|--------|--------|---------|---------------|---------------|---------------|---------------|------------------------------|--------|------------------------------|
| Pacific Business News Building (1)        |   | $      | 11,601  |          | 11.98         | %             | 4/6/2010      |                         |   |                         |   |   |
| City Square (Senior) (2)                  |   |   | 27,500  |          | 5.58          | %             | 9/1/2010      |                         |   |                         |   |   |
| City Square (Mezannine) (3)               |   |   | 25,294  |          | LIBOR + 7.35% | 9/1/2010      |          |                         |   |                         |   |
| Clifford Center (4)                       |   |   | 3,226   |          | 6.00          | %             | 8/15/2011     |                         |   | 3,032                        |   | (5) |
| First Insurance Center                    |   |   | 38,000  |          | 5.74          | %             | 1/1/2016      |                         |   | 38,000                       |   | (6) |
| First Insurance Center                    |   |   | 14,000  |          | 5.40          | %             | 1/6/2016      |                         |   | 14,000                       |   | (7) |
| Sorrento Technology Center (8)            |   |   | 11,668  |          | 5.75          | % (9)         | 1/11/2016 (9) |                         |   | 10,825                       |   | (10) |
| Pan Am Building                           |   |   | 60,000  |          | 6.17          | %             | 8/11/2016     |                         |   | 60,000                       |   | (11) |
| Waterfront Plaza                          |   |   | 100,000 |          | 6.37          | %             | 9/11/2016     |                         |   | 100,000                      |   | (12) |
| Waterfront Plaza                          |   |   | 11,000  |          | 6.37          | %             | 9/11/2016     |                         |   | 11,000                       |   | (13) |
| Davies Pacific Center                     |   |   | 95,000  |          | 5.86          | %             | 11/11/2016    |                         |   | 95,000                       |   | (14) |
| Subtotal                                  |   | $      | 397,289 |          |          |          |          |                         |   |                         |   |   |
| Revolving line of credit (15)             |   |   | 24,447  |          | 1.25          | %             | 12/31/2013    |                         |   | 24,447                       |   |   |
|   Outstanding principal balance |   | $      | 421,736 |          |          |          |          |                         |   |                         |   |   |
| Less: Unamortized discount, net           |   |   | (1,610  | )             |          |          |          |                         |   |                         |   |   |
| Net                                       |   | $      | 420,126 |          |          |          |          |                         |   |                         |   |   |

----

| (1) | The loan secured by the Pacific Business News Building has matured and we have not repaid the principal balance.  As a result, interest is being incurred at the default rate of 11.98%.  We are currently in negotiations with the lender to restructure the loan.  For additional information, see “Liquidity and Capital Resources” above. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The loan secured by the City Square property has matured and we have not repaid the principal balance.  We have entered into a forbearance agreement with the lender pursuant to which the default interest of 5% in excess of the stated rate and late charge penalties in the amount of approximately $1.9 million will be forgiven if the loan is repaid in full prior to April 29, 2011. For additional information, see “Liquidity and Capital Resources” above. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The loan secured by a pledge of the ownership interests in the entities owning the City Square property has matured and we have not repaid the principal balance.  As a result, interest is being incurred at the default rate of LIBOR + 7.35%.  We are currently in negotiations with the lender to restructure the loan. We had an interest rate cap on this loan for the notional amount of $28.5 million, which effectively limited the LIBOR rate on this loan to 7.45%.  The interest rate cap expired on September 1, 2010, commensurate with the maturity date of the loan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Requires monthly principal and interest payments of $39.8 thousand. The initial maturity date is August 15, 2011.  We have the option to extend the maturity date to August 15, 2014 for a nominal fee. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Loan is prepayable subject to a prepayment premium in an amount equal to the greater of 3% of outstanding principal amount or yield maintenance.  No premium due after October 1, 2015.  Loan may also be defeased. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Loan is not prepayable until October 6, 2015; however, loan may be defeased.  No premium is due upon prepayment. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (8) | Requires monthly principal and interest payments in the amount of $69 thousand.  The loan also requires us to deposit letters of credit totaling $0.6 million in the event that certain tenants cease occupancy, go dark or give us notice of their intent to vacate the property. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Although the maturity date is January 11, 2036, January 11, 2016 is the anticipated repayment date because the interest rate adjusts as of January 11, 2016 to greater of 7.75% or treasury rate plus 70 basis points, plus 2.0%. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | No prepayment is permitted prior to October 11, 2015.  Loan may be defeased. |
|------|----------------------------------------------------------------------------------------|

| (11) | Loan is prepayable subject to a prepayment premium equal to greater of 1% of principal balance of loan or yield maintenance.  No premium is due after May 11, 2016. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Loan may be prepaid subject to payment of a yield maintenance-based prepayment premium; no premium is due after June 11, 2016.  Loan may also be defeased. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Loan may be prepaid subject to payment of a yield maintenance-based prepayment premium; no premium is due after June 11, 2016. |
|------|--------------------------------------------------------------------------------------------------------------------------------|

| (14) |  Loan is prepayable, subject to prepayment premium equal to greater of (a) 1% of amount prepaid or (b) yield maintenance.  No premium due after August 11, 2016. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (15) | The revolving line of credit matures on December 31, 2013.  See “Revolving Line of Credit” below. |
|------|-------------------------------------------------------------------------------------------------------------------------|

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

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----

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QUANTITATIVE

FINANCIAL

CHANGES 

CONTROLS 

OTHER

----

DIRECTORS

EXECUTIVE 

SECURITY

CERTAIN 

PRINCIPAL 

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EXHIBITS 

| (a)   | (1) and (2) Financial Statements and Financial Statement Schedule |
|-----------------|-------------------------------------------------------------------|

|    |                                                                                                                                                                                                                                                                       | Page No. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| • | Report of Independent Registered Public Accounting Firm Ernst & Young LLP.                                                                                                                                                                                             | F-1      |
| • | Consolidated Balance Sheets of the Company as of December 31, 2010 and December 31, 2009                                                                                                                                                                              | F-2      |
| • | Consolidated Statements of Operations of the Company for the years ended December 31, 2010 and  December 31, 2009                                                                                                                                           | F-3      |
| • | Consolidated Statements of Equity (Cumulative Deficit) of the Company for the years ended December 31, 2010 and December 31, 2009                                                                                                                                          | F-4      |
| • | Consolidated Statements of Cash Flows of the Company for the years ended December 31, 2010 and  December 31, 2009                                                                                                                                           | F-6      |
| • | Notes to Consolidated Financial Statements                                                                                                                                                                                                                                 | F-7      |
| • | Schedule III – Real Estate and Accumulated Depreciation as of December 31, 2010                                                                                                                                                                                      | F-39     |
|    | All other schedules have been omitted since the required information is not present or not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements or notes thereto. |     |

----

|                         |                                                                                                                                                                                                                                                                                                                                                                |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit No.   | Description                                                                                                                                                                                                                                                                                                                                               |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
|   3.1              | Articles of Amendment and Restatement of the Company (previously filed as Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009 (File No. 001-09900) and incorporated herein by reference).                                                                                                      |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
|   3.2              | Articles Supplementary of the Company dated November 20, 2009 (previously filed as Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009 (File No. 001-09900) and incorporated herein by reference).                                                                                             |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
|   3.3              | Articles of Amendment of the Company dated November 20, 2009 (previously filed as Exhibit 3.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009 (File No. 001-09900) and incorporated herein by reference).                                                                                              |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
|   3.4              | Articles of Amendment of the Company dated January 5, 2010 (previously filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed January 5, 2010 (File No. 001-09900) and incorporated herein by reference).                                                                                                                           |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
|   3.5              | Articles Supplementary of Board of Directors Reclassifying and Designating a series of common stock as Senior Common Stock, dated March 4, 2010 (previously filed as Exhibit 3.2 to the Company’s Current Report on Form 8-K filed March 9, 2010 (File No. 001-09900) and incorporated herein by reference).                                        |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
|   3.6              | Certificate of Correction to Articles Supplementary, dated April 30, 2010 (previously filed as Exhibit 3.6 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 (File No. 001-09900) and incorporated herein by reference).                                                                                          |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
|   3.7              | Articles of Amendment of the Company dated November 1, 2010 (previously filed as Exhibit 3.7 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010 (File No. 001-09900) and incorporated herein by reference).                                                                                                              |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
|   3.8              | Amended and Restated Bylaws dated December 20, 2010 (previously filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed December 27, 2010 (File No. 001-09900) and incorporated herein by reference).                                                                                                                                          |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
| 10.1                         | Advisory and Servicing Agreement between ALI Advisor, Inc. and the Company dated June 13, 1988 (previously filed as Exhibit 10.1 to the Company’s Annual Report on Form 10-KSB filed March 31, 2005 (File No. 001-09900) and incorporated herein by reference).                                                                           |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
| 10.2                         | Indemnification Agreement dated May 12, 1992 between the Company and Robert Blackwell (previously filed as Exhibit 10.2 to the Company’s Annual Report on Form 10-KSB filed March 31, 2005 (File No. 001-09900) and incorporated herein by reference).                                                                                    |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
| 10.3                         | Indemnification Agreement dated October 1, 1991 between the Company and Burton Freireich (previously filed as Exhibit 10.3 to the Company’s Annual Report on Form 10-KSB filed March 31, 2005 (File No. 001-09900) and incorporated herein by reference).                                                                                 |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
| 10.4                         | Master Formation and Contribution Agreement dated October 3, 2006 between the Company and POP Venture, LLC (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on October 3, 2006 (File No. 001-09900) and incorporated herein by reference).                                                             |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
| 10.5                         | Amendment and Exhibit Acknowledgement to Master Formation and Contribution Agreement, dated November 2, 2006, between the Company and POP Venture, LLC (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on November 6, 2006 (File No. 001-09900) and incorporated herein by reference). |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
| 10.6                         | Second Amendment and Exhibit Acknowledgement to Master Formation and Contribution Agreement, dated December 9, 2006, between the Company and POP Venture, LLC (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on December 11, 2006 (File No. 001-09900) and incorporated herein by reference).   |
|                         |                                                                                                                                                                                                                                                                                                                                                                |
| 10.7                         | Third Amendment and Exhibit Acknowledgement to Master Formation and Contribution Agreement, dated March 27, 2007, between the Company and POP Venture, LLC (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on March 29, 2007 (File No. 001-09900) and incorporated herein by reference).              |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.8         | Fourth Amendment and Exhibit Acknowledgement to Master Formation and Contribution Agreement, dated November 9, 2007, between the Company and POP Venture, LLC (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on November 13, 2007 (File No. 001-09900) and incorporated herein by reference).                                              |
|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.9         | Form of Contribution Agreement, dated November 2, 2006, between the Company and POP Venture, LLC (previously filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on November 6, 2006 (File No. 001-09900) and incorporated herein by reference).                                                                                                                  |
|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.10        | Master Amendment to Contribution Agreements, dated November 9, 2007, between the Company and POP Venture, LLC (previously filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on November 13, 2007 (File No. 001-09900) and incorporated herein by reference).                                                                                                   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.11        | Form of Promissory Note (previously filed as Exhibit 10.11 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 (File No. 001-09900) and incorporated herein by reference).                                                                                                                                                                                      |
|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.12        | Master Registration Rights Agreement dated as of March 19, 2008, of Pacific Office Properties Trust, Inc. (previously filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed March 25, 2008 (File No. 001-09900) and incorporated herein by reference).                                                                                                                       |
|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.13        | Noncompetition Agreement, dated as of March 19, 2008, between Pacific Office Properties, L.P. and Jay H. Shidler (previously filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K filed March 25, 2008 (File No. 001-09900) and incorporated herein by reference).                                                                                                                |
|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.14        | Form of Indemnity Agreement, dated as of March 19, 2008 (previously filed as Exhibit 10.5 to the Company’s Current Report on Form 8-K filed March 25, 2008 (File No. 001-09900) and incorporated herein by reference).                                                                                                                                                                         |
|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.15        | First Amendment to Indemnity Agreement, dated as of May 17, 2010, between Pacific Office Properties, L.P. and James C. Reynolds (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 17, 2010 (File No. 001-09900) and incorporated herein by reference).                                                                                                   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.16        | Amended and Restated Advisory Agreement dated as of March 3, 2009, by and among the Company, Pacific Office Properties, L.P., and Pacific Office Management, Inc. (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed March 9, 2009 (File No. 001-09900) and incorporated herein by reference).                                            |
|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.17        | First Amendment to Amended and Restated Advisory Agreement dated as of September 25, 2009, by and among the Company, Pacific Office Properties, L.P., and Pacific Office Management, Inc. (previously filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed September 28, 2009 (File No. 001-09900) and incorporated herein by reference).                              |
|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.18† | Pacific Office Properties Trust, Inc. 2008 Directors’ Stock Plan (previously filed as Appendix A to the Company’s Definitive Proxy Statement on Schedule 14A filed April 1, 2009 (File No. 001-09900) and incorporated herein by reference).                                                                                                                                        |
|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.19† | Form of Restricted Stock Unit Award Agreement under the Company’s 2008 Directors’ Stock Plan (previously filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009 (File No. 001-09900) and incorporated herein by reference).                                                                                                 |
|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.20        | Exchange Agreement, dated as of September 23, 2009, by and among Pacific Office Properties, L.P., Shidler Equities, L.P., Reynolds Partners, L.P., MJR Equities, LLC, JRI Equities, LLC and Lawrence J. Taff (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed September 28, 2009 (File No. 001-09900) and incorporated herein by reference). |
|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.21        | Credit Agreement dated as of September 2, 2009 between Pacific Office Properties, L.P. and First Hawaiian Bank (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed September 4, 2009 (File No. 001-09900) and incorporated herein by reference).                                                                                                |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.22  | Promissory Note dated September 2, 2009 issued by Pacific Office Properties, L.P. to First Hawaiian Bank (previously filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed September 4, 2009 (File No. 001-09900) and incorporated herein by reference).                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.23  | Indemnification Agreement dated as of September 2, 2009 between Pacific Office Properties, L.P. and Shidler Equities L.P. (previously filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed September 4, 2009 (File No. 001-09900) and incorporated herein by reference).                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.24  | Amendment to Loan Documents, dated as of December 31, 2009, among First Hawaiian Bank, Pacific Office Properties, L.P. and Shidler Equities L.P. (previously filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed January 5, 2010 (File No. 001-09900) and incorporated herein by reference).                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.25  | Second Amendment to Loan Documents, dated as of May 25, 2010, among First Hawaiian Bank, Pacific Office Properties, L.P. and Shidler Equities L.P. (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 26, 2010 (File No. 001-09900) and incorporated herein by reference).                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.26  | Amendment to Indemnification Agreement, dated as of December 31, 2009, between Pacific Office Properties, L.P. and Shidler Equities L.P. (previously filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed January 5, 2010 (File No. 001-09900) and incorporated herein by reference).                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.27  | Second Amendment to Indemnification Agreement, dated as of May 25, 2010, between Pacific Office Properties, L.P. and Shidler Equities L.P. (previously filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed May 26, 2010 (File No. 001-09900) and incorporated herein by reference).                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.28  | Second Amended and Restated Agreement of Limited Partnership of Pacific Office Properties, L.P. dated as of December 30, 2009 (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 5, 2010 (File No. 001-09900) and incorporated herein by reference).                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.29  | Dealer Manager Agreement, dated as of January 12, 2010, between the Company and Priority Capital Investments, LLC (previously filed as Exhibit 1.1 to Amendment No. 2 to the Company’s Registration Statement on Form S-11 (File No. 333-157128) on January 6, 2010 and incorporated herein by reference).                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.30  | Purchase and Sale Agreement, effective as of June 28, 2010, between the Company and Terraces CP, LLC (previously filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 (File No. 001-09900) and incorporated herein by reference).                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.31  | Sale, Purchase and Escrow Agreement (Property Pool A), dated as of August 12, 2010, among GRE Glendale LLC, GRE Empire Towers LP, GRE Cornerstone LLC, GRE Kearny Mesa LP, GRE Rio Vista LP, GRE Walnut Creek LLC and Pacific Office Management, Inc. (previously filed as Exhibit 10.36 to the Company’s Registration Statement on Form S-11 (File No. 333-169729) on October 4, 2010 and incorporated herein by reference).                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.32  | First Amendment to Sale, Purchase and Escrow Agreement (Property Pool A), dated as of August 30, 2010, among GRE Glendale LLC, GRE Empire Towers LP, GRE Cornerstone LLC, GRE Kearny Mesa LP, GRE Rio Vista LP, GRE Walnut Creek LLC and Pacific Office Management, Inc. (previously filed as Exhibit 10.37 to the Company’s Registration Statement on Form S-11 (File No. 333-169729) on October 4, 2010 and incorporated herein by reference).                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.33  | Assignment and Assumption Agreement (Property Pool A), dated as of September 3, 2010, between Pacific Office Management, Inc. and Pacific Office Properties, L.P. (previously filed as Exhibit 10.38 to the Company’s Registration Statement on Form S-11 (File No. 333-169729) on October 4, 2010 and incorporated herein by reference).                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.34  | Second Amendment to Sale, Purchase and Escrow Agreement (Property Pool A), dated as of October 22, 2010, among GRE Glendale LLC, GRE Empire Towers LP, GRE Cornerstone LLC, GRE Kearny Mesa LP, GRE Rio Vista LP, GRE Walnut Creek LLC and Pacific Office Properties, L.P. (previously filed as Exhibit 10.39 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 (File No. 333-169729) on January 3, 2011 and incorporated herein by reference). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.35  | Third Amendment to Sale, Purchase and Escrow Agreement (Property Pool A), dated as of November 29, 2010, among GRE Glendale LLC, GRE Empire Towers LP, GRE Cornerstone LLC, GRE Kearny Mesa LP, GRE Rio Vista LP, GRE Walnut Creek LLC and Pacific Office Properties, L.P. (previously filed as Exhibit 10.40 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 (File No. 333-169729) on January 3, 2011 and incorporated herein by reference). |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.36        | Sale, Purchase and Escrow Agreement (Property Pool B), dated as of August 12, 2010, among GRE Carlton Plaza LP, Tustin-Michelle Partners LLC, GRE Warner Desoto LLC, GRE Warner Califa LLC, GRE Warner Canoga LLC, GRE Empire Towers Four LLC, GRE Foothill LLC, GRE Mira Mesa LLC and Pacific Office Management, Inc. (previously filed as Exhibit 10.39 to the Company’s Registration Statement on Form S-11 (File No. 333-169729) on October 4, 2010 and incorporated herein by reference).                                    |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.37        | First Amendment to Sale, Purchase and Escrow Agreement (Property Pool B), dated as of August 30, 2010, among GRE Carlton Plaza LP, Tustin-Michelle Partners LLC, GRE Warner Desoto LLC, GRE Warner Califa LLC, GRE Warner Canoga LLC, GRE Empire Towers Four LLC, GRE Foothill LLC, GRE Mira Mesa LLC and Pacific Office Management, Inc. (previously filed as Exhibit 10.40 to the Company’s Registration Statement on Form S-11 (File No. 333-169729) on October 4, 2010 and incorporated herein by reference).                 |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.38        | Assignment and Assumption Agreement (Property Pool B), dated as of September 3, 2010, between Pacific Office Management, Inc. and Pacific Office Properties, L.P. (previously filed as Exhibit 10.41 to the Company’s Registration Statement on Form S-11 (File No. 333-169729) on October 4, 2010 and incorporated herein by reference).                                                                                                                                                                                         |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.39        | Second Amendment to Sale, Purchase and Escrow Agreement (Property Pool B), dated as of October 22, 2010, among GRE Carlton Plaza LP, Tustin-Michelle Partners LLC, GRE Warner Desoto LLC, GRE Warner Califa LLC, GRE Warner Canoga LLC, GRE Empire Towers Four LLC, GRE Foothill LLC, GRE Mira Mesa LLC and Pacific Office Properties, L.P. (previously filed as Exhibit 10.44 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 (File No. 333-169729) on January 3, 2011 and incorporated herein by reference). |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.40        | Third Amendment to Sale, Purchase and Escrow Agreement (Property Pool B), dated as of November 29, 2010, among GRE Carlton Plaza LP, Tustin-Michelle Partners LLC, GRE Warner Desoto LLC, GRE Warner Califa LLC, GRE Warner Canoga LLC, GRE Empire Towers Four LLC, GRE Foothill LLC, GRE Mira Mesa LLC and Pacific Office Properties, L.P. (previously filed as Exhibit 10.45 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 (File No. 333-169729) on January 3, 2011 and incorporated herein by reference). |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.41† | Employment Agreement, dated as of March 26, 2010, among Pacific Office Management, Inc., Pacific Office Properties Trust, Inc. and James R. Ingebritsen (previously filed as Exhibit 10.42 to the Company’s Registration Statement on Form S-11 (File No. 333-169729) on October 4, 2010 and incorporated herein by reference).                                                                                                                                                                                                   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.42† | Employment Agreement, dated as of April 5, 2010, among Pacific Office Management, Inc., Pacific Office Properties Trust, Inc. and James R. Wolford (previously filed as Exhibit 10.43 to the Company’s Registration Statement on Form S-11 (File No. 333-169729) on October 4, 2010 and incorporated herein by reference).                                                                                                                                                                                                        |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 21.1         | Subsidiaries of Pacific Office Properties Trust, Inc. (Filed herewith.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 23.1         | Consent of Ernst & Young LLP. (Filed herewith.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 31.1         | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)                                                                                                                                                                                                                                                                                                                                                                                                                   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 31.2         | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)                                                                                                                                                                                                                                                                                                                                                                                                                   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 32.1         | Certification of Chief Executive Officer pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Furnished herewith.)                                                                                                                                                                                                                                                                                                                                                            |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 32.2         | Certification of Chief Financial Officer pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Furnished herewith.)                                                                                                                                                                                                                                                                                                                                                                 |

----

|                       | PACIFIC OFFICE PROPERTIES, INC. |
|----------------------------|---------------------------------|
|                       |                            |   |
| Date:  March 31, 2011 | By:                             | /s/ James R. Ingebritsen |
|                       |                            | James R. Ingebritsen |
|                       |                            | Chief Executive Officer |
|                       |                            |   |

| Name                                                                                                                                                                         | Title                                   | Date      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|----------------|
|                                                                                                                                                                              |                                         |           |
| /s/ James R. Ingebritsen                                                                                                                                                     | Chief Executive Officer                      | March 31, 2011 |
| James R. Ingebritsen                                                                                                                                                              | (Principal Executive Officer)                |           |
|                                                                                                                                                                              |                                         |           |
| /s/ Michael C. Burer                                                                                                                                                         | Chief Financial Officer                      | March 31, 2011 |
| Michael C. Burer                                                                                                                                                                  | (Principal Financial and Accounting Officer) |           |
|                                                                                                                                                                              |                                         |           |
| /s/ Jay H. Shidler                                                                                                                                                           | Chairman of the Board                        | March 31, 2011 |
| Jay H. Shidler                                                                                                                                                                    |                                         |           |
|                                                                                                                                                                              |                                         |           |
| /s/ Michael W. Brennan                                                                                                                                                       | Director                                     | March 31, 2011 |
| Michael W. Brennan                                                                                                                                                                |                                         |           |
|                                                                                                                                                                              |                                         |           |
| /s/ Robert L. Denton                                                                                                                                                         | Director                                     | March 31, 2011 |
| Robert L. Denton                                                                                                                                                                  |                                         |           |
|                                                                                                                                                                              |                                         |           |
| /s/ Clay W. Hamlin                                                                                                                                                           | Director                                     | March 31, 2011 |
| Clay W. Hamlin                                                                                                                                                                    |                                         |           |
|                                                                                                                                                                              |                                         |           |
| /s/                              | Director                                     | March 31, 2011 |
| Paul M. Higbee                                                                                                                                                                    |                                         |           |
|                                                                                                                                                                              |                                         |           |

----

----

|                                                                                                                        |   | December 31, 2010 |     | December 31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|-------------------|----------|-------------------|--------|
| ASSETS                                                                                                                      |   |              |     |              |   |   |
| Investments in real estate, net                                                                                             |   | $                 | 353,137  |              |   | $ | 382,950 |   |
| Cash and cash equivalents                                                                                                   |   |              | 9,112    |              |   |   | 2,354 |   |
| Restricted cash                                                                                                             |   |              | 9,851    |              |   |   | 7,348 |   |
| Rents and other receivables, net                                                                                            |   |              | 2,302    |              |   |   | 1,356 |   |
| Deferred rents                                                                                                              |   |              | 6,332    |              |   |   | 5,115 |   |
| Intangible assets, net                                                                                                      |   |              | 24,801   |              |   |   | 33,228 |   |
| Acquired above-market leases, net                                                                                           |   |              | 358      |              |   |   | 612 |   |
| Other assets, net                                                                                                           |   |              | 5,141    |              |   |   | 5,055 |   |
| Goodwill                                                                                                                    |   |              | 48,549   |              |   |   | 62,019 |   |
| Investments in unconsolidated joint ventures                                                                                |   |              | 8,802    |              |   |   | 10,911 |   |
| Total assets                                                                                                                |   | $                 | 468,385  |              |   | $ | 510,948 |   |
|                                                                                                                        |   |              |     |              |   |   |   |   |
| LIABILITIES AND EQUITY                                                                                                      |   |              |     |              |   |   |   |   |
| Mortgage and other loans, net                                                                                               |   | $                 | 420,126  |              |   | $ | 406,439 |   |
| Unsecured notes payable to related parties                                                                                  |   |              | 21,104   |              |   |   | 21,104 |   |
| Accounts payable and other liabilities                                                                                      |   |              | 31,816   |              |   |   | 22,000 |   |
| Acquired below-market leases, net                                                                                           |   |              | 7,918    |              |   |   | 10,124 |   |
| Total liabilities                                                                                                           |   |              | 480,964  |              |   |   | 459,667 |   |
|                                                                                                                        |   |              |     |              |   |   |   |   |
| Commitments and contingencies (Note 1)                                                                                      |   |              |     |              |   |   |   |   |
|                                                                                                                        |   |              |     |              |   |   |   |   |
| Equity:                                                                                                                     |   |              |     |              |   |   |   |   |
| Preferred Stock, $0.0001 par value per share, 100,000,000 shares authorized, one share of Proportionate                     |   |              |     |              |   |
| Voting Preferred Stock issued and outstanding at December 31, 2010 and 2009                                                 |   |              | -        |              |   |   | - |   |
| Senior Common Stock, $0.0001 par value per share (liquidation preference $10 per share, $24,179 and $0, respectively)       |   |
| 40,000,000 shares authorized, 2,417,867 shares issued and outstanding at December 31, 2010;                                 |   |              |     |              |   |
| 0 shares authorized, issued and outstanding at December 31, 2009                                                            |   |              | 21,525   |              |   |   | - |   |
| Listed Common Stock, $0.0001 par value per share, 599,999,900 shares authorized, 3,903,050 shares issued and outstanding at |   |
| December 31, 2010; 239,999,900 shares authorized, 3,850,420 shares issued and outstanding at December 31, 2009              |   |              | 185      |              |   |   | 185 |   |
| Class B Common Stock, $0.0001 par value per share, 100 shares authorized, issued and outstanding at December 31, 2010       |   |
| and 2009                                                                                                                    |   |              | -        |              |   |   | - |   |
| Additional paid-in capital                                                                                                  |   |              | 50       |              |   |   | - |   |
| Cumulative deficit                                                                                                          |   |              | (150,524 | )                 |   |   | (132,511 | ) |
| Total stockholders' equity (deficit)                                                                                        |   |              | (128,764 | )                 |   |   | (132,326 | ) |
| Non-controlling interests:                                                                                                  |   |              |     |              |   |   |   |   |
| Preferred unitholders in the Operating Partnership                                                                          |   |              | 127,268  |              |   |   | 127,268 |   |
| Common unitholders in the Operating Partnership                                                                             |   |              | (11,083  | )                 |   |   | 56,339 |   |
| Total equity (deficit)                                                                                                      |   |              | (12,579  | )                 |   |   | 51,281 |   |
| Total liabilities and equity                                                                                                |   | $                 | 468,385  |              |   | $ | 510,948 |   |
|                                                                                                                        |   |              |     |              |   |   |   |   |

----

|                                                                           |   | FOR THE YEAR ENDEDDECEMBER 31, |      |
|--------------------------------------------------------------------------------|--------|--------------------------------|-----------|
|                                                                           |   | 2010                           |      |   | 2009 |   |
| Revenue:                                                                       |   |                           |      |   |   |   |
| Rental                                                                         |   | $                              | 42,515    |   |   | $ | 42,462 |   |
| Tenant reimbursements                                                          |   |                           | 22,086    |   |   |   | 21,662 |   |
| Parking                                                                        |   |                           | 8,109     |   |   |   | 8,150 |   |
| Other                                                                          |   |                           | 357       |   |   |   | 365 |   |
| Total revenue                                                                  |   |                           | 73,067    |   |   |   | 72,639 |   |
|                                                                           |   |                           |      |   |   |   |   |   |
| Expenses:                                                                      |   |                           |      |   |   |   |   |   |
| Rental property operating                                                      |   |                           | 40,309    |   |   |   | 39,480 |   |
| General and administrative                                                     |   |                           | 2,936     |   |   |   | 2,649 |   |
| Depreciation and amortization                                                  |   |                           | 22,891    |   |   |   | 27,240 |   |
| Interest                                                                       |   |                           | 30,173    |   |   |   | 27,051 |   |
| Loss on extinguishment of debt                                                 |   |                           | -         |   |   |   | 171 |   |
| Abandoned offering costs                                                       |   |                           | 6,684     |   |   |   | - |   |
| Acquisition costs                                                              |   |                           | 7,874     |   |   |   | - |   |
| Impairment of long-lived assets                                                |   |                           | 40,284    |   |   |   | - |   |
| Total expenses                                                                 |   |                           | 151,151   |   |   |   | 96,591 |   |
|                                                                           |   |                           |      |   |   |   |   |   |
| Loss before equity in net earnings of unconsolidated                           |   |                           |      |   |   |   |   |   |
| joint ventures and non-operating income                                        |   |                           | (78,084   | ) |   |   | (23,952 | ) |
| Equity in net earnings of unconsolidated joint ventures                        |   |                           | 198       |   |   |   | 313 |   |
| Non-operating income                                                           |   |                           | -         |   |   |   | 434 |   |
| Net loss                                                                       |   |                           | (77,886   | ) |   |   | (23,205 | ) |
| Fair value adjustment of Preferred Units                                       |   |                           | -         |   |   |   | (58,645 | ) |
| Net (income) loss attributable to non-controlling interests:                   |   |                           |      |   |   |
| Preferred unitholders in the Operating Partnership                             |   |                           | (2,273    | ) |   |   | (2,269 | ) |
| Common unitholders in the Operating Partnership                                |   |                           | 63,226    |   |   |   | 68,506 |   |
|                                                                           |   |                           | 60,953    |   |   |   | 66,237 |   |
| Dividends on Senior Common Stock                                               |   |                           | (313      | ) |   |   | - |   |
| Net loss attributable to common stockholders                                   |   | $                              | (17,246   | ) |   | $ | (15,613 | ) |
| Net loss per common share - basic and diluted                                  |   | $                              | (4.45     | ) |   | $ | (4.79 | ) |
| Weighted average number of common shares outstanding – basic and diluted |   |                           | 3,878,349 |   |   |   | 3,259,013 |   |

----

|                                                        |   | YEAR ENDED                                 |     |
|-------------------------------------------------------------|--------|--------------------------------------------|----------|
|                                                        |   | DEC. 31, 2010                              |     |   | DEC. 31, 2009 |   |
|                                                        |   | (In thousands, except share and unit data) |     |
| Common Stock:                                               |   |                                       |     |   |   |   |
| Balance at beginning of period                              |   | $                                          | 185      |   |   | $ | 185 |   |
| Issuance of common stock                                    |   |                                       | -        |   |   |   | - |   |
| Balance at end of period:                                   |   | $                                          | 185      |   |   | $ | 185 |   |
| Senior Common Stock:                                        |   |                                       |     |   |   |   |   |   |
| Balance at beginning of period                              |   | $                                          | -        |   |   | $ | - |   |
| Issuance of senior common stock                             |   |                                       | 24,179   |   |   |   | - |   |
| Costs of issuance of senior common stock                    |   |                                       | (2,654   | ) |   |   | - |   |
| Balance at end of period:                                   |   | $                                          | 21,525   |   |   | $ | - |   |
| Additional Paid-in Capital:                                 |   |                                       |     |   |   |   |   |   |
| Balance at beginning of period                              |   | $                                          | -        |   |   | $ | - |   |
| Basis adjustment                                            |   |                                       | -        |   |   |   | 309 |   |
| Fair value measurement of Common Units                      |   |                                       | -        |   |   |   | (3,514 | ) |
| Issuance of common stock                                    |   |                                       | -        |   |   |   | 3,014 |   |
| Redemption of Common Units                                  |   |                                       | (150     | ) |   |   | - |   |
| Stock compensation                                          |   |                                       | 200      |   |   |   | 191 |   |
| Balance at end of period:                                   |   | $                                          | 50       |   |   | $ | - |   |
| Cumulative Deficit:                                         |   |                                       |     |   |   |   |   |   |
| Balance at beginning of period                              |   | $                                          | (132,511 | ) |   | $ | (56,327 | ) |
| Net loss                                                    |   |                                       | (16,933  | ) |   |   | (15,613 | ) |
| Redemption of Common Units                                  |   |                                       | (129     | ) |   |   | - |   |
| Fair value measurement of Common Units                      |   |                                       | -        |   |   |   | (59,880 | ) |
| Distributions                                               |   |                                       | (951     | ) |   |   | (691 | ) |
| Balance at end of period:                                   |   | $                                          | (150,524 | ) |   | $ | (132,511 | ) |
| Total  Stockholders' Equity (Cumulative Deficit): |   |                                       |     |   |   |   |   |   |
| Balance at beginning of period                              |   | $                                          | (132,326 | ) |   | $ | (56,142 | ) |
| Basis adjustment                                            |   |                                       | -        |   |   |   | 309 |   |
| Net loss                                                    |   |                                       | (16,933  | ) |   |   | (15,613 | ) |
| Issuance of common stock                                    |   |                                       | -        |   |   |   | 3,014 |   |
| Issuance of senior common stock                             |   |                                       | 24,179   |   |   |   | - |   |
| Costs of issuance of senior common stock                    |   |                                       | (2,654   | ) |   |   | - |   |
| Redemption of Common Units                                  |   |                                       | (279     | ) |   |   | - |   |
| Distributions                                               |   |                                       | (951     | ) |   |   | (691 | ) |
| Fair value measurement of Common Units                      |   |                                       | -        |   |   |   | (63,394 | ) |
| Stock compensation                                          |   |                                       | 200      |   |   |   | 191 |   |
| Balance at end of period:                                   |   | $                                          | (128,764 | ) |   | $ | (132,326 | ) |
| Non-Controlling Interests:                                  |   |                                       |     |   |   |   |   |   |
| Balance at beginning of period                              |   | $                                          | 183,607  |   |   | $ | - |   |
| Reclassification from Temporary Equity to Permanent Equity  |   |                                       | -        |   |   |   | 133,250 |   |
| Net loss                                                    |   |                                       | (60,953  | ) |   |   | (66,237 | ) |
| Basis adjustment                                            |   |                                       | -        |   |   |   | (309 | ) |
| Redemption of Common Units                                  |   |                                       | (621     | ) |   |   | - |   |
| Fair value measurement of Common Units                      |   |                                       | -        |   |   |   | 63,394 |   |
| Fair value measurement of Preferred Units                   |   |                                       | -        |   |   |   | 58,645 |   |
| Distributions                                               |   |                                       | (5,848   | ) |   |   | (5,136 | ) |
| Balance at end of period:                                   |   | $                                          | 116,185  |   |   | $ | 183,607 |   |
| Total Equity (Deficit):                                     |   | $                                          | (12,579  | ) |   | $ | 51,281 |   |

----

|                            |   | YEAR ENDED                                 |       |
|---------------------------------|--------|--------------------------------------------|------------|
|                            |   | DEC. 31, 2010                              |       |   | DEC. 31, 2009 |   |
|                            |   | (In thousands, except share and unit data) |       |
| Common Units:                   |   |                                       |       |   |   |   |
| Balance at beginning of period  |   |                                       | 14,299,267 |   |   |   | 14,299,267 |   |
| Redemption of Common Units      |   |                                       | (198,263   | ) |   |   | - |   |
| Balance at end of period:       |   |                                       | 14,101,004 |   |   |   | 14,299,267 |   |
| Preferred Units:                |   |                                       |       |   |   |   |   |   |
| Balance at beginning of period  |   |                                       | 4,545,300  |   |   |   | 4,545,300 |   |
| Issuance of Preferred Units     |   |                                       | -          |   |   |   | - |   |
| Balance at end of period:       |   |                                       | 4,545,300  |   |   |   | 4,545,300 |   |
| Shares of Common Stock:         |   |                                       |       |   |   |   |   |   |
| Balance at beginning of period  |   |                                       | 3,850,520  |   |   |   | 3,031,125 |   |
| Issuance of common stock        |   |                                       | 52,630     |   |   |   | 819,395 |   |
| Balance at end of period:       |   |                                       | 3,903,150  |   |   |   | 3,850,520 |   |
| Shares of Senior Common Stock:  |   |                                       |       |   |   |   |   |   |
| Balance at beginning of period  |   |                                       | -          |   |   |   | - |   |
| Issuance of senior common stock |   |                                       | 2,417,867  |   |   |   | - |   |
| Balance at end of period:       |   |                                       | 2,417,867  |   |   |   | - |   |

----

|                                                                           |   | For the year ended December 31, |    |
|--------------------------------------------------------------------------------|--------|---------------------------------|---------|
|                                                                           |   | 2010                            |    |   | 2009 |   |
|                                                                           |   |                            |    |   |   |   |
| Operating activities                                                           |   |                            |    |   |   |   |
| Net loss                                                                       |   | $                               | (77,886 | ) |   | $ | (23,205 | ) |
| Adjustments to reconcile net loss to net cash                                  |   |                            |    |   |   |   |   |   |
| provided by (used in) operating activities:                                    |   |                            |    |   |   |   |   |   |
| Depreciation and amortization                                                  |   |                            | 22,891  |   |   |   | 27,240 |   |
| Impairment of long-lived assets                                                |   |                            | 40,285  |   |   |   | - |   |
| Abandoned offering costs                                                       |   |                            | 6,684   |   |   |   | - |   |
| Deferred rent                                                                  |   |                            | (1,217  | ) |   |   | (1,181 | ) |
| Deferred ground rents                                                          |   |                            | 2,088   |   |   |   | 2,214 |   |
| Interest amortization                                                          |   |                            | 1,088   |   |   |   | 1,392 |   |
| Write-off of tax penalty accrual                                               |   |                            | -       |   |   |   | (423 | ) |
| Share based compensation                                                       |   |                            | 200     |   |   |   | 191 |   |
| Loss from extinguishment of debt                                               |   |                            | -       |   |   |   | 171 |   |
| Above- and below-market lease amortization, net                                |   |                            | (1,952  | ) |   |   | (2,305 | ) |
| Equity in net earnings of unconsolidated joint ventures                        |   |                            | (198    | ) |   |   | (313 | ) |
| Net operating distributions received from unconsolidated                       |   |                            |    |   |   |   |   |   |
|    joint ventures                                               |   |                            | -       |   |   |   | 238 |   |
| Bad debt expense                                                               |   |                            | 377     |   |   |   | 712 |   |
| Changes in operating assets and liabilities:                                   |   |                            |    |   |   |   |   |   |
| Restricted cash used for operating activities                                  |   |                            | (1,421  | ) |   |   | 4,842 |   |
| Rents and other receivables                                                    |   |                            | (1,323  | ) |   |   | 340 |   |
| Other assets                                                                   |   |                            | (2,647  | ) |   |   | 479 |   |
| Accounts payable and other liabilities                                         |   |                            | 1,553   |   |   |   | 309 |   |
| Net cash (used in) provided by operating activities                            |   |                            | (11,478 | ) |   |   | 10,701 |   |
| Investing activities                                                           |   |                            |    |   |   |   |   |   |
| Acquisition and improvement of real estate                                     |   |                            | (8,937  | ) |   |   | (5,982 | ) |
| Investment in unconsolidated joint venture                                     |   |                            | -       |   |   |   | (1,468 | ) |
| Capital distributions from unconsolidated joint ventures                       |   |                            | 2,307   |   |   |   | 2,221 |   |
| Payment of leasing commissions                                                 |   |                            | (1,468  | ) |   |   | (1,011 | ) |
| Capital expenditures funded from restricted cash                               |   |                            | (492    | ) |   |   | - |   |
| Decrease (increase) in restricted cash used for capital expenditures           |   |                            | 492     |   |   |   | (4,923 | ) |
| Net cash used in investing activities                                          |   |                            | (8,098  | ) |   |   | (11,163 | ) |
| Financing activities                                                           |   |                            |    |   |   |   |   |   |
| Repayment of mortgage notes payable                                            |   |                            | (2,420  | ) |   |   | (404 | ) |
| Proceeds from mortgage notes payable                                           |   |                            | 238     |   |   |   | 405 |   |
| Repayments of revolving credit facility                                        |   |                            | -       |   |   |   | (3,000 | ) |
| Borrowings from revolving credit facility                                      |   |                            | 15,500  |   |   |   | 8,947 |   |
| Proceeds from sale of Senior Common Stock, net                                 |   |                            | 21,708  |   |   |   | - |   |
| Financing costs                                                                |   |                            | (1,574  | ) |   |   | (151 | ) |
| Offering costs                                                                 |   |                            | -       |   |   |   | (1,842 | ) |
| Security deposits                                                              |   |                            | (178    | ) |   |   | 224 |   |
| Senior Common Stock dividends                                                  |   |                            | (127    | ) |   |   | - |   |
| Listed Common Stock dividends                                                  |   |                            | (788    | ) |   |   | (693 | ) |
| Redemption of OP units                                                         |   |                            | (900    | ) |   |   | - |   |
| Distributions to non-controlling interests - Preferred unitholders             |   |                            | (2,272  | ) |   |   | (2,273 | ) |
| Distributions to non-controlling interests - Common unitholders                |   |                            | (2,853  | ) |   |   | (2,860 | ) |
| Net cash provided by (used in) financing activities                            |   |                            | 26,334  |   |   |   | (1,647 | ) |
| Increase in cash and cash equivalents                                          |   |                            | 6,758   |   |   |   | (2,109 | ) |
| Cash and cash equivalents at beginning of period                               |   |                            | 2,354   |   |   |   | 4,463 |   |
| Cash and cash equivalents at end of period                                     |   | $                               | 9,112   |   |   | $ | 2,354 |   |
| Supplemental cash flow information                                             |   |                            |    |   |   |   |   |   |
| Interest paid                                                                  |   | $                               | 24,960  |   |   | $ | 23,640 |   |
|                                                                           |   |                            |    |   |   |   |   |   |
| Supplemental Disclosure of Non-Cash Investing and Financing Activities         |   |                            |    |   |   |   |   |   |
|                                                                           |   |                            |    |   |   |   |   |   |
| Accrued dividends and distributions                                            |   | $                               | 851     |   |   | $ | 1,476 |   |
| Change in accrued dividends payable to listed common stockholders              |   | $                               | (150    | ) |   | $ | - |   |
| Senior common stock issued pursuant to dividend reinvestment plan              |   | $                               | 58      |   |   | $ | - |   |
| Amortization of offering costs                                                 |   | $                               | 241     |   |   | $ | - |   |
| Accrued capital expenditures                                                   |   | $                               | 569     |   |   |   | 794 |   |
| Exchange of unsecured notes payable to related parties for Listed Common Stock |   | $                               | -       |   |   |   | 3,014 |   |
|                                                                           |   |                            |    |   |   |   |   |   |

----

|                                    |   |       |   |   |      |   |   | Property |   |
|-----------------------------------------|--------|------------|--------|--------|-----------|--------|--------|----------|--------|
|                                    |   | Number of  |   |   | Portfolio |   |
|                                    |   | Properties |   |   | Buildings |   |   | Sq. Ft.  |   |
| Wholly-owned properties                 |   |       | 8      |   |      |   | 11     |     |   |   | 2,350,721 |   |
| Unconsolidated joint venture properties |   |       | 16     |   |      |   | 34     |     |   |   | 2,412,056 |   |
| Total                                   |   |       | 24     |   |      |   | 45     |     |   |   | 4,762,777 |   |
|                                    |   |       |   |   |      |   |   |     |   |   |   |   |

| 2. | Summary of Significant Accounting Policies |
|----|--------------------------------------------|

----

| ·   | Unrestricted and restricted cash on hand; |
|--------------------|-------------------------------------------|

| ·   | Net cash flow generated from operations; |
|--------------------|------------------------------------------|

| ·   | Contribution of existing wholly-owned assets to joint ventures; |
|--------------------|-----------------------------------------------------------------|

| ·   | Asset dispositions; and/or |
|--------------------|----------------------------|

| ·   | Proceeds from additional secured or unsecured debt financings. |
|--------------------|----------------------------------------------------------------|

----

----

----

----

----

|   | • | persuasive evidence of an arrangement exists; |
|--------|---------|-----------------------------------------------|

|   | • | the delivery has occurred or services rendered; |
|--------|---------|-------------------------------------------------|

|   | • | the fee is fixed and determinable; and |
|--------|---------|----------------------------------------|

|   | • | collectibility is reasonably assured. |
|--------|---------|---------------------------------------|

----

----

----

----

|                                      |   | December 31, 2010 |    |   | December 31, 2009 |   |
|-------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                                      |   |              |    |   |              |   |
| Land and land improvements                |   | $                 | 69,040  |   |              | $      | 76,054 |   |
| Building and building improvements        |   |              | 294,829 |   |              |   | 310,507 |   |
| Tenant improvements                       |   |              | 35,681  |   |              |   | 27,707 |   |
| Construction in progress                  |   |              | 2,757   |   |              |   | 3,311 |   |
| Furniture, fixtures and equipment         |   |              | 1,391   |   |              |   | 1,401 |   |
| Investments in real estate                |   |              | 403,698 |   |              |   | 418,980 |   |
| Less:  accumulated depreciation |   |              | (50,561 | )      |              |   | (36,030 | ) |
| Investments in real estate, net           |   | $                 | 353,137 |   |              | $      | 382,950 |   |
|                                      |   |              |    |   |              |   |   |   |

----

|                                                                                 |   |              |    |   |              |   |
|--------------------------------------------------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                                                                                 |   | December 31, 2010 |    |   | December 31, 2009 |   |
|                                                                                 |   |              |    |   |              |   |
| Acquired leasing commissions                                                         |   |              |    |   |              |   |
|           Gross amount             |   | $                 | 9,596   |   |              | $      | 8,857 |   |
|           Accumulated amortization |   |              | (5,528  | )      |              |   | (4,212 | ) |
|           Net balance              |   | $                 | 4,068   |   |              | $      | 4,645 |   |
|                                                                                 |   |              |    |   |              |   |   |   |
| Acquired leases in place                                                             |   |              |    |   |              |   |   |   |
|           Gross amount             |   | $                 | 15,823  |   |              | $      | 17,171 |   |
|           Accumulated amortization |   |              | (12,103 | )      |              |   | (10,234 | ) |
|           Net balance              |   | $                 | 3,720   |   |              | $      | 6,937 |   |
|                                                                                 |   |              |    |   |              |   |   |   |
| Acquired tenant relationship costs                                                   |   |              |    |   |              |
|           Gross amount             |   | $                 | 18,312  |   |              | $      | 19,581 |   |
|           Accumulated amortization |   | $                 | (6,899  | )      |              |   | (4,419 | ) |
|           Net balance              |   | $                 | 11,413  |   |              | $      | 15,162 |   |
|                                                                                 |   |              |    |   |              |   |   |   |
| Acquired other intangibles                                                           |   |              |    |   |              |   |   |   |
|           Gross amount             |   | $                 | 7,139   |   |              | $      | 7,767 |   |
|           Accumulated amortization |   | $                 | (1,539  | )      |              |   | (1,283 | ) |
|           Net balance              |   | $                 | 5,600   |   |              | $      | 6,484 |   |
|                                                                                 |   |              |    |   |              |   |   |   |
| Intangible assets, net                                                               |   | $                 | 24,801  |   |              | $      | 33,228 |   |
|                                                                                 |   |              |    |   |              |   |   |   |
| Acquired above-market leases                                                         |   |              |    |   |              |   |   |   |
|           Gross amount             |   | $                 | 2,167   |   |              | $      | 2,218 |   |
|           Accumulated amortization |   | $                 | (1,809  | )      |              |   | (1,606 | ) |
| Acquired above-market leases, net                                                    |   | $                 | 358     |   |              | $      | 612 |   |
|                                                                                 |   |              |    |   |              |   |   |   |
| Acquired below-market leases                                                         |   |              |    |   |              |   |   |   |
|           Gross amount             |   | $                 | 15,245  |   |              | $      | 15,571 |   |
|           Accumulated accretion    |   | $                 | (7,327  | )      |              |   | (5,447 | ) |
| Acquired below-market leases, net                                                    |   | $                 | 7,918   |   |              | $      | 10,124 |   |
|                                                                                 |   |              |    |   |              |   |   |   |

----

|                           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | Amortization      |   |
|--------------------------------|--------|----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|--------|-------------------|--------|
|                           |   | 2011           |   |   | 2012   |   |   | 2013   |   |   | 2014   |   |   | 2015   |   |   | Thereafter |   |   | Total  |   |   | Period (In years) |   |
|                           |   | (In thousands) |   |   |   |   |
| Leasing Commissions            |   | $              | 1,172  |   |   | $      | 918    |   |   | $      | 503    |   |   | $      | 361    |   |       | $      | 279    |   |   | $      | 648               |   |   | $ | 3,881 |   |   |   | 2.7 |   |
| Other Intangibles              |   |           | 772    |   |   |   | 709    |   |   |   | 658    |   |   |   | 596    |   |       |   | 473    |   |   |   | 5,198             |   |   |   | 8,406 |   |   |   | 13.5 |   |
| Leases in Place                |   |           | 1,103  |   |   |   | 640    |   |   |   | 284    |   |   |   | 206    |   |       |   | 180    |   |   |   | 458               |   |   |   | 2,871 |   |   |   | 3.0 |   |
| Tenant Relationship Costs      |   |           | 2,269  |   |   |   | 2,004  |   |   |   | 1,691  |   |   |   | 1,271  |   |       |   | 882    |   |   |   | 1,526             |   |   |   | 9,643 |   |   |   | 3.7 |   |
| Intangible Assets, net         |   | $              | 5,316  |   |   | $      | 4,271  |   |   | $      | 3,136  |   |   | $      | 2,434  |   |       | $      | 1,814  |   |   | $      | 7,830             |   |   | $ | 24,801 |   |   |   |   |   |
|                           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |
| Above-market lease amortiztion |   | $              | (147   | )      |   | $      | (141   | )      |   | $      | (33    | )      |   | $      | (9     | )      |       | $      | (9     | )      |   | $      | (19               | )      |   | $ | (358 | ) |   |   | 2.1 |   |
|                           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |
| Below-market lease accretion   |   | $              | 1,693  |   |   | $      | 1,197  |   |   | $      | 622    |   |   | $      | 453    |   |       | $      | 426    |   |   | $      | 3,527             |   |   | $ | 7,918 |   |   |   | 6.6 |   |
|                           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |

|                                                    |   | Year Ended             |   |   | Year Ended             |   |
|---------------------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|
|                                                    |   | December 31, 2010 |   |   | December 31, 2009 |   |
|                                                    |   |                   |   |   |                   |   |
| Total acquired below- market lease accretion            |   | $                      | 2,206  |   |                   | $      | 2,729 |   |
| Total acquired above- market lease amortization expense |   | $                      | (254   | )      |                   | $      | (424 | ) |
| Total intangibles amortization expense                  |   | $                      | 7,255  |   |                   | $      | 9,243 |   |

----

|                                              |   | Year ended December 31, |
|---------------------------------------------------|--------|-------------------------|
|                                              |   | 2010                    |   |   | 2009 |   |
| Revenues:                                         |   |                    |   |   |   |   |
| Rental                                            |   | $                       | 46,049 |   |   | $ | 37,569 |   |
| Other                                             |   |                    | 9,183 |   |   |   | 8,098 |   |
| Total revenues                                    |   |                    | 55,232 |   |   |   | 45,667 |   |
|                                              |   |                    |   |   |   |   |   |   |
| Expenses:                                         |   |                    |   |   |   |   |   |   |
| Rental operating                                  |   |                    | 22,391 |   |   |   | 19,697 |   |
| Depreciation and amortization                     |   |                    | 22,787 |   |   |   | 18,259 |   |
| Interest                                          |   |                    | 21,776 |   |   |   | 16,884 |   |
| Total expenses                                    |   |                    | 66,954 |   |   |   | 54,840 |   |
| Net loss                                          |   | $                       | (11,722 | ) |   | $ | (9,173 | ) |
|                                              |   |                    |   |   |   |   |   |   |
| Equity in net earnings                            |   |                    |   |   |   |   |   |   |
|    of unconsolidated joint venture |   | $                       | 198 |   |   | $ | 313 |   |
|                                              |   |                    |   |   |   |   |   |   |

|                                        |   | December 31, 2010 |    |   | December 31, 2009 |   |
|---------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
| Investment in real estate, net              |   | $                 | 381,738 |   |              | $      | 400,700 |   |
| Other assets                                |   |              | 65,064  |   |              |   | 61,225 |   |
| Total assets                                |   | $                 | 446,802 |   |              | $      | 461,925 |   |
|                                        |   |              |    |   |              |   |   |   |
| Mortgage and other loans                    |   | $                 | 365,573 |   |              | $      | 366,543 |   |
| Other liabilities                           |   |              | 20,073  |   |              |   | 14,856 |   |
| Total liabilities                           |   | $                 | 385,646 |   |              | $      | 381,399 |   |
|                                        |   |              |    |   |              |   |   |   |
| Investment in unconsolidated joint ventures |   | $                 | 8,802   |   |              | $      | 10,911 |   |
|                                        |   |              |    |   |              |   |   |   |

----

|                                                                                                                             |   | December 31, 2010 |   |   | December 31, 2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
| Deferred loan fees, net of accumulated amortization of $1.7 million and $1.2 million at December 31, 2010 and 2009, respectively |   | $                 | 1,846  |   |              | $      | 2,008 |   |
| Equity offering costs                                                                                                            |   |              | -      |   |              |   | 1,842 |   |
| Prepaid expenses                                                                                                                 |   |              | 1,305  |   |              |   | 1,205 |   |
| Refundable acquisition deposits                                                                                                  |   |              | 1,990  |   |              |   | - |   |
| Total other assets, net                                                                                                          |   | $                 | 5,141  |   |              | $      | 5,055 |   |
|                                                                                                                             |   |              |   |   |              |   |   |   |

| Year                                     |   |   |    |
|------------------------------------------|--------|--------|---------|
| 2011                                     |   | $      | 37,861  |   |
| 2012                                     |   |   | 32,602  |   |
| 2013                                     |   |   | 21,873  |   |
| 2014                                     |   |   | 17,720  |   |
| 2015                                     |   |   | 13,369  |   |
| Thereafter                               |   |   | 36,987  |   |
| Total future minimum base rental revenue |   | $      | 160,412 |   |

----

|                                         |   | December 31, 2010 |   |   | December 31, 2009 |   |
|----------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
| Accounts payable                             |   | $                 | 1,150  |   |              | $      | 597 |   |
| Interest payable                             |   |              | 6,675  |   |              |   | 2,644 |   |
| Deferred revenue                             |   |              | 1,690  |   |              |   | 2,039 |   |
| Security deposits                            |   |              | 2,618  |   |              |   | 2,782 |   |
| Deferred straight-line ground rent           |   |              | 8,708  |   |              |   | 6,620 |   |
| Related party payable (Note 13 )             |   |              | -      |   |              |   | 1,113 |   |
| Accrued expenses                             |   |              | 10,334 |   |              |   | 5,599 |   |
| Asset retirement obligations                 |   |              | 641    |   |              |   | 606 |   |
| Total accounts payable and other liabilities |   | $                 | 31,816 |   |              | $      | 22,000 |   |
|                                         |   |              |   |   |              |   |   |   |

----

|                           |   | Outstanding Principal Balance, Net at |    |   |              |   |    |
|--------------------------------|--------|---------------------------------------|---------|--------|-------------------|--------|---------|
| Property                       |   | December 31, 2010                     |    |   | December 31, 2009 |   |    | Interest Rate |   | Maturity Date |
| Pacific Business News Building |   | $                                     | 11,601  |   |              | $      | 11,666  |   |   |   | 6.98 | % (a) | 4/6/2010 (a) |
| City Square                    |   |                                  | 27,500  |   |              |   | 27,414  |   |   |   | 5.58 | % | 9/1/2010 (b) |
| City Square                    |   |                                  | 25,294  |   |              |   | 27,017  |   |   | LIBOR + 2.35% (c) | 9/1/2010 (c) |
| Clifford Center                |   |                                  | 3,226   |   |              |   | 3,501   |   |   |   | 6.00 | % | 8/15/2011(d) |
| First Insurance Center         |   |                                  | 37,533  |   |              |   | 37,439  |   |   |   | 5.74 | % | 1/1/2016 |
| First Insurance Center         |   |                                  | 13,826  |   |              |   | 13,791  |   |   |   | 5.40 | % | 1/6/2016 |
| Sorrento Technology Center     |   |                                  | 11,521  |   |              |   | 11,625  |   |   |   | 5.75 | % | 1/11/2016 |
| Pan Am Building                |   |                                  | 59,969  |   |              |   | 59,964  |   |   |   | 6.17 | % | 8/11/2016 |
| Waterfront Plaza               |   |                                  | 100,000 |   |              |   | 100,000 |   |   |   | 6.37 | % | 9/11/2016 |
| Waterfront Plaza               |   |                                  | 11,000  |   |              |   | 11,000  |   |   |   | 6.37 | % | 9/11/2016 |
| Davies Pacific Center          |   |                                  | 94,209  |   |              |   | 94,075  |   |   |   | 5.86 | % | 11/11/2016 |
| Subtotal                       |   |                                  | 395,679 |   |              |   | 397,492 |   |   |   |   |   |   |
| Revolving line of credit (e)   |   |                                  | 24,447  |   |              |   | 8,947   |   |   |   | 1.25 | % | 12/31/2013 |
| Total                          |   | $                                     | 420,126 |   |              | $      | 406,439 |   |   |   |   |   |   |
|                           |   |                                  |    |   |              |   |    |   |   |   |   |   |   |

| (a) | The loan secured by the Pacific Business News Building has matured and we have not repaid the principal balance.  As a result, interest is being incurred at the default rate of 11.98%.  The Company is currently in negotiations with the lender to restructure the loan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The loan secured by the City Square property has matured and we have not repaid the principal balance.  The Company signed a forbearance agreement with the lender on October 15, 2010.  Under the forbearance agreement, the default interest of 5% in excess of the stated rate and late charge penalties in the amount of approximately $1.9 million will be forgiven if the loan is repaid in full prior to April 29, 2011. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c) | The loan secured by a pledge of the ownership interests in the entities owning the City Square property has matured and we have not repaid the principal balance.  As a result, interest is being incurred at the default rate of LIBOR + 7.35%.  The Company is currently in negotiations with the lender to restructure the loan. The Company had an interest rate cap on this loan for the notional amount of $28.5 million, which effectively limited the LIBOR rate on this loan to 7.45%.  The interest rate cap expired on September 1, 2010, commensurate with the maturity date of the loan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | The terms of the Clifford Center loan provide the Company with the option to extend the maturity date to August 15, 2014 subject to a nominal fee. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | The revolving line of credit matures on December 31, 2013.  Amounts borrowed under the revolving line of credit bear interest at a fluctuating annual rate equal to the effective rate of interest paid by the lender on time certificates of deposit, plus 1.00%.  See “Revolving Line of Credit” below. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2011 (1)   |   | $      | 67,771  |   |
|------------|--------|--------|---------|--------|
| 2012       |   |   | 157     |   |
| 2013       |   |   | 24,615  |   |
| 2014       |   |   | 179     |   |
| 2015       |   |   | 189     |   |
| Thereafter |   |   | 328,825 |   |
| Total      |   | $      | 421,736 |   |
|       |   |   |    |   |

----

----

| Year                                       |   |   |    |
|--------------------------------------------|--------|--------|---------|
| 2011                                       |   | $      | 2,440   |   |
| 2012                                       |   |   | 2,451   |   |
| 2013                                       |   |   | 2,463   |   |
| 2014                                       |   |   | 2,474   |   |
| 2015                                       |   |   | 2,486   |   |
| Thereafter                                 |   |   | 213,317 |   |
| Total future minimum ground lease payments |   | $      | 225,631 |   |

----

----

| 12. | Equity and Earnings per Share |
|-----|-------------------------------|

----

----

|   | Loss per Share - |
|--------|------------------|

----

|                                                     |   | For the year ended December 31, |      |
|----------------------------------------------------------|--------|---------------------------------|-----------|
|                                                     |   | 2010                            |      |   | 2009 |   |
|                                                     |   |                            |      |   |   |   |
| Net loss attributable to common                          |   |                            |      |   |   |   |
| stockholders - basic and diluted (1)                     |   | $                               | (17,246   | ) |   | $ | (15,613 | ) |
|                                                     |   |                            |      |   |   |   |   |   |
| Weighted average number of common shares                 |   |                            | 3,878,349 |   |   |   | 3,259,013 |   |
| Potentially dilutive common shares (2)                   |   |                            | —   |   |   |   | — |   |
| Weighted average number of common                        |   |                            |      |   |   |   |   |   |
| shares/units outstanding — basic and diluted  |   |                            | 3,878,349 |   |   |   | 3,259,013 |   |
| Net loss per common share — basic and diluted |   | $                               | (4.45     | ) |   | $ | (4.79 | ) |
|                                                     |   |                            |      |   |   |   |   |   |

| (1) | For each of the years ended December 31, 2010 and 2009, net loss attributable to common stockholders includes $2.3 million of priority allocation to Preferred Unit holders, respectively, which is included in non-controlling interests in the consolidated statements of operations. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Approximately 47,615 non-vested restricted stock units, 32,597,528 shares of Listed Common Stock which may be issued upon redemption of Preferred Units, and 435,740 shares of Senior Common Stock, for the year ended December 31, 2010 were excluded from the calculation of diluted earnings per share because they were anti-dilutive due to our net loss position. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Approximately 52,630 non-vested restricted stock units and 32,597,528 shares of Listed Common Stock which may be issued upon redemption of Preferred Units for the year ended December 31, 2009 were excluded from the calculation of diluted earnings per share because they were anti-dilutive due to our net loss position.  Refer to “Non-controlling Interests” and “Stockholders’ Equity (Deficit)” section of this footnote for the redemption and conversion terms and conditions of the Preferred Units and Senior Common Stock, respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                     |   | For the year ended December 31, 2010 |   |   | For the year ended December 31, 2009 |   |
|------------------------------------------|--------|--------------------------------------|--------|--------|--------------------------------------|--------|
| Property management fees                 |   |                                 |   |   |                                 |   |
|   to affiliates of Advisor (1) |   | $                                    | 3,096  |   |                                 | $      | 3,327 |   |
| Leasing commissions (2)                  |   |                                 | 260    |   |                                 |   | 342 |   |
| Corporate management fees to Advisor     |   |                                 | 750    |   |                                 |   | 750 |   |
| Interest                                 |   |                                 | 2,122  |   |                                 |   | 1,835 |   |
| Construction management fees             |   |                                 |   |   |                                 |   |   |   |
|   and other (3)                |   |                                 | 168    |   |                                 |   | 82 |   |
| Total                                    |   | $                                    | 6,396  |   |                                 | $      | 6,336 |   |
|                                     |   |                                 |   |   |                                 |   |   |   |

| (1) | Property management fees are calculated as a percentage of the rental cash receipts collected by the properties (ranging from 2.5% to 4.5%), plus the payroll costs of on-site employees. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Leasing commissions are capitalized as deferred leasing costs and are amortized over the life of the related lease. |
|-----|---------------------------------------------------------------------------------------------------------------------|

| (3) | Debt placement fees for the FHB credit facility of $0.1 million are included in the amounts paid for the year ended December 31, 2010. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

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|                                                    |   | For the year ended December 31, 2010 |    |
|---------------------------------------------------------|--------|--------------------------------------|---------|
|                                                    |   | Honolulu                             |    |   | Western U.S. |   |   | Corporate |   |   | Total |   |
| Revenue:                                                |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Rental                                                  |   | $                                    | 30,049  |   |   | $ | 12,451 |   |   | $ | 15 |   |   | $ | 42,515 |   |
| Tenant reimbursements                                   |   |                                 | 20,983  |   |   |   | 1,103 |   |   |   | - |   |   |   | 22,086 |   |
| Parking                                                 |   |                                 | 7,133   |   |   |   | 976 |   |   |   | - |   |   |   | 8,109 |   |
| Other                                                   |   |                                 | 128     |   |   |   | 30 |   |   |   | 199 |   |   |   | 357 |   |
| Total revenue                                           |   |                                 | 58,293  |   |   |   | 14,560 |   |   |   | 214 |   |   |   | 73,067 |   |
| Expenses:                                               |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rental property operating                               |   |                                 | 32,529  |   |   |   | 7,780 |   |   |   | - |   |   |   | 40,309 |   |
| General and administrative                              |   |                                 | -       |   |   |   | - |   |   |   | 2,936 |   |   |   | 2,936 |   |
| Depreciation and amortization                           |   |                                 | 15,845  |   |   |   | 7,046 |   |   |   | - |   |   |   | 22,891 |   |
| Interest                                                |   |                                 | 22,203  |   |   |   | 5,430 |   |   |   | 2,540 |   |   |   | 30,173 |   |
| Loss on extinguishment of debt                          |   |                                 | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Abandoned offering costs                                |   |                                 | -       |   |   |   | - |   |   |   | 6,684 |   |   |   | 6,684 |   |
| Acquisition costs                                       |   |                                 | -       |   |   |   | - |   |   |   | 7,874 |   |   |   | 7,874 |   |
| Impairment on long-lived assets                         |   |                                 | 2,024   |   |   |   | 38,260 |   |   |   | - |   |   |   | 40,284 |   |
| Total expenses                                          |   |                                 | 72,601  |   |   |   | 58,516 |   |   |   | 20,034 |   |   |   | 151,151 |   |
| Loss before equity in net earnings of unconsolidated    |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| joint ventures and non-operating income                 |   | $                                    | (14,308 | ) |   | $ | (43,956 | ) |   | $ | (19,820 | ) |   | $ | (78,084 | ) |
| Equity in net earnings of unconsolidated joint ventures |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   | 198 |   |
| Net loss attributable to non-controlling interests      |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   | 60,953 |   |
| Dividends on Senior Common Stock                        |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   | (313 | ) |
| Net loss attributable to common stockholders            |   |                                 |    |   |   |   |   |   |   |   |   |   |   | $ | (17,246 | ) |
|                                                    |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                    |   | For the year ended December 31, 2009 |    |   |         |   |    |      |   |
|---------------------------------------------------------|--------|--------------------------------------|---------|--------|--------------|--------|---------|-----------|--------|
|                                                    |   | Honolulu                             |    |   | Western U.S. |   |    | Corporate |   |   | Total |   |
| Revenue:                                                |   |                                 |    |   |         |   |    |      |   |   |   |   |
| Rental                                                  |   | $                                    | 29,605  |   |         | $      | 12,842  |      |   | $ | 15 |   |   | $ | 42,462 |   |
| Tenant reimbursements                                   |   |                                 | 20,510  |   |         |   | 1,152   |      |   |   | — |   |   |   | 21,662 |   |
| Parking                                                 |   |                                 | 7,165   |   |         |   | 985     |      |   |   | — |   |   |   | 8,150 |   |
| Other                                                   |   |                                 | 123     |   |         |   | 45      |      |   |   | 197 |   |   |   | 365 |   |
| Total revenue                                           |   |                                 | 57,403  |   |         |   | 15,024  |      |   |   | 212 |   |   |   | 72,639 |   |
| Expenses:                                               |   |                                 |    |   |         |   |    |      |   |   |   |   |   |   |   |   |
| Rental property operating                               |   |                                 | 31,659  |   |         |   | 7,821   |      |   |   | — |   |   |   | 39,480 |   |
| General and administrative                              |   |                                 | — |   |         |   | — |      |   |   | 2,649 |   |   |   | 2,649 |   |
| Depreciation and amortization                           |   |                                 | 19,667  |   |         |   | 7,573   |      |   |   | — |   |   |   | 27,240 |   |
| Interest                                                |   |                                 | 21,196  |   |         |   | 3,367   |      |   |   | 2,488 |   |   |   | 27,051 |   |
| Loss on extinguishment of debt                          |   |                                 | — |   |         |   | — |      |   |   | 171 |   |   |   | 171 |   |
| Total expenses                                          |   |                                 | 72,522  |   |         |   | 18,761  |      |   |   | 5,308 |   |   |   | 96,591 |   |
| Loss before equity in net earnings of unconsolidated    |   |                                 |    |   |         |   |    |      |   |   |   |   |   |   |   |   |
| joint ventures and non-operating income                 |   | $                                    | (15,119 | )      |         | $      | (3,737  | )         |   | $ | (5,096 | ) |   | $ | (23,952 | ) |
| Equity in net earnings of unconsolidated joint ventures |   |                                 |    |   |         |   |    |      |   |   |   |   |   |   | 313 |   |
| Non-operating income                                    |   |                                 |    |   |         |   |    |      |   |   |   |   |   |   | 434 |   |
| Fair value adjustment of Preferred Units                |   |                                 |    |   |         |   |    |      |   |   |   |   |   |   | (58,645 | ) |
| Net loss attributable to non-controlling interests      |   |                                 |    |   |         |   |    |      |   |   |   |   |   |   | 66,237 |   |
| Net loss attributable to common stockholders            |   |                                 |    |   |         |   |    |      |   |   |   |   |   | $ | (15,613 | ) |
|                                                    |   |                                 |    |   |         |   |    |      |   |   |   |   |   |   |   |   |
|                                                    |   |                                 |    |   |         |   |    |      |   |   |   |   |   |   |   |   |

|                 |   | Honolulu |    |   | Western U.S. |   |    | Corporate |   |   | Total  |   |
|----------------------|--------|----------|---------|--------|--------------|--------|---------|-----------|--------|--------|--------|--------|
| Total assets:        |   |     |    |   |         |   |    |      |   |   |   |   |
| December 31, 2010    |   | $        | 375,645 |   |         | $      | 73,351  |      |   | $      | 19,389 |   |   | $ | 468,385 |   |
| December 31, 2009    |   | $        | 373,006 |   |         | $      | 124,463 |      |   | $      | 13,479 |   |   | $ | 510,948 |   |
| Total goodwill:      |   |     |    |   |         |   |    |      |   |   |   |   |   |   |   |   |
| December 31, 2010    |   | $        | 48,549  |   |         | $      | -       |      |   | $      | -      |   |   | $ | 48,549 |   |
| December 31, 2009    |   | $        | 48,549  |   |         | $      | 13,470  |      |   | $      | -      |   |   | $ | 62,019 |   |
| Capital expenditures |   |     |    |   |         |   |    |      |   |   |   |   |   |   |   |   |
| For the year ended:  |   |     |    |   |         |   |    |      |   |   |   |   |   |   |   |   |
| December 31, 2010    |   | $        | 9,797   |   |         | $      | 206     |      |   | $      | -      |   |   | $ | 10,003 |   |
| December 31, 2009    |   | $        | 5,700   |   |         | $      | 1,005   |      |   | $      | -      |   |   | $ | 6,705 |   |
|                 |   |     |    |   |         |   |    |      |   |   |   |   |   |   |   |   |

----

----

|                                                                                |               | Three Months Ended                              |      |
|-------------------------------------------------------------------------------------|--------------------|-------------------------------------------------|-----------|
|                                                                                |               | December 31,                               |      |   | September 30, |   |   | June 30, |   |   | March 31, |   |
|                                                                                |               | 2010                                            | 2010      |   | 2010 | 2010 |   |
|                                                                                |               | (In thousands, except common share information) |      |   |   |   |
| Total revenue                                                                       |               | $                                               | 18,344    |   |   | $ | 18,316 |   |   | $ | 18,473 |   |   | $ | 17,934 |   |
| Net loss                                                                            |               | $                                               | (60,429   | ) |   | $ | (7,811 | ) |   | $ | (4,990 | ) |   | $ | (4,656 | ) |
| Net loss attributable to common stockholders                                        |               | $                                               | (13,145   | ) |   | $ | (1,811 | ) |   | $ | (1,182 | ) |   | $ | (1,108 | ) |
| Net loss per common share — basic and diluted                            |               | $                                               | (3.37     | ) |   | $ | (0.46 | ) |   | $ | (0.31 | ) |   | $ | (0.29 | ) |
| Weighted average number of common shares outstanding — basic and diluted |               |                                            | 3,903,150 |   |   |   | 3,903,150 |   |   |   | 3,855,725 |   |   |   | 3,850,520 |   |
|                                                                                |               |                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |               |                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                | Three Months Ended |                                            |
|                                                                                |               | December 31,                               |      |   | September 30, |   |   | June 30, |   |   | March 31, |   |
|                                                                                |               |                                            | 2009      | 2009 | 2009 |   | 2009 |
|                                                                                |               | (In thousands, except common share information) |      |   |   |   |   |
| Total revenue                                                                       |               | $                                               | 18,106    |   |   | $ | 17,744 |   |   | $ | 18,019 |   |   | $ | 18,770 |   |
| Net loss                                                                            |               | $                                               | (5,808    | ) |   | $ | (6,104 | ) |   | $ | (5,810 | ) |   | $ | (5,483 | ) |
| Net loss attributable to common stockholders                                        |               | $                                               | (12,200   | ) |   | $ | (1,241 | ) |   | $ | (1,116 | ) |   | $ | (1,056 | ) |
| Net loss per common share — basic and diluted                            |               | $                                               | (3.17     | ) |   | $ | (0.40 | ) |   | $ | (0.37 | ) |   | $ | (0.35 | ) |
| Weighted average number of common shares outstanding — basic and diluted |               |                                            | 3,850,520 |   |   |   | 3,112,888 |   |   |   | 3,034,122 |   |   |   | 3,031,125 |   |
|                                                                                |               |                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                           |       |   |         |    |   |          |   |    |            |   |   | Gross Amounts                           |   |   |   |    |   |          |   |    |   |   |   |
|--------------------------------|------------|--------|--------------|---------|--------|---------------|--------|---------|-----------------|--------|--------|-----------------------------------------|--------|--------|--------|---------|--------|---------------|--------|---------|--------|--------|--------|
|                           |       |   |         |    |   |          |   |    |            |   |   | at Which Carried                        |   |   |   |    |   |          |   |    |   |   |   |
|                           |       |   |         |    |   | Initial Costs |   |    |            |   |   | at December 31, 2010               |   |   |   |    |   |          |   |    |   |   |   |
| Office,Property Name           | Location   |   | Encumbrances |    |   | Land4         |   |    | Bldg.andImp.1,4 |   |   | CostsCapitalizedSubsequenttoAcquisition |   |   | Land   |    |   | Bldg.andImp.1 |   |    | Total  |   |   | AccumulatedDepreciation |   |   | DateBuilt2 |   | DateAcquired |   | Depreciable LIfe(Years) |   |
| Clifford Center                | Hawaii     |   | $            | 3,226   |   |          | $      | 50      |            |   | $      | 8,279                                   |   |   | $      | 980     |   |          | $      | 50      |   |   | $      | 9,258 |   |   | $ | 9,308 |   |   | $ | 1,560 |   |   |   | 1964 |   | 2008 |   |   | 5-39 |   |
| Pacific Business News Building | Hawaii     |   |         | 11,601  |   |          |   | 4,593   |            |   |   | 5,257                                   |   |   |   | 1,597   |   |          |   | 4,652   |   |   |   | 6,795 |   |   |   | 11,447 |   |   |   | 1,281 |   |   |   | 1964 |   | 2008 |   |   | 5-39 |   |
| Davies Pacific Center          | Hawaii     |   |         | 95,000  |   |          |   | 15,587  |            |   |   | 83,181                                  |   |   |   | 3,943   |   |          |   | 15,587  |   |   |   | 87,122 |   |   |   | 102,709 |   |   |   | 9,880 |   |   |   | 1972 |   | 2008 |   |   | 3-34 |   |
| Pan Am Building                | Hawaii     |   |         | 60,000  |   |          |   | 17,700  |            |   |   | 52,027                                  |   |   |   | 1,546   |   |          |   | 17,700  |   |   |   | 53,572 |   |   |   | 71,272 |   |   |   | 6,443 |   |   |   | 1969 |   | 2008 |   |   | 4-42 |   |
| City Square                    | Arizona    |   |         | 52,794  |   |          |   | 14,015  |            |   |   | 44,592                                  |   |   |   | 2,512   |   |          |   | 14,015  |   |   |   | 47,103 |   |   |   | 61,118 |   |   |   | 10,845 |   |   | 1961/’65/’71 |   | 2008 |   |   | 2-40 |   |
| Sorrento Technology Center     | California |   |         | 11,669  |   |          |   | 5,872   |            |   |   | 7,711                                   |   |   |   | 35      |   |          |   | 5,872   |   |   |   | 7,746 |   |   |   | 13,618 |   |   |   | 1,301 |   |   |   | 1984 |   | 2008 |   |   | 5-35 |   |
| First Insurance Center         | Hawaii     |   |         | 52,000  |   |          |   | 10,588  |            |   |   | 43,482                                  |   |   |   | 1,480   |   |          |   | 10,588  |   |   |   | 44,966 |   |   |   | 55,554 |   |   |   | 4,020 |   |   |   | 1983 |   | 2008 |   |   | 5-41 |   |
| Waterfront                     | Hawaii     |   |         | 111,000 |   |          |   | — |            |   |   | 63,068                                  |   |   |   | 15,921  |   |          |   | — |   |   |   | 78,616 |   |   |   | 78,616 |   |   |   | 15,231 |   |   |   | 1988/2006 | 3 | 2004 |   |   | 5-42 |   |
| AZL Land                       | Arizona    |   |         | — |   |          |   | 56      |            |   |   | —                                 |   |   |   | — |   |          |   | 56      |   |   |   | — |   |   |   | 56 |   |   |   | — |   |   |   |   |   | 2008 |   |   |   |   |
| Total                          |       |   | $            | 397,290 |   |          | $      | 68,461  |            |   | $      | 307,597                                 |   |   | $      | 28,014  |   |          | $      | 68,520  |   |   | $      | 335,178 |   |   | $ | 403,698 |   |   | $ | 50,561 |   |   |   |   |   |   |   |   |   |   |

----

  

2   Represents the year in which the property was first placed in service.

|                         |   | For the year ended |    |
|------------------------------|--------|--------------------|---------|
|                         |   | December 31, 2010  |    |   | December 31, 2009 |   |
|                         |   |               |    |   |   |   |
| Real Estate Properties:      |   |               |    |   |   |   |
| Balance, beginning of period |   | $                  | 418,980 |   |   | $ | 413,914 |   |
| Additions and improvements   |   |               | (13,207 | ) |   |   | 6,708 |   |
| Impairment of real estate    |   |               | (24,175 | ) |   |   | - |   |
| Write-off of property        |   |               | (2,075  | ) |   |   | (1,642 | ) |
| Balance, end of period       |   | $                  | 403,698 |   |   | $ | 418,980 |   |
| Accumulated depreciation:    |   |               |    |   |   |   |   |   |
| Balance, beginning of period |   | $                  | 36,030  |   |   | $ | 21,257 |   |
| Depreciation                 |   |               | 15,525  |   |   |   | 15,861 |   |
| Write-off of property        |   |               | (994    | ) |   |   | (1,088 | ) |
| Balance, end of period       |   | $                  | 50,561  |   |   | $ | 36,030 |   |

----