| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| Maryland                                                                                    |   | 20-1237795                                    |
|---------------------------------------------------------------------------------------------|--------|-----------------------------------------------|
| (State or Other Jurisdiction ofIncorporation or Organization) |   | (I.R.S. EmployerIdentification No.) |
|                                                                                        |   |                                          |
| 1985 Cedar Bridge Avenue, Suite 1                                  |   |                                          |
| Lakewood, New Jersey                                                              |   | 08701                                         |
| (Address of Principal Executive Offices)                                |   | (Zip Code)                               |

| Large accelerated filer    ̈ |   | Accelerated filer    ̈ |   | Non-accelerated filer    þ |
|--------------------------------------------|--------|--------------------------------------|--------|------------------------------------------------|

----

|         |                                                                                                                                           |    | Page         |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------------|
| PART I  | FINANCIAL INFORMATION                                                                                                                          |         |    |
|         |                                                                                                                                           |         |         |
| Item 1. | Financial Statements                                                                                                                           |    |         |
|         |                                                                                                                                           |         |
|         | Consolidated Balance Sheets as of March 31, 2011 (unaudited) and December 31, 2010                                                             |         | 3            |
|         |                                                                                                                                           |         |
|         | Consolidated Statements of Operations (unaudited) for the Three Months Ended March 31, 2011 and 2010                                           |    | 4            |
|         |                                                                                                                                           |         |         |
|         | Consolidated Statement of Stockholders’ Equity and Comprehensive Income (unaudited) for the Three  Months Ended March 31, 2011 |         | 5            |
|         |                                                                                                                                           |         |         |
|         | Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended March 31, 2011 and 2010                                           |         | 6            |
|         |                                                                                                                                           |         |
|         | Notes to Consolidated Financial Statements                                                                                                     |    | 8            |
|         |                                                                                                                                           |         |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                    |    | 28           |
|         |                                                                                                                                           |         |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk                                                                                     |    | 42           |
|         |                                                                                                                                           |         |
| Item 4. | Controls and Procedures                                                                                                                        |    | 43           |
|         |                                                                                                                                           |         |
| PART II | OTHER INFORMATION                                                                                                                              |    |         |
|         |                                                                                                                                           |         |
| Item 1.      | Legal Proceedings                                                                                                                              |    | 44           |
|         |                                                                                                                                           |         |
| Item 2.      | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                    |    | 45           |
|         |                                                                                                                                           |         |
| Item 3.      | Defaults Upon Senior Securities                                                                                                                |    | 45           |
|         |                                                                                                                                           |         |
| Item 4.      | Removed and Reserved                                                                                                                           |    | 45           |
|         |                                                                                                                                           |         |
| Item 5.      | Other Information                                                                                                                              |    | 45           |
|         |                                                                                                                                           |         |
| Item 6.      | Exhibits                                                                                                                                       |    | 45           |

----

|                                                                                                                                                    |   | As of March 31,2011 |        |   | As of December 31,2010 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|-------------|--------|---------------------------------------|--------|
|                                                                                                                                               |   | (unaudited)                        |        |   |                             |   |
| Assets                                                                                                                                                  |   |                               |        |   |                                  |   |
| Investment property:                                                                                                                                    |   |                               |        |   |                                  |   |
| Land and improvements                                                                                                                                   |   | $                                  | 53,283,288  |   |                                  | $      | 51,480,810 |   |
| Building and improvements                                                                                                                               |   |                               | 212,796,519 |   |                                  |   | 207,227,594 |   |
| Construction in progress                                                                                                                                |   |                               | 531,735     |   |                                  |   | 266,253 |   |
| Gross investment property                                                                                                                               |   |                               | 266,611,542 |   |                                  |   | 258,974,657 |   |
| Less accumulated depreciation                                                                                                                           |   |                               | (18,164,369 | )      |                                  |   | (16,504,956 | ) |
| Net investment property                                                                                                                                 |   |                               | 248,447,173 |   |                                  |   | 242,469,701 |   |
| Investments in unconsolidated affiliated real estate entities                                                                                           |   |                               | 15,396,885  |   |                                  |   | 14,890,250 |   |
| Cash and cash equivalents                                                                                                                               |   |                               | 13,024,191  |   |                                  |   | 24,317,785 |   |
| Marketable securities, available for sale                                                                                                               |   |                               | 210,177,332 |   |                                  |   | 172,378,784 |   |
| Restricted marketable securities, available for sale                                                                                                    |   |                               | 37,083,056  |   |                                  |   | 33,945,909 |   |
| Restricted escrows                                                                                                                                      |   |                               | 13,205,483  |   |                                  |   | 16,028,108 |   |
| Tenant accounts receivable (net of allowance for doubtful accounts of $216,077 and $366,912, respectively)                                              |   |                               | 1,873,241   |   |                                  |   | 1,547,800 |   |
| Intangible assets, net                                                                                                                                  |   |                               | 3,188,683   |   |                                  |   | 1,795,893 |   |
| Deferred leasing costs (net of accumulated amortization of $531,642 and $694,581 respectively)                                                          |   |                               | 1,710,741   |   |                                  |   | 1,412,047 |   |
| Deferred financing costs (net of accumulated amortization of $1,301,465 and $1,183,856 respectively)                                                    |   |                               | 817,617     |   |                                  |   | 935,526 |   |
| Interest receivable from related parties                                                                                                                |   |                               | 1,164,501   |   |                                  |   | 1,949,591 |   |
| Prepaid expenses and other assets                                                                                                                       |   |                               | 6,802,110   |   |                                  |   | 5,786,683 |   |
| Total Assets                                                                                                                                            |   | $                                  | 552,891,013 |   |                                  | $      | 517,458,077 |   |
| Liabilities and Stockholders' Equity                                                                                                                    |   |                               |        |   |                                  |   |   |   |
| Mortgage payable                                                                                                                                        |   | $                                  | 195,170,908 |   |                                  | $      | 195,523,028 |   |
| Margin loan                                                                                                                                             |   |                               | 37,655,304  |   |                                  |   | - |   |
| Accounts payable and accrued expenses                                                                                                                   |   |                               | 5,677,972   |   |                                  |   | 4,684,783 |   |
| Due to sponsor                                                                                                                                          |   |                               | 456,589     |   |                                  |   | 300,787 |   |
| Loans due to affiliates                                                                                                                                 |   |                               | 1,256,908   |   |                                  |   | 1,492,834 |   |
| Tenant allowances and deposits payable                                                                                                                  |   |                               | 2,109,552   |   |                                  |   | 880,370 |   |
| Distributions payable                                                                                                                                   |   |                               | 5,468,202   |   |                                  |   | 5,604,241 |   |
| Deferred rental income                                                                                                                                  |   |                               | 1,208,120   |   |                                  |   | 1,285,160 |   |
| Acquired below market lease intangibles, net                                                                                                            |   |                               | 510,439     |   |                                  |   | 547,912 |   |
| Deferred gain on disposition                                                                                                                            |   |                               | 32,175,788  |   |                                  |   | 32,175,788 |   |
| Total Liabilities                                                                                                                                       |   |                               | 281,689,782 |   |                                  |   | 242,494,903 |   |
| Commitments and contingencies (See Note 15)                                                                                                             |   |                               |        |   |                                  |   |   |   |
| Stockholders' equity:                                                                                                                                   |   |                               |        |   |                                  |   |   |   |
| Company's Stockholders Equity:                                                                                                                          |   |                               |        |   |                                  |   |   |   |
| Preferred shares, $0.01 par value, 10,000,000 shares authorized,  none outstanding                                                            |   |                               | -           |   |                                  |   | - |   |
| Common stock, $.01 par value; 60,000,000 shares authorized, 31,576,542 and 31,613,622 shares issued and outstanding in 2011 and 2010, respectively |   |                               | 315,765     |   |                                  |   | 316,136 |   |
| Additional paid-in-capital                                                                                                                              |   |                               | 281,501,371 |   |                                  |   | 281,733,402 |   |
| Accumulated other comprehensive income                                                                                                                  |   |                               | 10,178,795  |   |                                  |   | 4,839,775 |   |
| Accumulated distributions in excess of net earnings                                                                                                     |   |                               | (51,998,195 | )      |                                  |   | (42,857,834 | ) |
| Total Company's stockholder’s equity                                                                                                              |   |                               | 239,997,736 |   |                                  |   | 244,031,479 |   |
| Noncontrolling interests                                                                                                                                |   |                               | 31,203,495  |   |                                  |   | 30,931,695 |   |
| Total Stockholders' Equity                                                                                                                              |   |                               | 271,201,231 |   |                                  |   | 274,963,174 |   |
| Total Liabilities and Stockholders' Equity                                                                                                              |   | $                                  | 552,891,013 |   |                                  | $      | 517,458,077 |   |

----

|                                                                    |   | Three Months Ended March 31, |       |
|-------------------------------------------------------------------------|--------|--------------------------------------------------|------------|
|                                                                    |   | 2011                                             |       |   | 2010 |   |
|                                                                    |   |                                             |       |   |   |   |
| Revenues:                                                               |   |                                             |       |   |   |   |
| Rental income                                                           |   | $                                                | 7,329,819  |   |   | $ | 6,798,287 |   |
| Tenant recovery income                                                  |   |                                             | 1,213,706  |   |   |   | 1,180,556 |   |
| Total revenues                                                          |   |                                             | 8,543,525  |   |   |   | 7,978,843 |   |
| Expenses:                                                               |   |                                             |       |   |   |   |   |   |
| Property operating expenses                                             |   |                                             | 3,350,370  |   |   |   | 3,078,583 |   |
| Real estate taxes                                                       |   |                                             | 898,790    |   |   |   | 933,075 |   |
| Loss on long-lived assets                                               |   |                                             | -          |   |   |   | (25,896 | ) |
| General and administrative costs                                        |   |                                             | 1,718,301  |   |   |   | 3,014,357 |   |
| Depreciation and amortization                                           |   |                                             | 1,960,868  |   |   |   | 1,425,928 |   |
| Total operating expenses                                                |   |                                             | 7,928,329  |   |   |   | 8,426,047 |   |
| Operating income/(loss)                                                 |   |                                             | 615,196    |   |   |   | (447,204 | ) |
| Other (loss)/income, net                                                |   |                                             | (3,641,782 | ) |   |   | 253,762 |   |
| Interest income                                                         |   |                                             | 3,228,161  |   |   |   | 1,086,627 |   |
| Interest expense                                                        |   |                                             | (2,975,246 | ) |   |   | (2,798,136 | ) |
| Loss on sale of marketable securities                                   |   |                                             | (793,088   | ) |   |   | - |   |
| Loss from investments in unconsolidated affiliated real estate entities |   |                                             | (232,944   | ) |   |   | (1,682,141 | ) |
| Net loss from continuing operations                                     |   |                                             | (3,799,703 | ) |   |   | (3,587,092 | ) |
| Net loss from discontinued operations                                   |   |                                             | -          |   |   |   | (636,217 | ) |
| Net loss                                                                |   |                                             | (3,799,703 | ) |   |   | (4,223,309 | ) |
|                                                                    |   |                                             |       |   |   |   |   |   |
| Less: net loss attributable to noncontrolling interests                 |   |                                             | 136,380    |   |   |   | 73,979 |   |
| Net loss attributable to common shares                                  |   | $                                                | (3,663,323 | ) |   | $ | (4,149,330 | ) |
| Basic and diluted loss per common share:                                |   |                                             |       |   |   |   |   |   |
| Continuing operations                                                   |   | $                                                | (0.12      | ) |   | $ | (0.11 | ) |
| Discontinued operations                                                 |   |                                             | -          |   |   |   | (0.02 | ) |
| Net loss per common share                                               |   | $                                                | (0.12      | ) |   | $ | (0.13 | ) |
| Weighted average number of common shares outstanding, basic and diluted |   |                                             | 31,653,060 |   |   |   | 31,616,298 |   |

----

|                                                 |   | Common Shares         |       |   | Additional Paid-In |   |    | Accumulated Other |   |   | AccumulatedDistributions in |   |   | TotalNoncontrolling             |       |   |      |   |
|-----------------------------------------------------------|--------|----------------------------|------------|--------|-------------------------|--------|---------|-------------------|--------|--------|----------------------------------|--------|--------|---------------------------------|------------|--------|-----------|--------|
|                                                 |   | Number of Shares |       |   | Amount                  |   |    | Capital           |   |   |   Comprehensive Income |   |   | Excessof Net Earnings |       |   | Interests |   |   | Total Equity |   |
|                                                      |   |                       |       |   |                    |   |    |              |   |   |                             |   |   |                            |       |   |      |   |   |   |   |
| BALANCE, December 31, 2010                                |   |                       | 31,613,622 |   |                    | $      | 316,136 |              |   | $      | 281,733,402                      |   |   | $                               | 4,839,775  |   |      | $      | (42,857,834 | ) |   | $ | 30,931,695 |   |   | $ | 274,963,174 |   |
|                                                      |   |                       |       |   |                    |   |    |              |   |   |                             |   |   |                            |       |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income/(loss):                              |   |                       |       |   |                    |   |    |              |   |   |                             |   |   |                            |       |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                  |   |                       | -          |   |                    |   | -       |              |   |   | -                                |   |   |                            | -          |   |      |   | (3,663,323 | ) |   |   | (136,380 | ) |   |   | (3,799,703 | ) |
| Unrealized gains on available for sale securities         |   |                       | -          |   |                    |   | -       |              |   |   | -                                |   |   |                            | 5,156,452  |   |      |   | - |   |   |   | 81,173 |   |   |   | 5,237,625 |   |
| Reclassification adjustment for gain realized in net loss |   |                       | -          |   |                    |   | -       |              |   |   | -                                |   |   |                            | 182,568    |   |      |   | - |   |   |   | 2,874 |   |   |   | 185,442 |   |
| Total comprehensive income, net                           |   |                       |       |   |                    |   |    |              |   |   |                             |   |   |                            |       |   |      |   |   |   |   |   |   |   |   |   | 1,623,364 |   |
|                                                      |   |                       |       |   |                    |   |    |              |   |   |                             |   |   |                            |       |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Distributions declared                                    |   |                       | -          |   |                    |   | -       |              |   |   | -                                |   |   |                            | -          |   |      |   | (5,477,038 | ) |   |   | - |   |   |   | (5,477,038 | ) |
| Distributions paid to noncontrolling interests            |   |                       | -          |   |                    |   | -       |              |   |   | -                                |   |   |                            | -          |   |      |   | - |   |   |   | (1,739,787 | ) |   |   | (1,739,787 | ) |
| Contributions received from noncontrolling interests      |   |                       | -          |   |                    |   | -       |              |   |   | -                                |   |   |                            | -          |   |      |   | - |   |   |   | 2,063,920 |   |   |   | 2,063,920 |   |
| Redemption and cancellation of shares                     |   |                       | (238,989   | )      |                    |   | (2,390  | )                 |   |   | (2,148,513                       | )      |   |                            | -          |   |      |   | - |   |   |   | - |   |   |   | (2,150,903 | ) |
| Shares issued from distribution reinvestment program      |   |                       | 201,909    |   |                    |   | 2,019   |              |   |   | 1,916,482                        |   |   |                            | -          |   |      |   | - |   |   |   | - |   |   |   | 1,918,501 |   |
|                                                      |   |                       |       |   |                    |   |    |              |   |   |                             |   |   |                            |       |   |      |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE, March 31, 2011                                   |   |                       | 31,576,542 |   |                    | $      | 315,765 |              |   | $      | 281,501,371                      |   |   | $                               | 10,178,795 |   |      | $      | (51,998,195 | ) |   | $ | 31,203,495 |   |   | $ | 271,201,231 |   |

----

|                                                                              |   | For the Three Months Ended March 31, |        |
|-----------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|-------------|
|                                                                              |   | 2011                                                               |        |   | 2010 |   |
|                                                                              |   |                                                               |        |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                             |   |                                                               |        |   |   |   |
| Net loss                                                                          |   | $                                                                  | (3,799,703  | ) |   | $ | (4,223,309 | ) |
| Less net loss - discontinued operations                                           |   |                                                               | -           |   |   |   | 636,217 |   |
| Net loss from continuing operations                                               |   |                                                               | (3,799,703  | ) |   |   | (3,587,092 | ) |
|                                                                              |   |                                                               |        |   |   |   |   |   |
| Adjustments to reconcile net loss to net cash provided by operating activities:   |   |                                                               |        |   |   |   |   |   |
| Depreciation and amortization                                                     |   |                                                               | 1,762,420   |   |   |   | 1,323,592 |   |
| Mark to market adjustment on derivative financial instrument                      |   |                                                               | 3,721,011   |   |   |   | - |   |
| Loss on sale of marketable securities                                             |   |                                                               | 793,088     |   |   |   | - |   |
| Amortization of deferred financing costs                                          |   |                                                               | 117,909     |   |   |   | 31,424 |   |
| Amortization of deferred leasing costs                                            |   |                                                               | 198,448     |   |   |   | 102,336 |   |
| Amortization of above and below-market lease intangibles                          |   |                                                               | (18,098     | ) |   |   | (17,717 | ) |
| Loss on long-lived assets                                                         |   |                                                               | -           |   |   |   | (25,896 | ) |
|                                                                              |   |                                                               |        |   |   |   |   |   |
| Equity in loss from investments in unconsolidated affiliated real estate entities |   |                                                               | 232,944     |   |   |   | 1,682,141 |   |
| Provision for bad debts                                                           |   |                                                               | (82,763     | ) |   |   | 22,879 |   |
| Changes in assets and liabilities:                                                |   |                                                               |        |   |   |   |   |   |
| (Increase)/decrease in prepaid expenses and other assets                          |   |                                                               | 171,439     |   |   |   | 499,951 |   |
| Increase in tenant and other accounts receivable                                  |   |                                                               | (180,875    | ) |   |   | (293,700 | ) |
| Increase in tenant allowance and security deposits payable                        |   |                                                               | 57,982      |   |   |   | 25,402 |   |
| (Decrease)/increase in accounts payable and accrued expenses                      |   |                                                               | (692,632    | ) |   |   | 567,575 |   |
| Increase in due to Sponsor                                                        |   |                                                               | 155,802     |   |   |   | - |   |
| (Decrease)/increase in deferred rental income                                     |   |                                                               | (77,040     | ) |   |   | 98,389 |   |
| Net cash provided by operating activities - continuing operations                 |   |                                                               | 2,359,932   |   |   |   | 429,284 |   |
| Net cash provided by operating activities - discontinued operations               |   |                                                               | -           |   |   |   | 808,751 |   |
| Net cash provided by operating activities                                         |   |                                                               | 2,359,932   |   |   |   | 1,238,035 |   |
|                                                                              |   |                                                               |        |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                             |   |                                                               |        |   |   |   |   |   |
| Purchase of investment property, net                                              |   |                                                               | (9,636,301  | ) |   |   | (450,827 | ) |
| Capital expenditures                                                              |   |                                                               | (265,482    | ) |   |   | - |   |
| Purchase of marketable securities                                                 |   |                                                               | (48,845,644 | ) |   |   | - |   |
| Proceeds from sale of marketable securities                                       |   |                                                               | 12,539,929  |   |   |   | - |   |
| Redemption payments from investment in affiliate                                  |   |                                                               | -           |   |   |   | 1,360,342 |   |
| Deposit for purchase of real estate                                               |   |                                                               | (1,377,000  | ) |   |   | - |   |
| Purchase of investment in unconsolidated affiliated real estate entities          |   |                                                               | (437,562    | ) |   |   | (18,202 | ) |
| Funding from/(to) restricted escrows                                              |   |                                                               | 2,822,625   |   |   |   | (743,164 | ) |
|                                                                              |   |                                                               |        |   |   |   |   |   |
| Net cash provided by/(used in) investing activities - continuing operations       |   |                                                               | (45,199,435 | ) |   |   | 148,149 |   |
| Net cash used in investing activities - discontinued operations                   |   |                                                               | -           |   |   |   | (410,633 | ) |
| Net cash used in investing activities                                             |   |                                                               | (45,199,435 | ) |   |   | (262,484 | ) |
|                                                                              |   |                                                               |        |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                             |   |                                                               |        |   |   |   |   |   |
| Mortgage payments                                                                 |   |                                                               | (352,120    | ) |   |   | (982,992 | ) |
| Payment of loan fees and expenses                                                 |   |                                                               | -           |   |   |   | (36,250 | ) |
| Payments from loans due to affiliates                                             |   |                                                               | (235,926    | ) |   |   | 2,493,466 |   |
| Redemption and cancellation of common stock                                       |   |                                                               | (2,150,903  | ) |   |   | (1,570,048 | ) |
| Net proceeds from margin loan                                                     |   |                                                               | 37,655,304  |   |   |   | - |   |
| Distribution received from discontinued operations                                |   |                                                               | -           |   |   |   | 3,472 |   |
| Contributions received from noncontrolling interests                              |   |                                                               | 2,063,920   |   |   |   | - |   |
| Distributions paid to noncontrolling interests                                    |   |                                                               | (1,739,787  | ) |   |   | (1,700,540 | ) |
| Distributions paid to Company's common stockholders                               |   |                                                               | (3,694,575  | ) |   |   | (6,573,573 | ) |
| Net cash provided by (used in) financing activities - continuing operations       |   |                                                               | 31,545,913  |   |   |   | (8,366,465 | ) |
| Net cash used in financing activities - discontinued operations                   |   |                                                               | -           |   |   |   | (3,472 | ) |
| Net cash provided by (used in) financing activities                               |   |                                                               | 31,545,913  |   |   |   | (8,369,937 | ) |
|                                                                              |   |                                                               |        |   |   |   |   |   |
| Net change in cash and cash equivalents                                           |   |                                                               | (11,293,590 | ) |   |   | (7,394,386 | ) |
| Cash and cash equivalents, beginning of period                                    |   |                                                               | 24,317,785  |   |   |   | 17,076,320 |   |
| Cash and cash equivalents, end of period                                          |   | $                                                                  | 13,024,195  |   |   | $ | 9,681,934 |   |

----

|                                                          |   | For the Three Months Ended March 31, |      |
|---------------------------------------------------------------|--------|--------------------------------------------------------------------|-----------|
|                                                          |   | 2011                                                               |      |   | 2010 |   |
| Supplemental disclosure of cash flow information:             |   |                                                               |      |   |   |   |
| Cash paid for interest                                        |   | $                                                                  | 2,857,451 |   |   | $ | 2,891,585 |   |
| Distributions declared                                        |   | $                                                                  | 5,477,038 |   |   | $ | 5,460,385 |   |
| Value of shares issued from distribution reinvestment program |   | $                                                                  | 1,918,501 |   |   | $ | 4,444,482 |   |

----

| 1.  | Organization |
|----------|--------------|

----

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

| 3. | Simon Transaction |
|----|-------------------|

----

----

| 4. | Investments in Unconsolidated Affiliated Real Estate Entities |
|----|---------------------------------------------------------------|

|                                                                |   |                                 |   |              |   |   | As of               |   |
|---------------------------------------------------------------------|--------|--------------------------------------|--------|-------------------|--------|--------|--------------------------|--------|
| Real Estate Entity                                        |   | Date(s) Acquired                |   | OwnershipInterest |   |   | March 31, 2011 |   |   | December 31, 2010 |   |
| Livermore Valley Holdings, LLC ("Livermore")                        |   | March 30, 2009 & August 25, 2009 |   |              | 40.00  | %      |                     | $      | 7,699,277 |   |   | $ | 7,102,275 |   |
| Grand Prairie Holdings, LLC ("Grand Prairie")                       |   | March 30, 2009 & August 25, 2009 |   |              | 40.00  | %      |                     |   | 7,624,624 |   |   |   | 7,482,047 |   |
| 1407 Broadway Mezz II, LLC ("1407 Broadway")                        |   | January 4, 2007                      |   |              | 49.00  | %      |                     |   | 72,984 |   |   |   | 305,928 |   |
| Total Investments in unconsolidated affiliated real estate entities |   |                                 |   |              |   |   |                     | $      | 15,396,885 |   |   | $ | 14,890,250 |   |

|                                                 |   | For the ThreeMonths EndedMarch 31, 2010 |       |
|------------------------------------------------------|--------|------------------------------------------------------------------|------------|
| Revenue                                              |   | $                                                                | 45,402,236 |   |
| Property operating expenses                          |   |                                                             | 19,936,230 |   |
| Depreciation and amortization                        |   |                                                             | 9,305,553  |   |
| Operating loss                                       |   |                                                             | 16,160,453 |   |
| Interest expense and other, net                      |   |                                                             | 14,223,152 |   |
| Net loss                                             |   | $                                                                | 1,937,301  |   |
| Company's share of net loss                          |   | $                                                                | 774,920    |   |
| Additional depreciation and amortization expense (1) |   |                                                             | (3,438,996 | ) |
| Company's loss from investment                       |   | $                                                                | (2,664,076 | ) |

| 1. | Additional depreciation and amortization expense related to the amortization of the difference between the cost of the POAC Interest and the amount of the underlying equity in net assets of the POAC. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                   |   | As of               |       |   | As of                  |   |
|----------------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
|                                   |   | March 31, 2011 |       |   | December 31, 2010 |   |
| Construction in progress               |   | $                        | 19,027,795 |   |                        | $      | 18,216,654 |   |
| Total assets                           |   | $                        | 19,027,795 |   |                        | $      | 18,216,654 |   |
|                                   |   |                     |       |   |                        |   |   |   |
| Other liabilities                      |   | $                        | 1,437,422  |   |                        | $      | 1,248,323 |   |
| Members' capital                       |   |                     | 17,590,373 |   |                        |   | 16,968,331 |   |
| Total liabilities and members' capital |   | $                        | 19,027,795 |   |                        | $      | 18,216,654 |   |

----

|                                   |   | As of               |       |   | As of                  |   |
|----------------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
|                                   |   | March 31, 2011 |       |   | December 31, 2010 |   |
|                                   |   |                     |       |   |                        |   |
| Construction in progress               |   | $                        | 19,275,493 |   |                        | $      | 18,696,577 |   |
| Other assets                           |   |                     | 3,187      |   |                        |   | 3,187 |   |
| Total assets                           |   | $                        | 19,278,680 |   |                        | $      | 18,699,764 |   |
|                                   |   |                     |       |   |                        |   |   |   |
| Other liabilities                      |   | $                        | 756,453    |   |                        | $      | 302,695 |   |
| Members' capital                       |   |                     | 18,522,227 |   |                        |   | 18,397,069 |   |
| Total liabilities and members' capital |   | $                        | 19,278,680 |   |                        | $      | 18,699,764 |   |

|                                                 |   | For the ThreeMonths EndedMarch 31, 2010 |       |
|------------------------------------------------------|--------|------------------------------------------------------------------|------------|
| Revenue                                              |   | $                                                                | 11,895,434 |   |
| Property operating expenses                          |   |                                                             | 3,051,084  |   |
| Depreciation and amortization                        |   |                                                             | 3,041,241  |   |
| Operating income                                     |   |                                                             | 5,803,109  |   |
| Interest expense and other, net                      |   |                                                             | 1,631,904  |   |
| Net income                                           |   | $                                                                | 4,171,205  |   |
| Company's share of net income                        |   | $                                                                | 1,535,003  |   |
| Additional depreciation and amortization expense (1) |   |                                                             | (441,072   | ) |
| Company's income from investment                     |   | $                                                                | 1,093,931  |   |

| 1. | Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the Mill Run Interest and the amount of the underlying equity in net assets of the Mill Run. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                   |   | For the Three Months Ended March31, |       |
|----------------------------------------|--------|--------------------------------------------------------------|------------|
|                                   |   | 2011                                                         |       |   | 2010 |   |
|                                   |   |                                                         |       |   |   |   |
| Total revenue                          |   | $                                                            | 8,935,706  |   |   | $ | 8,861,739 |   |
| Property operating expenses            |   |                                                         | 6,775,888  |   |   |   | 6,478,568 |   |
| Depreciation and amortization          |   |                                                         | 1,592,483  |   |   |   | 1,542,768 |   |
| Operating income                       |   |                                                         | 567,335    |   |   |   | 840,403 |   |
| Interest expense and other, net        |   |                                                         | (1,042,731 | ) |   |   | (1,068,967 | ) |
| Net loss                               |   | $                                                            | (475,396   | ) |   | $ | (228,564 | ) |
| Company's share of net loss (49%) |   | $                                                            | (232,944   | ) |   | $ | (111,996 | ) |

|                                   |   | As of               |        |   | As of                  |   |
|----------------------------------------|--------|--------------------------|-------------|--------|-----------------------------|--------|
|                                   |   | March 31, 2011 |        |   | December 31, 2010 |   |
| Real estate, at cost (net)             |   | $                        | 111,772,281 |   |                        | $      | 112,213,056 |   |
| Intangible assets                      |   |                     | 933,453     |   |                        |   | 1,068,455 |   |
| Cash and restricted cash               |   |                     | 12,403,229  |   |                        |   | 9,788,481 |   |
| Other assets                           |   |                     | 15,465,930  |   |                        |   | 17,371,992 |   |
| Total assets                           |   | $                        | 140,574,893 |   |                        | $      | 140,441,984 |   |
| Mortgage payable                       |   | $                        | 127,250,000 |   |                        | $      | 126,574,844 |   |
| Other liabilities                      |   |                     | 13,317,603  |   |                        |   | 13,384,454 |   |
| Members' capital                       |   |                     | 7,290       |   |                        |   | 482,686 |   |
| Total liabilities and members' capital |   | $                        | 140,574,893 |   |                        | $      | 140,441,984 |   |

----

| 5.  | CP Boston Joint Venture |
|----------|-------------------------|

----

|                         |   | For the Three Months Ended March 31, |       |
|------------------------------|--------|--------------------------------------------------------------------|------------|
|                         |   | 2011                                                               |       |   | 2010 |   |
| Pro forma net revenue        |   | $                                                                  | 11,956,188 |   |   | $ | 11,845,176 |   |
| Pro forma net loss           |   | $                                                                  | (3,967,422 | ) |   | $ | 4,892,593 |   |
| Pro forma earnings per share |   | $                                                                  | (0.13      | ) |   | $ | (0.15 | ) |

| 6. | Option Agreement to Acquire an Interest in Festival Bay Mall |
|----|--------------------------------------------------------------|

| 7. | Marketable Securities and Fair Value Measurements |
|----|---------------------------------------------------|

|                                   |   | As of March 31, 2011 |        |
|----------------------------------------|--------|------------------------------------------|-------------|
|                                   |   | Adjusted Cost                       |        |   | Gross Unrealized Gains |   |   | Gross UnrealizedLosses |   |   | Fair Value |   |
| Equity Securities, primarily REITs     |   | $                                        | 104,342     |   |   | $ | - |   |   | $ | (17,489 | ) |   | $ | 86,853 |   |
| Marco OP Units                         |   |                                     | 29,221,714  |   |   |   | 5,435,816 |   |   |   | - |   |   |   | 34,657,530 |   |
| Corporate Bonds and Preferred Equities |   |                                     | 35,001,132  |   |   |   | 724,716 |   |   |   | (172,629 | ) |   |   | 35,553,219 |   |
| Mortgage Backed Securities             |   |                                     | 142,264,537 |   |   |   | - |   |   |   | (2,384,807 | ) |   |   | 139,879,730 |   |
| Total                                  |   | $                                        | 206,591,725 |   |   | $ | 6,160,532 |   |   | $ | (2,574,925 | ) |   | $ | 210,177,332 |   |

----

|                               |   | As of December 31, 2010 |        |
|------------------------------------|--------|---------------------------------------------|-------------|
|                               |   | Adjusted Cost                          |        |   | Gross Unrealized Gains |   |   | Gross UnrealizedLosses |   |   | Fair Value |   |
| Equity Securities, primarily REITs |   | $                                           | 104,342     |   |   | $ | 122,052 |   |   | $ | - |   |   | $ | 226,394 |   |
| Marco OP Units                     |   |                                        | 29,221,714  |   |   |   | 3,060,586 |   |   |   | - |   |   |   | 32,282,300 |   |
| Mortgage Backed Securities         |   |                                        | 141,753,040 |   |   |   | - |   |   |   | (1,882,950 | ) |   |   | 139,870,090 |   |
| Total                              |   | $                                           | 171,079,096 |   |   | $ | 3,182,638 |   |   | $ | (1,882,950 | ) |   | $ | 172,378,784 |   |

|           |   | As of March 31, 2011 |       |
|----------------|--------|------------------------------------------|------------|
|           |   | Adjusted Cost                       |       |   | Gross UnrealizedGains |   | Gross UnrealizedLosses |   |   | Fair Value |   |
| Marco OP Units |   | $                                        | 30,286,518 |   |   | $ | 6,796,538 |   | $ | - |   |   | $ | 37,083,056 |   |
| Total          |   | $                                        | 30,286,518 |   |   | $ | 6,796,538 |   | $ | - |   |   | $ | 37,083,056 |   |

|           |   | As of December 31, 2010 |       |
|----------------|--------|---------------------------------------------|------------|
|           |   | Adjusted Cost                          |       |   | Gross UnrealizedGains |   | Gross UnrealizedLosses |   |   | Fair Value |   |
| Marco OP Units |   | $                                           | 30,286,518 |   |   | $ | 3,659,391 |   | $ | - |   |   | $ | 33,945,909 |   |
| Total          |   | $                                           | 30,286,518 |   |   | $ | 3,659,391 |   | $ | - |   |   | $ | 33,945,909 |   |

----

|   | • | Level 1 – Quoted prices in active markets for identical assets or liabilities. |
|--------|---------|--------------------------------------------------------------------------------------|

|   | • | Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                     |   | Fair Value Measurement Using |   |   |         |   |
|------------------------------------------|--------|---------------------------------------------|--------|--------|--------------|--------|
| As of March 31, 2011 |   | Level 1                                |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                     |   |                                        |   |   |         |   |   |   |   |   |   |   |
| Cash equivalents (money market accounts) |   | $                                           | 69,538 |   |         | $      | - |   |   | $ | - |   |   | $ | 69,538 |   |
|                                     |   |                                        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Marketable Securities:                   |   |                                        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Equity Securities, primarily REITs       |   | $                                           | 86,853 |   |         | $      | - |   |   | $ | - |   |   | $ | 86,853 |   |
| Marco OP Units                           |   |                                        | -      |   |         |   | 34,657,530 |   |   |   | - |   |   |   | 34,657,530 |   |
| Corporate Bonds and Preferred Equities   |   |                                        | -      |   |         |   | 35,553,219 |   |   |   | - |   |   |   | 35,553,219 |   |
| MBS                                      |   |                                        | -      |   |         |   | 139,879,730 |   |   |   | - |   |   |   | 139,879,730 |   |
| Total                                    |   | $                                           | 86,853 |   |         | $      | 210,090,479 |   |   | $ | - |   |   | $ | 210,177,332 |   |
|                                     |   |                                        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Restricted Marketable Securities:        |   |                                        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Marco OP Units                           |   | $                                           | -      |   |         | $      | 37,083,056 |   |   | $ | - |   |   | $ | 37,083,056 |   |
| Total                                    |   | $                                           | -      |   |         | $      | 37,083,056 |   |   | $ | - |   |   | $ | 37,083,056 |   |
|                                     |   |                                        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Derivative Financial Instruments:        |   |                                        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Marco OP Units Collar                    |   | $                                           | -      |   |         | $      | (633,364 | ) |   | $ | - |   |   | $ | (633,364 | ) |
| Total                                    |   | $                                           | -      |   |         | $      | (633,364 | ) |   | $ | - |   |   | $ | (633,364 | ) |

|                                        |   | Fair Value Measurement Using |      |   |         |   |
|---------------------------------------------|--------|---------------------------------------------|-----------|--------|--------------|--------|
| As of December 31, 2010 |   | Level 1                                |      |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                        |   |                                        |      |   |         |   |   |   |   |   |   |   |
| Cash equivalents (money market accounts)    |   | $                                           | 9,059,126 |   |         | $      | - |   |   | $ | - |   |   | $ | 9,059,126 |   |
|                                        |   |                                        |      |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Marketable Securities:                      |   |                                        |      |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Equity Securities, primarily REITs          |   | $                                           | 226,394   |   |         | $      | - |   |   | $ | - |   |   | $ | 226,394 |   |
| Marco OP Units                              |   |                                        | -         |   |         |   | 32,282,300 |   |   |   | - |   |   |   | 32,282,300 |   |
| Corporate Bonds                             |   |                                        |      |   |         |   |   |   |   |   |   |   |   |   |   |   |
| MBS                                         |   |                                        | -         |   |         |   | 139,870,090 |   |   |   | - |   |   |   | 139,870,090 |   |
| Total                                       |   | $                                           | 226,394   |   |         | $      | 172,152,390 |   |   | $ | - |   |   | $ | 172,378,784 |   |
|                                        |   |                                        |      |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Restricted Marketable Securities:           |   |                                        |      |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Marco OP Units                              |   | $                                           | -         |   |         | $      | 33,945,909 |   |   | $ | - |   |   | $ | 33,945,909 |   |
| Total                                       |   | $                                           | -         |   |         | $      | 33,945,909 |   |   | $ | - |   |   | $ | 33,945,909 |   |
|                                        |   |                                        |      |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Derivative Financial Instruments:           |   |                                        |      |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Marco OP Units Collar                       |   | $                                           | -         |   |         | $      | 3,087,648 |   |   | $ | - |   |   | $ | 3,087,648 |   |
| Total                                       |   | $                                           | -         |   |         | $      | 3,087,648 |   |   | $ | - |   |   | $ | 3,087,648 |   |

----

| 8. | Intangible Assets |
|----|-------------------|

|                                    |   | As of March 31, 2011 |       |   | As of December 31, 2010 |   |
|-----------------------------------------|--------|------------------------------------------|------------|--------|---------------------------------------------|--------|
|                                    |   | Cost                                     |       |   | AccumulatedAmortization                     |   |   | Net |   |   | Cost |   |   | AccumulatedAmortization |   |   | Net |   |
| Assets:                                 |   |                                     |       |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquired in-place lease intangibles     |   | $                                        | 3,778,262  |   |                                        | $      | (1,226,810 | ) |   | $ | 2,551,452 |   |   | $ | 2,320,350 |   |   | $ | (1,212,787 | ) |   | $ | 1,107,563 |   |
|                                    |   |                                     |       |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquired above market lease intangibles |   |                                     | 556,696    |   |                                        |   | (382,827 | ) |   |   | 173,869 |   |   |   | 557,704 |   |   |   | (364,459 | ) |   |   | 193,245 |   |
|                                    |   |                                     |       |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred intangible leasing costs       |   |                                     | 1,160,201  |   |                                        |   | (696,839 | ) |   |   | 463,362 |   |   |   | 1,189,666 |   |   |   | (694,581 | ) |   |   | 495,085 |   |
|                                    |   |                                     |       |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                   |   | $                                        | 5,495,159  |   |                                        | $      | (2,306,476 | ) |   | $ | 3,188,683 |   |   | $ | 4,067,720 |   |   | $ | (2,271,827 | ) |   | $ | 1,795,893 |   |
|                                    |   |                                     |       |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                            |   |                                     |       |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquired below market lease intangibles |   | $                                        | (1,469,260 | )      |                                        | $      | 958,821 |   |   | $ | (510,439 | ) |   | $ | (1,472,588 | ) |   | $ | 924,676 |   |   | $ | (547,912 | ) |

|                                        |   | Remainderof 2011 |     |   | 2012   |   |     | 2013   |   |   | 2014     |   |   | 2015   |    |   | Thereafter |   |    | Total  |   |
|---------------------------------------------|--------|-----------------------|----------|--------|--------|--------|----------|--------|--------|--------|----------|--------|--------|--------|---------|--------|------------|--------|---------|--------|--------|
| Amortization expense/(benefit) of:     |   |                  |     |   |   |   |     |   |   |   |     |   |   |   |    |   |       |   |    |   |   |   |   |   |   |   |   |   |
| Acquired above market lease value           |   | $                     | 48,281   |   |   | $      | 38,210   |   |   | $      | 27,071   |   |   | $      | 22,702  |   |       | $      | 15,199  |   |   | $ | 22,406 |   |   | $ | 173,869 |   |
| Acquired below market lease value      |   |                  | (110,767 | )      |   |   | (110,320 | )      |   |   | (108,214 | )      |   |   | (60,312 | )      |       |   | (60,312 | )      |   |   | (60,514 | ) |   |   | (510,439 | ) |
| Projected future net rental income increase |   | $                     | (62,486  | )      |   | $      | (72,110  | )      |   | $      | (81,143  | )      |   | $      | (37,610 | )      |       | $      | (45,113 | )      |   | $ | (38,108 | ) |   | $ | (336,570 | ) |

|                                    |   | Remainder    |    |   |   |   |    |   |   |   |    |   |   |   |    |       |   |   |    |   |   |
|-----------------------------------------|--------|--------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|------------|--------|--------|---------|--------|--------|
|                                    |   | of 2011 |    |   | 2012   |   |    | 2013   |   |   | 2014    |   |   | 2015   |    | Thereafter |   |   | Total   |   |
| Amortization expense of:      |   |         |    |   |   |   |    |   |   |   |    |   |   |   |    |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Acquired in-place leases value          |   | $            | 279,356 |   |   | $      | 316,743 |   |   | $      | 306,374 |   |   | $      | 289,895 |       |   | $      | 269,919 |   |   | $ | 1,089,165 |   |   | $ | 2,551,452 |   |
| Deferred intangible leasing costs value |   |         | 84,826  |   |   |   | 82,542  |   |   |   | 75,024  |   |   |   | 62,941  |       |   |   | 52,858  |   |   |   | 105,171 |   |   |   | 463,362 |   |
| Projected future amortization expense   |   | $            | 364,182 |   |   | $      | 399,285 |   |   | $      | 381,398 |   |   | $      | 352,836 |       |   | $      | 322,777 |   |   | $ | 1,194,336 |   |   | $ | 3,014,814 |   |

----

| 9. | Assets and Liabilities Disposed of and Discontinued Operations |
|----|----------------------------------------------------------------|

|                                  |   | For the ThreeMonths EndedMarch 31, 2010 |      |
|---------------------------------------|--------|------------------------------------------------------------------|-----------|
| Revenues                              |   | $                                                                | 1,674,999 |   |
| Expenses:                             |   |                                                             |      |   |
| Property operating expense            |   |                                                             | 885,601   |   |
| Real estate taxes                     |   |                                                             | 187,145   |   |
| Loss on long-lived assets             |   |                                                             | 300,000   |   |
| General and administrative costs      |   |                                                             | 36,377    |   |
| Depreciation and amortization         |   |                                                             | 189,041   |   |
| Total operating expense               |   |                                                             | 1,598,164 |   |
| Operating income                      |   |                                                             | 76,835    |   |
| Other income/(loss)                   |   |                                                             | 8,754     |   |
| Interest income                       |   |                                                             | 676       |   |
| Interest expense                      |   |                                                             | (722,482  | ) |
| Net loss from discontinued operations |   | $                                                                | (636,217  | ) |

----

| 10. | Mortgages Payable |
|-----|-------------------|

|                                               |                     |                              |   |   | Weighted AvgInterest Rateas of |   |                |          |                            |   |        | Balance as of  |   |
|---------------------------------------------------------|--------------------------|-----------------------------------|--------|--------|-----------------------------------------------|--------|---------------------|---------------|---------------------------------|--------|-------------|--------------------------|--------|
| Property                                                |                     | Interest Rate                |   |   | March 31,2011                            |   | Maturity Date  |          | Amount Due atMaturity |   |        | March 31, 2011 |   |   | December 31,2010 |   |
|                                                    |                     |                              |   |   |                                          |   |                |          |                            |   |        |                     |   |   |   |   |
| Southeastern Michigan Multi-Family Properties           |      | 5.96%                             |   |   |                                          | 5.96   | %    | July 2016     |                            | $      | 38,138,605  |                     |   | $ | 40,725,000 |   |   | $ | 40,725,000 |   |
|                                                    |                     |                              |   |   |                                          |   |                |          |                            |   |        |                     |   |   |   |   |   |   |   |   |
| Oakview Plaza                                           |                     | 5.49%                             |   |   |                                          | 5.49   | %                   | January 2017  |                            |   | 25,583,137  |                     |   |   | 27,500,000 |   |   |   | 27,500,000 |   |
|                                                    |                     |                              |   |   |                                          |   |                |          |                            |   |        |                     |   |   |   |   |   |   |   |   |
| Gulf Coast Industrial Portfolio                         |                     | 5.83%                             |   |   |                                          | 5.83   | %                   | February 2017 |                            |   | 49,556,985  |                     |   |   | 53,025,000 |   |   |   | 53,025,000 |   |
|                                                    |                     |                              |   |   |                                          |   |                |          |                            |   |        |                     |   |   |   |   |   |   |   |   |
| Houston Extended Stay Hotels (Two Individual Loans)     |                     | LIBOR + 4.50%                     |   |   |                                          | 4.75   | %                   | June 2011     |                            |   | 8,671,250   |                     |   |   | 8,758,750 |   |   |   | 8,890,000 |   |
|                                                    |                     |                              |   |   |                                          |   |                |          |                            |   |        |                     |   |   |   |   |   |   |   |   |
| Brazos Crossing Power Center                            |                     | Greater of LIBOR + 3.50% or 6.75% |   |   |                                          | 6.75   | %                   | December 2011 |                            |   | 6,385,788   |                     |   |   | 6,463,683 |   |   |   | 6,492,894 |   |
|                                                    |                     |                              |   |   |                                          |   |                |          |                            |   |        |                     |   |   |   |   |   |   |   |   |
| Camden Multi-Family Properties - (Two Individual Loans) |                     | 5.44%                             |   |   |                                          | 5.44   | %                   | December 2014 |                            |   | 26,334,204  |                     |   |   | 27,756,664 |   |   |   | 27,849,500 |   |
|                                                    |                     |                              |   |   |                                          |   |                |          |                            |   |        |                     |   |   |   |   |   |   |   |   |
| St. Augustine Outlet Center                             |                     | 6.09%                             |   |   |                                          | 6.09   | %                   | April 2016    |                            |   | 23,747,523  |                     |   |   | 25,941,811 |   |   |   | 26,040,634 |   |
|                                                    |                     |                              |   |   |                                          |   |                |          |                            |   |        |                     |   |   |   |   |   |   |   |   |
| Everson Pointe                                          |                     | Greater of Prime + 1.00% or 5.85% |   |   |                                          | 5.85   | %                   | December 2015 |                            |   | 4,418,281   |                     |   |   | 5,000,000 |   |   |   | 5,000,000 |   |
|                                                    |                     |                              |   |   |                                          |   |                |          |                            |   |        |                     |   |   |   |   |   |   |   |   |
| Total mortages payable                                  |                     |                              |   |   |                                          | 5.75   | %                   |          |                            | $      | 182,835,773 |                     |   | $ | 195,170,908 |   |   | $ | 195,523,028 |   |

| Remainder of2011 |       | 2012   |   |      | 2013   |   |   | 2014      |   |   | 2015 |       |   | Thereafter |   |      | Total  |   |
|-----------------------|------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|------|------------|--------|------------|--------|-----------|--------|--------|
| $                     | 15,956,892 |   | $      | 2,239,291 |   |   | $      | 2,518,608 |   |   | $    | 28,957,980 |   |       | $      | 6,773,098 |   |   | $ | 138,725,039 |   |   | $ | 195,170,908 |   |

----

| 11. | Net Income/(Loss) Per Share |
|-----|-----------------------------|

| 12. | Related Party Transactions |
|-----|----------------------------|

|                                       |   | Three Months Ended March 31, |      |
|--------------------------------------------|--------|--------------------------------------------------|-----------|
|                                       |   | 2011                                             |      |   | 2010 |   |
|                                       |   |                                             |      |
| Acquisition fees                           |   | $                                                | 221,183   |   |   | $ | - |   |
| Asset management fees                      |   |                                             | 456,589   |   |   |   | 1,452,809 |   |
| Acquisition expenses reimbursed to advisor |   |                                             | 242,211   |   |   |   | - |   |
| Property management fees                   |   |                                             | 326,635   |   |   |   | 434,476 |   |
| Development fees and leasing commissions   |   |                                             | 385,930   |   |   |   | 84,821 |   |
| Total                                      |   | $                                                | 1,632,548 |   |   | $ | 1,972,106 |   |

----

|             |   | As of March 31, 2011 |   |   | As of December 31, 2010 |   |
|------------------|--------|------------------------------------------|--------|--------|---------------------------------------------|--------|
|             |   | Carrying Amount                     |   |   | Estimated Fair Value              |   |   | Carrying Amount |   |   | Estimated Fair Value |   |
| Mortgage payable |   | $                                        | 195.2  |   |                                        | $      | 196.6 |   |   | $ | 195.5 |   |   | $ | 197.6 |   |

|                             |   | For the Three Months Ended March 31, 2011 |        |
|----------------------------------|--------|------------------------------------------------------------------------------|-------------|
|                             |   | Retail                                                                       |        |   | Multi-Family |   |   | Industrial |   |   | Hospitality |   |   | Unallocated |   |   | Total |   |
|                             |   |                                                                         |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues                   |   | $                                                                            | 2,767,086   |   |   | $ | 2,980,561 |   |   | $ | 1,721,066 |   |   | $ | 1,074,812 |   |   | $ | - |   |   | $ | 8,543,525 |   |
|                             |   |                                                                         |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property operating expenses      |   |                                                                         | 702,039     |   |   |   | 1,366,084 |   |   |   | 476,784 |   |   |   | 805,463 |   |   |   | - |   |   |   | 3,350,370 |   |
| Real estate taxes                |   |                                                                         | 283,395     |   |   |   | 320,309 |   |   |   | 220,938 |   |   |   | 74,148 |   |   |   | - |   |   |   | 898,790 |   |
| General and administrative costs |   |                                                                         | (74,539     | ) |   |   | 23,690 |   |   |   | (9,237 | ) |   |   | 504,968 |   |   |   | 1,273,419 |   |   |   | 1,718,301 |   |
| Net operating income/(loss)      |   |                                                                         | 1,856,191   |   |   |   | 1,270,478 |   |   |   | 1,032,581 |   |   |   | (309,767 | ) |   |   | (1,273,419 | ) |   |   | 2,576,064 |   |
|                             |   |                                                                         |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization    |   |                                                                         | 924,422     |   |   |   | 391,002 |   |   |   | 516,964 |   |   |   | 128,480 |   |   |   | - |   |   |   | 1,960,868 |   |
| Operating income/(loss)          |   | $                                                                            | 931,769     |   |   | $ | 879,476 |   |   | $ | 515,617 |   |   | $ | (438,247 | ) |   | $ | (1,273,419 | ) |   | $ | 615,196 |   |
|                             |   |                                                                         |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of March 31, 2011:            |   |                                                                         |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                     |   | $                                                                            | 108,781,569 |   |   | $ | 62,900,830 |   |   | $ | 70,968,882 |   |   | $ | 29,411,805 |   |   | $ | 280,827,927 |   |   | $ | 552,891,013 |   |

----

|                             |   | For the Three Months Ended March 31, 2010 |        |
|----------------------------------|--------|-------------------------------------------|-------------|
|                             |   | Retail                                    |        |   | Multi-Family |   |   | Industrial |   |   | Hospitality |   |   | Unallocated |   |   | Total |   |
|                             |   |                                      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues                   |   | $                                         | 2,750,900   |   |   | $ | 2,888,565 |   |   | $ | 1,761,906 |   |   | $ | 577,472 |   |   | $ | - |   |   | $ | 7,978,843 |   |
|                             |   |                                      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property operating expenses      |   |                                      | 795,935     |   |   |   | 1,353,042 |   |   |   | 495,575 |   |   |   | 433,925 |   |   |   | 106 |   |   |   | 3,078,583 |   |
| Real estate taxes                |   |                                      | 301,487     |   |   |   | 323,967 |   |   |   | 233,526 |   |   |   | 74,095 |   |   |   | - |   |   |   | 933,075 |   |
| General and administrative costs |   |                                      | 5,016       |   |   |   | 9,274 |   |   |   | 6,172 |   |   |   | 3,982 |   |   |   | 2,989,913 |   |   |   | 3,014,357 |   |
|                             |   |                                      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net operating income/(loss)      |   |                                      | 1,648,462   |   |   |   | 1,202,282 |   |   |   | 1,026,633 |   |   |   | 65,470 |   |   |   | (2,990,019 | ) |   |   | 952,828 |   |
|                             |   |                                      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization    |   |                                      | 321,210     |   |   |   | 371,828 |   |   |   | 608,085 |   |   |   | 124,805 |   |   |   | - |   |   |   | 1,425,928 |   |
| Gain on long-lived assets        |   |                                      | -           |   |   |   | - |   |   |   | (25,896 | ) |   |   | - |   |   |   | - |   |   |   | (25,896 | ) |
| Operating income/(loss)          |   | $                                         | 1,327,252   |   |   | $ | 830,454 |   |   | $ | 444,444 |   |   | $ | (59,335 | ) |   | $ | (2,990,019 | ) |   | $ | (447,204 | ) |
|                             |   |                                      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2010:         |   |                                      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                     |   | $                                         | 108,964,153 |   |   | $ | 63,099,867 |   |   | $ | 70,724,680 |   |   | $ | 17,839,261 |   |   | $ | 256,830,116 |   |   | $ | 517,458,077 |   |

----

----

----

----

----

----

|                                                                     |                           |              | Year Built              |   | Leasable Square |      |   | Percentage Occupiedas of |   |         | Annualized Revenues based onrents at |   |
|-------------------------------------------------------------------------------|--------------------------------|-------------------|------------------------------|--------|----------------------|-----------|--------|------------------------------------|--------|--------------|----------------------------------------------------------|--------|
|                                                                          | Location                       |              |  (Range of years built) |   | Feet                 |      |   | March 31, 2011                     |   |         | March 31, 2011                                           |   |
| Consolidated Real Estate Properties:                                          |                           |              |                         |   |                 |      |   |                               |   |         |                                                     |   |
|                                                                          |                           |              |                         |   |                 |      |   |                               |   |         |                                                     |   |
| Retail                                                                        |                           |              |                         |   |                 |      |   |                               |   |         |                                                     |   |
| St. Augustine Outlet Center                                                   | St. Augustine, FL              |              | 1998                         |   |                 | 337,719   |   |                               |   | 77.2         | %                                                        |   | $ | 4.0 million |   |
| Oakview Plaza                                                                 | Omaha, NE                      |              | 1999 - 2005                  |   |                 | 177,103   |   |                               |   | 88.8         | %                                                        |   | $ | 1.9 million |   |
| Brazos Crossing Power Center                                                  | Lake Jackson, TX               |              | 2007-2008                    |   |                 | 61,213    |   |                               |   | 100.0        | %                                                        |   | $ | 0.8 million |   |
| Everson Pointe                                                                | Snellvile, GA                  |              | 1999                         |   |                 | 81,428    |   |                               |   | 87.3         | %                                                        |   | $ | 0.8 million |   |
|                                                                          |                           |              | Retail Total                 |   |                 | 657,463   |   |                               |   | 83.7         | %                                                        |   |   |   |   |
|                                                                          |                           |              |                         |   |                 |      |   |                               |   |         |                                                     |   |   |
| Industrial                                                                    |                           |              |                         |   |                 |      |   |                               |   |         |                                                     |   |   |   |   |
| 7 Flex/Office/Industrial Buildings within the Gulf Coast Industrial Portfolio | New Orleans, LA                |              | 1980-2000                    |   |                 | 339,700   |   |                               |   | 74.3         | %                                                        |   | $ | 2.7 million |   |
| 4 Flex/Industrial Buildings within the Gulf Coast Industrial Portfolio        | San Antonio, TX                |              | 1982-1986                    |   |                 | 484,255   |   |                               |   | 62.7         | %                                                        |   | $ | 1.5 million |   |
| 3 Flex/Industrial Buildings from the Gulf Coast Industrial Portfolio          | Baton Rouge, LA                |              | 1985-1987                    |   |                 | 182,792   |   |                               |   | 93.9         | %                                                        |   | $ | 1.1 million |   |
| Sarasota                                                                      | Sarasota, FL                   |              | 1992                         |   |                 | 276,987   |   |                               |   | 84.2         | %                                                        |   | $ | 0.2 million |   |
|                                                                          |                           |              | Industrial Total             |   |                 | 1,283,734 |   |                               |   | 74.8         | %                                                        |   |   |   |   |
|                                                                          |                           |              |                         |   |                 |      |   |                               |   |         |                                                     |   |   |
| Multi-Family Residential                                                      |                           |              |                         |   |                 |      |   |                               |   |         |                                                     |   |   |   |   |
| Southeastern Michigan Multi-Family Properties (Four Apartment Buildings)      | Southeast  MI        |              | 1965-1972                    |   |                 | 1,017     |   |                               |   | 89.6         | %                                                        |   | $ | 7.0 million |   |
| Camden Multi-Family Properties (Two Apartment Communities)                    | Greensboro & Charlotte, NC |              | 1984-1985                    |   |                 | 568       |   |                               |   | 96.8         | %                                                        |   | $ | 3.5 million |   |
|                                                                          |                           |              |                         |   |                 |      |   |                               |   |    |                                                     |   |   |   |   |
|                                                                          |                           | Residential Total |                         |   | 1,585                |      |   |                               | 92.2   | %            |                                                     |   |   |   |

|                                                          |             |   |            |   | Year to Date |    |   | Percentage Occupiedfor the Period Ended |   |   | Revenue per Available Roomthrough |   |
|--------------------------------------------------------------------|------------------|--------|-----------------|--------|------------------------|---------|--------|-------------------------------------------------------------|--------|--------|--------------------------------------------------|--------|
|                                                               | Location         |   | Year Built |   | Available Rooms   |    |   | March 31, 2011                                    |   |   | March 31, 2011                         |   |
| Consolidated Hotel Hospitality Properties:          |             |   |            |   |                   |    |   |                                                        |   |   |                                             |   |
| Houston Extended Stay Hotels (Two Hotels) | Houston, TX |   | 1998            |   |                   | 226,190 |   |                                                        |   | 72.3   | %                                                |   | $ | 28.05 |   |
| Crowne Plaza Hotel (1)                                             | Danvers, MA      |   | 1976            |   |                   | 1,526   |   |                                                        |   | 37.7   | %                                                |   | $ | 34.03 |   |

|                                                                 |                   |   |            |   | Leasable Square |      |   | Percentage Occupiedas of |   |   | Annualized Revenues basedon rents at |   |
|----------------------------------------------------------------------|------------------------|--------|-----------------|--------|----------------------|-----------|--------|------------------------------------|--------|--------|----------------------------------------------------------|--------|
|                                                                 | Location               |   | Year Built |   | Feet                 |      |   | March 31, 2011           |   |   | March 31, 2011                                 |   |
| Unconsolidated Affiliated Real EstateEntities-Office: |                   |   |            |   |                 |      |   |                               |   |   |                                                     |   |
| 1407 Broadway (2)                                          | New York, NY |   | 1952            |   |                 | 1,114,695 |   |                               |   | 78.6   | %                                                        |   | $ | 31.2 million |   |

----

----

|                         |   | For the Three Months Ended March 31, |      |   | Variance Increase/(Decrease) |   |
|-----------------------------------|--------|--------------------------------------------------------------------|-----------|--------|-----------------------------------|--------|
|                         |   | 2011                                                               |      |   | 2010                              |   |   | $ |   |   |   | % |   |
|                              |   | (unaudited)                                                        |      |   |                              |   |   |   |   |   |
| Revenues                          |   | $                                                                  | 2,767,086 |   |                              | $      | 2,750,900 |   |   | $ | 16,186 |   |   |   | 0.6 | % |
| NOI                               |   |                                                               | 1,856,191 |   |                              |   | 1,648,462 |   |   |   | 207,729 |   |   |   | 12.6 | % |
| Average Occupancy Rate for period |   |                                                               | 82.8      | %      |                              |   | 89.7 | % |   |   |   |   |   |   | -7.7 | % |

----

|                              |   | For the Three Months Ended March 31, |      |   | Variance Increase/(Decrease) |   |
|-----------------------------------|--------|--------------------------------------------------------------------|-----------|--------|-----------------------------------|--------|
|                              |   | 2011                                                               |      |   | 2010                              |   |   | $ |   |   | % |   |
|                              |   | (unaudited)                                                        |      |   |                              |   |   |   |   |
| Revenues                          |   | $                                                                  | 2,980,561 |   |                              | $      | 2,888,565 |   |   | $ | 91,996 |   |   |   | 3.2 | % |
| NOI                               |   |                                                               | 1,270,478 |   |                              |   | 1,202,282 |   |   |   | 68,196 |   |   |   | 5.7 | % |
| Average Occupancy Rate for period |   |                                                               | 93.5      | %      |                              |   | 89.2 | % |   |   |   |   |   |   | 4.8 | % |

|                              |   | For the Three Months Ended March 31, |      |   | Variance Increase/(Decrease) |   |
|-----------------------------------|--------|--------------------------------------------------------------------|-----------|--------|-----------------------------------|--------|
|                              |   | 2011                                                               |      |   | 2010                              |   |   | $ |   |   | % |   |
|                              |   | (unaudited)                                                        |      |   |                              |   |   |   |   |
| Revenues                          |   | $                                                                  | 1,721,066 |   |                              | $      | 1,761,906 |   |   | $ | (40,840 | ) |   |   | -2.3 | % |
| NOI                               |   |                                                               | 1,032,581 |   |                              |   | 1,026,633 |   |   |   | 5,948 |   |   |   | 0.6 | % |
| Average Occupancy Rate for period |   |                                                               | 70.5      | %      |                              |   | 62.8 | % |   |   |   |   |   |   | 12.3 | % |

|                              |   | For the Three Months Ended March 31, |      |   | Variance Increase/(Decrease) |   |
|-----------------------------------|--------|--------------------------------------------------------------------|-----------|--------|-----------------------------------|--------|
|                              |   | 2011                                                               |      |   | 2010                              |   |   | $ |   |   | % |   |
|                              |   | (unaudited)                                                        |      |   |                              |   |   |   |   |
| Revenues                          |   | $                                                                  | 1,074,812 |   |                              | $      | 577,472 |   |   | $ | 497,340 |   |   |   | 86.1 | % |
| NOI                               |   |                                                               | (307,767  | )      |                              |   | 65,470 |   |   |   | (373,237 | ) |   |   | -570.1 | % |
| Average Occupancy Rate for period |   |                                                               | 67.7      | %      |                              |   | 59.8 | % |   |   |   |   |   |   | 13.2 | % |
| Rev PAR                           |   | $                                                                  | 30.04     |   |                              | $      | 21.72 |   |   | $ | 8.32 |   |   |   | 38.3 | % |

----

|                                       |   | Three Months Ended March 31, |      |
|--------------------------------------------|--------|--------------------------------------------------|-----------|
|                                       |   | 2011                                             |      |   | 2010 |   |
|                                       |   | (unaudited)                                      |      |
| Acquisition fees                           |   | $                                                | 221,183   |   |   | $ | - |   |
| Asset management fees                      |   |                                             | 456,589   |   |   |   | 1,452,809 |   |
| Acquisition expenses reimbursed to Advisor |   |                                             | 242,211   |   |   |   | - |   |
| Property management fees                   |   |                                             | 326,635   |   |   |   | 434,476 |   |
| Development fees and leasing commissions   |   |                                             | 385,930   |   |   |   | 84,821 |   |
| Total                                      |   | $                                                | 1,632,548 |   |   | $ | 1,972,106 |   |

----

|                                                  |   | For the Three Months Ended March 31, |        |
|-------------------------------------------------------|--------|--------------------------------------------------------------------|-------------|
|                                                  |   | 2011                                                               |        |   | 2010 |   |
|                                                  |   | (unaudited)                                                        |        |
| Cash flows provided by operating activities           |   | $                                                                  | 3,638,378   |   |   | $ | 1,238,035 |   |
| Cash flows used in investing activities               |   |                                                               | (46,477,885 | ) |   |   | (262,484 | ) |
| Cash flows provided by (used in) financing activities |   |                                                               | 31,545,913  |   |   |   | (8,369,937 | ) |
| Net change in cash and cash equivalents               |   |                                                               | (11,293,594 | ) |   |   | (7,394,386 | ) |
|                                                  |   |                                                               |        |   |   |   |   |   |
| Cash and cash equivalents, beginning of the period    |   |                                                               | 24,317,785  |   |   |   | 17,076,320 |   |
| Cash and cash equivalents, end of the period          |   | $                                                                  | 13,024,191  |   |   | $ | 9,681,934 |   |

|   | · | cash inflows of approximately $2.9 million from our net loss after adjustment for non-cash items and discontinued operations; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | cash outflows of approximately $0.5 million associated with the net changes in operating assets and liabilities. |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | purchases of real estate investments of approximately $9.6 million; |
|--------|--------|---------------------------------------------------------------------|

|   | · | proceeds from the sale of marketable securities of $12.5 million and the purchase of $48.8 million of marketable securities; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | capital expenditures of $0.3 million related to our properties; and |
|--------|--------|---------------------------------------------------------------------|

|   | · | additional funding of restricted escrows of $2.8 million. |
|--------|--------|-----------------------------------------------------------|

|   | · | distributions to our common shareholders of $3.7 million and common share redemptions of $2.2 million made pursuant to our share redemption program; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | distributions to our noncontrolling interests of $1.7 million and contributions from out noncontrolling interests of $2.1 million; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | · | debt principal payments $0.4 million; and |
|--------|--------|-------------------------------------------|

|   | · | $37.7 million of proceeds received from borrowing under a margin loan with a financial institution. |
|--------|--------|-----------------------------------------------------------------------------------------------------|

| Contractual Obligations  |   | Remainder of 2011 |       |   | 2012   |   |       | 2013   |   |   | 2014       |   |   | 2015   |       |   | Thereafter |   |       | Total  |   |
|-------------------------------|--------|-----------------------------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|------------|--------|------------|--------|--------|
|                          |   |                        |       |   |   |   |       |   |   |   |       |   |   |   |       |   |       |   |       |   |   |
| Mortgage Payable 1            |   | $                           | 15,956,892 |   |   | $      | 2,239,291  |   |   | $      | 2,518,608  |   |   | $      | 28,957,980 |   |       | $      | 6,773,098  |   |   | $ | 138,725,039 |   |   | $ | 195,170,908 |   |
| Interest Payments2            |   |                        | 8,327,308  |   |   |   | 10,483,921 |   |   |   | 10,312,829 |   |   |   | 10,161,153 |   |       |   | 8,561,669  |   |   |   | 6,867,949 |   |   |   | 54,714,829 |   |
|                          |   |                        |       |   |   |   |       |   |   |   |       |   |   |   |       |   |       |   |       |   |   |   |   |   |   |   |   |   |
| Total Contractual Obligations |   | $                           | 24,284,200 |   |   | $      | 12,723,212 |   |   | $      | 12,831,437 |   |   | $      | 39,119,133 |   |       | $      | 15,334,767 |   |   | $ | 145,592,988 |   |   | $ | 249,885,737 |   |

| 1) | These amounts represent future interest payments related to mortgage payable obligations based on the fixed and variable interest rates specified in the associated debt agreements.  All variable rate debt agreements are based on the one-month rate.  For purposes of calculating future interest amounts on variable interest rate debt the one-month rate as of March 31, 2011 was used. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | Other non-cash charges not related to the operating performance or our properties. Straight-line rental revenue, the net amortization of above market and below market leases, other than temporary impairment of marketable securities, gain/loss on sale of marketable securities, impairment charges on long-lived assets, gain on debt extinguishment, unrealized gains/(losses) from mark to market adjustments on derivatives and other non-cash charges, if any, may be excluded from MFFO if we believe these charges are not useful in the evaluation of our operating performance. Although these charges will be included in the calculation, and result in an increase or decrease, of net income (loss), these charges are adjustments excluded from MFFO because we believe that MFFO provides useful supplemental information by focusing on the changes in our operating fundamentals rather than on events not related to our core operations. However, the exclusion of impairments limits the usefulness of MFFO as a historical operating performance measure since an impairment indicates that the property’s operating performance has been permanently affected. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Organizational and offering expenses and acquisition expenses payable to our Advisor. Although these amounts reduce net income, we fund such costs with proceeds from our offering and acquisition-related indebtedness and do not consider these expenses in the evaluation of our operating performance and determining MFFO. Our calculation of MFFO set forth in the table below reflects such exclusions. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                       |   | For the Three  |       |   | For the Three  |   |
|--------------------------------------------------------------------------------------------|--------|----------------|------------|--------|----------------|--------|
|                                                                                       |   | Months Ended   |       |   | Months Ended   |   |
|                                                                                       |   | March 31, 2011 |       |   | March 31, 2010 |   |
|                                                                                       |   |           |       |   |           |   |
| Net loss                                                                                   |   | $              | (3,799,703 | )      |           | $      | (4,223,309 | ) |
| FFO adjustments:                                                                           |   |           |       |   |           |   |   |   |
| Depreciation and amortization:                                                             |   |           |       |   |           |   |   |   |
| Depreciation and amortization of real estate assets                                        |   |           | 1,960,868  |   |           |   | 1,425,928 |   |
| Equity in depreciation and amortization for unconsolidated affiliated real estate entities |   |           | 780,317    |   |           |   | 9,477,422 |   |
| Loss on disposal of investment property                                                    |   |           | -          |   |           |   | (25,896 | ) |
| Loss on disposal of unconsolidated affiliated real estate entities                         |   |           | -          |   |           |   | (4,306 | ) |
| Discontinued operations:                                                                   |   |           |       |   |           |   |   |   |
| Depreciation and amortization of real estate assets                                        |   |           | -          |   |           |   | 189,041 |   |
| Loss on disposal of investment property                                                    |   |           | -          |   |           |   | 300,000 |   |
| FFO                                                                                        |   |           | (1,058,518 | )      |           |   | 7,138,880 |   |
| MFFO adjustments:                                                                          |   |           |       |   |           |   |   |   |
| Noncash adjustments:                                                                       |   |           |       |   |           |   |   |   |
| Amortization of above and below market leases(1)                                           |   |           | (80,921    | )      |           |   | (73,417 | ) |
| Straight-line rent adjustment(2)                                                           |   |           | (259,981   | )      |           |   | (873,963 | ) |
| Mark to market adjustment on derivative financial instruments                              |   |           | 3,721,011  |   |           |   | - |   |
| Loss on sale of marketable securities                                                      |   |           | 793,088    |   |           |   | - |   |
| Total non cash adjustments                                                                 |   |           | 4,173,197  |   |           |   | (947,380 | ) |
| Other adjustments:                                                                         |   |           |       |   |           |   |   |   |
| Acquisition/divestiture costs expensed                                                     |   |           | 733,017    |   |           |   | 767,955 |   |
| MFFO                                                                                       |   | $              | 3,847,696  |   |           | $      | 6,959,455 |   |
|                                                                                       |   |           |       |   |           |   |   |   |
| Net loss                                                                                   |   | $              | (3,799,703 | )      |           | $      | (4,223,309 | ) |
| Less: loss attributable to noncontrolling interests                                        |   |           | 136,380    |   |           |   | 73,979 |   |
| Net loss applicable to company's common shares                                             |   | $              | (3,663,323 | )      |           | $      | (4,149,330 | ) |
| Net loss per common share, basic and diluted                                               |   | $              | (0.12      | )      |           | $      | (0.13 | ) |
|                                                                                       |   |           |       |   |           |   |   |   |
| FFO                                                                                        |   | $              | (1,058,518 | )      |           | $      | 7,138,880 |   |
| Less: FFO attributable to noncontrolling interests                                         |   |           | 93,897     |   |           |   | (111,202 | ) |
| FFO attributable to company's common shares                                                |   | $              | (964,621   | )      |           | $      | 7,027,678 |   |
| FFO per common share, basic and diluted                                                    |   | $              | (0.03      | )      |           | $      | 0.22 |   |
|                                                                                       |   |           |       |   |           |   |   |   |
| MFFO                                                                                       |   | $              | 3,847,696  |   |           | $      | 6,959,455 |   |
| Less: MFFO attributable to noncontrolling interests                                        |   |           | (92,520    | )      |           |   | (108,407 | ) |
| MFFO attributable to company's common shares                                               |   | $              | 3,755,176  |   |           | $      | 6,851,048 |   |
|                                                                                       |   |           |       |   |           |   |   |   |
| Weighted average number of common shares outstanding, basic and diluted                    |   |           | 31,653,060 |   |           |   | 31,616,298 |   |

----

| 1) | Amortization of above and below market leases includes amortization for wholly owned subsidiaries in continuing operations as well as amortization from unconsolidated entities. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2) | Straight-line rent adjustment includes straight-line rent for wholly owned subsidiaries in continuing operations as well as straight-line rent from unconsolidated entities. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|          |   | From inception through |       |
|---------------|--------|----------------------------------|------------|
|          |   | March 31, 2011         |       |
|          |   |                             |       |
| FFO           |   | $                                | (3,619,415 | ) |
| Distributions |   | $                                | 68,423,146 |   |

|                                                                             |   | Quarter ended       |      |   | Quarter ended       |   |
|----------------------------------------------------------------------------------|--------|--------------------------|-----------|--------|--------------------------|--------|
|                                                                             |   | March 31, 2011 |      |   | March 31, 2010 |   |
|                                                                             |   |                     |      |   |                     |   |
| Distribution period:                                                             |   |                     | Q1 2011   |   |                     |   | Q1 2010 |   |
|                                                                             |   |                     |      |   |                     |   |   |   |
| Date(s) distribution declared                                                    |   | March 4, 2011            |      |   | March 2, 2010            |   |
|                                                                             |   |                     |      |   |                     |   |   |   |
| Date(s) distribution paid                                                        |   | April 15, 2011           |      |   | March 30, 2010           |   |
|                                                                             |   |                     |      |   |                     |   |   |   |
| Distributions Paid                                                               |   | $                        | 3,558,537 |   |                     | $      | 3,492,080 |   |
| Distributions Reinvested                                                         |   |                     | 1,918,501 |   |                     |   | 2,131,194 |   |
| Total Distributions                                                              |   | $                        | 5,477,038 |   |                     | $      | 5,623,274 |   |
|                                                                             |   |                     |      |   |                     |   |   |   |
| Source of distributions                                                          |   |                     |      |   |                     |   |   |   |
| Cash flows provided by operations                                                |   | $                        | 2,359,932 |   |                     | $      | 1,238,035 |   |
| Proceeds from investment in affiliates and excess cash                           |   |                     | 1,198,605 |   |                     | $      | 2,254,045 |   |
| Proceeds from issuance of common stock through distribution reinvestment program |   |                     | 1,918,501 |   |                     |   | 2,131,194 |   |
| Total Sources                                                                    |   | $                        | 5,477,038 |   |                     | $      | 5,623,274 |   |

----

----

|                   |   | Remainder of 2011 |       |   | 2012   |   |      | 2013   |   |   | 2014      |   |   | 2015   |       |   | Thereafter |   |      | Total  |   |   | Estimated Fair Value |   |
|------------------------|--------|------------------------|------------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|------------|--------|------------|--------|-----------|--------|--------|--------|---------------------------|--------|
|                   |   |                   |       |   |   |   |      |   |   |   |      |   |   |   |       |   |       |   |      |   |   |   |                      |   |
| Mortgage Payable       |   | $                      | 15,956,892 |   |   | $      | 2,239,291 |   |   | $      | 2,518,608 |   |   | $      | 28,957,980 |   |       | $      | 6,773,098 |   |   | $      | 138,725,039               |   |   | $ | 195,170,908 |   |   | $ | 196,644,390 |   |
|                   |   |                   |       |   |   |   |      |   |   |   |      |   |   |   |       |   |       |   |      |   |   |   |                      |   |   |   |   |   |   |   |   |   |
| Marco OP Units Collar: |   |                   |       |   |   |   |      |   |   |   |      |   |   |   |       |   |       |   |      |   |   |   |                      |   |   |   |   |   |   |   |   |   |
|                   |   |                   |       |   |   |   |      |   |   |   |      |   |   |   |       |   |       |   |      |   |   |   |                      |   |   |   |   |   |   |   |   |   |
| Notional Amount        |   |                   | 527,803    |   |   | Units  |      |   |   |   |      |   |   |   |       |   |       |   |      |   |   |   |                      |   |   |   |   |   | $ | (633,364 | ) |
|                   |   |                   |       |   |   |   |      |   |   |   |      |   |   |   |       |   |       |   |      |   |   |   |                      |   |   |   |   |   |   |   |   |   |
| Average Cap (Highest)  |   | $                      | 109.95     |   |   |   |      |   |   |   |      |   |   |   |       |   |       |   |      |   |   |   |                      |   |   |   |   |   |   |   |   |   |
| Average Floor (Lowest) |   | $                      | 90.32      |   |   |   |      |   |   |   |      |   |   |   |       |   |       |   |      |   |   |   |                      |   |   |   |   |   |   |   |   |   |

|             |   | As of March 31, 2011 |   |   | As of December 31, 2010 |   |
|------------------|--------|------------------------------------------|--------|--------|---------------------------------------------|--------|
|             |   | Carrying Amount                     |   |   | Estimated FairValue                    |   |   | Carrying Amount |   |   | Estimated Fair Value |   |
| Mortgage payable |   | $                                        | 195.2  |   |                                        | $      | 196.6 |   |   | $ | 195.5 |   |   | $ | 197.6 |   |

----

----

| ExhibitNumber |   |  Description                                                                                                                                                                                                                                                           |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                        |
| 31.1*         |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.                                                                                                                                          |
| 31.2*         |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15 d-14(a) of the Securities Exchange Act, as amended.                                                                                                                                         |
| 32.1*         |   | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Pursuant to SEC Release 34-47551 this Exhibit is furnished to the SEC and shall not be deemed to be “filed.” |
| 32.2*         |   | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Pursuant to SEC Release 34-47551 this Exhibit is furnished to the SEC and shall not be deemed to be “filed.” |

----

|                    | LIGHTSTONE VALUE PLUS REAL ESTATEINVESTMENT TRUST, INC.           |
|-------------------------|-------------------------------------------------------------------|
|                    |                                                              |
| Date: May 13, 2011 | By:                                                     | /s/ David Lichtenstein |
|                    | David Lichtenstein                                                |
|                    | Chairman and Chief Executive Officer(Principal Executive Officer) |

| Date: May 13, 2011 | By:                                                                                                 | /s/ Donna Brandin |
|--------------------|---------------------------------------------------------------------------------------------------------------|------------------------|
|               | Donna Brandin                                                                                                 |
|               | Chief Financial Officer and Treasurer(Duly Authorized Officer and Principal Financial and Accounting Officer) |

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