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                                                                   Exhibit 99.1

Item 2. Acquisition or Disposition of Assets

Property Acquisition

     On April 26, 2001, we acquired the Buckhead/Atlanta Homewood Suites(R) by
Hilton for a base purchase price of $12.9 million. The hotel is located on a 2.0
acre site at 3566 Piedmont Road, Atlanta, Georgia 30305. The hotel is
approximately 5 miles from the center of downtown Atlanta and 15 miles from the
Hartsfield Atlanta International Airport.

     The hotel opened in September 1997. It consists of a single four-story
building and contains 92 suites, which have a combined rentable area of 45,544
square feet. The following types of suites are available:

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     Type of Suite             Number Available       Square Feet/per Suite
     ------------------        ----------------       ---------------------
     Master Suite                    78                      446
     Homewood Suite                   6                      526
     Two-Bedroom Suite                8                      950

The hotel offers a 40-seat breakfast/lounge area, a meeting room that
accommodates 25 to 30 people, and a business center that offers guests the use
of a personal computer, a photocopier and an electric typewriter. Recreational
facilities include an outdoor pool, a whirlpool and an exercise room. The hotel
also contains a guest convenience store and laundry. The hotel has its own
parking lot with approximately 100 spaces. The hotel provides complimentary
shuttle service within a 5 mile radius.

We believe that the hotel has been well maintained and is generally in very good
condition. Over the next 12 months, we plan to spend approximately $350,000 on
renovations or improvements. We expect that the principal renovations and
improvements will include replacing common area carpets and flooring, renovating
rooms, and replacing exterior signage.

During 2001 (through May), approximately 24.5% of the guests have stayed for
five nights or more. In general, occupancy at the hotel is not significantly
affected by seasonal variations. The following table shows average daily
occupancy rates for the hotel during the last five years:

                  Average Daily Occupancy Rate (calendar year)

                                                                      2001
  1997               1998             1999              2000     (through May)
  ----               ----             ----              ----     -------------
  33.4%              68.8%            73.8%             75.0%         75.3%


During 2001 (through May), the average daily rate per suite has been $115.48,
and the average daily net revenue per suite has been $86.91. The hotel's current
rate structure is based on length of stay and type of suite, as summarized
below:

Length of Stay
(number of nights)       Homewood       Master       Two Bedroom
-----------------        --------       ------       -----------
 1 to 4                    $149          $139            $225
 5 to 13                    115           105             195
14 to 29                    105            95             185
30 or more                   95            85             165

The hotel offers a weekend discount. This discount varies by type of suite and
generally reduces the basic rate by 20 to 33%. The weekend discount is not
available to guests who stay for five nights or more. The hotel also offers
discounts to guests who stay under certain corporate accounts. These discounts
are often negotiated with the corporate customer and vary from account to
account

     The table below shows the average effective annual rental per square foot
since 1997:

                                                                    2001
     1997            1998            1999             2000      (annualized)
     ----            ----            ----             ----      ------------
   $28.68           $55.62          $60.85           $66.91        $64.08

The depreciable real property component of the hotel has a currently estimated
Federal tax basis of $7,907,973 and will be depreciated using the straight-line
method over a life of 39 years (or less, as permitted by the Internal Revenue
Code). The basis of the personal property component of the hotel will be
depreciated in accordance with the modified accelerated cost recovery system of
the Internal Revenue Code.

     The following table summarizes the hotel's real estate tax information for
2000:

Tax Assessed Taxable Portion Tax Amount Jurisdiction Value (40% of Assessment)
Rate of Tax ------------ -------- -------------------
------- -----------
City of Atlanta, $6,035,700 $2,414,280 0.04677 $112,915.88 Fulton County

     We estimate that the annual property tax on the expected improvements will
be approximately $16,400.