RI Q4 2011 Exhibit 10.39






Exhibit 10.39


FIRST STATES INVESTORS 5200. LLC 
610 Old York Road, Suite 300 
Jenkintown, PA 19046 
Phone: 215-887-2280 
Fax: 215-887-9856
February 6, 2007
Chris Bradshaw 
Senior Asset Manager 
CMBS Asset Management 
Midland Loan Services, Inc. 
10851 Mastin, Suite 300 
Overland Park, KS 66210
		
	Re:
	Notice of Substitution Pursuant to Loan and Security Agreement, dated as of March 4, 2005, by and between First States Investors 5200, LLC as Borrower and German American Capital Corporation and Bear Steams Commercial Mortgage, Inc., collectively, as Lender (the “Loan Agreement”)


Dear Mr. Bradshaw:
I am writing to you pursuant to Section 2.6(b) of the Loan Agreement, to notify you of the Borrower’s intent to substitute the property listed on the attached table (the “Substitute Property”) in place of the existing properties listed on the attached table (each individually a “Substituted Property” and collectively, the “Substituted Properties”). We understand that the substitution will become effective 30 days from the date hereof or as soon thereafter as the conditions set forth in Section 2.6 of the Loan Agreement have been satisfied or waived. At such time, the Substitute Property will be subjected to, and each Substituted Property will be released from, the Lien of the related Security Instrument (and the Loan Documents).
Because we are initiating this Notice of Substitution on a voluntary basis and it will improve the operating performance of the BSDB 2005-AFR1 loan, we believe that a relaxation or waiver of certain conditions set forth in Section 2.6 of the Loan Agreement would be appropriate.
Please call me at your earliest opportunity to discuss.


Very Truly Yours,
/s/ David Nettina
David Nettina
Vice President








Attachment









SCHEDULE OF SUBSTITUTE PROPERTY 
AND SUBSTITUTED PROPERTIES
Substitute Property:
	
											
	Property Name
	 
	Address
	 
	City
	 
	State
	 
	Rentable SF
	 
	Allocated Loan 
Amount

	5327 – Kansas City Operations Center
	 
	2001 NE 46th Street
	 
	Kansas City
	 
	MO
	 
	320,882
	 
	n/a




Substituted Properties:
	
											
	Property Name
	 
	Address
	 
	City
	 
	State
	 
	Rentable SF
	 
	Allocated Loan 
Amount

	5252 - Woodland
	 
	50 West Main Street
	 
	Woodland
	 
	CA
	 
	16,036
	 
	$1,230,000

	5260 - Baypoint
	 
	500 Biscayne Blvd
	 
	Miami
	 
	FL
	 
	15,618
	 
	$460,000

	5277 - Indian Rocks
	 
	12046 Indian Rocks
	 
	Largo
	 
	FL
	 
	17,138
	 
	$440,000

	5279 - Jay Office
	 
	3927 Highway 4
	 
	Jay
	 
	FL
	 
	10,652
	 
	$80,000

	5285 - Miami Shores
	 
	9190 Biscayne Blvd
	 
	Miami Shores
	 
	FL
	 
	10,867
	 
	$340,000

	5287 - Palatka
	 
	620 S Highway 19
	 
	Palatka
	 
	FL
	 
	11,117
	 
	$280,000

	5292 - St. Pete Beach
	 
	7500 Gulf Blvd.
	 
	St. Petersburg
	 
	FL
	 
	12,622
	 
	$260,000

	5293 - Tarpon Springs
	 
	116 South Pinellas
	 
	Tarpon Springs
	 
	FL
	 
	13,032
	 
	$110,000

	5295 - Trouble Creek
	 
	4526 US Highway 19
	 
	New Port Richey
	 
	FL
	 
	18,778
	 
	$940,000

	5329 - O'Fallon MO
	 
	311 S. Main
	 
	O'Fallon
	 
	MO
	 
	10,891
	 
	$490,000

	5330 - Westport (KC)
	 
	331 Westport Rd.
	 
	Kansas City
	 
	MO
	 
	18,648
	 
	$790,000

	5333 - Central Sq
	 
	20 Central Sq.
	 
	Keene
	 
	NH
	 
	20,610
	 
	$910,000

	5368 - Santa Fe
	 
	1235 St. Michael's
	 
	Santa Fe
	 
	NM
	 
	37,395
	 
	$0

	5339 - Bergenfield
	 
	35 South Washington
	 
	Bergenfield
	 
	NJ
	 
	13,141
	 
	$560,000

	5375 - Court St
	 
	268 Genesee/Court
	 
	Utica
	 
	NY
	 
	75,607
	 
	$4,550,000

	5379 - Grand Ave
	 
	2300 Grand Ave.
	 
	Baldwin
	 
	NY
	 
	11,694
	 
	$540,000

	5385 - Malverne
	 
	269 Hempstead Ave.
	 
	Malverne
	 
	NY
	 
	11,062
	 
	$340,000

	5389 - Niagara Falls
	 
	418 Third St
	 
	Niagara Falls
	 
	NY
	 
	18,272
	 
	$440,000

	5402 - Enid
	 
	300 W. Randolf
	 
	Enid
	 
	OK
	 
	7,395
	 
	$280,000

	5422 - Clarksville Main
	 
	215 Legion St.
	 
	Clarksville
	 
	TN
	 
	21,008
	 
	$540,000

	5426 - Oak Ridge Main
	 
	795 Main St. West
	 
	Oak Ridge
	 
	TN
	 
	20,016
	 
	$770,000

	5437 - Uvalde
	 
	220 East Main St.
	 
	Uvalde
	 
	TX
	 
	12,484
	 
	$510,000

	5446 - Camas
	 
	528 N.E. 4th
	 
	Camas
	 
	WA
	 
	8,793
	 
	$380,000

	5468 - Shores Village
	 
	9499 NE 2nd Ave
	 
	Miami Shores
	 
	FL
	 
	18,311
	 
	$380,000

	5469 - S Lakeland/Lake Mirm
	 
	5001 South Florida
	 
	Lakeland
	 
	FL
	 
	9,969
	 
	$240,000