Exhibit 10.50

Capital Lease Funding, Inc.110 Maiden LaneNew York, New York
10005

January 31, 2005

Paul C. Hughes
85 Columbus AvenueStaten Island, NY 10304

Dear Paul:

On behalf of Capital Lease
Funding, Inc. (CapLease), I am pleased to confirm your employment in the
position of Vice President, General Counsel and Corporate Secretary at an
annual base salary of $185,000.

Upon employment, you will be
eligible to receive the benefits Caplease may provide from time to time to
similarly situated employees.  In
addition, you will receive the following:

| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | You will be paid a signing
  bonus of $35,000 at the time of our 2005 bonus award.                                                                                                                                                                                                                                                                                                                                                                       
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  | You will be granted 10,000
  shares of common stock under our Stock Incentive Plan.  The shares will vest in three equal annual
  installments beginning on the first anniversary of your start date with
  CapLease.  You will be entitled to
  vote and receive dividends on these shares immediately upon grant.  You will also be eligible for future
  additional grants of common stock at the discretion of the CapLease
  Compensation Committee.
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  | You will be eligible for
  an annual bonus for each calendar year based on your performance and the
  performance of CapLease during such year in an amount determined by the
  CapLease Compensation Committee.  For
  calendar 2005, your target annual bonus will be $50,000 to $75,000 to be paid
  in 2006 at the time of our annual bonus awards.                                                                                                  

Your employment is at-will
and, therefore, may be terminated by CapLease or you at any time.  However, if you are terminated by CapLease
for any reason other than cause, you will receive an amount equivalent to one
half of your annual base salary and you and your family will continue to be
eligible for health coverage for up to six months after your termination (or,
if eligibility is not permitted under CapLeases health plan, you will be
reimbursed for your cost to obtain such coverage).  In addition, if you are terminated for any reason other than
cause, all of your unvested shares of common stock will automatically become
vested.

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Cause means that you (i)
have been convicted of, or entered a plea of guilty or nolo contendere to, a felony (excluding
any felony relating to the negligent operation of an automobile), (ii) have
intentionally failed to substantially perform (other than by reason of illness
or temporary disability) your reasonably assigned material duties, (iii) have
engaged in willful misconduct in the performance of your duties or (iv) have
materially breached any non-disclosure agreement in effect between you and
CapLease.

Please indicate your
acceptance of these terms by signing below.

Welcome to CapLease.

Sincerely,

|                                           | 
|------------------------------------------ | 
|/s/ Paul H. McDowell                       | 
|                                           | 
|Paul H. McDowell
  Chief Executive Officer
|                                           | 

|          |                    | 
|--------- | ------------------ | 
|Accepted: | /s/ Paul C. Hughes | 
|          |                    | 
|          | Paul C. Hughes     | 

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