<PAGE>
                                                                   EXHIBIT 10.18

                                                                       EXECUTION
                                                               ERHART REDEMPTION

                           ERHART REDEMPTION AGREEMENT

         This ERHART REDEMPTION AGREEMENT made as of August 13, 2004 (this
"Agreement"), by and among:

         (a) JEFFREY ERHART, an individual ("Redeeming Member");

         (b) FELDMAN EQUITIES OF ARIZONA, LLC, an Arizona limited liability
company ("FEA");

         (c) FELDMAN EQUITIES OPERATING PARTNERSHIP, LP, a Delaware limited
partnership (the "Partnership");

         (d) FELDMAN HOLDINGS BUSINESS TRUST I, a Massachusetts business trust
(the "General Partner"); and

         (e) FELDMAN MALL PROPERTIES, INC., a Maryland corporation ("FMP").

Capitalized terms not defined herein shall have the meanings ascribed to such
terms in that certain Amended and Restated Operating Agreement of Feldman
Equities of Arizona, LLC dated as of August 13, 2004 (the "FEA Operating
Agreement"), among Feldman Partners, LLC, an Arizona limited liability company
("FP"), the Partnership, Jeffrey Erhart, Lawrence Feldman and Edward Feldman,
each an individual.

                                    RECITALS:

A.   Redeeming Member is a member of FEA, a party to the FEA Operating Agreement
     and currently owns membership interests in FEA (such membership interests
     and all right, title and interest of Redeeming Member in and to FEA
     collectively referred to as the "Membership Interests").

B.   Redeeming Member desires to redeem the Membership Interests to FEA in
     exchange for an assignment by FEA to Redeeming Member of the Erhart Units
     (hereinafter defined) and FEA desires to assign to Redeeming Member the
     Erhart Units and accept the redemption of the Membership Interests on the
     terms set forth herein.

C.   The Erhart Units were issued to FEA pursuant to that certain Subscription
     Agreement dated as of August 13, 2004, by and among FEA, the Partnership
     and FMP.

         NOW THEREFORE, in consideration of the mutual covenants and agreements
set forth herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:

1.       Redemption and Erhart Units.

1.1      Redemption by Redeeming Member. On the terms hereof and subject to the
         conditions contained herein, Redeeming Member hereby agrees to assign
         the Membership Interests to FEA in exchange for an assignment by FEA to
         Redeeming Member of the Erhart Units and FEA desires to accept the
         redemption of the Membership Interests and assign to Redeeming Member
         the Erhart Units (the redemption of the Membership Interests and
         assignment of the Erhart Units, collectively referred to as the
         "Redemption").
<PAGE>

1.2      Closing Date. The Redemption shall take place on the date designated by
         FEA by notice to the Redeeming Member (the "Closing Date"); provided
         that such date shall be subsequent to, but not more than five days
         following, the date on which all of the conditions precedent set forth
         herein have been satisfied or waived.

1.3      Assumption of LP Agreement; Consent of the General Partner.

         (a)      Effective as of the Closing Date, Redeeming Member accepts the
                  assignment of the Erhart Units from FEA and accepts and adopts
                  the provisions of the LP Agreement and assumes all of the
                  duties and obligations of a Limited Partner (as defined in the
                  LP Agreement) relating to the Erhart Units, as of the Closing
                  Date.

         (b)      On the terms hereof and subject to the conditions precedent
                  contained herein, the General Partner:

                  (i)      consents to the transfer of the Erhart Units to
                           Redeeming Member as required pursuant to Section
                           11.3A of the LP Agreement;

                  (ii)     confirms that, notwithstanding the terms of Section
                           11.3C(iii) of the LP Agreement, the transfer of the
                           Erhart Units to Redeeming Member shall be effective
                           as of the Closing Date;

                  (iii)    confirms that it is has elected not to exercise its
                           right to require the opinion of counsel described in
                           Section 11.3E of the LP Agreement;

                  (iv)     acknowledges that this Agreement satisfies all of the
                           requirements of the LP Agreement to fully accomplish
                           the transfer of the Erhart Units and confirms that
                           Redeeming Member has been admitted as a Substituted
                           Limited Partner (as defined in the LP Agreement); and

                  (v)      agrees to mark the records of the Partnership to
                           reflect (x) Redeeming Member as the owner of the
                           Erhart Units and to eliminate FEA from such records
                           as to the Erhart Units; and (y) that any and all
                           notices relating to the Erhart Units shall be given
                           to Redeeming Member in accordance with the LP
                           Agreement as follows:

                                    Jeffrey Erhart
                                    649 North Third Avenue
                                    Phoenix, Arizona 85003

1.4      Certain Definitions. As used herein:

         (a)      "Available Equity Securities" means the aggregate number of OP
                  Units and shares of common stock ("Common Shares"), par value
                  $0.01 per share of FMP available for allocation to the
                  Contributors on the closing of the IPO pursuant to the
                  agreements listed on Schedule 1 hereto;

         (b)      "Contributors" means (i) Redeeming Member, James Bourg, Scott
                  Jensen, Lawrence Feldman and FP (each a "Member"); (ii)
                  members of a Member's immediate family; (iii) a trust held for
                  the benefit of a Member and/or such Member's immediate family;
                  and (iv) an entity that is wholly-owned (directly or
                  indirectly) by a Member and/or such Member's immediate family;

                                       2
<PAGE>

         (c)      "Erhart Units" means an amount of OP Units equal to 11.24174%
                  of the Available Equity Securities (rounded to the nearest
                  whole OP Unit);

         (d)      "IPO" means the underwritten initial public offering of FMP of
                  its Common Shares pursuant to an effective registration
                  statement filed with the Securities Exchange Commission;

         (e)      "LP Agreement" means that certain First Amended and Restated
                  Agreement of Limited Partnership of Feldman Equities Operating
                  Partnership, LP to be dated as of the date of the IPO closing;
                  and

         (f)      "OP Units" means common units of limited partner interest in
                  the Partnership.

1.5      Additional Documents.

         (a)      On the date hereof, Redeeming Member shall deliver to the
                  Partnership and FEA a duly completed and executed Form W-9,
                  FIRPTA Affidavit and Accredited Investor Questionnaire, each
                  in the form attached as Exhibit A to this Agreement (this
                  Agreement, the Accredited Investor Questionnaire, Form W-9 and
                  FIRPTA Affidavit collectively referred to as, the
                  "Subscription Documents").

         (b)      On the Closing Date, (i) the Partnership, FMP and Redeeming
                  Member shall execute a Tax Protection Agreement; and (ii) FMP
                  and Redeeming Member shall execute a Registration Rights
                  Agreement, in each case, in favor of Redeeming Member.

2.       Representations, Warranties and Covenants of Redeeming Member.
         Redeeming Member hereby acknowledges, represents and warrants to, and
         covenants and agrees with FEA, the General Partner, the Partnership and
         FMP that (and each representation and warranty set forth below shall be
         deemed remade as of the Closing Date):

2.1      Approval of LP Agreement and FMP Organizational Documents. Redeeming
         Member has reviewed and approved the forms of the LP Agreement, the
         Charter and by-laws of FMP (as amended from time to time, collectively,
         the "FMP Organizational Documents"), and Redeeming Member consents to
         any changes to the LP Agreement and/or the FMP Organizational Documents
         approved by FMP.

2.2      Uncertainty as to Amount or Value of Available Equity Securities and
         FEA OP Units.

         (a)      As of the date of this Agreement, neither FEA, the General
                  Partner, the Partnership nor FMP knows the number or value of
                  the Available Equity Securities and, accordingly, the number
                  or value of the Erhart Units.

         (b)      The number and value of the Available Equity Securities and
                  Erhart Units will depend on a number of factors, including
                  possible acquisitions that the Partnership or an affiliate
                  thereof may accomplish, the valuation that is eventually
                  achieved by FMP in the IPO, and prevailing market and other
                  conditions.

2.3      Authority; Authorization; Execution and Delivery.

         (a)      Redeeming Member has full power and authority to enter into
                  the Subscription Documents and to consummate the transactions
                  contemplated by this Agreement.

                                       3
<PAGE>

         (b)      The execution and delivery of the Subscription Documents by
                  Redeeming Member and the consummation by Redeeming Member of
                  the transactions contemplated by the Subscription Documents
                  have been duly authorized by all necessary action on the part
                  of Redeeming Member and will not constitute or result in a
                  breach or default under, or conflict with or violate, any
                  agreement or other undertaking, to which Redeeming Member is a
                  party or by which Redeeming Member is bound or with any
                  judgment, decree, statute, order, rule or regulation
                  applicable to Redeeming Member or Redeeming Member's assets,
                  and, if Redeeming Member is not an individual, will not
                  violate any provisions of the organizational or other
                  formation or governing documents of Redeeming Member.

         (c)      The Subscription Documents have been duly executed and
                  delivered by Redeeming Member and constitute valid and legally
                  binding obligations of Redeeming Member, enforceable against
                  Redeeming Member in accordance with and subject to their
                  respective terms, subject to applicable bankruptcy,
                  insolvency, moratorium or other similar laws relating to
                  creditors' rights and general principles of equity. The
                  signatures on the Subscription Documents are genuine, and the
                  signatory, if Redeeming Member is an individual, has legal
                  competence and capacity to execute the same, or, if Redeeming
                  Member is not an individual, the signatory has been duly
                  authorized to execute the same on behalf of Redeeming Member.

2.4      Purchase for Investment.

         (a)      Redeeming Member is acquiring the Erhart Units for Redeeming
                  Member's own account (or if Redeeming Member is a trustee, for
                  a trust account) for investment only, and not with a view to
                  or for sale in connection with any distribution of all or any
                  part of such Erhart Units (or Common Shares issued by FMP to
                  Redeeming Member in connection with a Redemption (as defined
                  in the LP Agreement) (such Common Shares, "Redemption
                  Shares")).

         (b)      Redeeming Member hereby agrees that Redeeming Member shall
                  not, directly or indirectly, transfer all or any part of such
                  Erhart Units or Redemption Shares (or solicit any offers to
                  buy, purchase or otherwise acquire or take a pledge of all or
                  any part of the Erhart Units or Redemption Shares) except in
                  accordance with (i) the registration provisions of the
                  Securities Act of 1933, as amended (the "Securities Act"), and
                  the regulations thereunder or an exemption from such
                  registration provisions; (ii) any applicable state or non-U.S.
                  securities laws; (iii) the terms of this Agreement; and (iv)
                  the LP Agreement or the FMP Organizational Documents, as
                  applicable.

         (c)      Redeeming Member understands that (i) Redeeming Member must
                  bear the economic risk of an investment in the Erhart Units
                  and Redemption Shares for an indefinite period of time
                  because, among other reasons, the transfer of the Erhart Units
                  and Redemption Shares have not been registered under the
                  Securities Act and, therefore, the Redemption Shares and
                  Erhart Units cannot be sold unless such resale is subsequently
                  registered under the Securities Act or an exemption from such
                  registration is available; and (ii) sales or transfers of the
                  Erhart Units and Redemption Shares are further restricted by
                  the provisions of the LP Agreement or the FMP Organizational
                  Documents, as applicable, and may be restricted by other
                  applicable securities laws. If at any time the Erhart Units or
                  Redemption Shares are evidenced by certificates or other
                  documents, each such certificate or other document shall
                  contain a legend stating that (x) the Erhart Units or
                  Redemption Shares, as applicable, (1) have not been registered
                  under the Securities Act or the securities laws of any state;
                  (2) have been issued pursuant to a claim of exemption from the
                  registration provisions of the Securities Act and any state
                  securities law which may be applicable; and (3) may not be
                  sold, transferred or assigned without compliance with the
                  registration provisions of the Securities Act and the
                  regulations thereunder and any other applicable Federal or
                  state securities laws or compliance with applicable exemptions
                  therefrom; and (y) sale, transfer or assignment of such Erhart
                  Units or Redemption Shares, as applicable, is further subject
                  to restrictions contained in the LP Agreement or the FMP
                  Organizational Documents, as applicable, and such Erhart Units
                  or Redemption Shares may not be sold, transferred or assigned
                  unless and to the extent permitted by, and in accordance with,
                  the provisions of the LP Agreement or the FMP Organizational
                  Documents, as applicable.

                                       4
<PAGE>

2.5      Information.

         (a)      Redeeming Member has carefully reviewed this Agreement, the
                  forms of the LP Agreement, the Charter and by-laws of FMP.
                  Redeeming Member has been provided an opportunity to ask
                  questions of, and Redeeming Member has received answers
                  thereto satisfactory to Redeeming Member from, FEA, the
                  General Partner, the Partnership and FMP or their respective
                  representatives regarding the terms and conditions of the
                  transfer of the Erhart Units, and Redeeming Member has
                  obtained all additional information requested by Redeeming
                  Member of FEA, the General Partner, the Partnership and FMP
                  and their respective representatives to verify the accuracy of
                  all information furnished to Redeeming Member regarding the
                  transfer of the Erhart Units.

         (b)      Redeeming Member is not relying on FEA, the General Partner,
                  the Partnership or FMP or any of their respective
                  subsidiaries, affiliates or any of their respective
                  representatives or agents with respect to any tax or other
                  economic considerations involved in connection with the Erhart
                  Units or Redemption Shares.

         (c)      Redeeming Member has been advised to consult with his or its
                  tax, legal and other advisors regarding the transfer of the
                  Erhart Units and its effects, the tax consequences of making
                  and not making a subscription hereunder, and has obtained, in
                  Redeeming Member's judgment, sufficient information to
                  evaluate the merits and risks of such subscription and
                  investment.

         (d)      Redeeming Member has not been furnished with and has not
                  relied on any oral or written representation from any party
                  other than his or its advisors in connection with the transfer
                  of the Erhart Units that is not contained in this Agreement.

2.6      Economic and Liquidity Risk.

         (a)      Redeeming Member has such knowledge and experience in
                  financial and business matters such that Redeeming Member is
                  capable of evaluating the merits and risks making a
                  subscription for the Erhart Units, and that Redeeming Member
                  has evaluated the risks of investing in the Erhart Units and
                  has determined that they are a suitable investment for
                  Redeeming Member.

         (b)      Redeeming Member understands that an investment in the Erhart
                  Units or Redemption Shares is a speculative investment that
                  involves very significant risks and tax uncertainties and that
                  Redeeming Member is prepared to bear the economic, tax and
                  other risks of an investment in the Erhart Units or Redemption
                  Shares for an indefinite period of time, and is able to
                  withstand a total loss of Redeeming Member's investment in the
                  Erhart Units or Redemption Shares.

                                       5
<PAGE>

         (c)      Redeeming Member has adequate net worth and no need for
                  liquidity in his investment in the Erhart Units or Redemption
                  Shares.

2.7      Eligibility; Accredited Investor Status. Redeeming Member is an
         "accredited investor" as defined in Regulation D under the Securities
         Act. Redeeming Member will, upon request, execute and/or deliver any
         additional documents deemed by the General Partner, the Partnership or
         FMP to be necessary or desirable to confirm Redeeming Members such
         status.

2.8      Ownership of the Membership Interests.

         (a)      Redeeming Member has good and marketable title to the
                  Membership Interests, free and clear of all pledges, claims,
                  liens, restrictions, charges, encumbrances, security
                  interests, conditional sales agreements and other obligations
                  of any kind or nature. Redeeming Member shall not sell,
                  convey, assign or otherwise transfer all or any portion of the
                  Membership Interests prior to the Closing Date.

         (b)      Redeeming Member is not and will not be (i) an "employee
                  benefit plan" within the meaning of Section 3(3) of ERISA,
                  whether or not subject to ERISA, (ii) a "plan" within the
                  meaning of Section 4975 of the Internal Revenue Code of 1986,
                  as amended (the "Code"), or (iii) any person or entity whose
                  assets include or are deemed to include the assets of any such
                  "employee benefit plan" or "plan" by reason of Section
                  2510.3-101 of the Regulations of the U.S. Department of Labor
                  or otherwise. Redeeming Member will, upon request, execute,
                  deliver and/or provide any additional documents deemed by the
                  General Partner, the Partnership, FMP or FEA to be necessary
                  or desirable to confirm the foregoing.

2.9      Residence; Etc.  The signature pages attached to this Agreement
         correctly set forth

         (a)      if Redeeming Member is a natural person, the principal
                  residence of Redeeming Member;

         (b)      if Redeeming Member is a corporation, partnership, limited
                  liability company, business trust or other entity (an
                  "Entity"), the place of business (or, if there is more than
                  one place of business, the chief executive office) of
                  Redeeming Member;

         (c)      if Redeeming Member is an Entity other than a general
                  partnership, the state of incorporation, organization or
                  formation of Redeeming Member;

         (d)      if Redeeming Member is a trust (other than a business trust),
                  the principal residence and place of business (or, if there is
                  more than one place of business, the chief executive office)
                  of each trustee of Redeeming Member that is a natural person;
                  and

         (e)      if Redeeming Member is a trust (other than a business trust),
                  the place of business (or, if there is more than one place of
                  business, the chief executive office) and state of
                  incorporation, organization or formation of each trustee of
                  Redeeming Member that is an Entity.

                                       6
<PAGE>

2.10     Status as Foreign Person. Redeeming Member is not a foreign person and
         is not owned directly or indirectly, in whole or in part, by a foreign
         person as determined for purposes of Section 1445 of the Code, and the
         regulations promulgated thereunder.

2.11     Continuing Efforts. Subject to the terms and conditions herein
         provided, Redeeming Member covenants and agrees to use its best efforts
         to take, or cause to be taken, all actions and do, or cause to be done,
         all things necessary, proper and/or appropriate to consummate and make
         effective the transactions contemplated by this Agreement.

2.12     No Brokers or Finders. Redeeming Member has not entered into any
         agreement and is not otherwise liable or responsible to pay any
         brokers' or finders' fees or expenses to any person or Entity with
         respect to this Agreement or the Erhart Units.

3.       Representations, Warranties and Covenants of FEA. FEA hereby
         acknowledges, represents and warrants to, and covenants and agrees
         with, Redeeming Member that (and each representation and warranty set
         forth below shall be deemed remade as of the Closing Date):

3.1      Authority; Authorization; Execution and Delivery.

         (a)      FEA has full power and authority to enter into this Agreement
                  and to consummate the transactions contemplated thereby.

         (b)      The execution and delivery of this Agreement and the
                  consummation by FEA of the transactions contemplated hereby
                  have been duly authorized by all necessary action on the part
                  of FEA.

         (c)      This Agreement has been duly executed and delivered by FEA and
                  constitutes the valid and legally binding obligations of FEA,
                  enforceable against FEA in accordance with and subject to its
                  respective terms, subject to applicable bankruptcy,
                  insolvency, moratorium or other similar laws relating to
                  creditors' rights and general principles of equity.

3.2      Erhart Units. Immediately prior to the Redemption, FEA will own the
         Erhart Units, free and clear of all liens, claims and encumbrances.

3.3      Commercially Reasonable Efforts. Subject to the terms and conditions
         herein provided, the FEA covenants and agrees to use commercially
         reasonable efforts to take, or cause to be taken, all actions and do,
         or cause to be done, all things necessary, proper and/or appropriate to
         consummate and make effective the transactions contemplated by this
         Agreement.

4.       Survival. The representations, warranties, covenants and agreements
         contained in this Agreement and the Accredited Investor Questionnaire
         shall survive the consummation of the transactions contemplated herein.

5.       Conditions to Consummation by FEA. The obligations of FEA to consummate
         the Redemption are subject to the fulfillment of the conditions set
         forth in this Article 5, any one or more of which may be waived by the
         Partnership:

5.1      Closing of the IPO. The closing of the IPO shall have occurred.

5.2      Mutual Performance. The mutual performance by the relevant parties of
         their obligations contained in the Subscription Agreement described in
         Schedule 1.

                                       7
<PAGE>

5.3      Representations, Warranties and Covenants. The representations and
         warranties of Redeeming Member contained in this Agreement shall be
         true, correct and complete in all material respects on and as of the
         Closing Date with the same force and effect as though made on and as of
         such date unless expressly stated herein to be made as of a specified
         date. Redeeming Member shall have performed in all material respects
         all obligations required to be performed by him or it under this
         Agreement at or prior to the Closing Date.

5.4      Closing Documents. Redeeming Member shall have duly executed and
         delivered to FEA on or prior to the Closing Date all documents that are
         reasonably requested by FEA to effectuate the transactions contemplated
         hereby, including but not limited to the Subscription Documents.

6.       Conditions to Consummation by Redeeming Member. The obligations of
         Redeeming Member to consummate the Redemption and receive the Erhart
         Units pursuant this Agreement are subject to the fulfillment of the
         following conditions (which may be waived by him or it):

6.1      Mutual Performance. The mutual performance by the relevant parties of
         their obligations contained in the Subscription Agreement described in
         Schedule 1.

6.2      Representations, Warranties and Covenants. The representations and
         warranties of FEA contained herein shall be true, correct and complete
         in all material respects on and as of the Closing Date with the same
         force and effect as though made on and as of such date unless expressly
         stated therein to be made as of a specified date. FEA shall have
         performed in all material respects all obligations required to be
         performed by it under this Agreement at or prior to the Closing Date.

7.       Indemnity.

7.1      Redeeming Member hereby agrees to indemnify and defend the General
         Partner, the Partnership, FEA and FMP and their respective direct and
         indirect partners, members, shareholders, officers, directors and
         affiliates (each, an "Indemnified Party") against and to hold them
         harmless from any and all damage, loss, liability and expense incurred
         or suffered by any Indemnified Party arising out of or based upon the
         inaccuracy of any representation or warranty or breach of any covenant
         or agreement made or to be performed by Redeeming Member pursuant to
         the Subscription Documents.

7.2      FEA hereby agrees to indemnify and defend the Redeeming Member against
         any and all damage, loss, liability and expense incurred or suffered by
         it or him out of or based upon the inaccuracy of any representation or
         warranty or breach of any agreement made or to be performed by FEA
         pursuant to this Agreement.

8.       Tax Treatment. It is intended for federal income tax purposes that the
         contribution, transfer, conveyance and assignment effectuated pursuant
         to this Agreement when taken together with the transactions to be
         effectuated pursuant to the agreements listed in Schedule 1, shall be
         treated as a merger of FEA with and into the Partnership in
         "assets-over" form pursuant to Treasury Regulation Section
         1.708-1(c)(3). To the extent Redeeming Member's transfer in accordance
         with this Agreement is treated as a "disguised sale" pursuant to
         Section 707 of the Code, or the Treasury Regulations thereunder, such
         transfer shall be treated as a purchase of the "sold interest" by the
         Partnership directly from Redeeming Member in accordance with the
         provisions of Treasury Regulation Section 1.708-1(c)(4) and Code
         Section 741. Redeeming Member expressly consents to such tax treatment
         with respect to its "sold interest." Based on the above, the
         Partnership and Redeeming Member agree that the transaction shall be
         treated for federal income tax purposes as if Redeeming Member sold the
         "sold interest" in FEA to the Partnership, FEA then transferred its
         assets and liabilities (except to the extent attributable to the "sold
         interests") to the Partnership in exchange for the Erhart Units, and
         then FEA liquidated, distributing the Erhart Units (other than with
         respect to their "sold interests") and distributing the balance of its
         assets and liabilities to the Partnership in redemption of the "sold
         interests" acquired by the Partnership.

                                       8
<PAGE>

9.       Power of Attorney; Amendments to Operating Agreement and LP Agreement.
         By executing this Agreement, Redeeming Member hereby irrevocably
         constitutes and appoints the General Partner (or a substitute appointed
         by the Partnership) as his or its attorney-in-fact and agent with full
         power of substitution to take any and all actions and execute the LP
         Agreement and any and all such amendments to the FEA Operating
         Agreement, the LP Agreement and any other document and agreement
         relating to the Erhart Units, on Redeeming Member's behalf and in
         Redeeming Member's name, as the Partnership may deem necessary or
         desirable.

10.      Termination. This Agreement shall terminate automatically if the
         Closing Date has not occurred within two years after the date of this
         Agreement.

11.      General Provisions.

11.1     Modification. Neither this Agreement nor any provisions hereof shall be
         waived, modified, discharged or terminated except by an instrument in
         writing signed by the party against whom any waiver, modification,
         discharge or termination is sought; provided that Redeeming Member
         hereby agrees to future modifications of this Agreement as may be
         reasonably proposed by FEA, the General Partner, the Partnership or
         FMP, provided that such modifications do not have any negative impact
         on the tax position of Redeeming Member.

11.2     Notices. All notices, requests and other communications hereunder must
         be in writing and will be deemed to have been duly given only if
         delivered personally or by facsimile transmission or mailed (first
         class postage prepaid) to the parties at the following addresses or
         facsimile numbers:

            If to Redeeming
            Member:                 Jeffrey Erhart
                                    649 North Third Avenue
                                    Phoenix, Arizona 85003

            If to the General
            Partner, Partnership,
            FEA or FMP:             Insert applicable addressee:
                                    [Feldman Holdings Business Trust I]
                                    [Feldman Equities Operating Partnership, LP]
                                    [Feldman Mall Properties, Inc.]
                                    [Feldman Equities of Arizona, LLC]
                                    3225 North Central Avenue, Suite 1205
                                    Phoenix, Arizona 85012
                                    Attention:  Larry Feldman
                                    Facsimile:  602-277-7774

                                       9
<PAGE>
                                    in each case, with a copy to:

                                    Clifford Chance US LLP
                                    31 West 52nd Street
                                    New York, New York  10019
                                    Attention:  Jay L. Bernstein, Esq.
                                    Facsimile:  212-878-8375



All such notices, requests and other communications will (a) if delivered
personally to the applicable addressees as provided in this Section 11.2, be
deemed given upon delivery; (b) if delivered by facsimile transmission to the
applicable facsimile numbers as provided in this Section 11.2, be deemed given
upon receipt; and (c) if delivered by mail to the applicable addressees as
provided in this Section 11.2, be deemed given upon receipt or refusal (in each
case regardless of whether such notice, request or other communication is
received by any other Entity or person to whom a copy of such notice is to be
delivered pursuant to this Section 11.2). Any party from time to time may change
its address, facsimile number or other information for the purpose of notices to
that party by giving notice specifying such change to the other parties hereto
in accordance with this Section 11.2.

11.3     Binding Effect. Except as otherwise provided herein, this Agreement
         shall be binding upon and inure to the benefit of the parties and their
         heirs, executors, administrators, successors, legal representatives and
         permitted assigns. If Redeeming Member is itself more than one person,
         the obligations of such persons shall be joint and several and the
         acknowledgements, representations, warranties, covenants and agreements
         herein contained shall be deemed to be made by and be binding upon each
         such person and his or her heirs, executors, administrators,
         successors, legal representatives and permitted assigns.

11.4     Entire Agreement. The Subscription Documents and the documents referred
         to therein contain the entire agreement of the parties with respect to
         the Redemption and the subscription by Redeeming Member of the Erhart
         Units, and there are no representations, warranties, covenants or other
         agreements except as stated or referred to herein or therein.

11.5     Ambiguity. The parties hereto agree that any ambiguity with respect to
         the Redemption or the rights or obligations of the parties under this
         Agreement shall be resolved by the Board of Directors of FMP, which
         resolution shall be binding on the parties.

11.6     Assignability. This Agreement is not transferable or assignable by any
         party hereto. This Agreement shall be for the benefit of the parties
         hereto.

11.7     Applicable Law. This Agreement shall be governed by and construed in
         accordance with the laws of the State of Delaware.

11.8     Counterparts. This Agreement may be executed by facsimile signature and
         through the use of separate signature pages or in counterparts, and
         each of such counterparts shall, for all purposes, constitute one
         agreement binding on the parties hereto, notwithstanding that the
         parties hereto are not signatories to the same counterpart.

                                       10
<PAGE>

11.9     Further Assurances. Redeeming Member will, from time to time, execute
         and deliver to the General Partner, the Partnership, FEA and/or FMP all
         such other and further instruments and documents and take or cause to
         be taken all such other and further action as the General Partner, the
         Partnership, FEA, and/or FMP may reasonably request in order to effect
         the transactions contemplated by this Agreement. Without limiting the
         foregoing, the General Partner, the Partnership or FMP may request from
         Redeeming Member such additional information as it may deem necessary
         to evaluate the eligibility of Redeeming Member to acquire the Erhart
         Units, and may request from time to time such information as it may
         deem necessary to determine the eligibility of Redeeming Member to hold
         the Erhart Units or Redemption Shares or to enable the General Partner,
         the Partnership or FMP to determine Redeeming Member's compliance with
         applicable regulatory requirements or tax status, and Redeeming Member
         shall provide such information as may reasonably be requested.

11.10    Severability. If any term or provision of this Agreement shall to any
         extent be invalid or unenforceable, the remainder of this Agreement
         shall not be affected thereby, and each term and provision of this
         Agreement shall be valid and enforceable to the fullest extent
         permitted by law. Upon the determination that any term or other
         provision is invalid, illegal or incapable of being enforced, the
         parties shall negotiate in good faith to modify this Agreement so as to
         effect their original intent as closely as possible in an acceptable
         manner to the end that transactions contemplated hereby are fulfilled
         to the extent possible.

11.11    Specific Performance. The parties hereto acknowledge that there would
         be no adequate remedy at law if any party fails to perform any of its
         obligations hereunder, and accordingly agree that each party, in
         addition to any other remedy to which it may be entitled at law or in
         equity, shall be entitled to compel specific performance of the
         obligations of any other party under this Agreement in accordance with
         the terms and conditions of this Agreement.

11.12    Expenses. Each of the parties hereto agrees to pay the expenses
         incurred by it in connection with the negotiation, preparation,
         execution and delivery of this Agreement and the consummation of the
         transactions contemplated hereby, including the fees and expenses of
         counsel to such party.

         [The remainder of this page has been intentionally left blank]


                                       11
<PAGE>


IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and delivered as of the day and year first above written.

THE GENERAL PARTNER:                              REDEEMING MEMBER:
-------------------                               ----------------

FELDMAN HOLDINGS BUSINESS TRUST I,
a Massachusetts business trust
                                                  -------------------
By:      __________________                       Jeffrey Erhart
         Name:
         Title:

THE PARTNERSHIP:                                  FMP:
---------------                                   ---

FELDMAN EQUITIES OPERATING PARTNERSHIP, LP,       FELDMAN MALL PROPERTIES, INC.,
a Delaware limited partnership                    a Maryland corporation

By: Feldman Holdings Business Trust I,            By:________________________
a Massachusetts business trust and                   Name:
its general partner                                  Title:

By:________________________
   Name:
   Title:

FEA:
---

FELDMAN EQUITIES OF ARIZONA, LLC,
an Arizona limited liability company

By:      __________________
         Name:
         Title:



                                       12
<PAGE>
                                                                       EXECUTION
                                                               ERHART REDEMPTION


                                   Schedule 1


1.   Feldman Partners, LLC Redemption Agreement dated as of August 13, 2004,
     among Feldman Partners, LLC, an Arizona limited liability company ("FP"),
     Feldman Equities of Arizona, LLC, an Arizona limited liability company
     ("FEA"), Feldman Equities Operating Partnership, LP, a Delaware limited
     partnership (the "Partnership"), Feldman Holdings Business Trust I, a
     Massachusetts business trust (the "General Partner"), and Feldman Mall
     Properties, Inc., a Maryland corporation ("FMP").

2.   Recapitalization Agreement dated as of August 13, 2004, among James Bourg,
     Scott Jensen, the Partnership and FMP.

3.   Subscription Agreement dated as of August 13, 2004, among the Partnership,
     FMP and FEA.

4.   Erhart Redemption Agreement dated as of August 13, 2004, among Jeffrey
     Erhart, FEA, the Partnership, the General Partner and FMP.

5.   Irrevocable Contribution Agreement dated as of August 13, 2004, among
     Lawrence Feldman, the Partnership, the General Partner, FMP and FEA.

6.   FEGP Merger Agreement dated as of August 13, 2004, among Feldman Equities
     General Partner Inc., a Pennsylvania corporation, Feldman Equities General
     Partner Merger Inc., a Pennsylvania corporation, FMP and FP.

7.   FHGP Merger Agreement dated as of August 13, 2004, among Feldman Harrisburg
     General Partner Inc., a Pennsylvania corporation, Feldman Harrisburg
     General Partner Merger Inc., a Pennsylvania corporation, FMP and FP.

<PAGE>

                                    EXHIBIT A

                                    FORM W-9
<TABLE>
<CAPTION>
<S>                       <C>
------------------------- ----------------------------------------------------- --------------------------------------
SUBSTITUTE                Part 1 -- PLEASE PROVIDE YOUR TIN IN THE BOX AT       Social Security
Form W-9                  RIGHT AND CERTIFY BY SIGNING AND DATING BELOW         Number(s) or Employer
                                                                                Identification Number

------------------------- --------------------------------------------------------------------------------------------
Department of             Part 2 -- Certification -- Under penalties of perjury, I certify that: (1) The number shown
The Treasury              on this form is my correct taxpayer identification number (or I am waiting for a number to
Internal Revenue          be issued to me); (2) I am not subject to backup withholding because: (a) I am exempt from
Service                   backup withholding, or (b) I have not been notified by the Internal Revenue Service ("IRS")
                          that I am subject to backup withholding as a result of failure to report all interest or
                          dividends, or the IRS has notified me that I am no longer subject to backup withholding; and
                          (3) I am a U.S. person (including a U.S. resident alien).

------------------------- ------------------------------------------------------------------- ------------------------
Payer's                   Certification Instructions -- You must cross out item (2) above if  Part 3 --
Request for               you have been notified by the IRS that you are subject to backup    Awaiting TIN
Taxpayer                  withholding because you have failed to report all interest and      |_|
Identification            dividends on your tax return. However, if after being notified by
Number (TIN)              the IRS that you were subject to backup withholding you received
                          another notification from the IRS that you are no longer subject to
                          backup withholding, do not cross out item (2).

----------------------------------------------------------------------------------------------------------------------
</TABLE>

CERTIFICATE OF AWAITING TAXPAYER IDENTIFICATION NUMBER
(Applicable only if the box in Part 3 above is checked)

I certify under penalties of perjury that a taxpayer identification number has
not been issued to me, and either (a) I have mailed or delivered an application
to receive a taxpayer identification number to the appropriate Internal Revenue
Service Center or Social Security Administration office, or (b) I intend to mail
or deliver an application in the near future. I understand that if I do not
provide a taxpayer identification number within sixty days, 28 percent of all
reportable payments made to me thereafter will be withheld until I provide a
taxpayer identification number.

--------------------------------------------------------------------------------

-------------------
Jeffrey Erhart
Date:  August 13, 2004
--------------------------------------------------------------------------------

<PAGE>

                              EXHIBIT A (CONTINUED)

--------------------------------------------------------------------------------

              FIRPTA AFFIDAVIT -- CERTIFICATE OF NON-FOREIGN STATUS

Section 1445 of the Internal Revenue Code provides that (a) a transferee of a
U.S. real property interest must withhold tax if the transferor is a foreign
person and (b) a partnership must withhold tax with respect to certain amounts
that are allocable to or would otherwise be distributed to a foreign person that
owns an interest in such partnership. To inform FEA and the Partnership that
withholding of tax is not required, the undersigned hereby certifies the
following as of the date hereof and as of the Closing Date:

         1. Redeeming Member, if an individual, is not a nonresident alien
for purposes of U.S. income taxation, and if not an individual, is not a foreign
corporation, foreign partnership, foreign trust, or foreign estate (as those
terms are defined in the Internal Revenue Code and Income Tax Regulations);

         2. Redeeming Member, if not an individual, is not a disregarded
entity as defined in Section 1.1445-2(b)(2)(iii) of the Income Tax Regulations
promulgated under the Internal Revenue Code.

         3. Redeeming Member's Social Security Number (for individuals) or
Employer Identification Number (for non-individuals) is: _____________; and

         4. Redeeming Member's address is: Jeffrey Erhart, 649 North Third
Avenue, Phoenix, Arizona 85003.

In addition, Redeeming Member agrees to inform FEA and the Partnership if he or
it becomes a foreign person at any time during the three year period immediately
following the date of this notice.

I understand that this certification may be disclosed to the Internal Revenue
Service by the Partnership or FEA and that any false statement I have made here
could be punished by fine, imprisonment, or both.

Under penalties of perjury I declare that I have examined this certification and
to the best of my knowledge and belief it is true, correct and complete, and, if
this document is being signed on behalf of a Redeeming Member that is not an
individual, I further declare that I have authority to sign this document on
behalf of Redeeming Member.

-------------------
Jeffrey Erhart

Date: August 13, 2004

--------------------------------------------------------------------------------


<PAGE>

                              EXHIBIT A (CONTINUED)
                        ACCREDITED INVESTOR QUESTIONNAIRE

         Redeeming Member hereby represents and warrants that he, she or it is
an "Accredited Investor," as such term is defined in Rule 501 under Regulation D
of the Securities Act based upon the fact that he, she or it meets at least one
of the following requirements (check all that apply):

____     (1) he or she is a natural person whose individual net worth, or joint
net worth with that person's spouse, at the time of his or her purchase exceeds
$1,000,000; or

____     (2) he or she is a natural person who had an individual income in
excess of $200,000 in each of the two most recent years or joint income with
that person's spouse in excess of $300,000 in each of those years and who has a
reasonable expectation of reaching the same income level in the current year; or

____     (3) it is a private business development company as defined in Section
202(a)(22) of the Investment Advisers Act of 1940; or

____     (4) it is a bank as defined in Section 3(a)(2) of the Securities Act,
or a savings and loan association or other institution as defined in Section
3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary
capacity; a broker dealer registered pursuant to Section 15 of the Securities
Exchange Act of 1934; an insurance company as defined in Section 2(13) of the
Securities Act; an investment company registered under the Investment Company
Act of 1940 or a business development company as defined in Section 2(a)(48) of
that Act; a Small Business Investment Company licensed by the United States
Small Business Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958; a plan established and maintained by a state, its
political subdivisions, or any agency or instrumentality of a state or its
political subdivisions, for the benefit of its employees, if such plan has total
assets in excess of $5,000,000; or an employee benefit plan within the meaning
of the Employee Retirement Income Security Act of 1974, if the investment
decision is made by a plan fiduciary, as defined in Section 3(21) of such Act,
which is either a bank, savings and loan association, insurance company, or
registered investment adviser, or if the employee benefit plan has total assets
in excess of $5,000,000 or, if a self-directed plan, with investment decisions
made solely by persons that are accredited investors; or

____     (5) it is an organization described in Section 501(c)(3) of the
Internal Revenue Code, corporation, Massachusetts or similar business trust, or
Company, not formed for the specific purpose of acquiring the Erhart Units, with
total assets in excess of $5,000,000; or

____     (6) it is a trust, with total assets in excess of $5,000,000, not
formed for the specific purpose of acquiring the Erhart Units, whose purchase is
directed by a sophisticated person as described in Rule 506(b)(2)(ii) of the
Securities Act; or

____     (7) it is an Entity in which all the equity owners are Accredited
Investors under any one of items (1) through (6) above.

Capitalized terms not defined herein shall have the meaning ascribed to such
terms in that certain Erhart Redemption Agreement dated as of August 13, 2004,
among Feldman Equities Operating Partnership, LP, Jeffrey Erhart, Feldman
Equities of Arizona, LLC, Feldman Holdings Business Trust I and Feldman Mall
Properties, Inc.

-------------------
Jeffrey Erhart

Date: August 13, 2004