EXHIBIT 10.47



                            SECURED INSTALLMENT NOTE



$25,800,000.00                                              San Jose, California
                                                                   April 6, 2005

     FOR VALUE  RECEIVED,  the  undersigned,  MISSION WEST  PROPERTIES,  L.P., a
Delaware  limited  partnership  ("Borrower"),  as maker,  whose address is 10050
Bandley Drive,  Cupertino,  California  95014, does hereby promise to pay to the
order  of  ALLIANZ  LIFE  INSURANCE  COMPANY  OF  NORTH  AMERICA,   a  Minnesota
corporation ("Lender"), as payee, at its office c/o Allianz of America, Inc., 55
Greens Farms Road, P.O. Box 5160, Westport,  Connecticut 06881-5160,  Attn: Real
Estate  Department,  or such other place as Lender may designate in writing,  in
lawful money of the United  States of America,  the principal sum of TWENTY FIVE
MILLION EIGHT HUNDRED THOUSAND DOLLARS  ($25,800,000.00),  or so much thereof as
may be advanced,  together with interest thereon to accrue,  at the rate of five
and 56/100 percent (5.56%) per annum (the "Note Rate"), subject to adjustment as
herein provided.

          1. Payment.  Said  principal  sum, and interest as herein  provided to
     accrue on the unpaid principal, shall be paid as follows:

               (a) Interest only at the Note Rate from and including the date of
          this  Note  through  and  including  April 9,  2005,  shall be paid in
          advance on the date of this Note.

               (b) On each  "Payment  Date" to and  including  March  10,  2020,
          payments of principal and interest in the amount of $178,351.00  shall
          be due and payable.  "Payment Date" means the tenth (10th) day of each
          consecutive  calendar  month for the term of this Note  commencing May
          10, 2005. The payments due under this subparagraph (b) are each called
          a "Monthly Installment."

               (c) The entire  remaining  principal  amount,  together  with any
          accrued and unpaid  interest (the "Final  Installment"),  shall be due
          and payable in full on April 10, 2020 (the "Maturity Date").

               (d)  Interest  shall be computed on the basis of a three  hundred
          sixty (360) day year  consisting  of twelve (12) months of thirty (30)
          days each.

          2.  Application  of Payments.  All payments  shall be applied first to
     "Costs",  as defined  below,  and  interest  accrued  thereon;  then to the
     payment of escrows for taxes and insurance, if any; then to "Late Charges",
     as defined below, and interest accrued thereon, if any; then to accrued and
     unpaid  interest,  and the  remainder  to the  reduction  of the  principal
     balance outstanding from time to time. The term "Costs" shall mean any sums
     advanced by Lender as  provided  under the terms of the "Deed of Trust," as
     defined below, and as provided in Paragraph 9 of this Note.

          3. Late Charge.  If any payment of principal or interest,  or both, so
     provided  for  herein is not paid when due,  it would be  impracticable  or
     extremely  difficult  to fix the  actual  damages  resulting  therefrom  to
     Lender,  and,  therefore,  Borrower  hereby  agrees to pay to Lender a late
     charge of FIVE CENTS ($.05) for each ONE DOLLAR ($1.00) so overdue,  not as
     a penalty,  but for the  purpose of  defraying  the  expenses  incident  to
     handling  such  delinquent  payment  (a "Late  Charge").  Such Late  Charge
     represents the reasonable  estimate of a fair average  compensation for the
     loss that may be sustained by Lender due to the failure of Borrower to make
     timely  payments.  Such Late Charge (i) shall be paid without  prejudice to
     the right of Lender to collect any other amounts  provided to be paid or to
     declare a default  under  this  Note or the Deed of  Trust,  (ii)  shall be
     payable not later than the due date of the next payment, and (iii) shall be
     secured by the "Security Documents",  as defined below. In addition, during
     the  period of the  occurrence  of an "Event of  Default"  (as  defined  in
     Article IV of the Deed of Trust),  the entire unpaid principal of this Note
     shall accrue  interest at the Note Rate,  increased  by FIVE HUNDRED  (500)
     BASIS POINTS (the "Default Rate").

                                                              Initials: /s/  CEB
                                                                       ---------

          4. Prepayment. (a) Subject to Paragraph 4(e), this Note may be prepaid
     in  full  at  any  time  subject  to  a  prepayment  premium  that  may  be
     substantial.  Such premium  represents  consideration to Lender for loss of
     yield and reinvestment  cost. The prepayment premium shall be determined by
     Lender  and shall be equal to the  greater  of (i) the  prepayment  premium
     calculated in the manner  described  below,  or (ii) zero.  The  prepayment
     premium  shall be an amount  equal to the excess,  if any,

<PAGE>

     between (x) the present  value at the time of  prepayment  of the remaining
     scheduled  Monthly  Installments  and  the  present  value  at the  time of
     prepayment of the Final Installment,  both discounted on a monthly basis at
     the "Index Rate," as defined below, and (y) the unpaid principal balance of
     this Note at the time of  prepayment.  The  "Index  Rate" is defined as the
     current yield at the time of prepayment of the Treasury  Constant  Maturity
     (the "TCM")  referenced in the weekly Federal Reserve  Statistical  Release
     H-15 (519) for the week  immediately  preceding  the date on which  written
     request for  prepayment is received by Lender for the maturity most closely
     corresponding  to the remaining  loan term as  appropriately  interpolated,
     increased by TWENTY-FIVE (25) BASIS POINTS.

          (b) If the TCM ceases to be published  during the loan term, the Index
     Rate  shall be the  average of the yield,  for the five (5)  business  days
     preceding  the date of  prepayment of this Note, of the US Treasury Note or
     Bond having a  remaining  term to  maturity  and coupon  rate most  closely
     corresponding  to the remaining  term to maturity and interest rate of this
     Note. The Index Rate will apply for any prepayment  made within thirty (30)
     days after such  request is received  by Lender,  after which a more recent
     Index Rate may be used at the sole discretion of Lender.

          (c) The prepayment premium is to compensate Lender, and its successors
     and  assigns,  for the  loss of  interest  it would  otherwise  earn on the
     principal hereof, if such principal were allowed to remain outstanding, and
     for the cost  incurred in  connection  with  reinvestment  of  principal so
     prepaid, at an earlier date than the Maturity Date.

          (d) In the  event  of the  occurrence  of an  Event  of  Default,  and
     following  acceleration  of the  maturity of this Note,  any payment of the
     amount  necessary  to satisfy  this Note shall be deemed to be a  voluntary
     prepayment of this Note and shall be accompanied by the prepayment premium.

          (e) To the extent  permitted by law, said prepayment  premium shall be
     payable  regardless  of whether the loan  evidenced by this Note is prepaid
     voluntarily or involuntarily;  provided,  however, that no premium shall be
     payable on prepayments by application of the proceeds of any proceedings in
     eminent  domain,  or  proceedings  in lieu thereof,  by  application of the
     proceeds of fire or other  casualty  insurance,  or by operation of Section
     1.6 of the Deed of Trust; and provided,  further,  that no premium shall be
     payable on a prepayment made during the ninety (90) days immediately  prior
     to the Maturity Date.

          (f)  Borrower  hereby  waives all rights under  California  Civil Code
     Section 2954.10 which provides, in part, as follows:

     AN OBLIGEE WHICH ACCELERATES THE MATURITY DATE OF THE PRINCIPAL AND ACCRUED
     INTEREST,  PURSUANT TO CONTRACT,  ON ANY LOAN SECURED BY A MORTGAGE OR DEED
     OF TRUST ON REAL  PROPERTY  UPON THE  CONVEYANCE  OF ANY RIGHT,  TITLE,  OR
     INTEREST IN THAT  PROPERTY,  MAY NOT CLAIM,  EXACT,  OR COLLECT ANY CHARGE,
     FEE, OR PENALTY FOR ANY PREPAYMENT RESULTING FROM THAT ACCELERATION.

     Borrower understands and acknowledges that Lender bargained for this waiver
     as part of the  consideration  which  induced  Lender  to enter  into  this
     transaction.  Borrower  initials this  subparagraph  (f) for the purpose of
     evidencing its  understanding of Civil Code Section 2954.10 recited in part
     above and Borrower's agreement to the waiver of its terms.

                                                              Initials: /s/  CEB
                                                                       ---------

          5.  Security;  Deed of Trust.  (a) This Note is  secured  by a Deed of
     Trust, Security Agreement, Fixture Filing with Absolute Assignment of Rents
     (the "Deed of Trust"), an Absolute  Assignment of Leases,  Rents and Income
     (the  "Assignment"),  each  of  even  date  herewith,  encumbering  certain
     improved real and personal  property located in the City of San Jose, Santa
     Clara  County,  California,  and  described  in  the  Deed  of  Trust  (the
     "Property"),  and any  other  instruments,  now or  hereafter  executed  by
     Borrower  in favor of Lender,  which  evidence,  or  constitute  additional
     security for, this Note (as used herein the term "Security Documents" mean,
     collectively,  the Deed of Trust, the Assignment, and all other instruments
     evidencing or securing this Note).  Reference to the Security  Documents is
     made for all particulars including,  without limitation,  the obligation of
     Borrower to pay monthly the "Reserves" described in Section 1.2 of the Deed
     of Trust.

          (b) This Note is given for an actual  loan in the  original  principal
     amount of this Note and is the Note  referred to in and secured by the Deed
     of Trust. All of the agreements,  conditions and covenants contained in the
     Deed of Trust which are to be kept and  performed  by  Borrower  are hereby
     made a part of this  Note to the same  extent  and with the same  force and
     effect as if they were fully set forth herein,  and Borrower  covenants and
     agrees to keep and  perform  them,  or cause them to be kept and  performed
     strictly in accordance with their terms.

          6. Transfer.  (a) Except as otherwise  specifically provided herein or
     in the Deed of Trust,  Borrower and all  endorsers,  guarantors,  sureties,
     accommodation  parties  hereof  and all other  persons  liable or to become
     liable for all or any part of this indebtedness  agree that if the Property
     or any part  thereof or interest  therein is sold,  assigned,  transferred,
     conveyed,  encumbered,  hypothecated,  mortgaged or otherwise  alienated by
     Borrower  (excepting  leases  in the  ordinary  course of  managing

<PAGE>

     income  property,  transfers  of personal  property  authorized  herein and
     purchase   money   encumbrances   of   personalty)   whether   voluntarily,
     involuntarily  or by operation of law, without the prior written consent of
     Lender,  then Lender,  at its option,  may declare the Note to be forthwith
     due and payable.

          (b) In the event of a  transfer  of title  without  the prior  written
     approval of Lender,  Lender may,  without  notice to  Borrower,  waive such
     default  and deal with such  successor  or  successors  in  interest in the
     Property in the same manner as with Borrower, without in any way releasing,
     discharging  or  otherwise   affecting  the  liability  of  Borrower,   the
     endorsers, guarantors, sureties, accommodation parties hereof and all other
     persons   liable  or  to  become  liable  for  all  or  any  part  of  this
     indebtedness.  No sale  of the  Property,  no  forbearance  on the  part of
     Lender, no extension of the time for the payment of the indebtedness or any
     change in the terms of this Note or the Security Documents  consented to by
     Lender  and  Borrower  shall  in any way  whatsoever  operate  to  release,
     discharge,  modify, change or affect the original liability of Borrower and
     all such  persons  liable or to become  liable  for all or any part of this
     indebtedness, either in whole or in part.

          (c) Borrower shall not  voluntarily,  involuntarily or by operation of
     law  sell,  assign,   transfer  or  otherwise  dispose  of  the  collateral
     identified in the Security  Documents  (the  "Collateral")  or any interest
     therein and shall not  otherwise do or permit  anything to be done or occur
     that may impair the  Collateral  as security  under the Security  Documents
     except so long as no events of default exist under the Security  Documents,
     Borrower shall be permitted to sell or otherwise  dispose of the Collateral
     when  inadequate,  unserviceable or unnecessary for use in the operation of
     the Property or in the conduct of the business of Borrower,  upon replacing
     the same or  substituting  for the same other  Collateral at least equal in
     value to the initial value of that disposed of and in such a manner so that
     said Collateral  shall be subject to the security  interest  created by the
     Security Documents and so that the security interest of Lender shall be the
     first  priority  security  interest  in said  Collateral.  In the event the
     Collateral  is sold in connection  with the sale of the Property,  Borrower
     shall  require,  as a condition  of the sale,  that the buyer  specifically
     agree to assume (preserving the exculpation provisions appearing at the end
     of this Note) Borrower's obligations as to the security interest granted by
     the Security  Documents and to execute whatever  agreements and filings are
     deemed necessary by Lender to maintain its perfected  security  interest in
     the Collateral.

          7. Default;  Remedies. (a) Should an "Event of Default" (as defined in
     Article IV of the Deed of Trust) occur,  then, or at any time thereafter in
     the  manner   authorized  by  law,  the  entire  principal  of  this  Note,
     irrespective of the Maturity Date specified herein,  together with the then
     accrued  interest  thereon  shall,  at the election of Lender  hereof,  and
     without  notice  (except  as  required  by law) of  such  election,  become
     immediately due and payable.

          (b) The rights or remedies of Lender, as provided in this Note and the
     Security Documents,  shall be cumulative and concurrent, and may be pursued
     singly, successively or together against the property described in the Deed
     of Trust, and any other funds,  property or security held by Lender for the
     payment hereof,  at the sole discretion of Lender.  The failure to exercise
     any such  right or  remedy  shall in no event be  construed  as a waiver or
     release of said rights or remedies or of the right to exercise  them at any
     later time.

          8. Waiver of Notice. All Borrowers, endorsers,  guarantors,  sureties,
     accommodation  parties  hereof  and all other  persons  liable or to become
     liable for all or any part of this  indebtedness,  without  affecting their
     liability,  waive  diligence,  presentment,  protest and  demand,  and also
     notice of protest,  of demand, of nonpayment,  of dishonor and of maturity,
     and all other  notices of every  kind,  other than any notice  specifically
     required  hereby,  by the Deed of Trust or other  Security  Documents,  and
     hereby consent to any extension of the time of payment hereof,  any and all
     renewals, extensions or modifications, with the consent of Borrower, of the
     terms hereof,  any release of all or any part of the security given for the
     payment hereof, any acceptance of additional  security of any kind, and any
     release  of or resort to any party  liable  for  payment  hereof.  Any such
     renewals,  extensions or modifications may be made without notice to any of
     said parties, and without discharging said party's liability hereunder.

          9.  Costs.   Borrower  and  all   endorsers,   guarantors,   sureties,
     accommodation  parties  hereof  and all other  persons  liable or to become
     liable  for  all or  any  part  of  this  indebtedness  agree  to  pay  all
     out-of-pocket costs of collection, including attorneys' fees, and all costs
     of suit in the event the unpaid  principal  sum of this Note or any payment
     of interest or principal and interest thereon,  is not paid when due, or in
     the event it becomes necessary to protect the security for the indebtedness
     evidenced  hereby, or for the foreclosure by Lender of the Deed of Trust or
     other  Security  Documents,  or in the event  Lender  is made  party to any
     litigation solely because of the existence of the indebtedness evidenced by
     this Note, or solely because of the existence of the Deed of Trust or other
     Security  Documents,  whether suit be brought or not,  and whether  through
     courts  of  original  jurisdiction,  as  well  as in  courts  of  appellate
     jurisdiction, or through a bankruptcy court or other legal proceedings.

          10. Amendment.  This Note may not be amended, modified or changed, nor
     shall any waiver of any provision  hereof be  effective,  except only by an
     instrument in writing  signed by the party against whom  enforcement of any
     waiver, amendment, change, modification or discharge is sought.

<PAGE>

          11.  Notices.  Any notice  required or  permitted  hereunder  shall be
     deemed sufficient if given in accordance with the provisions of the Deed of
     Trust.

          12. No Waiver by Lender; Remedies Cumulative.  (a) Lender shall not be
     deemed,  by any act of  omission or  commission,  to have waived any of its
     rights or remedies hereunder unless such waiver is in writing and signed by
     Lender, and then only to the extent  specifically set forth in the writing.
     A waiver with  reference to one event shall not be construed as  continuing
     or as a bar to or waiver of any right or remedy as to a subsequent event.

          (b) The  remedies  of Lender as  provided  herein and in the  Security
     Documents shall be cumulative and concurrent and may be pursued singularly,
     successively  or  together,  at the sole  discretion  of Lender  and may be
     exercised as often as occasion  therefor  shall  occur;  and the failure to
     exercise  any such  right or  remedy  shall in no event be  construed  as a
     waiver or release thereof.

          13. Limitation on Charges.  Notwithstanding any provisions in the Note
     or in the Deed of Trust to the contrary,  the total  liability for payments
     in the  nature of  interest,  including,  but not  limited  to,  prepayment
     premiums,  default  interest  and late fees  shall not  exceed  the  limits
     imposed  by the laws of the State of  California  or the  United  States of
     America relating to maximum allowable  charges of interest,  if applicable.
     Lender shall not be entitled to receive,  collect or apply,  as interest on
     the  indebtedness  evidenced  by this  Note,  any  amount  in excess of the
     maximum  lawful rate of interest  permitted to be charged by such laws,  if
     applicable.  In the event  Lender  ever  receives,  collects  or applies as
     interest  any such excess,  such amount  which would be excessive  interest
     shall be applied to reduce the unpaid principal balance of the indebtedness
     evidenced  by  this  Note.  If  the  unpaid   principal   balance  of  such
     indebtedness is paid in full, any remaining  excess shall be forthwith paid
     to Borrower.

          14. Governing Law. This Note is to be construed in accordance with the
     laws of the State of California.  In case any one or more of the provisions
     of this Note shall,  for any reason,  be held to be  invalid,  illegal,  or
     unenforceable   in   any   respect,   such   invalidity,   illegality,   or
     unenforceability  shall not affect any other  provisions of this Note,  and
     this Note shall be construed as if such invalid,  illegal, or unenforceable
     provision  had  never  been  contained  herein.  If any  one or more of the
     provisions  contained  in this  Note  shall  for any  reason  be held to be
     excessive as to amount, time, duration,  scope,  activity, or subject, such
     provisions shall be construed by limiting and reducing the provisions so as
     to make such provisions  enforceable to the extent compatible with the then
     existing applicable law.

          15. Limited  Liability.  (a) The liability of Borrower with respect to
     the payment of principal,  interest and Costs hereunder and with respect to
     performance  by Borrower of  Borrower's  obligations  and any and all other
     liability hereunder,  under the Deed of Trust, and under the other Security
     Documents,  shall be "non-recourse"  and,  accordingly,  Lender's source of
     satisfaction  of  said   indebtedness  and  Borrower's  other   obligations
     hereunder and under the other  Security  Documents  shall be limited to the
     Property  and the rents,  issues,  and profits from the Property and Lender
     shall not seek to procure  payment out of any other assets of Borrower,  or
     any person or entity comprising Borrower, nor to seek judgment for any sums
     which  are or may be  payable  under  this  Note or under  any of the other
     Security  Documents,  as well as any claim or judgment (except as hereafter
     provided) for any  deficiency  remaining  after  foreclosure of the Deed of
     Trust.  Notwithstanding the above, nothing herein contained shall be deemed
     to be a release or impairment of the indebtedness evidenced by this Note or
     the security therefor intended by the Security  Documents,  or be deemed to
     preclude  Lender from  exercising its rights to foreclose the Deed of Trust
     or to  enforce  any of its other  rights  or  remedies  under the  Security
     Documents, subject to the provisions of this Paragraph 15.

          (b)  Notwithstanding  the  foregoing,  it is expressly  understood and
     agreed that the aforesaid limitation on liability shall in no way affect or
     apply to Borrower's continued personal liability for, and Lender's right to
     recover  (including the right to recover out of pocket costs and attorneys'
     fees, including the costs of paralegals) the following:

               (1) The  retention by Borrower of any rental income or other cash
          collected arising with respect to the Property, which was collected by
          Borrower  after an Event of  Default  has  occurred  under the Deed of
          Trust and while such Event of Default was or is continuing;

               (2) The  retention  by  Borrower of any  prepaid  rental  income,
          deposit, or other prepaid income under any lease of all or part of the
          Property  which  was  unearned  as of the  occurrence  of the Event of
          Default under the Deed of Trust;

               (3) The  replacement  cost of any  Property,  including  personal
          property  or fixtures  owned by  Borrower,  encumbered  by the Deed of
          Trust which is  damaged,  destroyed,  removed,  or disposed of and not
          repaired, rebuilt or replaced as required by the Deed of Trust, to the
          extent  that  the  replacement  cost  of  such  Property  exceeds  the
          insurance  proceeds (if any)  received by Borrower  and/or Lender as a
          result of such events;

               (4)  The  misapplication  of  any  proceeds,  to  the  extent  of
          misapplied  proceeds,  under any insurance policies  pertaining to the
          Property or awards resulting from  condemnation or the exercise of the
          power of eminent  domain or by reason of damage or  destruction to any
          portion of the Property or any building or buildings located thereon;

<PAGE>

               (5)  Any  unpaid  real  estate  taxes,  utilities,   assessments,
          insurance  premiums and any other  expenses  (excluding  principal and
          interest  payments under the Loan) relating to the Property which were
          received by Borrower  or which  accrued  prior to the date that Lender
          acquired  ownership of the  Property,  less a credit for any unapplied
          Reserves;

               (6)  Damages  and losses  suffered  or  incurred by Lender as the
          result of bad faith,  waste,  fraud or material  misrepresentation  by
          Borrower under the Security  Documents or Borrower's loan application,
          or arising from  Borrower's  bankruptcy,  or arising  from  Borrower's
          default or liability under any leases of the Property in effect during
          the period of Borrower's  ownership of the  Property,  or arising from
          the  termination  of any such  leases  as a  result  of a  default  by
          Borrower  as lessor  thereunder,  or as the  result of any  prohibited
          transfer of title to the Property or  ownership  interest in Borrower;
          and

               (7) All  indemnification  obligations  by  Borrower  in  favor of
          Lender  under  the  Environmental  Indemnity  Agreement  of even  date
          herewith  given to Lender by  Borrower  and Mission  West  Properties,
          Inc., a Maryland corporation ("Principal of Borrower").

          (c)  Notwithstanding  the  foregoing,  the  agreement of Lender not to
     pursue recourse  liability against Borrower as set forth in Paragraph 15(a)
     above  SHALL  BECOME  NULL  AND VOID and  shall be of no  further  force or
     effect, and the indebtedness of Borrower under this Note and all other sums
     due from Borrower to Lender under the Loan shall  immediately  become FULLY
     RECOURSE to Borrower and to  Principal of Borrower and any other  guarantor
     of the Loan, jointly and severally, in the event of:

               (1) A default by Borrower or any member of Borrower of any of the
          prohibitions of Section 1.11 of the Deed of Trust; or

               (2) A voluntary bankruptcy or insolvency  proceeding is commenced
          by Borrower under the U.S.  Bankruptcy  Code or any similar federal or
          state law; or

               (3)  An  involuntary   bankruptcy  or  insolvency  proceeding  is
          commenced  against  Borrower or Principal  of Borrower  (other than by
          Lender) and such action or proceeding  is not dismissed  within ninety
          (90) days after the date of filing hereof.

          (d) Nothing  herein shall be deemed a waiver of any right which Lender
     may have  under any  provision  of the U.S.  Bankruptcy  Code (i) to file a
     claim for the full amount of the  indebtedness  of Borrower to Lender under
     this Note or the Security Documents, or (ii) to require that all collateral
     encumbered by the Deed of Trust shall  continue to secure all  indebtedness
     of Borrower under this Note and the Security  Documents in accordance  with
     the terms thereof.

          16.  Broker.  This Note is made in connection  with a loan arranged by
     Northmarq Capital, San Francisco, California, a licensed real estate broker
     under the Laws of California.

          17.  Successors.  Whenever  used  herein,  the  singular  number shall
     include the plural,  the plural the singular,  and the words "Borrower" and
     "Lender" shall be deemed to include their successors and assigns.

          18.  Receipt of Documents.  By signing  below,  Borrower  acknowledges
     receiving  a copy of this  Note and  acknowledges  receiving  a copy of all
     documents signed by Borrower in connection with this Note.




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<PAGE>


     IN WITNESS  WHEREOF,  Borrower has executed  this Note as of the date first
above written.

                             MISSION WEST PROPERTIES, L.P.,
                             a Delaware limited partnership

                             By: Mission West Properties, Inc.,
                                 a Maryland corporation, General Partner


                                 By: /s/ Carl E. Berg
                                    --------------------------------------------
                                    Carl E. Berg, Chief Executive Officer