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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
 FORM 10-K
 FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO SECTIONS 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
  þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2007
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
 For the transition period from            to
 Commission File Number 0-50268
 THE LEXINGTON MASTER LIMITED PARTNERSHIP
 (Exact name of Registrant as specified in its charter)
 Delaware
    
    11-3636084(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)One Penn Plaza, Suite 4015,New York, New York
    
    10119(Address of principal executive offices)
    
    (Zip Code)
 (Registrants telephone number, including area code) (212) 692-7200
 Securities registered pursuant to Section 12(b) of the Act: None
 Securities registered pursuant to Section 12(g) of the Act: Units of Limited Partnership Interest
 o þ
 o þ
 þ o
 o
  o o þ o
 o þ
  DOCUMENTS INCORPORATED BY REFERENCE




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##### 



TABLE OF CONTENTS
  
 Item ofForm 10-K
    
    PagePART I1. Business
    
    
    31A. Risk Factors
    
    
    91B. Unresolved Staff Comments
    
    
    192. Properties
    
    
    193. Legal Proceedings
    
    
    244. Submission of Matters to a Vote of Security Holders
    
    
    24PART II5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
    
    
    256. Selected Financial Data
    
    
    257. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    267A. Quantitative and Qualitative Disclosures about Market Risk
    
    
    438. Financial Statements and Supplemental Data
    
    
    449. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    449A(T). Controls and Procedures
    
    
    449B. Other Information
    
    
    45PART III10. Director, Executive Officers and Corporate Governance
    
    
    4511. Executive Compensation
    
    
    4512. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    
    
    4513. Certain Relationships and Related Transactions, and Director Independence
    
    
    4514. Principal Accountant Fees and Services
    
    
    45PART IV15. Exhibits and Financial Statement Schedules
    
    
    45(a) Financial Statements and Financial Statement Schedules
    
    
    45(b) Exhibits
    
    
    46Signatures
    
    
    47Schedule III  Real Estate and Accumulated Depreciation
    
    
    79Exhibit Index
    
    
    85EX-21: SUBSIDIARIESEX-31.1: CERTIFICATIONEX-31.2: CERTIFICATIONEX-32.1: CERTIFICATIONEX-32.2: CERTIFICATION
  2




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PART I
 Introduction
   Cautionary Statements Concerning Forward-Looking Statements
  
 Item 1. Business
 Overview
   Our History
  3




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Our Objectives and Strategies
   
    
    a wholly-owned portfolio of core office assets;
    
    a wholly-owned portfolio of core warehouse/distribution assets;
    
    a continuing 50% interest in a co-investment program that invests in senior and
subordinated debt interests secured by both net leased and multi-tenanted real estate
collateral;
    
    a minority interest in a co-investment program that invests in specialty single tenant
real estate assets; and
    
    equity securities in other net lease companies owned either individually or through an
interest in one or more joint ventures or co-investment programs.
  
    
    acquired substantially all of the outstanding interests in Lexington Acquiport Company,
LLC, one of Lexingtons co-investment programs, which resulted in us becoming the sole owner of
the co-investment programs ten primarily single-tenant net leased properties;
    
    acquired substantially all of the remaining interests in Lexington/Lion Venture L.P.,
one of Lexingtons co-investment programs, and thus acquired six primarily single-tenant net
leased properties owned by the co-investment program;
    
    formed a co-investment program, Net Lease Strategic Assets Fund L.P., which we refer to
as NLS, with a subsidiary of Inland American Real Estate Trust, Inc., which acquired 12 assets
previously owned by us and 18 properties formerly owned by Lexington and which is under contract
to acquire an additional two properties from us and 11 properties from Lexington and may invest
in additional core plus net leased assets, such as manufacturing assets, call centers and
other specialty assets; and
    
    sold non-core properties.
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We and Lexington can provide no assurances that we will dispose of any remaining assets under
Lexingtons disposition program or complete the
sale/contribution of the remaining 13 assets
currently under contract for sale/contribution or acquire any additional assets through NLS.
  Acquisition Strategies
  Strategic Transactions with Other Real Estate Investment Companies.
 Acquisitions of Portfolio and Individual Net Lease Properties.
 Debt Investments.
 Our Assets
 General
   2007 RentalNumber of
    
    Square Footage
    
    Revenues
    
    Percentage of 2007Tenant(1)
    
    Properties
    
    (in thousands)
    
    (in thousands)
    
    Rental RevenueRaytheon Company(2)
    
    
    6
    
    
    
    2,298
    
    
    $
    32,891
    
    
    
    15.56
    %St. Paul Fire and Marine Insurance Co.(3)
    
    
    1
    
    
    
    530
    
    
    $
    25,532
    
    
    
    12.08
    %
 5




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(1)
    
    The listed company is either the tenant, the obligor or guarantor with respect to the lease or the
successor-in-interest to the initial tenant.(2)
    
    Three of these properties were sold on March 13, 2008
representing 1,328 square feet and $12,518 of
our 2007 rental revenues.(3)
    
    The tenant has publicly announced that they will vacate the building at the end of the current lease term in 2009.  
    
    interests in first and second mortgage loans and unsecured debt;
    
    a 50.0% ownership interest in Concord, an entity formed to acquire and originate loans
secured directly or indirectly by real property;
    
    equity interests in various entities (including REITs) that own net leased assets; and
    
    majority ownership of a management company that provides asset management services to our
subsidiaries.
 Loan Receivables
 T-Two Loans
  El Segundo Mortgage Loan
  Lexington Loan
  Investment in Debt Securities
   Class E
    
    Class F
    
    Class GCertificate
    
    Certificate
    
    CertificateContractual Principal Amount at December 31, 2007
    
    $
    4,824
    
    
    $
    3,859
    
    
    $
    5,794Interest Rate
    
    
    8.25
    %
    
    
    8.25
    %
    
    
    8.25
    %
 6




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Concord Debt Holdings LLC (Concord) .
 Net Lease Strategic Assets Fund L.P. (NLS) .
     Accordingly, neither we, Lexington nor NLS can provide any assurance that the
acquisition of these 13 assets by NLS will be completed.
 Lex-Win Acquisition LLC (Lex-Win)
 The Management Company
  7




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Internal Growth; Effectively Managing Assets
 Tenant Relations and Lease Compliance.
 Extending Lease Maturities.
 Revenue Enhancing Property Expansions.
 Property Sales.
 Access to Capital and Refinancing Existing Indebtedness
    Advisory Contracts
  Employees
   8




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Competition
  Environmental Regulations
   Segment Data
  Additional Information About Us
  
    
    Lexingtons and our annual reports on Form 10-K and all amendments thereto;
    
    Lexingtons and our quarterly reports on Form 10-Q and all amendments thereto;
    
    Lexingtons and our current reports on Form 8-K and all amendments thereto; and
    
    various other filings that we or Lexington make with the SEC.
   
 Item 1A. Risk Factors
 Set forth below are material factors that may adversely affect our business and operations.
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We are subject to risks involved in single tenant leases.
  We rely on revenues derived from major tenants.
  We could become more highly leveraged, resulting in increased risk of default on our obligations
and in an increase in debt service requirements which could adversely affect our financial
condition and results of operations and our ability to pay distributions.
  Market interest rates could have an adverse effect on our borrowing costs and net income.
  Recent disruptions in the financial markets could affect our ability to obtain debt financing on
reasonable terms and have other adverse effects on us.
  We face risks associated with refinancing.
  10




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Year
    
    Balloon Payments2008
    
    $    0.7 million;2009
    
    $237.4 million;2010
    
    $  61.6 million;2011
    
    $  46.7 million;2012
    
    $518.9 million
   We face uncertainties relating to lease renewals and re-letting of space.
  Certain of our properties are cross-collateralized.
  We face possible liability relating to environmental matters.
    11




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
    
    the discovery of previously unknown environmental conditions;
    
    changes in law;
    
    activities of tenants; or
    
    activities relating to properties in the vicinity of our properties.
  Uninsured losses or a loss in excess of insured limits could adversely affect our financial
condition.
     Competition may adversely affect our ability to purchase properties.
  Our failure to maintain effective internal controls could have a material adverse effect on our
business and operating results.
  12




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================================================================================

We may have limited control over our co-investment programs and joint venture investments.
    Investments by our co-investment programs may conflict with our ability to make attractive
investments.
  Certain of Lexingtons trustees and officers may face conflicts of interest with respect to sales
and refinancings.
  Our ability to change our portfolio is limited because real estate investments are illiquid.
  Lexington may not be able to successfully implement and complete the strategic restructuring
plan .
  13




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Our inability to carry out our growth strategy could adversely affect our financial condition and
results of operations.
    Concentration of ownership by certain investors.
  We are dependent upon Lexington and its personnel and the terms of Mr. Ashners employment
agreement with Lexington affects our ability to make certain investments.
    Distribution requirements imposed by law limit our flexibility.
  Lexingtons Declaration of Trust and applicable law may hinder any attempt to acquire it and,
because it is the sole owner of our general partner, us.
 Limitations imposed to protect Lexingtons REIT status.
    Severance payments under employment agreements.
 Limitation due to Lexingtons ability to issue preferred shares.
 Limitation imposed by the Maryland Business Combination Act.
  Maryland Control Share Acquisition Act.
 Risks Specific to Our Investment in Concord
  14




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Concord invests in subordinate mortgage-backed securities which are subject to a greater risk of
loss than senior securities. Concord may hold the most junior class of mortgage-backed securities
which are subject to the first risk of loss if any losses are realized on the underlying mortgage
loans.
   Concords warehouse facilities and its CDO financing agreements may limit its ability to make
investments.
  The repurchase agreements that Concord uses to finance its investments may require it to provide
additional collateral.
  Concords future investment grade CDOs, if any, will be collateralized with loan assets and debt
securities that are similar to those collateralizing its existing investment grade CDO, and any
adverse market trends are likely to adversely affect the issuance of future CDOs as well as
Concords CDOs in general.
  Credit ratings assigned to Concords investments are subject to ongoing evaluations and we cannot
assure you that the ratings currently assigned to Concords investments will not be downgraded.
  15




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The use of CDO financings with coverage tests may have a negative impact on Concords operating
results and cash flows.
   If credit spreads widen, the value of Concords assets may suffer.
    Prepayments can increase, adversely affecting yields on Concords investments.
  Concord may not be able to issue CDO securities, which may require Concord to seek more costly
financing for its real estate loan assets or to liquidate assets.
  16




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The recent capital market crisis has made financings through CDOs difficult.
  The lack of a CDO market may require us to make a larger equity investment in Concord.
  Concord may not be able to access financing sources on favorable terms, or at all, which could
adversely affect its ability to execute its business plan and its ability to make distributions.
  Concord may make investments in assets with lower credit quality, which will increase our risk of
losses.
  17




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18




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Item 1B. Unresolved Staff Comments
  
 Item 2. Properties
    19




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ApproximateLeaseable
    
    
    
    CurrentBuilding
    
    
    
    Term Lease
    
    PrecentState
    
    City
    
    Sq. Ft.
    
    Principal Tenant(14)
    
    Expiration*
    
    LeasedOFFICE:AR
    
    Little Rock
    
    36,311
    
    Entergy Arkansas, Inc.
    
    
    10/31/2010
    
    
    100%CA
    
    El Segundo(3)(12)
    
    184,636
    
    Raytheon Company
    
    
    12/31/2018
    
    
    100%CA
    
    El Segundo(3)(12)
    
    184,636
    
    Raytheon Company/Direct TV, Inc.
    
    
    12/31/2013
    
    
    100%CA
    
    El Segundo(3)(12)
    
    959,000
    
    Raytheon Company
    
    
    12/31/2018
    
    
    100%CA
    
    Irvine(4)
    
    136,180
    
    Assoc. First Capital Corp.
    
    
    9/8/2008
    
    
    100%CA
    
    Long Beach(1)(2)
    
    490,054
    
    Raytheon Company
    
    
    12/31/2008
    
    
    100%CA
    
    Brea
    
    637,503
    
    Bank of America NT &SA
    
    
    6/30/2012
    
    
    100%CA
    
    Pleasanton(1)(9)
    
    40,914
    
    NK Leasehold(10)
    
    
    11/30/2009
    
    
    100%CA
    
    San Francisco (9)
    
    169,846
    
    Multi-tenant
    
    
    Various
    
    
    92%CA
    
    Walnut Creek(1)
    
    54,528
    
    Vacant
    
    
    None
    
    
    0%CO
    
    Colorado Springs
    
    61,690
    
    Federal Express Corporation
    
    
    4/30/2009
    
    
    100%CO
    
    Colorado Springs
    
    166,575
    
    Honeywell International Inc.
    
    
    11/30/2013
    
    
    100%CT
    
    Clinton(1)(5)
    
    41,188
    
    Unilever Supply Chain Inc.
    
    
    12/19/2008
    
    
    100%(Unilever United States, Inc.)FL
    
    Orlando
    
    355,840
    
    Harcourt Brace & Company
    
    
    3/31/2009
    
    
    100%(Reed Elsevier, Inc.)FL
    
    Orlando(1)
    
    184,000
    
    Honeywell, Inc.
    
    
    5/1/2013
    
    
    100%FL
    
    Lake Mary
    
    125,155
    
    JP Morgan Chase Bank
    
    
    9/30/2009
    
    
    100%FL
    
    Lake Mary
    
    125,920
    
    JP Morgan Chase Bank
    
    
    9/30/2009
    
    
    100%IL
    
    Lisle
    
    99,329
    
    National Louis University
    
    
    12/31/2019
    
    
    100%IL
    
    Chicago
    
    227,569
    
    FCB Worldwide (Interpublic Group of Companies)
    
    
    3/15/2014
    
    
    100%IN
    
    Columbus(1)
    
    390,100
    
    Cummins Engine Company Inc.
    
    
    7/31/2019
    
    
    100%IN
    
    Fishers
    
    193,000
    
    Bank One Indiana N.A.
    
    
    10/31/2009
    
    
    100%MD
    
    Baltimore(1)
    
    530,000
    
    St. Paul Fire and Marine Insurance Co.
    
    
    9/30/2009
    
    
    100%MA
    
    Boston
    
    52,337
    
    Harvard VanGuard Medical Associates
    
    
    5/31/2012
    
    
    100%MO
    
    Bridgeton(1)
    
    52,994
    
    BJC Health System
    
    
    3/31/2013
    
    
    100%NC
    
    Cary
    
    124,944
    
    Lucent Technologies, Inc.
    
    
    9/30/2011
    
    
    100%NJ
    
    Bridgewater
    
    115,558
    
    Biovail Pharmaceutical, Inc.
    
    
    10/31/2014
    
    
    100%NJ
    
    Carteret
    
    149,100
    
    Pathmark Stores, Inc.
    
    
    12/31/2011
    
    
    100%NJ
    
    Elizabeth
    
    30,000
    
    Bank of America
    
    
    8/31/2013
    
    
    100%NJ
    
    Parsippany
    
    340,240
    
    Sanofi-aventis U.S., Inc.
    
    
    1/31/2010
    
    
    100%(Aventis, Inc. & Aventis Pharma Holding GmbH)NJ
    
    Plainsboro
    
    4,060
    
    Bank of America
    
    
    8/31/2013
    
    
    100%NJ
    
    Rockaway
    
    95,500
    
    BASF Corp.
    
    
    9/30/2014
    
    
    100%NV
    
    Las Vegas
    
    282,000
    
    Nevada Power Company
    
    
    1/31/2014
    
    
    100%NY
    
    Rochester
    
    226,000
    
    Frontier Corporation
    
    
    12/31/2014
    
    
    100%OH
    
    Milford
    
    221,215
    
    Siemens Product Lifestyle
    
    
    4/30/2011
    
    
    100%Management Software, Inc.OH
    
    Westerville
    
    97,000
    
    InVentiv Communications Inc.
    
    
    9/30/2015
    
    
    100%TN
    
    Johnson City
    
    63,800
    
    Sun Trust Bank
    
    
    11/30/2011
    
    
    100%TN
    
    Memphis
    
    521,286
    
    Federal Express Corporation
    
    
    6/19/2019
    
    
    100%TN
    
    Memphis(1)
    
    75,000
    
    The Kroger Co.
    
    
    7/1/2013
    
    
    100%TX
    
    Beaumont
    
    49,689
    
    Texas State Bank
    
    
    12/31/2012
    
    
    100%TX
    
    Beaumont(1)
    
    425,198
    
    Multi-tenant
    
    
    Various
    
    
    58%TX
    
    Bedford
    
    202,493
    
    Transamerica Life Insurance Co/Vacant
    
    
    4/30/2019
    
    
    29%TX
    
    Coppell
    
    101,844
    
    Brinks, Inc.
    
    
    4/30/2017
    
    
    100%TX
    
    Dallas
    
    173,855
    
    Multi-tenant
    
    
    Various
    
    
    62%TX
    
    Garland(7)
    
    278,759
    
    Raytheon Company
    
    
    5/31/2011
    
    
    100%TX
    
    Houston
    
    554,385
    
    Baker Hughes, Inc.
    
    
    9/27/2015
    
    
    100%TX
    
    Irving
    
    247,254
    
    TXU Energy Retail Company LLC
    
    
    3/31/2023
    
    
    100%(Texas Compentitive Electric Holdings Company, LLC)VA
    
    Glenn Allen
    
    67,508
    
    Multi-Tenanted
    
    
    Various
    
    
    94%VA
    
    Glenn Allen
    
    77,045
    
    Capital One Services, Inc
    
    
    3/31/2010
    
    
    100%VA
    
    Glenn Allen
    
    79,675
    
    Capital One Services, Inc
    
    
    2/10/2010
    
    
    100%VA
    
    Herndon
    
    125,293
    
    Equant, Inc. (Equant N.V.)
    
    
    4/30/2015
    
    
    100%WY
    
    Evanston
    
    29,500
    
    Multi-tenanted
    
    
    Various
    
    
    74%TOTAL OFFICE
    
    
    
    10,257,506
 20




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ApproximateLeaseable
    
    
    
    CurrentBuilding
    
    
    
    Term Lease
    
    PrecentState
    
    City
    
    Sq. Ft.
    
    Principal Tenant(14)
    
    Expiration*
    
    LeasedRETAIL:AL
    
    Florence(1)
    
    
    42,130
    
    
    The Kroger Co.
    
    
    7/1/2013
    
    
    100%AL
    
    Montgomery(1)
    
    
    60,698
    
    
    Vacant
    
    
    None
    
    
    0%AZ
    
    Bisbee(1)
    
    
    30,181
    
    
    Safeway Stores, Inc.
    
    
    3/31/2009
    
    
    100%AZ
    
    Tucson(1)
    
    
    37,268
    
    
    Safeway Stores, Inc.
    
    
    3/31/2009
    
    
    100%CA
    
    Mammoth Lakes(1)
    
    
    44,425
    
    
    Safeway Stores, Inc.
    
    
    5/31/2012
    
    
    100%CO
    
    Aurora(1)
    
    
    24,000
    
    
    Safeway Stores, Inc.
    
    
    5/31/2012
    
    
    100%CO
    
    Littleton
    
    
    29,360
    
    
    Vacant
    
    
    None
    
    
    0%FL
    
    Port Richey(1)
    
    
    53,820
    
    
    Kingswere Furniture
    
    
    11/30/2017
    
    
    100%FL
    
    Tallahassee(1)
    
    
    102,381
    
    
    Kohls Department Stores, Inc.
    
    
    1/31/2028
    
    
    100%GA
    
    Atlanta(1)
    
    
    6,260
    
    
    Bank of America
    
    
    12/31/2009
    
    
    100%GA
    
    Atlanta(1)
    
    
    3,900
    
    
    Bank of America
    
    
    12/31/2009
    
    
    100%GA
    
    Chamblee(1)
    
    
    4,565
    
    
    Bank of America
    
    
    12/31/2009
    
    
    100%GA
    
    Cumming(1)
    
    
    14,208
    
    
    Bank of America
    
    
    12/31/2009
    
    
    100%GA
    
    Duluth(1)
    
    
    9,300
    
    
    Bank of America
    
    
    12/31/2009
    
    
    100%GA
    
    Forest Park(1)
    
    
    14,859
    
    
    Bank of America
    
    
    12/31/2009
    
    
    100%GA
    
    Jonesboro(1)
    
    
    4,894
    
    
    Bank of America
    
    
    12/31/2009
    
    
    100%GA
    
    Stone Mountain(1)
    
    
    5,704
    
    
    Bank of America
    
    
    12/31/2009
    
    
    100%IL
    
    Rock Falls
    
    
    27,650
    
    
    Rock Falls Country Market
    
    
    9/30/2011
    
    
    100%IN
    
    Carmel(11)
    
    
    38,567
    
    
    Marsh Supermarkets, Inc.
    
    
    10/31/2013
    
    
    100%IN
    
    Lawrence
    
    
    28,721
    
    
    Marsh Supermarkets, Inc.
    
    
    10/31/2013
    
    
    100%LA
    
    Minden
    
    
    35,000
    
    
    Safeway Stores, Inc.
    
    
    11/30/2012
    
    
    100%MD
    
    Columbia(8)
    
    
    57,209
    
    
    GFS Realty, Inc.
    
    
    12/31/2008
    
    
    100%MT
    
    Billings(1)
    
    
    40,800
    
    
    Safeway Stores, Inc.
    
    
    5/31/2010
    
    
    100%NC
    
    Charlotte
    
    
    33,640
    
    
    Food Lion, Inc.
    
    
    10/31/2013
    
    
    100%NC
    
    Concord
    
    
    32,259
    
    
    Food Lion, Inc.
    
    
    10/31/2013
    
    
    100%NC
    
    Jacksonville
    
    
    23,000
    
    
    Food Lion, Inc.
    
    
    2/28/2013
    
    
    100%NC
    
    Jefferson(1)
    
    
    23,000
    
    
    Food Lion, Inc.
    
    
    2/28/2013
    
    
    100%NC
    
    Lexington
    
    
    23,000
    
    
    Food Lion, Inc.
    
    
    2/28/2013
    
    
    100%NC
    
    Thomasville
    
    
    21,000
    
    
    Food Lion, Inc.
    
    
    10/31/2008
    
    
    100%NJ
    
    Garwood
    
    
    52,000
    
    
    Pathmark Stores, Inc.
    
    
    5/31/2011
    
    
    100%NY
    
    Portchester(1)
    
    
    59,000
    
    
    Pathmark Stores, Inc.
    
    
    10/31/2013
    
    
    100%OH
    
    Franklin
    
    
    29,119
    
    
    Marsh Supermarkets, Inc.
    
    
    10/31/2013
    
    
    100%OK
    
    Lawton(1)
    
    
    30,757
    
    
    Safeway Stores, Inc.
    
    
    3/31/2009
    
    
    100%OR
    
    Grants Pass(1)
    
    
    33,770
    
    
    Safeway Stores, Inc.
    
    
    3/31/2009
    
    
    100%PA
    
    Doylestown(13)
    
    
    3,800
    
    
    Meritor Savings Bank
    
    
    8/31/2018
    
    
    100%(Mellon Bank/Citizens Bank)PA
    
    Lansdale(13)
    
    
    3,800
    
    
    Meritor Savings Bank
    
    
    8/31/2018
    
    
    100%(Mellon Bank/Citizens Bank)PA
    
    Lima(13)
    
    
    3,800
    
    
    Meritor Savings Bank
    
    
    8/31/2018
    
    
    100%(Mellon Bank/Citizens Bank)PA
    
    Philadelphia(13)
    
    
    3,800
    
    
    Meritor Savings Bank
    
    
    8/31/2018
    
    
    100%(Mellon Bank/Citizens Bank)PA
    
    Philadelphia(13)
    
    
    3,800
    
    
    Meritor Savings Bank
    
    
    8/31/2018
    
    
    100%(Mellon Bank/Citizens Bank)PA
    
    Philadelphia(13)
    
    
    3,800
    
    
    Meritor Savings Bank
    
    
    8/31/2018
    
    
    100%(Mellon Bank/Citizens Bank)PA
    
    Philadelphia(13)
    
    
    3,800
    
    
    Meritor Savings Bank
    
    
    8/31/2018
    
    
    100%(Mellon Bank/Citizens Bank)PA
    
    Philadelphia(13)
    
    
    3,800
    
    
    Meritor Savings Bank
    
    
    8/31/2018
    
    
    100%(Mellon Bank/Citizens Bank)PA
    
    Philadelphia(13)
    
    
    3,800
    
    
    Meritor Savings Bank
    
    
    8/31/2018
    
    
    100%(Mellon Bank/Citizens Bank)PA
    
    Philadelphia(13)
    
    
    3,800
    
    
    Meritor Savings Bank
    
    
    8/31/2018
    
    
    100%(Mellon Bank/Citizens Bank)
 21




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##### Table of Contents



ApproximateLeaseable
    
    
    
    CurrentBuilding
    
    
    
    Term Lease
    
    PrecentState
    
    City
    
    Sq. Ft.
    
    Principal Tenant(14)
    
    Expiration*
    
    LeasedRETAIL Continued:PA
    
    Philadelphia(13)
    
    
    3,800
    
    
    Meritor Savings Bank
    
    
    8/31/2018
    
    
    100%(Mellon Bank/Citizens Bank)PA
    
    Philadelphia
    
    
    50,000
    
    
    Pathmark Stores, Inc.
    
    
    11/30/2010
    
    
    100%PA
    
    Richboro(13)
    
    
    3,800
    
    
    Meritor Savings Bank
    
    
    8/31/2018
    
    
    100%(Mellon Bank/Citizens Bank)PA
    
    Wayne(13)
    
    
    3,800
    
    
    Meritor Savings Bank
    
    
    8/31/2018
    
    
    100%(Mellon Bank/Citizens Bank)SC
    
    Moncks Corner(1)
    
    
    23,000
    
    
    Food Lion, Inc.
    
    
    2/28/2013
    
    
    100%SC
    
    N.Myrtle Beach(1)
    
    
    43,021
    
    
    Food Lion, Inc.
    
    
    10/31/2008
    
    
    100%TN
    
    Chattanooga(1)
    
    
    42,130
    
    
    The Kroger Co.
    
    
    7/1/2008
    
    
    100%TN
    
    Paris(1)
    
    
    31,170
    
    
    The Kroger Co.
    
    
    7/1/2013
    
    
    100%TX
    
    Carrolton
    
    
    61,000
    
    
    Ongs Family Inc.
    
    
    1/31/2021
    
    
    100%TX
    
    Dallas
    
    
    68,024
    
    
    Malone's Food Stores
    
    
    3/31/2017
    
    
    100%TX
    
    Fort Worth(1)
    
    
    44,000
    
    
    Safeway Stores, Inc.
    
    
    5/31/2012
    
    
    100%TX
    
    Garland(1)
    
    
    40,000
    
    
    Minyard Food Stores
    
    
    11/30/2012
    
    
    100%TX
    
    Granbury(1)
    
    
    35,000
    
    
    Safeway Stores, Inc.
    
    
    11/30/2012
    
    
    100%TX
    
    Grand Prairie(1)
    
    
    49,349
    
    
    Safeway Stores, Inc.
    
    
    3/31/2009
    
    
    100%TX
    
    Greenville(1)
    
    
    48,427
    
    
    Safeway Stores, Inc.
    
    
    5/31/2011
    
    
    100%TX
    
    Hillsboro(1)
    
    
    35,000
    
    
    Safeway Stores, Inc.
    
    
    11/30/2012
    
    
    100%TX
    
    Houston(1)
    
    
    52,200
    
    
    The Kroger Co.
    
    
    12/29/2011
    
    
    100%TX
    
    Lubbock(1)
    
    
    53,820
    
    
    Vacant
    
    
    None
    
    
    0%UT
    
    Sandy(1)
    
    
    41,612
    
    
    Vacant
    
    
    None
    
    
    0%VA
    
    Staunton
    
    
    23,000
    
    
    Food Lion, Inc.
    
    
    2/28/2013
    
    
    100%WA
    
    Edmonds(1)
    
    
    35,459
    
    
    PCC Natural Markets
    
    
    8/31/2028
    
    
    100%WA
    
    Graham(1)
    
    
    44,718
    
    
    Safeway Stores, Inc.
    
    
    3/31/2009
    
    
    100%WA
    
    Milton(1)
    
    
    44,718
    
    
    Safeway Stores, Inc.
    
    
    3/31/2009
    
    
    100%WA
    
    Port Orchard(1)
    
    
    27,968
    
    
    Save -A -Lot, Ltd.
    
    
    1/31/2015
    
    
    57%WA
    
    Redmond(1)
    
    
    44,718
    
    
    Safeway Stores, Inc.
    
    
    3/31/2009
    
    
    100%WA
    
    Spokane(1)
    
    
    38,905
    
    
    Safeway Stores, Inc.
    
    
    3/31/2009
    
    
    100%WY
    
    Cheyenne
    
    
    31,420
    
    
    Vacant
    
    
    None
    
    
    0%TOTAL RETAIL
    
    
    
    
    2,134,504
 22




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##### Table of Contents



ApproximateLeaseable
    
    
    
    CurrentBuilding
    
    
    
    Term Lease
    
    PrsentState
    
    City
    
    Sq. Ft.
    
    Principal Tenant(14)
    
    Expiration*
    
    LeasedINDUSTRIAL:CA
    
    Long Beach(1)(2)
    
    
    200,541
    
    
    Raytheon Company
    
    
    12/31/2008
    
    
    100%CA
    
    Palo Alto(1)
    
    
    202,000
    
    
    Xerox Corporation
    
    
    12/13/2013
    
    
    100%FL
    
    Orlando
    
    
    205,016
    
    
    Walgreen Company
    
    
    3/31/2011
    
    
    100%GA
    
    McDonough
    
    
    296,972
    
    
    Atlas Cold Storage America, LLC
    
    
    10/31/2017
    
    
    100%IL
    
    Rockford
    
    
    150,000
    
    
    Jacobson Warehouse Co., Inc.
    
    
    12/31/2015
    
    
    100%IL
    
    Rockford
    
    
    90,000
    
    
    Jacobson Warehouse Co., Inc.
    
    
    12/31/2014
    
    
    100%KY
    
    Owensboro(1)(5)
    
    
    443,380
    
    
    Unilever Supply Chain, Inc.
    
    
    12/19/2020
    
    
    100%(Unilever United States, Inc.)LA
    
    Shreveport
    
    
    646,000
    
    
    Libbey Glass Inc.
    
    
    10/31/2026
    
    
    100%ME
    
    North Berwick
    
    
    820,868
    
    
    United Technologies Corp.
    
    
    12/31/2010
    
    
    100%MI
    
    Plymouth
    
    
    290,133
    
    
    Tower Automotive Products Co.
    
    
    10/31/2012
    
    
    100%MI
    
    Temperance
    
    
    752,000
    
    
    CEVA Logistics U.S., Inc.
    
    
    8/4/2012
    
    
    100%(TNT Holdings B.V.)NC
    
    Statesville
    
    
    639,600
    
    
    La-Z-Boy Inc.
    
    
    4/30/2010
    
    
    100%NC
    
    Lumberton
    
    
    423,280
    
    
    Quickie Manfacturing Corp.
    
    
    11/30/2021
    
    
    100%NJ
    
    Swedesboro
    
    
    262,644
    
    
    Linens-n-Things, Inc.
    
    
    12/31/2008
    
    
    100%NY
    
    Saugerties(6)
    
    
    52,000
    
    
    Rotron Inc (EG&G)
    
    
    12/31/2009
    
    
    100%OH
    
    Columbus
    
    
    744,800
    
    
    ODW Logistics, Inc.
    
    
    6/30/2018
    
    
    100%OH
    
    Cincinnati
    
    
    247,000
    
    
    The Hillman Group, Inc.
    
    
    8/31/2016
    
    
    100%OH
    
    Glenwillow
    
    
    458,000
    
    
    Royal Appliance Manufacturing Co.
    
    
    7/31/2015
    
    
    100%SC
    
    Duncan
    
    
    218,382
    
    
    Plastic Omnium Exterior, LLC
    
    
    5/30/2017
    
    
    100%SC
    
    Laurens
    
    
    1,164,000
    
    
    CEVA Logistics U.S., Inc.
    
    
    8/4/2012
    
    
    100%(TNT Holdings B.V.)TN
    
    Franklin(1)
    
    
    289,330
    
    
    Essex Group, Inc.
    
    
    12/31/2013
    
    
    100%(United Technologies Corp.)TN
    
    Memphis(1)
    
    
    780,000
    
    
    Sears, Roebuck & Company
    
    
    2/28/2017
    
    
    100%VA
    
    Winchester
    
    
    344,700
    
    
    Kraft Foods North America, Inc.
    
    
    12/31/2012
    
    
    100%TOTAL INDUSTRIAL
    
    
    
    
    9,720,646OTHER:AZ
    
    Sun City
    
    
    10,000
    
    
    Cafeteria Operators, LP
    
    
    4/30/2012
    
    
    100%(Furr Restaurant Group, Inc.)NM
    
    Carlsbad
    
    
    10,000
    
    
    Cafeteria Operators, LP
    
    
    4/30/2012
    
    
    100%(Furr Restaurant Group, Inc.)TX
    
    Corpus Christi
    
    
    10,000
    
    
    Cafeteria Operators, LP
    
    
    4/30/2012
    
    
    100%(Furr Restaurant Group, Inc.)TX
    
    El Paso
    
    
    10,000
    
    
    Cafeteria Operators, LP
    
    
    4/30/2012
    
    
    100%(Furr Restaurant Group, Inc.)TX
    
    McAllen
    
    
    10,000
    
    
    Cafeteria Operators, LP
    
    
    4/30/2012
    
    
    100%(Furr Restaurant Group, Inc.)TX
    
    Victoria
    
    
    10,000
    
    
    Cafeteria Operators, LP
    
    
    4/30/2012
    
    
    100%(Furr Restaurant Group, Inc.)TOTAL OTHER
    
    
    
    
    60,000GRAND TOTAL
    
    
    
    
    22,172,656
 23




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##### Table of Contents



*
    
    Represents the later of the current lease term or any exercised renewal term options.(1)
    
    Land held in land estate or pursuant to ground lease.(2)
    
    55.0% interest owned by us.(3)
    
    53.0% interest owned by us.(4)
    
    64.4% interest owned by us.(5)
    
    71.1% interest owned by us.(6)
    
    57.8% interest owned by us.(7)
    
    60.4% interest owned by us.(8)
    
    56.3% interest owned by us.(9)
    
    Variable interest entity.(10)
    
    NK Leasehold is an affiliated party.(11)
    
    Property was sold on January 16, 2008.(12)
    
    Property was sold on March 13, 2008.(13)
    
    Tenant has exercised the purchase option within the lease to purchase the property for fair market
value. However we can make no assurance that fair market value will be agreed upon and that the sale
will be consummated.(14)
    
    The listed company is either the tenant, the obligor or guarantor with respect to the lease or the
successor-in-interest to the initial tenant. 
 Item 3. Legal Proceedings
  
 Item 4. Submission of Matters to a Vote of Security Holders
  24




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##### Table of Contents



PART II
 
 Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities
 General
  Distributions
  Year Ended December 31, 2006 (1)1/06
    
    $
    0.344/06
    
    $
    0.507/06
    
    $
    0.5010/06
    
    $
    0.50
 Year Ended December 31, 20071/07
    
    $
    0.56254/07
    
    $
    0.3757/07
    
    $
    0.37510/07
    
    $
    0.375
  
 (1)
    
    Per unit amounts give effect to the December 31, 2006 reverse split.  Recent Sales of Unregistered Securities
  Repurchases of Units
  
 Item 6. Selected Financial Data
  25




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##### Table of Contents



Year Ended December 31,2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003(In thousands, except per unit data)Operating DataTotal gross revenues
    
    $
    207,804
    
    
    $
    160,306
    
    
    $
    144,879
    
    
    $
    147,816
    
    
    $
    161,492Income from continuing operations
    
    
    85,232
    
    
    
    32,735
    
    
    
    24,437
    
    
    
    44,641
    
    
    
    51,021Net income
    
    
    151,450
    
    
    
    129,342
    
    
    
    49,295
    
    
    
    137,808
    
    
    
    145,164Net income per unit(1)(2)
    
    
    2.71
    
    
    
    2.51
    
    
    
    1.23
    
    
    
    3.60
    
    
    
    3.78Cash distribution declared per unit (1)(2)
    
    
    3.60
    
    
    
    2.06
    
    
    
    1.33
    
    
    
    1.20
    
    
    
    0.91Weighted average units outstanding(1)(2)
    
    
    55,923
    
    
    
    51,519
    
    
    
    40,081
    
    
    
    38,311
    
    
    
    38,381Balance Sheet DataReal estate investments, at cost
    
    
    1,827,078
    
    
    
    1,451,950
    
    
    
    1,457,603
    
    
    
    1,578,182
    
    
    
    1,655,430Real estate investments, net of accumulated depreciation
    
    
    1,407,419
    
    
    
    976,724
    
    
    
    913,518
    
    
    
    1,032,797
    
    
    
    1,129,237Total assets
    
    
    2,342,944
    
    
    
    1,396,272
    
    
    
    1,306,953
    
    
    
    1,237,129
    
    
    
    1,384,094Total debt
    
    
    1,446,622
    
    
    
    838,734
    
    
    
    770,786
    
    
    
    907,339
    
    
    
    1,104,231Partners equity
    
    
    564,401
    
    
    
    491,474
    
    
    
    461,184
    
    
    
    203,785
    
    
    
    98,864
 
 (1)
    
    Adjusted to reflect the 7.5801 to 1 unit split of the outstanding units on November 7, 2005.(2)
    
    Adjusted to reflect the .80 to 1 unit split of outstanding units on December 31, 2006. 
 Item 7. Managements Discussion and Analysis Of Financial Condition and Results of Operations
 In this discussion, we have included statements that may constitute forward-looking
statements within the meaning of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are not historical facts but instead represent only
our beliefs regarding future events, many of which, by their nature, are inherently uncertain and
outside our control. These statements may relate to our future plans and objectives, among other
things. By identifying these statements for you in this manner, we are alerting you to the
possibility that our actual results may differ, possibly materially, from the anticipated results
indicated in these forward-looking statements. Important factors that could cause our results to
differ, possibly materially, from those indicated in the forward-looking statements include, among
others, those discussed below under Risk Factors in Part I, Item 1A of this Annual Report and
Cautionary Statements Concerning Forward Looking Statements in Part I, of this Annual Report.
 Overview
    26




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##### Table of Contents



2007 Events
 
    
    We purchased five properties for an aggregate gross purchase price of $90.7 million from
unrelated parties.
    
    We purchased 26 properties from Lexington and/or Lexingtons co-investment partners in
exchange for cash of $124.4 million; and the assumption of $477.0 million non-recourse
mortgage debt and Lexington received 16,892,974 units of limited partnership interest with a
value of $252.9 million.
    
    We sold 34 properties and an interest in a limited partnership for a gross sales price of
approximately $177.0 million, and contributed 12 properties to NLS with a value of $102.7
million.
    
    We obtained first mortgage financing on six properties with an aggregate original principal
amount of approximately $229.6 million, three of which are cross-collateralized.
    
    We increased our investment in Concord, by making an additional capital contribution of
approximately $66.1 million, net during 2007.
    
    We issued $450.0 million in 5.45% Guaranteed Exchangeable Notes due in 2027.
    
    We fully repaid our original KeyBank secured loan in March and obtained a new $225.0
million secured term loan with KeyBank in June.
 Trends
 Competition
   27




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##### Table of Contents



Interest rate environment
  Inflation
  Critical Accounting Policies
  Purchase Accounting for Acquisition of Real Estate.
    Revenue Recognition.
 28




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##### Table of Contents



Accounts Receivable.
 Impairment of Real Estate and Investment in Non-consolidated Entities.
 Properties Held For Sale.
 Basis of Consolidation.
 Liquidity and Capital Resources
 General
   29




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##### Table of Contents



Future Cash Requirements:
  Payments Due by PeriodContractual Obligations
    
    Total
    
    
    Less than 1 Year
    
    
    2-3 Years
    
    
    4-5 Years
    
    
    After 5 YearsMortgage Loan Payable
    
    $
    873,555
    
    
    $
    40,638
    
    
    $
    129,547
    
    
    $
    148,802
    
    
    $
    554,568Note Payable (1)
    
    
    213,635
    
    
    
    
    
    
    
    213,635
    
    
    
    
    
    
    
    Exhangeable Notes Payable (2)
    
    
    450,000
    
    
    
    
    
    
    
    
    
    
    
    450,000
    
    
    
    Contract Right Mortgage Loan (3)
    
    
    13,444
    
    
    
    
    
    
    
    720
    
    
    
    1,133
    
    
    
    11,591Ground Lease Obligation
    
    
    12,083
    
    
    
    2,148
    
    
    
    4,283
    
    
    
    3,224
    
    
    
    2,428Tenant Incentives (4)
    
    
    18,445
    
    
    
    8,445
    
    
    
    10,000
    
    
    
    
    
    
    
    Commitments(5)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    1,581,162
    
    
    $
    51,231
    
    
    $
    358,185
    
    
    $
    603,159
    
    
    $
    568,587
 
 (1)
    
    Interest only payments for our secured term loan. Principal payments required from the proceeds of certain
property sales or refinancing if proceeds are not reinvested in net leased properties.(2)
    
    Guaranteed Exchangeable Notes are due in 2027, however the notes can be put to us commencing in 2012.(3)
    
    No payments until 2009.(4)
    
    Relating to lease incentives owed on our El Segundo, California and Irving, Texas properties.(5)
    
    We have committed to invest $162.5 million in Concord. As of December 31, 2007, we have invested $157.4 million.   Cash Flows
  30




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##### Table of Contents



Distributions
   Capital Expenditures
  Results of Operations
 Comparison of the year ended December 31, 2007 to the year ended December 31, 2006
 Income from Continuing Operations
  Rental Income
  Advisory and Incentive fees
  Tenant Reimbursements
  31




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##### Table of Contents



Depreciation and Amortization
  Property Operating
  General and Administrative
  Impairment Charge
  Non-Operating Income
  Interest and Amortization
  Debt Satisfaction Charge
  Decline in Fair Value of Embedded Derivative Liability
  State and Local Taxes
  32




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##### Table of Contents



Equity in Earnings of Non-Consolidated Entities
  Discontinued Operations
  Comparison of the year ended December 31, 2006 to the year ended December 31, 2005
 Income from Continuing Operations
  Rental Income
  Tenant Reimbursements
  Depreciation and Amortization
  Property Operating
  General and Administrative
  Impairment Charge
  33




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##### Table of Contents



Non-Operating Income
  Interest and Amortization
  Debt Satisfaction Charge
  State and Local Taxes
  Equity in Earnings of Non-Consolidated Entities
  Gain on Sale of Marketable Equity Securities, Net
  Minority Interest Expense
  Discontinued Operations
  Environmental Matters
  34




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##### Table of Contents



Recently Issued Accounting Standards
     Pre-Consolidation
    
    
    ConsolidatedAssets:Cash
    
    $
    
    
    
    $
    177Land
    
    
    
    
    
    
    1,028Building, net
    
    
    
    
    
    
    18,663Equity investment in limited partnership
    
    
    6,538
    
    
    
    Deferred costs, net
    
    
    
    
    
    
    334$
    6,538
    
    
    $
    20,202Liabilities:Mortgage loan
    
    $
    
    
    
    $
    13,664$
    
    
    
    $
    13,664
    35




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##### Table of Contents



Off-Balance Sheet Arrangements
 General
  36




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##### Table of Contents



Non-Consolidated Real Estate Entities.
  Net
Lease Strategic Assets Fund L.P. (NLS)
  Concord Debt Holdings LLC
       37




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##### Table of Contents



CDO-1
 38




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##### Table of Contents



CDO Loan Assets and Loan Securities  December 31, 2007
    
    CDO Notes  December 31, 2007Weighted
    
    Weighted
    
    
    
    
    
    WeightedPar Value of
    
    Average
    
    Averaged
    
    Outstanding
    
    AverageDate
    
    CDO
    
    Interest
    
    Life
    
    CDO
    
    Interest
    
    Stated
    
    RetainedClosed
    
    Collateral (3)
    
    Rate
    
    (Years)
    
    Notes (1)
    
    Rate
    
    Maturity
    
    Interest (2)12/21/2006
    
    $
    464,601
    
    
    
    6.70
    %
    
    
    4.29
    
    
    $
    376,650
    
    
    
    5.37
    %
    
    
    12/2016
    
    
    $
    88,350
 
 (1)
    
    Includes only notes held by third parties.(2)
    
    Concords potential economic loss is limited to the retained interest of its investment in CDO-1, of
which the Partnership would bear 50% of such loss.(3)
    
    Consists of loan assets with a par value of $338,681 and loan securities with a par value of $125,920.  Industry
    
    % of Face AmountOffice
    
    
    44.22
    %Hospitality
    
    
    30.54
    %Multi-family
    
    
    8.62
    %Industrial
    
    
    7.09
    %Mixed Use
    
    
    5.10
    %Retail
    
    
    4.43
    %100
    %
  Allocation by
    
    
    Fixed Rate:
    
    
    Floating Rate:Carrying
    
    
    
    
    
    
    Investment
    
    
    Average
    
    
    Average SpreadValue(1)
    
    
    Par Value
    
    
    Type
    
    
    Yield
    
    
    over LIBOR(2)(In thousands)Whole loans, floating rate
    
    $
    20,000
    
    
    $
    20,000
    
    
    
    4.31
    
    
    
    
    
    
    1.95 bpsWhole loans, fixed rate
    
    
    20,900
    
    
    
    20,900
    
    
    
    4.50
    
    
    
    6.56
    %
    
    
    Subordinate interests in whole loans, floating rate
    
    
    108,766
    
    
    
    108,864
    
    
    
    23.43
    
    
    
    
    
    
    244 bpsSubordinate interests in whole loans, fixed rate
    
    
    24,567
    
    
    
    27,619
    
    
    
    5.95
    
    
    
    7.46
    %
    
    
    Mezzanine loans, floating rate
    
    
    81,419
    
    
    
    81,410
    
    
    
    17.52
    
    
    
    
    
    
    270 bpsMezzanine loans, fixed rate
    
    
    77,669
    
    
    
    79,888
    
    
    
    17.19
    
    
    
    5.92
    %
    
    
    Loan Securities, floating rate
    
    
    100,955
    
    
    
    103,428
    
    
    
    22.26
    
    
    
    
    
    
    189 bpsLoan Securities, floating rate
    
    
    18,448
    
    
    
    22,492
    
    
    
    4.84
    
    
    
    5.97
    %
    
    
    Total/Average
    
    $
    452,724
    
    
    $
    464,601
    
    
    
    100.00
    %
    
    
    6.30
    
    
    230 bps
 
 (1)
    
    Net of scheduled amortization payments and prepayments, unamortized fees and discounts.(2)
    
    Spreads over an index other than LIBOR have been adjusted to a LIBOR based equivalent. 39




---



##### Table of Contents



Number of LoanYear of Maturity
    
    Assets Maturating
    
    
    Carrying Value
    
    
    % of Total(In thousands)2008
    
    
    7
    
    
    $
    140,183
    
    
    
    42.06
    %2009
    
    
    2
    
    
    
    34,584
    
    
    
    10.38
    %2010
    
    
    4
    
    
    
    46,465
    
    
    
    13.94
    %2011
    
    
    1
    
    
    
    20,900
    
    
    
    6.27
    %2012
    
    
    1
    
    
    
    5,017
    
    
    
    1.50
    %Thereafter
    
    
    7
    
    
    
    86,172
    
    
    
    25.85
    %Total
    
    
    22
    
    
    $
    333,321
    
    
    
    100
    %Weighted average maturity is 3.45 years (1)
 
 (1)
    
    The calculation of weighted average maturity is based upon the
remaining initial term and does not take into account any maturity
extension periods or the ability to prepay the investment after a
negotiated lock-out period, which may be available to the borrower.  Gross Unrealized
    
    
    Impairment
    
    
    CarryingDescription
    
    Par Value
    
    
    Loss
    
    
    Loss
    
    
    ValueFloating rate
    
    $
    22,492
    
    
    $
    (321
    )
    
    $
    (1,601
    )
    
    $
    18,448Fixed rate
    
    
    103,428
    
    
    
    (2,355
    )
    
    
    
    
    
    
    100,955Total
    
    $
    125,920
    
    
    $
    (2,676
    )
    
    $
    (1,601
    )
    
    $
    119,403
  Rating
    
    Par Value
    
    
    Percentage(In thousands)BBB+
    
    $
    9,000
    
    
    
    7.15
    %BBB
    
    
    2,151
    
    
    
    1.71
    %BBB-
    
    
    44,384
    
    
    
    35.25
    %BB+
    
    
    33,392
    
    
    
    26.52
    %BB
    
    
    18,500
    
    
    
    14.69
    %B+
    
    
    7,000
    
    
    
    5.56
    %Not Rated
    
    
    11,493
    
    
    
    9.12
    %Total
    
    $
    125,920
    
    
    
    100
    %
 Concords Loan Assets and Loan Securities
 40




---



##### Table of Contents



Fixed Rate:
    
    
    Floating Rate:Allocation by
    
    
    Average
    
    
    Average SpreadCarrying Value(1)
    
    
    Par Value
    
    
    Investment Type
    
    
    Yield
    
    
    over LIBOR(2)(In thousands)Whole loans, floating rate
    
    $
    136,260
    
    
    $
    136,260
    
    
    
    19
    %
    
    
    
    
    
    
    218 bpsWhole loans, fixed rate
    
    
    6,300
    
    
    
    6,300
    
    
    
    1
    %
    
    
    6.40
    %
    
    
    Subordinate interests in whole loans, floating rate
    
    
    163,077
    
    
    
    163,908
    
    
    
    23
    %
    
    
    
    
    
    223 bpsSubordinate interests in whole loans, fixed rate
    
    
    14,196
    
    
    
    15,750
    
    
    
    2
    %
    
    
    8.63
    %
    
    
    Mezzanine loans, floating rate
    
    
    230,852
    
    
    
    236,436
    
    
    
    33
    %
    
    
    
    
    
    222 bpsMezzanine loans, fixed rate
    
    
    68,028
    
    
    
    71,718
    
    
    
    10
    %
    
    
    7.45
    %
    
    
    Loan securities, floating rate
    
    
    43,260
    
    
    
    56,400
    
    
    
    8
    %
    
    
    
    
    
    143 bpsLoan securities, fixed rate
    
    
    25,411
    
    
    
    27,084
    
    
    
    4
    %
    
    
    6.68
    %
    
    
    Total/Average
    
    $
    687,384
    
    
    $
    713,856
    
    
    
    100
    %
    
    
    7.38
    %
    
    214 bps
 
 (1)
    
    Net of scheduled amortization payments and prepayments, unamortized fees and discounts.(2)
    
    Spreads over an index other than LIBOR have been adjusted to a LIBOR based equivalent.  Number of LoanYear of Maturity
    
    Assets Maturting
    
    
    Carrying Value
    
    
    % of Total(In thousands)2008
    
    
    9
    
    
    $
    185,500
    
    
    
    30.0
    %2009
    
    
    9
    
    
    
    134,052
    
    
    
    21.7
    %2010
    
    
    3
    
    
    
    81,903
    
    
    
    13.2
    %2011
    
    
    1
    
    
    
    6,300
    
    
    
    1.0
    %2012
    
    
    3
    
    
    
    72,968
    
    
    
    11.8
    %Thereafter
    
    
    8
    
    
    
    137,990
    
    
    
    22.3
    %Total
    
    
    33
    
    
    $
    618,713
    
    
    
    100
    %Weighted average maturity is 2.72 years (1)
 
 (1)
    
    The calculation of weighted average maturity is based upon the
remaining initial term and does not take into account any maturity
extension periods or the ability to prepay the investment after a
negotiated lock-out period, which may be available to the borrower.  Gross Unrealized
    
    
    Impairment
    
    
    CarryingDescription
    
    Par Value
    
    
    Loss
    
    
    Loss
    
    
    ValueFloating rate
    
    $
    56,400
    
    
    $
    (3,487
    )
    
    $
    (9,427
    )
    
    $
    43,260Fixed rate
    
    
    27,084
    
    
    
    (1,673
    )
    
    
    
    
    
    
    25,411Total
    
    $
    83,484
    
    
    $
    (5,160
    )
    
    $
    (9,427
    )
    
    $
    68,671
 41




---



##### Table of Contents



Rating
    
    Par Value
    
    
    PercentageAA-
    
    $
    1,381
    
    
    
    1.65
    %A-
    
    
    1,966
    
    
    
    2.36
    %BBB+
    
    
    25,094
    
    
    
    30.06
    %BBB
    
    
    15,833
    
    
    
    18.97
    %BBB-
    
    
    30,392
    
    
    
    36.40
    %BB+
    
    
    5,000
    
    
    
    5.99
    %Not Rated
    
    
    3,818
    
    
    
    4.57
    %Total
    
    $
    83,484
    
    
    
    100
    %
  Industry
    
    % of Par ValueOffice
    
    
    46.4
    %Hospitality
    
    
    41.7
    %Multi-family
    
    
    6.4
    %Mixed Use
    
    
    5.3
    %Industrial
    
    
    0.2
    %100
    %
 Credit Facilities
  42




---



##### Table of Contents



Maximum
    
    
    
    
    
    
    
    
    
    
    
    
    
    Carrying ValueOutstanding
    
    Outstanding
    
    Interest Rate 
    
    Maturity
    
    of AssetsCounterparty
    
    Balance
    
    Balance
    
    LIBOR Plus (5)
    
    Date
    
    Securing FacilityGreenwich(1)
    
    $
    39,079
    
    
    $
    39,079
    
    
    100 bps
    
    
    12/08
    
    
    $
    55,827Greenwich(1)
    
    
    59,613
    
    
    
    59,613
    
    
    100 bps
    
    
    12/12
    
    
    
    70,146Column(1)
    
    
    16,414
    
    
    
    16,414
    
    
    100 bps
    
    
    3/09
    (3)
    
    
    25,270Column(2)
    
    
    350,000
    
    
    
    308,508
    
    
    95-135 bps(4)
    
    
    3/09
    (6)
    
    
    412,561Bear Stearns(2)
    
    
    150,000
    
    
    
    48,710
    
    
    85-115 bps(4)
    
    
    11/08
    
    
    
    82,258
 
 (1)
    
    Repurchase facilities cover specific loan assets and may not be used for any other loan assets.(2)
    
    Repurchase facilities may be used for multiple loan assets and loan securities subject to the
repurchase counterpartys consent. Repurchase counterparties have advised that no additional
advance will be made except, if at all, in connection with loans assets or debt securities
acquired for the repurchase counterparty.(3)
    
    May be extended for up to three one-year extensions.(4)
    
    Interest rate is based on type of loan asset or loan security for which financing is provided.
Weighted average at December 31, 2007 on the Column repurchase facility was 5.8% and on the
Bear Stearns repurchase facility was 5.5%(5)
    
    Concord has entered into interest rate swaps with a total national amount of $203.3 million as
of December 31, 2007 to manage exposure to interest rate movements affecting interest payments
on certain variable-rate obligations.(6)
    
    Maturity date is March 30, 2011 under certain circumstances.  
 Item 7A. Quantitative and Qualitative Disclosures About Market Risk
     (3)%
    
    
    (2)%
    
    
    (1)%
    
    
    1%
    
    
    2%
    
    
    3%Change in consolidated interest expense
    
    $
    (6,409
    )
    
    $
    (4,273
    )
    
    $
    (2,136
    )
    
    $
    2,136
    
    
    $
    2,991
    
    
    $
    2,991Pro-rata share of change in interest expense of debt on non-consolidated entities
    
    
    (9,686
    )
    
    
    (6,457
    )
    
    
    (3,229
    )
    
    
    3,229
    
    
    
    6,457
    
    
    
    9,686Proforma (increase) decrease in net income
    
    $
    (16,095
    )
    
    $
    (10,730
    )
    
    $
    (5,365
    )
    
    $
    5,365
    
    
    $
    9,448
    
    
    $
    12,677
  43




---



##### Table of Contents



Item 8. Financial Statements and Supplementary Data
  
 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
   
 Item 9A(T). Controls and Procedures
  Changes in Internal Control Over Financial Reporting
  Managements Report on Internal Control Over Financial Reporting
  Internal Control 
Integrated Framework
   44




---



##### Table of Contents



Item 9B. Other Information
  
 PART III
 
 Item 10. Director, Executive Officers and Corporate Governance
  
 Item 11. Executive Compensation
  
 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
  
 Item 13. Certain Relationships and Related Transactions, and Director Independence
  
 Item 14. Principal Accounting Fees and Services
  
 PART IV
 
 Item 15. Exhibits, Financial Statement Schedules
 (a)  Financial Statements and Financial Statement Schedules.
 Financial Statements:
 Reports of Independent Registered Public Accounting Firms on
pages 50-51 of Item 8.Consolidated Balance Sheets  December 31,
2007 and 2006 on page 52 of Item 8.Consolidated Statements of Operations and Comprehensive Income  For the Years Ended
December 31, 2007, 2006 and 2005 on page 53 of Item 8.Consolidated Statements of Changes in Partners Equity  For the Years Ended December 31, 2007, 2006 and
2005 on page 54 of Item 8.Consolidated Statements of Cash Flows  For the Years Ended December 31, 2007, 2006 and 2005 on
pages 55 of Item 8.Notes to Consolidated Financial Statements on pages 56
through 78 of Item 8.
 Financial Statement Schedules:
 Schedule III  Real Estate and Accumulated Depreciation.All Schedules, other than III, are omitted, as the information is not required or is otherwise
furnished.
 45




---



##### Table of Contents



(b)  Exhibits.
  46




---



##### Table of Contents



SIGNATURES
  The Lexington Master Limited PartnershipBy:
    
    LEX-GP-1 Trust, its General PartnerBy:
    
    /s/ T. Wilson EglinT. Wilson EglinChief Executive Officer
  47




---



##### Table of Contents



Signature
    
    Title
    
    DateBy:
    
    /s/  T. Wilson Eglin

T. Wilson Eglin
    
    Chief Executive Officer of the General
Partner of the Registrant
    
    March 17, 2008By:
    
    /s/  Patrick Carroll

      Patrick Carroll
    
    Chief Financial Officer of the General
Partner of the Registrant
    
    March 17, 2008
 48




---



##### Table of Contents



Item 8. Financial Statements and Supplemental Data
 THE LEXINGTON MASTER LIMITED PARTNERSHIP  INDEX TO FINANCIAL STATEMENTS
 PageReports of Independent Registered Public Accounting Firms
    
    
    50-51Consolidated Balance Sheets at December 31, 2007 and 2006
    
    
    52Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31,
2007, 2006 and 2005
    
    
    53Consolidated
Statements of Changes in Partners Equity for the Years Ended December 31, 2007, 2006 and 2005
    
    
    54Consolidated Statements of Cash Flows for the Years Ended December 31, 2007, 2006 and 2005
    
    
    55Notes to Consolidated Financial Statements
    
    
    56-78Financial Statement Schedule
    
    
    79-84
 49




---



##### Table of Contents



Report of Independent Registered Public Accounting Firm






50




---



##### Table of Contents



Report of Independent Registered Public Accounting Firm
     DELOITTE & TOUCHE LLP
 
 51




---



##### Table of Contents



THE LEXINGTON MASTER LIMITED PARTNERSHIP
 
 CONSOLIDATED BALANCE SHEETS
 As of December 31, 2007 and 2006
  December 31,2007
    
    
    2006ASSETS:Real estate, at costBuildings and improvements
    
    $
    1,599,541
    
    
    $
    1,342,998Land and land estates
    
    
    227,537
    
    
    
    108,952Total real estate investments
    
    
    1,827,078
    
    
    
    1,451,950Less accumulated depreciation and amortization
    
    
    (419,659
    )
    
    
    (475,226
    )Real estate investments, net
    
    
    1,407,419
    
    
    
    976,724Properties held for sale  discontinued operations
    
    
    92,357
    
    
    
    49,935Cash and cash
equivalents
    
    
    321,570
    
    
    
    57,624Investment in marketable equity securities, at fair value
    
    
    200
    
    
    
    25,760Rent receivable -current
    
    
    18,663
    
    
    
    34,093Rent receivable
-deferred
    
    
    29,150
    
    
    
    28,019Loans and interest receivable (including $26,612 and $0 from a related party)
    
    
    26,612
    
    
    
    6,469Investment in non-consolidated entities
    
    
    227,077
    
    
    
    102,632Deferred costs, net
    
    
    25,883
    
    
    
    11,291Lease intangibles, net
    
    
    155,375
    
    
    
    33,782Other assets (including $1,250 and $963 from related parties)
    
    
    38,638
    
    
    
    69,943$
    2,342,944
    
    
    $
    1,396,272LIABILITIES, MINORITY INTERESTS AND EQUITYLiabilities:Mortgage notes payable (including $21,378 and
$20,886 to related parties)
    
    $
    788,428
    
    
    $
    279,304Note payable
    
    
    213,635
    
    
    
    547,199Exchangeable notes payable, net of unamortized discount
    
    
    431,115
    
    
    
    Embedded derivative financial instrument, at fair value
    
    
    1,800
    
    
    
    Contract right mortage note payable
    
    
    13,444
    
    
    
    12,231Accrued interest payable (including $487 and $434
to related parties)
    
    
    15,512
    
    
    
    4,093Accounts payable and other liabilities (including $733 and $0 to a related party)
    
    
    16,208
    
    
    
    5,644Deferred revenue-below market leases
    
    
    19,924
    
    
    
    12,192Prepaid rent
    
    
    5,094
    
    
    
    1,801Distributions payable
    
    
    169,355
    
    
    
    28,988Liabilities of discontinued operations
    
    
    86,726
    
    
    
    110Total Liabilities
    
    
    1,761,241
    
    
    
    891,562Commitments
and contingencies (note 3 and 10)Minority interests
    
    
    17,302
    
    
    
    13,236Partners equity (68,426,429 and 51,533,504 limited partnership units
outstanding at December 31, 2007 and December 31, 2006, respectively)
    
    
    564,401
    
    
    
    491,474$
    2,342,944
    
    
    $
    1,396,272
  52




---



##### Table of Contents



THE LEXINGTON MASTER LIMITED PARTNERSHIP
 
 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
 Years Ended2007
    
    
    2006
    
    
    2005Gross revenues:Rental
    
    $
    189,539
    
    
    $
    158,776
    
    
    $
    144,565Advisory and incentive fees
    
    
    8,530
    
    
    
    248
    
    
    
    287Tenant reimbursements
    
    
    9,735
    
    
    
    1,282
    
    
    
    27Total gross revenues
    
    
    207,804
    
    
    
    160,306
    
    
    
    144,879Expense applicable to revenues:Depreciation and amortization
    
    
    (67,401
    )
    
    
    (29,774
    )
    
    
    (22,728
    )Property operating
    
    
    (22,773
    )
    
    
    (10,244
    )
    
    
    (3,230
    )General and administrative
    
    
    (12,931
    )
    
    
    (40,445
    )
    
    
    (15,068
    )Impariment charges
    
    
    
    
    
    
    (1,440
    )
    
    
    (2,750
    )Non-operating income
    
    
    14,458
    
    
    
    13,826
    
    
    
    4,081Interest and amortization
    
    
    (69,037
    )
    
    
    (49,792
    )
    
    
    (50,245
    )Debt satisfaction charge
    
    
    (2,434
    )
    
    
    (382
    )
    
    
    (22,282
    )Decline in fair value of embedded derivative liability
    
    
    21,225
    
    
    
    
    
    
    
    Income before state and local taxes, equity in earnings of non-
consolidated entities,gain on sale of marketable equity securities,
net, minority interests and discontinued operations
    
    
    68,911
    
    
    
    42,055
    
    
    
    32,657State and local taxes
    
    
    (1,007
    )
    
    
    (2,235
    )
    
    
    (1,585
    )Equity in earnings of non-consolidated entities
    
    
    27,895
    
    
    
    3,451
    
    
    
    3,128Gain on sale of marketable equity securities, net
    
    
    1,948
    
    
    
    1,650
    
    
    
    2Minority interests
    
    
    (12,515
    )
    
    
    (12,186
    )
    
    
    (9,765
    )Income from continuing operations
    
    
    85,232
    
    
    
    32,735
    
    
    
    24,437Discontinued operations:Income from discontinued operations
    
    
    13,171
    
    
    
    33,296
    
    
    
    51,315Debt satisfaction charges
    
    
    (63
    )
    
    
    (933
    )
    
    
    (8,178
    )Gains from disposal of real estate
    
    
    61,131
    
    
    
    68,582
    
    
    
    17,707Impairment charges
    
    
    
    
    
    
    
    
    
    
    (26,965
    )Minority interests
    
    
    (8,021
    )
    
    
    (4,338
    )
    
    
    (9,021
    )Total income from discontinued operations
    
    
    66,218
    
    
    
    96,607
    
    
    
    24,858Net income
    
    $
    151,450
    
    
    $
    129,342
    
    
    $
    49,295Comprehensive income:Net income
    
    $
    151,450
    
    
    $
    129,342
    
    
    $
    49,295Change in unrealized net gain on investment in
marketable equity securities
    
    
    801
    
    
    
    1,058
    
    
    
    164Change in unrealized (loss) gain on interest
rate derivatives
    
    
    (649
    )
    
    
    1,004
    
    
    
    1,000Change in unrealized loss from non-consolidated entities
    
    
    (8,390
    )
    
    
    
    
    
    
    Less reclassification adjustment from gains included
in net income
    
    
    (3,312
    )
    
    
    (77
    )
    
    
    Other comprehensive (loss) income
    
    
    (11,550
    )
    
    
    1,985
    
    
    
    1,164Comprehensive income
    
    $
    139,900
    
    
    $
    131,327
    
    
    $
    50,459Per limited partnership unit data:Income from continuing operations
    
    $
    1.53
    
    
    $
    0.64
    
    
    $
    0.61Income from discontinued operations
    
    
    1.18
    
    
    
    1.87
    
    
    
    0.62Net income per limited partnership unit
    
    $
    2.71
    
    
    $
    2.51
    
    
    $
    1.23Distributions per limited partnership unit
    
    $
    3.60
    
    
    $
    2.06
    
    
    $
    1.33Weighted average limited partnership units outstanding
    
    
    55,923,235
    
    
    
    51,519,435
    
    
    
    40,081,386
  53




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##### Table of Contents



THE LEXINGTON MASTER LIMITED PARTNERSHIP
 
 Consolidated Statements of Changes in Partners Equity
For the Years Ended December 31, 2007, 2006 and 2005
(In thousands, except unit data)
 AccumulatedLimited
    
    
    
    
    
    
    Other
    
    
    TotalPartnership
    
    
    Partners
    
    
    Comprehensive
    
    
    PartnersUnits
    
    
    Capital
    
    
    Income (Loss)
    
    
    EquityBalance at December 31, 2004
    
    
    38,291,354
    
    
    $
    203,785
    
    
    $
    
    
    
    $
    203,785Net income
    
    
    
    
    
    
    49,295
    
    
    
    
    
    
    
    49,295Issuance of units
    
    
    12,500,000
    
    
    
    231,138
    
    
    
    
    
    
    
    231,138Issuance of units  exclusivity rights
    
    
    1,000,000
    
    
    
    20,000
    
    
    
    
    
    
    
    20,000Minority interest charge
    
    
    
    
    
    
    12,917
    
    
    
    
    
    
    
    12,917Distributions
    
    
    
    
    
    
    (55,073
    )
    
    
    
    
    
    
    (55,073
    )Limited partner buyouts
    
    
    (291,354
    )
    
    
    (2,042
    )
    
    
    
    
    
    
    (2,042
    )Change in unrealized gain on investment in marketable
equity securities
    
    
    
    
    
    
    
    
    
    
    164
    
    
    
    164Change in unrealized gain on interest rate derivatives
    
    
    
    
    
    
    
    
    
    
    1,000
    
    
    
    1,000Balance at December 31, 2005
    
    
    51,500,000
    
    
    
    460,020
    
    
    
    1,164
    
    
    
    461,184Net income
    
    
    
    
    
    
    129,342
    
    
    
    
    
    
    
    129,342Issuance of units
    
    
    33,535
    
    
    
    724
    
    
    
    
    
    
    
    724Minority interest charge
    
    
    
    
    
    
    4,510
    
    
    
    
    
    
    
    4,510Distributions
    
    
    
    
    
    
    (106,270
    )
    
    
    
    
    
    
    (106,270
    )Limited partner buyouts
    
    
    (31
    )
    
    
    (1
    )
    
    
    
    
    
    
    (1
    )Change in unrealized gain on investment in marketable
equity securities,
net of reclassification of $85 included in net income
    
    
    
    
    
    
    
    
    
    
    972
    
    
    
    972Change in unrealized gain on interest rate derivatives,
net of
reclassification of $(8) included in net income
    
    
    
    
    
    
    
    
    
    
    1,013
    
    
    
    1,013Balance at December 31, 2006
    
    
    51,533,504
    
    
    
    488,325
    
    
    
    3,149
    
    
    
    491,474Net income
    
    
    
    
    
    
    151,450
    
    
    
    
    
    
    
    151,450Issuance of units
    
    
    16,892,974
    
    
    
    167,690
    
    
    
    
    
    
    
    167,690Minority interest charge
    
    
    
    
    
    
    (1,946
    )
    
    
    
    
    
    
    (1,946
    )Distributions
    
    
    
    
    
    
    (232,716
    )
    
    
    
    
    
    
    (232,716
    )Limited partner buyouts
    
    
    (49
    )
    
    
    (1
    )
    
    
    
    
    
    
    (1
    )Change in unrealized gain on investment in marketable
equity securities
net of reclassification adjustment of $1,948 included in
net income
    
    
    
    
    
    
    
    
    
    
    (1,147
    )
    
    
    (1,147
    )Change in unrealized gain on interest rate derivatives,
net of
reclassification of $1,364 included in net income
    
    
    
    
    
    
    
    
    
    
    (2,013
    )
    
    
    (2,013
    )Change in net unrealized loss from non-consolidated entity
    
    
    
    
    
    
    
    
    
    
    (8,390
    )
    
    
    (8,390
    )Balance at December 31, 2007
    
    
    68,426,429
    
    
    $
    572,802
    
    
    $
    (8,401
    )
    
    $
    564,401
  54




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##### Table of Contents



THE LEXINGTON MASTER LIMITED PARTNERSHIP
 
 Consolidated Statements of Cash Flows
For the Years Ended December 31, 2007, 2006 and 2005
(In thousands)
 For the Years Ended December 31,2007
    
    
    2006
    
    
    2005Cash Flows from Operating Activities:Net income
    
    $
    151,450
    
    
    $
    129,342
    
    
    $
    49,295Adjustments to reconcile net income to net cash provided by operating activities:Amortization of deferred costs, land estates, loan discounts and lease intangibles
    
    
    37,175
    
    
    
    8,571
    
    
    
    6,633Depreciation expense
    
    
    42,526
    
    
    
    42,764
    
    
    
    46,845Change in fair value of embedded derivative
    
    
    (21,225
    )
    
    
    
    
    
    
    Gain from disposal of marketable equity securites
    
    
    (1,948
    )
    
    
    (1,650
    )
    
    
    (2
    )Gain from disposal of real estate
    
    
    (61,131
    )
    
    
    (68,582
    )
    
    
    (17,707
    )Debt satisfaction charges, net
    
    
    2,497
    
    
    
    1,315
    
    
    
    30,460Other non-cash items
    
    
    (8,530
    )
    
    
    9,500
    
    
    
    10,500Impairment charges
    
    
    
    
    
    
    1,440
    
    
    
    29,715Bad debt expenses
    
    
    205
    
    
    
    853
    
    
    
    Minority interest expense
    
    
    20,536
    
    
    
    16,523
    
    
    
    18,786Straight-lining of rental income
    
    
    17,485
    
    
    
    11,787
    
    
    
    5,741Interest earned on restricted cash
    
    
    (502
    )
    
    
    (1,926
    )
    
    
    (239
    )Equity in earnings of non-consolidated entities
    
    
    (27,895
    )
    
    
    (3,451
    )
    
    
    (3,128
    )Distributions of accumulated earnings from non-consolidated entities
    
    
    5,670
    
    
    
    412
    
    
    
    399Changes in operating assets and liabilities:Receivables and other assets
    
    
    2,045
    
    
    
    (12,045
    )
    
    
    (2,164
    )Accounts payable and other liabilities
    
    
    17,980
    
    
    
    555
    
    
    
    (32,551
    )Net cash provided by operating activities
    
    
    176,338
    
    
    
    135,408
    
    
    
    142,583Cash Flows from Investing Activities:Investments in real estate properties and intangible assets
    
    
    (232,736
    )
    
    
    (196,574
    )
    
    
    (286
    )Change in restricted cash
    
    
    39,078
    
    
    
    (12,482
    )
    
    
    (16,777
    )Net deposits for future real estate acquisitions/sales
    
    
    252
    
    
    
    (5,290
    )
    
    
    (2,126
    )Refund of deposits for real estate acquisitions
    
    
    
    
    
    
    7,416
    
    
    
    Investment in debt securities
    
    
    
    
    
    
    (53,616
    )
    
    
    Loan origination costs
    
    
    
    
    
    
    (21
    )
    
    
    Loans receivable to related party, net
    
    
    (26,612
    )
    
    
    
    
    
    
    Collection of loan receivable
    
    
    6,428
    
    
    
    72
    
    
    
    Construction in progress
    
    
    (1,428
    )
    
    
    (901
    )
    
    
    Distributions
from non-consolidated entities in excess of accumulated earnings
    
    
    6,801
    
    
    
    10,883
    
    
    
    Proceeds from disposal of marketable equity securities
    
    
    27,286
    
    
    
    15,647
    
    
    
    143Purchase of marketable equity securities
    
    
    (723
    )
    
    
    (33,334
    )
    
    
    (5,171
    )Issuance of loan receivable
    
    
    
    
    
    
    
    
    
    
    (6,500
    )Net proceeds from disposal of real estate and investments in limited partnerships
    
    
    174,335
    
    
    
    172,307
    
    
    
    44,911Leasing costs incurred
    
    
    (3,588
    )
    
    
    (3,635
    )
    
    
    (65
    )Cash related
to previously non-consolidated entities
    
    
    9,111
    
    
    
    419
    
    
    
    44,405Investments in partnerships and joint ventures
    
    
    (97,987
    )
    
    
    (81,750
    )
    
    
    (80
    )Net cash (used in) provided by investing activities
    
    
    (99,783
    )
    
    
    (180,859
    )
    
    
    58,454Cash Flows from Financing Activities:Principal payments of mortgage notes
    
    
    (33,259
    )
    
    
    (95,244
    )
    
    
    (277,685
    )Principal payments of note payable
    
    
    (558,565
    )
    
    
    (46,263
    )
    
    
    (319,035
    )Principal payments of contract right mortgage notes
    
    
    
    
    
    
    
    
    
    
    (85,481
    )Proceeds from note payable
    
    
    225,000
    
    
    
    
    
    
    
    477,759Proceeds from mortgage notes
    
    
    229,640
    
    
    
    140,555
    
    
    
    Proceeds from exchangeable notes
    
    
    450,000
    
    
    
    
    
    
    
    Proceeds from line of credit
    
    
    
    
    
    
    32,025
    
    
    
    Mortgage prepayment penalities
    
    
    
    
    
    
    (508
    )
    
    
    (23,548
    )Proceeds from issuance of LP units
    
    
    
    
    
    
    
    
    
    
    231,139Distributions to partners
    
    
    (92,348
    )
    
    
    (94,663
    )
    
    
    (37,692
    )Limited partner buyouts
    
    
    (1
    )
    
    
    (1
    )
    
    
    (2,042
    )Distributions to minority interests
    
    
    (19,255
    )
    
    
    (5,903
    )
    
    
    (5,622
    )Contributions from minority interests
    
    
    
    
    
    
    
    
    
    
    1,666Financing costs
    
    
    (13,821
    )
    
    
    (1,739
    )
    
    
    (6,997
    )Net cash provided by (used in) financing activities
    
    
    187,391
    
    
    
    (71,741
    )
    
    
    (47,538
    )Net increase (decrease) in cash and cash equivalents
    
    
    263,946
    
    
    
    (117,192
    )
    
    
    153,499Cash and Cash Equivalents at Beginning of Year
    
    
    57,624
    
    
    
    174,816
    
    
    
    21,317Cash and Cash Equivalents at End of Year
    
    $
    321,570
    
    
    $
    57,624
    
    
    $
    174,816
  55




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##### Table of Contents



Note 1  Organization and Business
         
    
    a wholly-owned portfolio of core office assets;
    
    a wholly-owned portfolio of core warehouse/distribution assets;
 56




---



##### Table of Contents




    
    a continuing 50.0% interest in a co-investment program that invests in senior and
subordinated debt interests secured by both net- leased and multi-tenanted real estate
collateral;
    
    a minority interest in a co-investment program that invests in specialty single-tenant real
estate assets; and
    
    equity securities in other net lease companies owned either individually or through an
interest in one or more joint venture or co-investment programs.
  
    
    acquired substantially all of the outstanding interests in Lexington Acquiport Company,
LLC, one of Lexingtons co-investment programs, which resulted in the Partnership becoming
the sole owner of the co-investment programs ten primarily single tenant net leased
properties;
 
    
    acquired substantially all of the remaining interests in Lexington/Lion Venture L.P.,
one of Lexingtons co-investment programs, and thus acquired six primarily single tenant
net leased properties owned by the co-investment program;
 
    
    formed a co-investment program with a subsidiary of Inland American Real Estate Trust,
Inc. which acquired 12 assets owned by the Partnership and 18 assets previously owned by
Lexington, and which in addition is under contract to acquire an additional two assets
owned by the Partnership and 11 assets owned by Lexington and may invest in core plus net
leased assets, such as manufacturing assets, call centers and other specialty assets; and
 
    
    sold non-core properties.
  Note 2  Summary of Significant Accounting Policies
 Basis of Presentation and Consolidation.
 Use of Estimates.
 Purchase Accounting for Acquisition of Real Estate.
  57




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##### Table of Contents



Revenue Recognition.
  Accounts Receivable.
 Impairment of Real Estate and Investments in Non-consolidated Entities.
  58




---



##### Table of Contents



Properties Held For Sale.
 Investments in Non-consolidated Entities.
 Marketable Equity Securities.
 Investments in Debt Securities.
 Notes Receivable.
 Deferred Expenses.
 Tax Status.
 Unit Split.
 59




---



##### Table of Contents



Net Income per Unit.
 Distributions; Allocations of Income and Loss.
 Fair Value of Financial Instruments.
 Derivative Financial Instruments.
  Unit
Redemptions.
 Cash and Cash Equivalents.
 Restricted Cash.
 60




---



##### Table of Contents



Environmental Matters.
 Segment Reporting.
 Reclassifications.
 Recently Issued Accounting Standards and Pronouncements.
    61




---



##### Table of Contents



Pre-Consolidation
    
    
    ConsolidatedAssets:Cash
    
    $
    
    
    
    $
    177Land
    
    
    
    
    
    
    1,028Building, net
    
    
    
    
    
    
    18,663Equity investment in limited partnership
    
    
    6,538
    
    
    
    Deferred costs, net
    
    
    
    
    
    
    334$
    6,538
    
    
    $
    20,202Liabilities:Mortgage loan
    
    $
    
    
    
    $
    13,664$
    
    
    
    $
    13,664
      62




---



##### Table of Contents



Note 3  Real Estate Investments and Lease Intangibles
      Lexington Acquiport Company LLC (LAC)
  63




---



##### Table of Contents



Lexington/Lion Venture L.P. (LION)
   Other
     WeightedAverageCosts
    
    Life (Years)Lease origination costs
    
    $
    87,494
    
    
    
    5.5Customer relationships
    
    $
    65,340
    
    
    
    4.7Above-market leases
    
    $
    8,754
    
    
    
    3.1
 64




---



##### Table of Contents



2007
    
    2006Lease origination costs
    
    $
    121,697
    
    
    $
    34,242Customer relationships
    
    $
    65,340
    
    
    $
    Above-market leases
    
    $
    10,432
    
    
    $
    1,480
    Year EndingDecember 31,2008
    
    $
    223,2612009
    
    
    164,4192010
    
    
    136,7402011
    
    
    125,8322012
    
    
    109,670Thereafter
    
    
    412,351$
    1,172,273
 
 (1)
    
    Net of future lease incentive payments owed to tenants    65




---



##### Table of Contents



Year EndingDecember 31,2008
    
    $
    2,1482009
    
    
    2,1512010
    
    
    2,1322011
    
    
    1,7762012
    
    
    1,448Thereafter
    
    
    2,428$
    12,083
 Note 4  Marketable Equity Securities
  2007:
 UnrealizedCost at
    
    
    Gain (Loss) at
    
    
    Balance atDate
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,Name
    
    Purchased
    
    
    2007
    
    
    2007
    
    
    2007American Financial Realty
    
    Various
    
    $
    32
    
    
    $
    (2
    )
    
    $
    30Capital Leasing Funding Inc.
    
    Various
    
    
    95
    
    
    
    (11
    )
    
    
    84Gladstone Commerical Corp.
    
    Various
    
    
    17
    
    
    
    1
    
    
    
    18National Retail Properties, Inc.
    
    Various
    
    
    22
    
    
    
    1
    
    
    
    23Other real estate securities
    
    Various
    
    
    45
    
    
    
    0
    
    
    
    45$
    211
    
    
    $
    (11
    )
    
    $
    200
  UnrealizedCost at
    
    
    Gain at
    
    
    Balance atDate
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,Name
    
    Purchased
    
    
    2006
    
    
    2006
    
    
    2006American Financial Realty
    
    Various
    
    $
    4,141
    
    
    $
    435
    
    
    $
    4,576Capital Leasing Funding Inc.
    
    Various
    
    
    974
    
    
    
    186
    
    
    
    1,160Spirit Finance Corporation
    
    Various
    
    
    2,978
    
    
    
    140
    
    
    
    3,118WP Carey & Co., LLC
    
    Various
    
    
    15,783
    
    
    
    310
    
    
    
    16,093Other real estate securities
    
    Various
    
    
    748
    
    
    
    65
    
    
    
    813$
    24,624
    
    
    $
    1,136
    
    
    $
    25,760
 Note 5  Mortgage Notes Payable, Note Payable, Exchangeable Notes Payable and Contract Right Mortgage Note Payable
 Mortgage Notes Payable.
 66




---



##### Table of Contents



Note Payable.
  Revolving Credit Line.
 Exchangeable Notes Payable.
   Contract Right Mortgage Note Payable.
   67




---



##### Table of Contents



ContractMortgage
    
    
    
    
    
    
    
    
    
    
    RightNotes
    
    
    
    
    
    
    Exchangeable
    
    
    MortgageYear
    
    Payable
    
    
    Note Payable
    
    
    Notes *
    
    
    Note Payable
    
    
    Total2008
    
    $
    39,879
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    39,8792009
    
    
    48,991
    
    
    
    213,635
    
    
    
    
    
    
    
    229
    
    
    
    262,8552010
    
    
    78,339
    
    
    
    
    
    
    
    
    
    
    
    491
    
    
    
    78,8302011
    
    
    62,326
    
    
    
    
    
    
    
    
    
    
    
    540
    
    
    
    62,8662012
    
    
    83,807
    
    
    
    
    
    
    
    450,000
    
    
    
    593
    
    
    
    534,400Thereafter
    
    
    475,086
    
    
    
    
    
    
    
    
    
    
    
    11,591
    
    
    
    486,677$
    788,428
    
    
    $
    213,635
    
    
    $
    450,000
    
    
    $
    13,444
    
    
    $
    1,465,507
 
 *
    
    exclusive of discount (also assumes notes are put to the Partnership in 2012) Note 6  Investments in Non-Consolidated Entities
  Concord Debt Holdings LLC (Concord)
     68




---



##### Table of Contents



December 31,
    
    
    December 31,2007
    
    
    2006Cash and restricted cash
    
    $
    19,094
    
    
    $
    148,261Investments
(including debt securities at fair value of $188,073 and $87,054)
    
    
    1,140,108
    
    
    
    450,870Other assets
    
    
    12,770
    
    
    
    10,744Total assets
    
    $
    1,171,972
    
    
    $
    609,875Accounts payable and other liabilities
    
    $
    12,076
    
    
    $
    2,817Collateralized debt obligations
    
    
    376,650
    
    
    
    376,650Repurchase agreements
    
    
    472,324
    
    
    
    43,893Members equity
    
    
    310,922
    
    
    
    186,515Total liabilities and members equity
    
    $
    1,171,972
    
    
    $
    609,875
 69




---



##### Table of Contents



For the year ended
    
    
    For the year endedDecember 31,
    
    
    December 31,2007
    
    
    2006Interest and other income
    
    $
    68,453
    
    
    $
    12,714Interest expense
    
    
    (41,675
    )
    
    
    (6,156
    )Impairment charge
    
    
    (11,028
    )
    
    
    Other expenses and minority interest
    
    
    (5,554
    )
    
    
    (3,878
    )Net income
    
    
    10,196
    
    
    
    2,680Other comprehensive loss
    
    
    (16,780
    )
    
    
    Comprehensive income (loss)
    
    $
    (6,584
    )
    
    $
    2,680
   Net Lease Strategic Assets Fund L.P. (NLS)
     70




---



##### Table of Contents



As of 12/31/07Real estate, including intangibles
    
    $
    405,834Cash
    
    
    1,884Mortgages payable
    
    
    171,556
 For the period12/20/07-12/31/07Gross rental revenues
    
    $
    951Expenses
    
    
    (352
    )Net income
    
    $
    599
  LEX-Win Acquisition LLC (Lex-Win)
  Other
    71




---



##### Table of Contents



Condensed Statements of Operations:
 Years Ended December 31,2007
    
    
    2006
    
    
    2005Rental revenue and interest income
    
    $
    22,851
    
    
    $
    21,371
    
    
    $
    27,289Interest expense
    
    
    (7,293
    )
    
    
    (7,529
    )
    
    
    (9,914
    )Administrative expenses
    
    
    (241
    )
    
    
    (49
    )
    
    
    (71
    )Ground rent
    
    
    (699
    )
    
    
    (699
    )
    
    
    (699
    )Depreciation expense
    
    
    (3,121
    )
    
    
    (2,908
    )
    
    
    (3,489
    )Amortization expense
    
    
    (108
    )
    
    
    (265
    )
    
    
    (525
    )Net income
    
    $
    11,389
    
    
    $
    9,921
    
    
    $
    12,591
 Condensed Balance Sheets:
 December 31,
    
    
    December 31,2007
    
    
    2006Cash
    
    $
    2,070
    
    
    $
    1,582Real estate, net
    
    
    67,415
    
    
    
    63,364Other assets
    
    
    2,127
    
    
    
    2,257Total assets
    
    $
    71,612
    
    
    $
    67,203Accounts payable and other liabilities
    
    $
    5,441
    
    
    $
    814Mortgages payable
    
    
    62,993
    
    
    
    70,680Partners equity (deficit)
    
    
    3,178
    
    
    
    (4,291
    )Total
liabilities and partners equity (deficit)
    
    $
    71,612
    
    
    $
    67,203
 Note 7  Derivative Instruments
    72




---



##### Table of Contents



Note 8   Variable Interest Entities
   Note 9   Related Party Transactions
     73




---



##### Table of Contents



74




---



##### Table of Contents



Note 10  Commitments and Contingencies
       Note 11  Discontinued Operations and Sales of Real Estate
  75




---



##### Table of Contents



2007
    
    2006
    
    2005Total gross revenues
    
    $
    23,767
    
    
    $
    61,694
    
    
    $
    103,179Net income, including gains on sales
    
    $
    66,218
    
    
    $
    96,607
    
    
    $
    24,858
  Note 12  Supplemental Disclosure of Statement of Cash Flow Information
           76




---



##### Table of Contents



Note 13  Summary of Quarterly Results (Unaudited)
  Quarters EndedMarch 31
    
    
    June 30
    
    
    September 30
    
    
    December 312007Revenues(1)
    
    $
    38,956
    
    
    $
    55,464
    
    
    $
    55,004
    
    
    $
    58,380Net income
    
    $
    9,454
    
    
    $
    69,590
    
    
    $
    30,903
    
    
    $
    41,503Net income per limited partnership unit
    
    $
    0.18
    
    
    $
    1.29
    
    
    $
    0.53
    
    
    $
    0.702006Revenues(1)
    
    $
    38,785
    
    
    $
    41,118
    
    
    $
    39,314
    
    
    $
    41,088Net income (loss)
    
    $
    26,433
    
    
    $
    27,410
    
    
    $
    85,973
    
    
    $
    (10,474
    )Net income (loss) per limited partnership unit
    
    $
    0.51
    
    
    $
    0.53
    
    
    $
    1.67
    
    
    $
    (0.20
    )
 
 (1)
    
    All periods have been adjusted to reflect the impact of properties
sold during the years ended December 31, 2007 and 2006, and properties
classified as held for sale, which are reflected in discontinued
operations in the consolidated statements of operations and
comprehensive income.  Note 14  Subsequent Events
  
    
    Repurchased $100,000 of the guaranteed exchangeable notes for a net price of $87,781
including accrued interest.
    
    Sold two properties for an aggregate purchase price of $122,950.
 77




---



##### Table of Contents




    
    Advanced an additional $47,500 net to Lexington.
 
    
    Invested $5,087 in Concord.
 78




---



##### Table of Contents



THE LEXINGTON MASTER LIMITED PARTNERSHIP
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION
Initial cost to Partnership and Gross Amount at which carried at End of Year (A)
 AccumulatedDepreciation
    
    
    
    
    
    
    
    
    
    Useful life computingEncumbrances
    
    Land and
    
    Building and
    
    
    
    
    
    and
    
    Date
    
    Date
    
    depreciation in latestDescription
    
    Location
    
    Mortgage
    
    Contract Right
    
    Land Estates
    
    Improvements
    
    Total
    
    Amortization
    
    Acquired
    
    Constructed
    
    income statement (years)Office
    
    Little Rock
    
    AR
    
    $
    ***
    
    
    $
    
    
    
    $
    244,068
    
    
    $
    2,596,680
    
    
    $
    2,840,748
    
    
    $
    1,029,649
    
    
    
    1/1/2002
    
    
    
    1980
    
    
    
    40Office
    
    Sierra Vista
    
    AR
    
    
    
    
    
    
    
    
    
    
    20,013
    
    
    
    
    
    
    
    20,013
    
    
    
    
    
    
    
    1/1/2002Office
    
    Brea
    
    CA
    
    
    78,091,564
    
    
    
    
    
    
    
    37,270,228
    
    
    
    45,690,905
    
    
    
    82,961,133
    
    
    
    3,073,846
    
    
    
    12/31/2007
    
    
    
    1983
    
    
    
    40Office
    
    Irvine
    
    CA
    
    
    4,078,944
    
    
    
    
    
    
    
    2,101,464
    
    
    
    19,245,946
    
    
    
    21,347,410
    
    
    
    1,387,253
    
    
    
    1/1/2003
    
    
    
    1983
    
    
    
    40Office
    
    Long Beach
    
    CA
    
    
    15,923,492
    
    
    
    9,464,009
    
    
    
    19,614,925
    
    
    
    71,446,499
    
    
    
    91,061,424
    
    
    
    46,703,851
    
    
    
    1/1/2002
    
    
    
    1981
    
    
    
    27-40Office
    
    Pleasanton
    
    CA
    
    
    4,413,522
    
    
    
    
    
    
    
    281,772
    
    
    
    2,724,072
    
    
    
    3,005,844
    
    
    
    370,792
    
    
    
    1/1/2006
    
    
    
    1984
    
    
    
    40Office
    
    San Fransisco
    
    CA
    
    
    22,455,249
    
    
    
    
    
    
    
    4,205,352
    
    
    
    24,516,348
    
    
    
    28,721,700
    
    
    
    2,049,090
    
    
    
    1/1/2006
    
    
    
    1959
    
    
    
    40Office
    
    Walnut Creek
    
    CA
    
    
    ***
    
    
    
    
    
    
    
    1,754,924
    
    
    
    12,740,690
    
    
    
    14,495,614
    
    
    
    5,194,479
    
    
    
    1/1/2002
    
    
    
    1983
    
    
    
    27-40Office
    
    Colorado Springs
    
    CO
    
    
    ***
    
    
    
    
    
    
    
    384,876
    
    
    
    13,537,369
    
    
    
    13,922,245
    
    
    
    5,602,223
    
    
    
    1/1/2002
    
    
    
    1982
    
    
    
    38-40Office
    
    Colorado Springs
    
    CO
    
    
    11,380,933
    
    
    
    
    
    
    
    2,747,736
    
    
    
    12,554,351
    
    
    
    15,302,087
    
    
    
    651,945
    
    
    
    6/1/2007
    
    
    
    1980
    
    
    
    40Office
    
    Clinton
    
    CT
    
    
    721,080
    
    
    
    
    
    
    
    
    
    
    
    1,600,313
    
    
    
    1,600,313
    
    
    
    284,034
    
    
    
    1/1/2003
    
    
    
    1971
    
    
    
    20-40Office
    
    Lake Mary
    
    FL
    
    
    13,039,994
    
    
    
    
    
    
    
    4,438,124
    
    
    
    13,715,746
    
    
    
    18,153,870
    
    
    
    1,220,002
    
    
    
    6/1/2007
    
    
    
    1999
    
    
    
    40Office
    
    Lake Mary
    
    FL
    
    
    13,078,561
    
    
    
    
    
    
    
    4,535,366
    
    
    
    13,949,722
    
    
    
    18,485,088
    
    
    
    1,248,126
    
    
    
    6/1/2007
    
    
    
    1997
    
    
    
    40Office
    
    Orlando
    
    FL
    
    
    ***
    
    
    
    
    
    
    
    
    
    
    
    15,198,785
    
    
    
    15,198,785
    
    
    
    6,683,281
    
    
    
    1/1/2002
    
    
    
    1982
    
    
    
    38-40Office
    
    Orlando
    
    FL
    
    
    ***
    
    
    
    
    
    
    
    2,015,271
    
    
    
    39,647,028
    
    
    
    41,662,299
    
    
    
    17,270,249
    
    
    
    1/1/2002
    
    
    
    1984
    
    
    
    38-40Office
    
    Chicago
    
    IL
    
    
    28,974,831
    
    
    
    
    
    
    
    5,154,524
    
    
    
    45,904,159
    
    
    
    51,058,683
    
    
    
    3,012,509
    
    
    
    6/1/2007
    
    
    
    1986
    
    
    
    40Office
    
    Lisle
    
    IL
    
    
    10,450,000
    
    
    
    
    
    
    
    3,551,430
    
    
    
    11,523,328
    
    
    
    15,074,758
    
    
    
    564,164
    
    
    
    1/26/2006
    
    
    
    1985
    
    
    
    40Office
    
    Columbus
    
    IN
    
    
    42,800,000
    
    
    
    
    
    
    
    
    
    
    
    53,535,768
    
    
    
    53,535,768
    
    
    
    16,199,510
    
    
    
    1/1/2002
    
    
    
    1983
    
    
    
    38-40Office
    
    Fishers
    
    IN
    
    
    14,512,109
    
    
    
    
    
    
    
    1,692,646
    
    
    
    18,374,514
    
    
    
    20,067,160
    
    
    
    473,767
    
    
    
    6/1/2007
    
    
    
    1999
    
    
    
    40Office
    
    Boston
    
    MA
    
    
    ***
    
    
    
    
    
    
    
    3,813,604
    
    
    
    14,727,647
    
    
    
    18,541,251
    
    
    
    291,485
    
    
    
    6/1/2007
    
    
    
    1910
    
    
    
    40Office
    
    Baltimore
    
    MD
    
    
    ***
    
    
    
    
    
    
    
    
    
    
    
    138,489,531
    
    
    
    138,489,531
    
    
    
    66,395,918
    
    
    
    1/1/2002
    
    
    
    1973
    
    
    
    14-40Office
    
    Bridgeton
    
    MO
    
    
    ***
    
    
    
    
    
    
    
    
    
    
    
    3,398,088
    
    
    
    3,398,088
    
    
    
    1,403,158
    
    
    
    1/1/2002
    
    
    
    1980
    
    
    
    25-40Office
    
    Cary
    
    NC
    
    
    12,589,388
    
    
    
    
    
    
    
    5,342,287
    
    
    
    14,866,274
    
    
    
    20,208,561
    
    
    
    1,033,995
    
    
    
    6/1/2007
    
    
    
    1999
    
    
    
    40Office
    
    Bridgewater
    
    NJ
    
    
    14,805,000
    
    
    
    
    
    
    
    6,273,042
    
    
    
    14,876,796
    
    
    
    21,149,838
    
    
    
    1,224,198
    
    
    
    1/18/2006
    
    
    
    1986
    
    
    
    5-40Office
    
    Carteret
    
    NJ
    
    
    
    
    
    
    
    
    
    
    482,890
    
    
    
    10,450,069
    
    
    
    10,932,959
    
    
    
    4,414,969
    
    
    
    1/1/2002
    
    
    
    1980
    
    
    
    38-40Office
    
    Elizabeth
    
    NJ
    
    
    ***
    
    
    
    
    
    
    
    256,053
    
    
    
    4,761,579
    
    
    
    5,017,632
    
    
    
    2,000,133
    
    
    
    1/1/2002
    
    
    
    1984
    
    
    
    38-40Office
    
    Parisippany
    
    NJ
    
    
    40,151,391
    
    
    
    
    
    
    
    7,478,447
    
    
    
    84,051,074
    
    
    
    91,529,521
    
    
    
    5,271,989
    
    
    
    6/1/2007
    
    
    
    2000
    
    
    
    40Office
    
    Plainsboro
    
    NJ
    
    
    
    
    
    
    
    
    
    
    48,855
    
    
    
    866,678
    
    
    
    915,533
    
    
    
    353,570
    
    
    
    1/1/2002
    
    
    
    1980
    
    
    
    38-40Office
    
    Rockaway
    
    NJ
    
    
    14,900,000
    
    
    
    
    
    
    
    7,195,672
    
    
    
    12,116,387
    
    
    
    19,312,059
    
    
    
    492,227
    
    
    
    5/5/2006
    
    
    
    2002
    
    
    
    40Office
    
    Las Vegas
    
    NV
    
    
    52,782,102
    
    
    
    
    
    
    
    1,993,597
    
    
    
    42,579,676
    
    
    
    44,573,273
    
    
    
    11,812,561
    
    
    
    1/1/2002
    
    
    
    1982
    
    
    
    38-40Office
    
    Rochester
    
    NY
    
    
    18,800,000
    
    
    
    
    
    
    
    560,179
    
    
    
    20,649,681
    
    
    
    21,209,860
    
    
    
    881,913
    
    
    
    4/26/2006
    
    
    
    1988
    
    
    
    40Office
    
    Glenwillow
    
    OH
    
    
    17,000,000
    
    
    
    
    
    
    
    2,905,693
    
    
    
    19,504,130
    
    
    
    22,409,823
    
    
    
    751,722
    
    
    
    6/30/2006
    
    
    
    1996
    
    
    
    40Office
    
    Milford
    
    OH
    
    
    16,220,484
    
    
    
    
    
    
    
    3,124,476
    
    
    
    15,396,059
    
    
    
    18,520,535
    
    
    
    1,636,646
    
    
    
    6/1/2007
    
    
    
    1991
    
    
    
    40Office
    
    Westerville
    
    OH
    
    
    
    
    
    
    
    
    
    
    2,084,872
    
    
    
    9,264,775
    
    
    
    11,349,647
    
    
    
    210,192
    
    
    
    5/15/2007
    
    
    
    2000
    
    
    
    40Office
    
    Johnson City
    
    TN
    
    
    ***
    
    
    
    
    
    
    
    550,046
    
    
    
    4,569,795
    
    
    
    5,119,841
    
    
    
    1,334,779
    
    
    
    1/1/2002
    
    
    
    1983
    
    
    
    38-40
 79




---



##### Table of Contents



THE LEXINGTON MASTER LIMITED PARTNERSHIP
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION
Initial cost to Partnership and Gross Amount at which carried at End of Year (A)
 AccumulatedDepreciation
    
    
    
    
    
    
    
    
    
    
    Useful life computingEncumbrances
    
    Land and
    
    
    Building and
    
    
    
    
    
    
    and
    
    
    Date
    
    
    Date
    
    
    depreciation in latestDescription
    
    Location
    
    Mortgage
    
    
    Contract Right
    
    
    Land Estates
    
    
    Improvements
    
    
    Total
    
    
    Amortization
    
    
    Acquired
    
    
    Constructed
    
    
    income statement (years)Office
    
    Memphis
    
    TN
    
    $
    ***
    
    
    $
    
    
    
    $
    647,570
    
    
    $
    6,005,775
    
    
    $
    6,653,345
    
    
    $
    3,069,501
    
    
    
    1/1/2002
    
    
    
    1982
    
    

    27-40Office
    
    Memphis
    
    TN
    
    
    76,800,163
    
    
    
    
    
    
    
    356,650
    
    
    
    63,296,739
    
    
    
    63,653,389
    
    
    
    20,824,493
    
    
    
    1/1/2002
    
    
    
    1985
    
    

    38-40Office
    
    Beaumont
    
    TX
    
    
    
    
    
    
    
    
    
    
    366,551
    
    
    
    9,484,884
    
    
    
    9,851,435
    
    
    
    4,060,083
    
    
    
    1/1/2002
    
    
    
    1978
    
    

    38-40Office
    
    Beaumont
    
    TX
    
    
    ***
    
    
    
    
    
    
    
    
    
    
    
    49,406,412
    
    
    
    49,406,412
    
    
    
    12,788,756
    
    
    
    1/1/2002
    
    
    
    1983
    
    

    38-40Office
    
    Bedford
    
    TX
    
    
    ***
    
    
    
    
    
    
    
    2,555,275
    
    
    
    17,235,189
    
    
    
    19,790,464
    
    
    
    5,910,479
    
    
    
    1/1/2002
    
    
    
    1983
    
    

    38-40Office
    
    Coppell
    
    TX
    
    
    14,400,000
    
    
    
    
    
    
    
    2,470,000
    
    
    
    12,793,125
    
    
    
    15,263,125
    
    
    
    252,938
    
    
    
    5/27/2007
    
    
    
    2002
    
    


40Office
    
    Dallas
    
    TX
    
    
    ***
    
    
    
    
    
    
    
    631,561
    
    
    
    22,608,004
    
    
    
    23,239,565
    
    
    
    10,713,986
    
    
    
    1/1/2002
    
    
    
    1981
    
    

    38-40office
    
    Garland
    
    TX
    
    
    
    
    
    
    
    
    
    
    248,242
    
    
    
    11,406,998
    
    
    
    11,655,240
    
    
    
    3,528,321
    
    
    
    1/1/2002
    
    
    
    1980
    
    

    29-40Office
    
    Houston
    
    TX
    
    
    60,193,221
    
    
    
    
    
    
    
    16,612,553
    
    
    
    52,682,153
    
    
    
    69,294,706
    
    
    
    4,938,946
    
    
    
    12/31/2007
    
    
    
    1976/1984
    
    
40Office
    
    Irving
    
    TX
    
    
    26,898,645
    
    
    
    
    
    
    
    3,058,334
    
    
    
    17,623,108
    
    
    
    20,681,442
    
    
    
    910,651
    
    
    
    6/1/2007
    
    
    
    1999
    
    
40Office
    
    Glen Allen
    
    VA
    
    
    19,484,549
    
    
    
    
    
    
    
    2,361,382
    
    
    
    28,504,177
    
    
    
    30,865,559
    
    
    
    2,221,657
    
    
    
    6/1/2007
    
    
    
    1998
    
    
40Office
    
    Herndon
    
    VA
    
    
    11,930,028
    
    
    
    
    
    
    
    9,409,317
    
    
    
    12,852,715
    
    
    
    22,262,032
    
    
    
    1,034,007
    
    
    
    6/1/2007
    
    
    
    1987
    
    
40Office
    
    Evanston
    
    WY
    
    
    ***
    
    
    
    
    
    
    
    294,197
    
    
    
    1,864,206
    
    
    
    2,158,403
    
    
    
    1,390,666
    
    
    
    1/1/2002
    
    
    
    1975
    
    

    20-40656,875,250
    
    
    
    9,464,009
    
    
    
    171,134,064
    
    
    
    1,134,833,947
    
    
    
    1,305,968,011
    
    
    
    284,172,709Retail
    
    Florence
    
    AL
    
    
    ***
    
    
    
    
    
    
    
    343,662
    
    
    
    3,187,227
    
    
    
    3,530,889
    
    
    
    1,628,888
    
    
    
    1/1/2002
    
    
    
    1983
    
    

    27-40Retail
    
    Montgomery
    
    AL
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,433,818
    
    
    
    2,433,818
    
    
    
    805,792
    
    
    
    1/1/2002
    
    
    
    1980
    
    
40Retail
    
    Bisbee
    
    AZ
    
    
    
    
    
    
    
    
    
    
    333,266
    
    
    
    2,127,159
    
    
    
    2,460,425
    
    
    
    1,180,851
    
    
    
    1/1/2002
    
    
    
    1984
    
    

    27-40Retail
    
    Mesa
    
    AZ
    
    
    
    
    
    
    
    
    
    
    45,834
    
    
    
    
    
    
    
    45,834
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Phoenix
    
    AZ
    
    
    
    
    
    
    
    
    
    
    47,943
    
    
    
    
    
    
    
    47,943
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Springdale
    
    AZ
    
    
    
    
    
    
    
    
    
    
    3,670
    
    
    
    
    
    
    
    3,670
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Tucson
    
    AZ
    
    
    
    
    
    
    
    
    
    
    380,494
    
    
    
    2,428,603
    
    
    
    2,809,097
    
    
    
    1,393,443
    
    
    
    1/1/2002
    
    
    
    1984
    
    

    27-40Retail
    
    Beaumont
    
    CA
    
    
    
    
    
    
    
    
    
    
    3,830
    
    
    
    
    
    
    
    3,830
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Loveland
    
    CA
    
    
    
    
    
    
    
    
    
    
    18,581
    
    
    
    
    
    
    
    18,581
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Mammoth Lake
    
    CA
    
    
    
    
    
    
    
    
    
    
    700,534
    
    
    
    4,857,292
    
    
    
    5,557,826
    
    
    
    2,820,461
    
    
    
    1/1/2002
    
    
    
    1982
    
    

    27-40Retail
    
    Pasadena
    
    CA
    
    
    
    
    
    
    
    
    
    
    18,226
    
    
    
    
    
    
    
    18,226
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Rialto
    
    CA
    
    
    
    
    
    
    
    
    
    
    14,673
    
    
    
    
    
    
    
    14,673
    
    
    
    
    
    
    
    1/1/2002Retail
    
    San Dimas
    
    CA
    
    
    
    
    
    
    
    
    
    
    15,713
    
    
    
    
    
    
    
    15,713
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Simi Valley
    
    CA
    
    
    
    
    
    
    
    
    
    
    16,828
    
    
    
    
    
    
    
    16,828
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Yucca Valley
    
    CA
    
    
    
    
    
    
    
    
    
    
    17,462
    
    
    
    
    
    
    
    17,462
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Aurora
    
    CO
    
    
    
    
    
    
    
    
    
    
    400,072
    
    
    
    2,768,776
    
    
    
    3,168,848
    
    
    
    1,644,298
    
    
    
    1/1/2002
    
    
    
    1981
    
    

    27-40Retail
    
    Aurora
    
    CO
    
    
    
    
    
    
    
    
    
    
    19,324
    
    
    
    
    
    
    
    19,324
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Colorado Springs
    
    CO
    
    
    
    
    
    
    
    
    
    
    20,139
    
    
    
    
    
    
    
    20,139
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Littleton
    
    CO
    
    
    
    
    
    
    
    
    
    
    226,074
    
    
    
    1,885,393
    
    
    
    2,111,467
    
    
    
    744,732
    
    
    
    1/1/2002
    
    
    
    1980
    
    

    38-40Retail
    
    Pueblo
    
    CO
    
    
    
    
    
    
    
    
    
    
    15,588
    
    
    
    
    
    
    
    15,588
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Homestead
    
    FL
    
    
    
    
    
    
    
    
    
    
    19,681
    
    
    
    
    
    
    
    19,681
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Orlando
    
    FL
    
    
    
    
    
    
    
    
    
    
    15,410
    
    
    
    
    
    
    
    15,410
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Port Richey
    
    FL
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,570,170
    
    
    
    1,570,170
    
    
    
    620,218
    
    
    
    1/1/2002
    
    
    
    1980
    
    

    38-40Retail
    
    Tallahassee
    
    FL
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,729,065
    
    
    
    1,729,065
    
    
    
    838,829
    
    
    
    1/1/2002
    
    
    
    1980
    
    
40Retail
    
    Atlanta (Chamblee-Dunwoody)
    
    GA
    
    
    
    
    
    
    
    
    
    
    120,697
    
    
    
    813,389
    
    
    
    934,086
    
    
    
    425,746
    
    
    
    1/1/2002
    
    
    
    1972
    
    

    25-35Retail
    
    Atlanta (N Druid Hills)
    
    GA
    
    
    
    
    
    
    
    
    
    
    153,014
    
    
    
    1,031,179
    
    
    
    1,184,193
    
    
    
    539,742
    
    
    
    1/1/2002
    
    
    
    1972
    
    

    25-35Retail
    
    Atlanta (Ponce de Leon)
    
    GA
    
    
    
    
    
    
    
    
    
    
    107,249
    
    
    
    722,764
    
    
    
    830,013
    
    
    
    378,311
    
    
    
    1/1/2002
    
    
    
    1975
    
    

    25-35Retail
    
    Cumming
    
    GA
    
    
    
    
    
    
    
    
    
    
    270,916
    
    
    
    1,825,733
    
    
    
    2,096,649
    
    
    
    955,629
    
    
    
    1/1/2002
    
    
    
    1968
    
    

    25-35
 80




---



##### Table of Contents



THE LEXINGTON MASTER LIMITED PARTNERSHIP
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION
Initial cost to Partnership and Gross Amount at which carried at End of Year (A)
 AccumulatedDepreciation
    
    
    
    
    
    
    
    
    
    Useful life computingEncumbrances
    
    Land and
    
    Building and
    
    
    
    
    
    and
    
    Date
    
    Date
    
    depreciation in latestDescription
    
    Location
    
    Mortgage
    
    Contract Right
    
    Land Estates
    
    Improvements
    
    Total
    
    Amortization
    
    Acquired
    
    Constructed
    
    income statement (years)Retail
    
    Duluth
    
    GA
    
    $
    
    
    
    $
    
    
    
    $
    182,098
    
    
    $
    1,227,177
    
    
    $
    1,409,275
    
    
    $
    642,332
    
    
    
    1/1/2002
    
    
    
    1971
    
    
    
    25-35Retail
    
    Forest Park
    
    GA
    
    
    
    
    
    
    
    
    
    
    272,514
    
    
    
    1,836,502
    
    
    
    2,109,016
    
    
    
    961,267
    
    
    
    1/1/2002
    
    
    
    1969
    
    
    
    25-35Retail
    
    Jonesboro
    
    GA
    
    
    
    
    
    
    
    
    
    
    105,469
    
    
    
    710,765
    
    
    
    816,234
    
    
    
    372,030
    
    
    
    1/1/2002
    
    
    
    1971
    
    
    
    25-35Retail
    
    Stone Mountain
    
    GA
    
    
    
    
    
    
    
    
    
    
    129,849
    
    
    
    875,068
    
    
    
    1,004,917
    
    
    
    458,030
    
    
    
    1/1/2002
    
    
    
    1973
    
    
    
    25-35Retail
    
    Rock Falls
    
    IL
    
    
    ***
    
    
    
    
    
    
    
    156,731
    
    
    
    1,648,330
    
    
    
    1,805,061
    
    
    
    920,406
    
    
    
    1/1/2002
    
    
    
    1991
    
    
    
    38-40Retail
    
    Lawrence
    
    IN
    
    
    
    
    
    
    
    
    
    
    53,885
    
    
    
    2,877,258
    
    
    
    2,931,143
    
    
    
    1,431,916
    
    
    
    1/1/2002
    
    
    
    1983
    
    
    
    20-40Retail
    
    Minden
    
    LA
    
    
    
    
    
    
    
    
    
    
    439,524
    
    
    
    1,961,545
    
    
    
    2,401,069
    
    
    
    678,028
    
    
    
    1/1/2002
    
    
    
    1982
    
    
    
    27-40Retail
    
    Columbia
    
    MD
    
    
    941,639
    
    
    
    
    
    
    
    671,547
    
    
    
    817,581
    
    
    
    1,489,128
    
    
    
    69,585
    
    
    
    6/1/2006
    
    
    
    1979
    
    
    
    40Retail
    
    Arnold
    
    MO
    
    
    
    
    
    
    
    
    
    
    4,817
    
    
    
    
    
    
    
    4,817
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Independence
    
    MO
    
    
    
    
    
    
    
    
    
    
    15,561
    
    
    
    
    
    
    
    15,561
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Lees Summit
    
    MO
    
    
    
    
    
    
    
    
    
    
    3,886
    
    
    
    
    
    
    
    3,886
    
    
    
    
    
    
    
    1/1/2002Retail
    
    St Louis
    
    MO
    
    
    
    
    
    
    
    
    
    
    18,418
    
    
    
    
    
    
    
    18,418
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Billings
    
    MT
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,805,618
    
    
    
    2,805,618
    
    
    
    1,255,418
    
    
    
    1/1/2002
    
    
    
    1981
    
    
    
    38-40Retail
    
    Charlotte
    
    NC
    
    
    ***
    
    
    
    
    
    
    
    36,078
    
    
    
    898,638
    
    
    
    934,716
    
    
    
    304,706
    
    
    
    1/1/2002
    
    
    
    1982
    
    
    
    38-40Retail
    
    Concord
    
    NC
    
    
    ***
    
    
    
    
    
    
    
    56,439
    
    
    
    1,777,516
    
    
    
    1,833,955
    
    
    
    600,931
    
    
    
    1/1/2002
    
    
    
    1983
    
    
    
    38-40Retail
    
    Jacksonville
    
    NC
    
    
    
    
    
    
    
    
    
    
    64,434
    
    
    
    729,741
    
    
    
    794,175
    
    
    
    237,579
    
    
    
    1/1/2002
    
    
    
    1982
    
    
    
    38-40Retail
    
    Jefferson
    
    NC
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    635,971
    
    
    
    635,971
    
    
    
    207,881
    
    
    
    1/1/2002
    
    
    
    1979
    
    
    
    38-40Retail
    
    Lexington
    
    NC
    
    
    
    
    
    
    
    
    
    
    106,703
    
    
    
    1,208,617
    
    
    
    1,315,320
    
    
    
    400,914
    
    
    
    1/1/2002
    
    
    
    1983
    
    
    
    38-40Retail
    
    Thomasville
    
    NC
    
    
    ***
    
    
    
    
    
    
    
    38,805
    
    
    
    1,016,388
    
    
    
    1,055,193
    
    
    
    343,163
    
    
    
    1/1/2002
    
    
    
    1998
    
    
    
    38-40Retail
    
    Garwood
    
    NJ
    
    
    95,121
    
    
    
    
    
    
    
    607,569
    
    
    
    3,802,120
    
    
    
    4,409,689
    
    
    
    1,347,829
    
    
    
    1/1/2002
    
    
    
    1980
    
    
    
    38-40Retail
    
    Albuquerque
    
    NM
    
    
    
    
    
    
    
    
    
    
    16,692
    
    
    
    
    
    
    
    16,692
    
    
    
    
    
    
    
    1/1/2002
    
    
    
    
    
    
    
    27-40Retail
    
    Albuquerque
    
    NM
    
    
    
    
    
    
    
    
    
    
    15,482
    
    
    
    
    
    
    
    15,482
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Las Vegas
    
    NV
    
    
    
    
    
    
    
    
    
    
    19,977
    
    
    
    
    
    
    
    19,977
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Portchester
    
    NY
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,308,836
    
    
    
    7,308,836
    
    
    
    3,097,528
    
    
    
    1/1/2002
    
    
    
    1982
    
    
    
    38-40Retail
    
    Cincinnati
    
    OH
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    1/1/2002
    
    
    
    1980
    
    
    
    38-40Retail
    
    Franklin
    
    OH
    
    
    
    
    
    
    
    
    
    
    37,138
    
    
    
    1,685,071
    
    
    
    1,722,209
    
    
    
    805,453
    
    
    
    1/1/2002
    
    
    
    1961
    
    
    
    38-40Retail
    
    Lawton
    
    OK
    
    
    
    
    
    
    
    
    
    
    353,712
    
    
    
    2,257,661
    
    
    
    2,611,373
    
    
    
    1,291,070
    
    
    
    1/1/2002
    
    
    
    1984
    
    
    
    27-40Retail
    
    Ponca City
    
    OK
    
    
    
    
    
    
    
    
    
    
    47,435
    
    
    
    
    
    
    
    47,435
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Stillwater
    
    OK
    
    
    
    
    
    
    
    
    
    
    15,239
    
    
    
    
    
    
    
    15,239
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Grants Pass
    
    OR
    
    
    
    
    
    
    
    
    
    
    320,017
    
    
    
    2,042,594
    
    
    
    2,362,611
    
    
    
    1,159,754
    
    
    
    1/1/2002
    
    
    
    1984
    
    
    
    27-40Retail
    
    Doylestown
    
    PA
    
    
    
    
    
    
    
    
    
    
    120,348
    
    
    
    819,192
    
    
    
    939,540
    
    
    
    276,397
    
    
    
    1/1/2002
    
    
    
    1976
    
    
    
    20-40Retail
    
    Lansdale
    
    PA
    
    
    
    
    
    
    
    
    
    
    125,955
    
    
    
    866,323
    
    
    
    992,278
    
    
    
    292,298
    
    
    
    1/1/2002
    
    
    
    1966
    
    
    
    20-40Retail
    
    Lima
    
    PA
    
    
    
    
    
    
    
    
    
    
    135,052
    
    
    
    942,899
    
    
    
    1,077,951
    
    
    
    318,135
    
    
    
    1/1/2002
    
    
    
    1983
    
    
    
    20-40Retail
    
    Philadelphia
    
    PA
    
    
    
    
    
    
    
    
    
    
    628,239
    
    
    
    3,796,097
    
    
    
    4,424,336
    
    
    
    1,425,136
    
    
    
    1/1/2002
    
    
    
    1980
    
    
    
    40Retail
    
    Philadelphia, 52nd
    
    PA
    
    
    
    
    
    
    
    
    
    
    146,262
    
    
    
    1,037,260
    
    
    
    1,183,522
    
    
    
    349,973
    
    
    
    1/1/2002
    
    
    
    1921
    
    
    
    20-40Retail
    
    Philadelphia, Broad
    
    PA
    
    
    
    
    
    
    
    
    
    
    153,959
    
    
    
    1,102,037
    
    
    
    1,255,996
    
    
    
    371,830
    
    
    
    1/1/2002
    
    
    
    1920
    
    
    
    20-40Retail
    
    Philadelphia, Bustle
    
    PA
    
    
    
    
    
    
    
    
    
    
    120,356
    
    
    
    819,192
    
    
    
    939,548
    
    
    
    276,397
    
    
    
    1/1/2002
    
    
    
    1970
    
    
    
    20-40Retail
    
    Philadelphia, Cottman
    
    PA
    
    
    
    
    
    
    
    
    
    
    161,663
    
    
    
    1,166,885
    
    
    
    1,328,548
    
    
    
    393,709
    
    
    
    1/1/2002
    
    
    
    1980
    
    
    
    20-40Retail
    
    Philadelphia, Frankford
    
    PA
    
    
    
    
    
    
    
    
    
    
    131,212
    
    
    
    907,541
    
    
    
    1,038,753
    
    
    
    306,205
    
    
    
    1/1/2002
    
    
    
    1960
    
    
    
    20-40Retail
    
    Philadelphia, Lehigh
    
    PA
    
    
    
    
    
    
    
    
    
    
    121,054
    
    
    
    825,061
    
    
    
    946,115
    
    
    
    278,378
    
    
    
    1/1/2002
    
    
    
    1922
    
    
    
    20-40Retail
    
    Philadelphia, N 5th
    
    PA
    
    
    
    
    
    
    
    
    
    
    52,440
    
    
    
    247,488
    
    
    
    299,928
    
    
    
    83,503
    
    
    
    1/1/2002
    
    
    
    1975
    
    
    
    20-40Retail
    
    Philadelphia, N Broad
    
    PA
    
    
    
    
    
    
    
    
    
    
    114,757
    
    
    
    772,059
    
    
    
    886,816
    
    
    
    260,494
    
    
    
    1/1/2002
    
    
    
    1920
    
    
    
    20-40Retail
    
    Richboro
    
    PA
    
    
    
    
    
    
    
    
    
    
    113,355
    
    
    
    760,250
    
    
    
    873,605
    
    
    
    256,512
    
    
    
    1/1/2002
    
    
    
    1976
    
    
    
    20-40Retail
    
    Wayne
    
    PA
    
    
    
    
    
    
    
    
    
    
    155,018
    
    
    
    1,113,823
    
    
    
    1,268,841
    
    
    
    375,805
    
    
    
    1/1/2002
    
    
    
    1983
    
    
    
    20-40
 81




---



##### Table of Contents



THE LEXINGTON MASTER LIMITED PARTNERSHIP
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION
Initial cost to Partnership and Gross Amount at which carried at End of Year (A)
 AccumulatedDepreciation
    
    
    
    
    
    
    
    
    
    
    Useful life computingEncumbrances
    
    
    Land and
    
    
    Building and
    
    
    
    
    
    
    and
    
    
    Date
    
    
    Date
    
    
    depreciation in latestDescription
    
    Location
    
    Mortgage
    
    
    Contract Right
    
    
    Land Estates
    
    
    Improvements
    
    
    Total
    
    
    Amortization
    
    
    Acquired
    
    
    Constructed
    
    
    income statement (years)Retail
    
    Moncks Corner
    
    SC
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    539,472
    
    
    $
    539,472
    
    
    $
    178,184
    
    
    
    1/1/2002
    
    
    
    1982
    
       38-40Retail
    
    N Myrtle Beach
    
    SC
    
    
    ***
    
    
    
    
    
    
    
    
    
    
    
    1,577,826
    
    
    
    1,577,826
    
    
    
    532,972
    
    
    
    1/1/2002
    
    
    
    1983
    
       38-40Retail
    
    Chattanooga
    
    TN
    
    
    ***
    
    
    
    
    
    
    
    369,150
    
    
    
    3,423,619
    
    
    
    3,792,769
    
    
    
    1,749,780
    
    
    
    1/1/2002
    
    
    
    1982
    
       27-40Retail
    
    Paris
    
    TN
    
    
    ***
    
    
    
    
    
    
    
    244,304
    
    
    
    2,265,742
    
    
    
    2,510,046
    
    
    
    1,158,007
    
    
    
    1/1/2002
    
    
    
    1982
    
       27-40Retail
    
    Austin
    
    TX
    
    
    
    
    
    
    
    
    
    
    47,127
    
    
    
    
    
    
    
    47,127
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Baytown
    
    TX
    
    
    
    
    
    
    
    
    
    
    17,888
    
    
    
    
    
    
    
    17,888
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Bear Creek
    
    TX
    
    
    
    
    
    
    
    
    
    
    17,859
    
    
    
    
    
    
    
    17,859
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Carrolton
    
    TX
    
    
    
    
    
    
    
    
    
    
    582,247
    
    
    
    2,881,723
    
    
    
    3,463,970
    
    
    
    1,044,615
    
    
    
    1/1/2002
    
    
    
    1984
    
       25-40Retail
    
    Dallas
    
    TX
    
    
    
    
    
    
    
    
    
    
    856,397
    
    
    
    3,639,198
    
    
    
    4,495,595
    
    
    
    1,576,755
    
    
    
    1/1/2002
    
    
    
    1960
    
       38-40Retail
    
    El Paso
    
    TX
    
    
    
    
    
    
    
    
    
    
    14,599
    
    
    
    
    
    
    
    14,599
    
    
    
    
    
    
    
    1/1/2002Retail
    
    El Paso
    
    TX
    
    
    
    
    
    
    
    
    
    
    18,500
    
    
    
    
    
    
    
    18,500
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Fort Worth
    
    TX
    
    
    
    
    
    
    
    
    
    
    532,341
    
    
    
    3,692,266
    
    
    
    4,224,607
    
    
    
    2,131,925
    
    
    
    1/1/2002
    
    
    
    1985
    
       27-40Retail
    
    Garland
    
    TX
    
    
    ***
    
    
    
    
    
    
    
    165,286
    
    
    
    3,334,967
    
    
    
    3,500,253
    
    
    
    1,152,757
    
    
    
    1/1/2002
    
    
    
    1983
    
       29-40Retail
    
    Granbury
    
    TX
    
    
    
    
    
    
    
    
    
    
    107,704
    
    
    
    2,173,176
    
    
    
    2,280,880
    
    
    
    751,175
    
    
    
    1/1/2002
    
    
    
    1982
    
       29-40Retail
    
    Grand Prairie
    
    TX
    
    
    
    
    
    
    
    
    
    
    462,315
    
    
    
    2,950,860
    
    
    
    3,413,175
    
    
    
    1,738,337
    
    
    
    1/1/2002
    
    
    
    1984
    
       27-40Retail
    
    Greenville
    
    TX
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,431,281
    
    
    
    1,431,281
    
    
    
    1,088,427
    
    
    
    1/1/2002
    
    
    
    1985
    
    
 40Retail
    
    Hillsboro
    
    TX
    
    
    
    
    
    
    
    
    
    
    90,988
    
    
    
    1,835,822
    
    
    
    1,926,810
    
    
    
    634,568
    
    
    
    1/1/2002
    
    
    
    1982
    
       29-40Retail
    
    Houston
    
    TX
    
    
    
    
    
    
    
    
    
    
    614,015
    
    
    
    3,705,420
    
    
    
    4,319,435
    
    
    
    2,192,261
    
    
    
    1/1/2002
    
    
    
    1982
    
       27-40Retail
    
    Lubbock
    
    TX
    
    
    ***
    
    
    
    
    
    
    
    
    
    
    
    1,509,270
    
    
    
    1,509,270
    
    
    
    732,198
    
    
    
    1/1/2002
    
    
    
    1978
    
    
 40Retail
    
    Sandy
    
    UT
    
    
    ***
    
    
    
    
    
    
    
    
    
    
    
    1,585,726
    
    
    
    1,585,726
    
    
    
    528,838
    
    
    
    1/1/2002
    
    
    
    1981
    
       38-40Retail
    
    Herndon
    
    VA
    
    
    
    
    
    
    
    
    
    
    17,741
    
    
    
    
    
    
    
    17,741
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Staunton
    
    VA
    
    
    
    
    
    
    
    
    
    
    127,681
    
    
    
    1,445,996
    
    
    
    1,573,677
    
    
    
    460,309
    
    
    
    1/1/2002
    
    
    
    1971
    
       38-40Retail
    
    Edmonds
    
    WA
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,305,028
    
    
    
    1,305,028
    
    
    
    633,114
    
    
    
    1/1/2002
    
    
    
    1981
    
    
 40Retail
    
    Graham
    
    WA
    
    
    
    
    
    
    
    
    
    
    437,273
    
    
    
    2,790,997
    
    
    
    3,228,270
    
    
    
    1,595,877
    
    
    
    1/1/2002
    
    
    
    1984
    
       27-40Retail
    
    Milton
    
    WA
    
    
    
    
    
    
    
    
    
    
    493,533
    
    
    
    3,150,107
    
    
    
    3,643,640
    
    
    
    1,810,289
    
    
    
    1/1/2002
    
    
    
    1989
    
       27-40Retail
    
    Port Orchard
    
    WA
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    865,542
    
    
    
    865,542
    
    
    
    470,580
    
    
    
    1/1/2002
    
    
    
    1983
    
    
 40Retail
    
    Puyallup
    
    WA
    
    
    
    
    
    
    
    
    
    
    15,117
    
    
    
    
    
    
    
    15,117
    
    
    
    
    
    
    
    1/1/2002Retail
    
    Redmond
    
    WA
    
    
    
    
    
    
    
    
    
    
    490,535
    
    
    
    3,130,971
    
    
    
    3,621,506
    
    
    
    1,826,025
    
    
    
    1/1/2002
    
    
    
    1985
    
       27-40Retail
    
    Spokane
    
    WA
    
    
    
    
    
    
    
    
    
    
    376,686
    
    
    
    2,404,286
    
    
    
    2,780,972
    
    
    
    1,391,723
    
    
    
    1/1/2002
    
    
    
    1984
    
       27-40Retail
    
    Cheyenne
    
    WY
    
    
    ***
    
    
    
    
    
    
    
    71,549
    
    
    
    984,564
    
    
    
    1,056,113
    
    
    
    286,401
    
    
    
    1/1/2002
    
    
    
    1981
    
       38-401,036,760
    
    
    
    
    
    
    
    15,569,404
    
    
    
    133,303,532
    
    
    
    148,872,936
    
    
    
    61,492,649Industrial
    
    Long Beach
    
    CA
    
    
    5,902,311
    
    
    
    3,979,635
    
    
    
    8,248,116
    
    
    
    30,043,403
    
    
    
    38,291,519
    
    
    
    19,639,067
    
    
    
    1/1/2002
    
    
    
    1981
    
       27-40Industrial
    
    Palo Alto
    
    CA
    
    
    ***
    
    
    
    
    
    
    
    
    
    
    
    26,958,221
    
    
    
    26,958,221
    
    
    
    11,317,852
    
    
    
    1/1/2002
    
    
    
    1974
    
    
 40Industrial
    
    Orlando
    
    FL
    
    
    ***
    
    
    
    
    
    
    
    
    
    
    
    9,128,285
    
    
    
    9,128,285
    
    
    
    4,326,032
    
    
    
    1/1/2002
    
    
    
    1981
    
       38-40Industrial
    
    McDonough
    
    GA
    
    
    23,000,000
    
    
    
    
    
    
    
    4,298,753
    
    
    
    25,278,000
    
    
    
    29,576,753
    
    
    
    689,595
    
    
    
    9/21/2006
    
    
    
    2000
    
    
 40Industrial
    
    Rockford
    
    IL
    
    
    2,622,000
    
    
    
    
    
    
    
    332,104
    
    
    
    2,780,183
    
    
    
    3,112,287
    
    
    
    124,529
    
    
    
    3/7/2006
    
    
    
    1998
    
    
 40Industrial
    
    Rockford
    
    IL
    
    
    4,278,000
    
    
    
    
    
    
    
    541,854
    
    
    
    4,536,087
    
    
    
    5,077,941
    
    
    
    203,180
    
    
    
    3/7/2006
    
    
    
    1992
    
    
 40Industrial
    
    Owensboro
    
    KY
    
    
    4,665,987
    
    
    
    
    
    
    
    
    
    
    
    16,265,158
    
    
    
    16,265,158
    
    
    
    3,068,636
    
    
    
    1/1/2003
    
    
    
    1975
    
       20-40Industrial
    
    Shreveport
    
    LA
    
    
    19,000,000
    
    
    
    
    
    
    
    860,000
    
    
    
    21,840,000
    
    
    
    22,700,000
    
    
    
    432,250
    
    
    
    3/28/2007
    
    
    
    2006
    
    
 40Industrial
    
    North Berwick
    
    ME
    
    
    ***
    
    
    
    
    
    
    
    274,873
    
    
    
    22,304,938
    
    
    
    22,579,811
    
    
    
    11,817,289
    
    
    
    1/1/2002
    
    
    
    1965
    
       38-40Industrial
    
    Plymouth
    
    MI
    
    
    11,847,293
    
    
    
    
    
    
    
    2,296,068
    
    
    
    13,397,997
    
    
    
    15,694,065
    
    
    
    1,202,294
    
    
    
    6/1/2007
    
    
    
    1996
    
    
 40
 82




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##### Table of Contents



THE LEXINGTON MASTER LIMITED PARTNERSHIP
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION
Initial cost to Partnership and Gross Amount at which carried at End of Year (A)
 AccumulatedDepreciation
    
    
    
    
    
    
    
    
    
    
    Useful life computingEncumbrances
    
    Land and
    
    
    Building and
    
    
    
    
    
    
    and
    
    
    Date
    
    
    Date
    
    
    depreciation in latestDescription
    
    Location
    
    Mortgage
    
    
    Contract Right
    
    
    Land Estates
    
    
    Improvements
    
    
    Total
    
    
    Amortization
    
    
    Acquired
    
    
    Constructed
    
    
    income statement (years)Industrial
    
    Temperance
    
    MI
    
    
    10,908,875
    
    
    
    
    
    
    
    3,040,182
    
    
    
    14,738,201
    
    
    
    17,778,383
    
    
    
    828,432
    
    
    
    6/1/2007
    
    
    
    1980
    
    
 40Industrial
    
    Lumberton
    
    NC
    
    
    ***
    
    
    
    
    
    
    
    366,943
    
    
    
    11,078,126
    
    
    
    11,445,069
    
    
    
    311,571
    
    
    
    11/6/2006
    
    
    
    1998
    
    
 40Industrial
    
    Statesville
    
    NC
    
    
    14,100,000
    
    
    
    
    
    
    
    1,101,691
    
    
    
    15,123,208
    
    
    
    16,224,899
    
    
    
    677,393
    
    
    
    3/29/2006
    
    
    
    1999
    
    
 40Industrial
    
    Swedesboro
    
    NJ
    
    
    7,318,056
    
    
    
    
    
    
    
    1,824,940
    
    
    
    10,776,232
    
    
    
    12,601,172
    
    
    
    415,664
    
    
    
    6/1/2007
    
    
    
    1998
    
    
 40Industrial
    
    Saugerties
    
    NY
    
    
    
    
    
    
    
    
    
    
    32,120
    
    
    
    676,932
    
    
    
    709,052
    
    
    
    132,385
    
    
    
    1/1/2002
    
    
    
    1979
    
    
    15-40Industrial
    
    Cincinnati
    
    OH
    
    
    ***
    
    
    
    
    
    
    
    897,406
    
    
    
    7,736,769
    
    
    
    8,634,175
    
    
    
    201,479
    
    
    
    12/31/2006
    
    
    
    1991
    
    
 40Industrial
    
    Columbus
    
    OH
    
    
    ***
    
    
    
    
    
    
    
    1,359,509
    
    
    
    15,555,978
    
    
    
    16,915,487
    
    
    
    502,329
    
    
    
    9/28/2006
    
    
    
    1973
    
    
 40Industrial
    
    Duncan
    
    SC
    
    
    
    
    
    
    
    
    
    
    883,876
    
    
    
    7,943,817
    
    
    
    8,827,693
    
    
    
    123,584
    
    
    
    6/6/2007
    
    
    
    2005
    
    
 40Industrial
    
    Laurens
    
    SC
    
    
    16,267,236
    
    
    
    
    
    
    
    5,591,518
    
    
    
    20,436,871
    
    
    
    26,028,389
    
    
    
    355,915
    
    
    
    6/1/2007
    
    
    
    1991
    
    
 40Industrial
    
    Franklin
    
    TN
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,805,302
    
    
    
    8,805,302
    
    
    
    3,458,963
    
    
    
    1/1/2002
    
    
    
    1970
    
    
    38-40Industrial
    
    Memphis
    
    TN
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,233,942
    
    
    
    19,233,942
    
    
    
    10,221,999
    
    
    
    1/1/2002
    
    
    
    1973
    
    
    30-40Industrial
    
    Winchester
    
    VA
    
    
    10,606,017
    
    
    
    
    
    
    
    3,823,436
    
    
    
    12,226,079
    
    
    
    16,049,515
    
    
    
    847,606
    
    
    
    6/1/2007
    
    
    
    2001
    
    
 40130,515,775
    
    
    
    3,979,635
    
    
    
    35,773,389
    
    
    
    316,863,729
    
    
    
    352,637,118
    
    
    
    70,898,044Other
    
    Jonesboro
    
    AR
    
    
    
    
    
    
    
    
    
    
    17,184
    
    
    
    
    
    
    
    17,184
    
    
    
    
    
    
    
    1/1/2002Other
    
    Sun City
    
    AZ
    
    
    
    
    
    
    
    
    
    
    74,588
    
    
    
    1,698,893
    
    
    
    1,773,481
    
    
    
    554,363
    
    
    
    1/1/2002
    
    
    
    1982
    
    
    38-40Other
    
    Baltimore
    
    MD
    
    
    
    
    
    
    
    
    
    
    4,618,251
    
    
    
    
    
    
    
    4,618,251
    
    
    
    
    
    
    
    10/31/2006
    
    
    
    
    
    
    42Other
    
    Carlsbad
    
    NM
    
    
    
    
    
    
    
    
    
    
    70,352
    
    
    
    1,565,013
    
    
    
    1,635,365
    
    
    
    510,677
    
    
    
    1/1/2002
    
    
    
    1980
    
    
    38-40Other
    
    Corpus Christi
    
    TX
    
    
    
    
    
    
    
    
    
    
    81,682
    
    
    
    1,923,062
    
    
    
    2,004,744
    
    
    
    627,508
    
    
    
    1/1/2002
    
    
    
    1983
    
    
    38-40Other
    
    El Paso
    
    TX
    
    
    
    
    
    
    
    
    
    
    60,863
    
    
    
    1,265,089
    
    
    
    1,325,952
    
    
    
    412,808
    
    
    
    1/1/2002
    
    
    
    1982
    
    
    38-40Other
    
    McAllen
    
    TX
    
    
    
    
    
    
    
    
    
    
    56,857
    
    
    
    1,138,486
    
    
    
    1,195,343
    
    
    
    371,496
    
    
    
    1/1/2002
    
    
    
    2004
    
    
    38-40Other
    
    Victoria
    
    TX
    
    
    
    
    
    
    
    
    
    
    80,712
    
    
    
    1,896,076
    
    
    
    1,976,788
    
    
    
    618,704
    
    
    
    1/1/2002
    
    
    
    1981
    
    
    38-40Other
    
    Various
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,053,073
    
    
    
    5,053,073
    
    
    
    
    
    
    
    1/1/2002
    
    
    
    
    
    
    
    5,060,489
    
    
    
    14,539,692
    
    
    
    19,600,181
    
    
    
    3,095,556Total
    
    
    
    $
    788,427,785
    
    
    $
    13,443,644
    
    
    $
    227,537,346
    
    
    $
    1,599,540,900
    
    
    $
    1,827,078,246
    
    
    $
    419,658,958
 
 ***
    
    Property is collateral for a $213,635,000 secured loan(A)
    
    The total cost basis of the Partnerships properties at
December 31, 2007
for Federal income tax purposes was approximately $2.2 billion. 83




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##### Table of Contents



THE LEXINGTON MASTER LIMITED PARTNERSHIP
SCHEDULE III
 REAL ESTATE AND ACCUMULATED DEPRECIATION
(Amounts in thousands)
  Year Ended
    
    
    Year Ended
    
    
    Year EndedDecember 31,
    
    
    December 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2005Real EstateBalance at beginning of year
    
    $
    1,451,950
    
    
    $
    1,457,603
    
    
    $
    1,578,182Additions during the year:Land and land estates
    
    
    133,608
    
    
    
    41,145
    
    
    
    30Buildings and improvements
    
    
    528,758
    
    
    
    204,211
    
    
    
    2562,114,316
    
    
    
    1,702,959
    
    
    
    1,578,468Less: Reclassifications and disposition of assets
    
    
    287,238
    
    
    
    251,009
    
    
    
    120,865Balance at end of year
    
    $
    1,827,078
    
    
    $
    1,451,950
    
    
    $
    1,457,603Accumulated DepreciationBalance at beginning of year
    
    $
    475,226
    
    
    $
    544,085
    
    
    $
    545,385Depreciation and amortization expense
    
    
    42,506
    
    
    
    59,724
    
    
    
    49,156Accumulated depreciation and amortization on acquisitions (1)
    
    
    22,185
    
    
    
    
    
    
    
    539,917
    
    
    
    603,809
    
    
    
    594,541Less: Reclassifications and disposition of assets
    
    
    120,258
    
    
    
    128,583
    
    
    
    50,456Balance at end of year
    
    $
    419,659
    
    
    $
    475,226
    
    
    $
    544,085
 
 (1)
    
    Represents the carry over basis acquired from assets previously owned by Lexington. 84




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##### Table of Contents



EXHIBIT INDEX
 3.1
    
    
    
    Second Amended and Restated Certificate of Limited Partnership of The Lexington Master Limited
Partnership
    
    (c)3.2
    
    
    
    Second Amended and Restated Agreement of Limited Partnership of The Lexington Master Limited
Partnership dated as of December 31, 2006
    
    (c)4.1
    
    
    
    Indenture, dated as of January 29, 2007, among The Lexington Master Limited Partnership, Lexington
Realty Trust, the other guarantors named therein and U.S. Bank National Association, as trustee
    
    (d)4.2
    
    
    
    First Supplemental Indenture, dated as of January 29, 2007, among The Lexington Master Limited
Partnership, Lexington Realty Trust, the other guarantors named therein and U.S. Bank National
Association, as trustee, including the Form of 5.45% Exchangeable Guaranteed Notes due 2027
    
    (d)4.3
    
    
    
    Second Supplemental Indenture, dated as of March 9, 2007, among The Lexington Master Limited
Partnership, Lexington Realty Trust, the other guarantors named therein and U.S. Bank National
Association, as trustee, including the Form of 5.45% Exchangeable Guaranteed Notes due 2027
    
    (e)9.1
    
    
    
    Voting Trustee Agreement, dated as of December 31, 2006, among Lexington Realty Trust, The
Lexington Master Limited Partnership and NKT Advisors LLC
    
    (c)10.1
    
    
    
    Letter Agreement among the Registrant, Apollo Real Estate Investment Fund III, L.P., The Newkirk
Master Limited Partnership, NKT Advisors LLC, Vornado Realty Trust, VNK Corp., Vornado Newkirk
LLC, Vornado MLP GP LLC and WEM Bryn Mawr Associates LLC (1)
    
    (a)10.2
    
    
    
    Amendment to the Letter Agreement among the Registrant, Apollo Real Estate Investment Fund III,
L.P., The Newkirk Master Limited Partnership, NKT Advisors LLC, Vornado Realty Trust, Vornado
Realty L.P., VNK Corp., Vornado Newkirk LLC, Vornado MLP GP LLC, and
WEM-Brynmawr Associates LLC (1)
    
    (a)10.3
    
    
    
    Amended and Restated Limited Liability Company Agreement of Concord Debt Holdings LLC, dated
September 21, 2007, among The Newkirk Master Limited Partnership, WRT Realty, L.P. and FUR
Holdings LLC (1)
    
    (h)10.4
    
    
    
    Amendment No. 1 to Amended and Restated Limited Liability Company Agreement of Concord Debt
Holdings LLC, dated as of January 7, 2008. (1)
    
    (j)10.5
    
    
    
    Master Repurchase Agreement, dated March 30, 2006, among Column Financial Inc., 111 Debt
Acquisition LLC, 111 Debt Acquisition Mezz LLC and Newkirk Realty
Trust, Inc. (1)
    
    (b)10.6
    
    
    
    Master Repurchase Agreement, dated May 24, 2006, between Bear, Stearns International Limited and
111 Debt Acquisition-Two LLC (1)
    
    (c)10.7
    
    
    
    Funding Agreement, dated as of December 31, 2006, by and among Lepercq Corporate Income Fund L.P.,
Lepercq Corporate Income Fund II L.P., Lepercq Corporate Income Fund III L.P., Net 3 Acquisition
L.P., The Lexington Master Limited Partnership and Lexington Realty
Trust (1)
    
    (c)10.8
    
    
    
    Guaranty Agreement, effective as of December 31, 2006, between Lexington Realty Trust and The
Lexington Master Limited Partnership (1)
    
    (c)10.9
    
    
    
    Property Management Agreement, dated as of December 31, 2006, among Lexington Realty Trust, The
Lexington Master Limited Partnership and Winthrop Management L.P. (1)
    
    (c)
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10.10
    
    
    
    Registration Rights Agreement, dated as of January 29, 2007, among The Lexington Master Limited
Partnership, Lexington Realty Trust, Lepercq Corporate Income Fund L.P., Lepercq Corporate Income
Fund II L.P., New 3 Acquisition L.P., Lehman Brothers Inc. and Bear, Stearns & Co. Inc., for
themselves and on behalf of the initial purchasers named therein (1)
    
    (d)10.11
    
    
    
    Registration Rights Agreement, dated as of March 9, 2007, among The Lexington Master Limited
Partnership, Lexington Realty Trust, Lepercq Corporate Income Fund L.P., Lepercq Corporate Income
Fund II L.P., Net 3 Acquisition L.P., Bear, Stearns & Co. Inc.
and Lehman Brothers Inc. (1)
    
    (e)10.12
    
    
    
    Common Share Delivery Agreement, made as of January 29, 2007, between The Lexington Master Limited
Partnership and Lexington Realty Trust (1)
    
    (d)10.13
    
    
    
    Common Share Delivery Agreement, dated March 9, 2007, between The Lexington Master Limited
Partnership and Lexington Realty Trust (1)
    
    (e)10.14
    
    
    
    Credit Agreement, dated as of June 1, 2007, among The Lexington Master Limited Partnership,
Lexington Realty Trust, Lepercq Corporate Income Fund L.P., Lepercq Corporate Income Fund II L.P.,
Net 3 Acquisition L.P., jointly and severally as borrowers, KeyBanc Capital Markets, as lead
arranger and book running manager, KeyBank National Association, as agent, and each of the
financial institutions initially a signatory thereto together with their assignees pursuant to
Section 12.5.(d) therein (1)
    
    (m)10.15
    
    
    
    Second Amendment and Restated Limited Partnership Limited Partnership Agreement, dated as of
February 20, 2008, among LMLP GP LLC, The Lexington Master Limited Partnership and Inland American
(Net Lease) Sub, LLC (1)
    
    (k)10.16
    
    
    
    Contribution Agreement, dated as of August 10, 2007, between The Lexington Master Limited
Partnership and Net Lease Strategic Assets Fund L.P. (1)
    
    (i)10.17
    
    
    
    Amendment No. 1 to Contribution Agreement, dated as of December 20, 2007 (1)
    
    (l)10.18
    
    
    
    Amendment No. 2 to Contribution Agreement, dated as of February 20, 2008 (1)
    
    (k)10.19
    
    
    
    Purchase and Sale Agreement, dated as of August 10, 2007, between The Lexington Master Limited
Partnership and Net Lease Strategic Assets Fund L.P. (1)
    
    (i)10.20
    
    
    
    Amendment No. 1 to Purchase and Sale Agreement, dated as of December 20, 2007 (1)
    
    (l)10.21
    
    
    
    Amendment No. 2 to Purchase and Sale Agreement, dated as of February 20, 2008 (1)
    
    (k)10.22
    
    
    
    Management Agreement, dated as of August 10, 2007, between Net Lease Strategic Assets Fund L.P.
and Lexington Realty Advisors, Inc. (1)
    
    (i)21
    
    
    
    List of Subsidiaries31
    
    
    
    Certifications Pursuant to Section
302 of the Sarbanes-Oxley Act of 2002
    
    (a)32
    
    
    
    Certifications Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
    
    (a)
 
 *
    
    Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(a)
    
    Furnished herewith(b)
    
    Incorporated by reference to Amendment No. 5 to Newkirk Realty Trusts Registration Statement on
Form S-11 (Registration No. 333-127278) filed on October 28, 2005(c)
    
    Incorporated by reference to the Partnerships Current Report on form 8-K filed April 5, 2006(d)
    
    Incorporated by reference to the Partnerships Current Report
on 8K filed April 12, 2006(e)
    
    Incorporated by reference to Lexington Realty Trusts Current
Report on 8K filed January 8, 2007(f)
    
    Incorporated by reference to The Lexington Master Limited
Partnerships Current Report on 8K filed January 29, 2007(g)
    
    Incorporated by reference to The Lexington Master Limited
Partnerships Current Report on 8K filed March 9, 2007 86




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(h)
    
    Incorporated by reference to Lexington Realty Trusts Current Report on form 8-K filed September
24, 2007(i)
    
    Incorporated by reference to the Partnerships Current Report on form 8-K filed August 16, 2007(j)
    
    Incorporated by reference to the Partnerships Current Report on form 8-K filed January 11, 2008.(k)
    
    Incorporated by reference to the Partnerships Current Report on form 8-K filed February 21, 2008.(l)
    
    Incorporated by reference to the Partnerships Current Report on form 8-K filed December 26, 2007.(m)
    
    Incorporated by reference to the Partnerships Current
Report on Form 8-K filed June 7, 2007. 87