$849,909.03                                               Glendale, California
                                                              January 27, 1997


     FOR  VALUE  RECEIVED,  the  undersigned  PUBLIC  STORAGE  PROPERTIES,  LTD.
("Borrower")  promises to pay to the order of PUBLIC STORAGE, INC. ("Lender") at
its offices at 701 Western Avenue,  Glendale,  California 91201 or at such other
place as the holder hereof may  designate,  in lawful money of the United States
of America and in immediately  available funds, the principal sum of $849,909.03
with  interest  thereon at a rate per annum  (computed on the basis of a 360-day
year,  actual  days  elapsed)  1.0% above the Prime Rate in effect  from time to
time.  The  "Prime  Rate"  is a  base  rate  that  Wells  Fargo  Bank,  National
Association  ("Bank"),  from time to time  establishes  and which  serves as the
basis upon which  effective  rates of interest are calculated for those loans by
Bank matching reference  thereto.  Each change in the rate of interest hereunder
shall become  effective  on the date each Prime Rate change is announced  within
Bank.

     Interest  accrued  on this  Note  shall be  payable  on the 1st day of each
month,  commencing February 1, 1997 and on January 27, 1998.  Principal shall be
payable  on the  1st day of each  month  in  installments  of  $50,000.00  each,
commencing  February 1, 1997 and continuing up to and including January 1, 1998,
with a final  installment  consisting of all remaining  unpaid principal due and
payable in full on January 27,  1998.  Each  payment  made on this Note shall be
credited  first,  to any  interest  then  due  and  second,  to the  outstanding
principal  balance  hereof.  All  prepayments of principal on this Note shall be
applied on the most remote principal installment or installments then unpaid.

     From and after the maturity  date of this Note, or such earlier date as all
principal owing hereunder  becomes due and payable by acceleration or otherwise,
the outstanding principal balance of this Note shall bear interest until paid in
full at an increased  rate per annum  (computed on the basis of a 360-day  year,
actual days  elapsed)  equal to 4% above the rate of interest  from time to time
applicable to this Note.

     The  occurrence  of any of the  following  shall  constitute  an  "Event of
Default" under this Note:

     1. The failure to pay any principal or interest,  or other amount, when due
hereunder or under any contract,  instrument or document  executed in connection
with this Note.

     2. The filing of a petition  by or against  any  Borrower,  or any  general
partner in  Borrower  (with each such  general  partner  referred to herein as a
"Third Party Obligor")  under any provisions of the Bankruptcy  Reform Act Title
11 of the United  States Code,  as amended or  recodified  from time to time, or
under  any   similar  or  other  law   relating   to   bankruptcy,   insolvency,
reorganization  or other  relief for  debtors:  the  appointment  of a receiver,
trustee, custodian or liquidator of or for any part of the assets or property of
Borrower or any Third Party Obligor; Borrower or any Third Party Obligor becomes
insolvent,  makes a  general  assignment  for the  benefit  of  creditors  or is
generally  not paying its debts as they become due;  or any  attachment  or like
levy on any property of Borrower or any Third Party Obligor.

     3. The  dissolution  or  liquidation of Borrower or any Third Party Obligor
which is a corporation.

     4. Any  default in the payment or  performance  of any  obligation,  or any
defined event of default,  under any  provisions of any contract,  instrument or
document  pursuant to which  Borrower has incurred any  obligation  for borrowed
money, any purchase obligation, or any other liability of any kind to any person
or entity, including the holder.

     5. Any sale or transfer  of all of a  substantial  or material  part of the
assets of Borrower.

     6. Any  violation or breach of any  provision  of, or any defined  event of
default  under,  any  addendum  to this  Note or any loan  agreement,  guaranty,
security agreement,  deed of trust or other document executed in connection with
or securing this Note.


<PAGE>

     Soon the  occurrence  of any Event of Default,  the holder of this Note, at
the holder's option, may declare the sums of principal and interest  outstanding
hereunder to be  immediately  due and payable.  Borrower shall pay to Lender the
amount of any expenses,  including legal fees,  incurred as a result of an Event
of Default and any such  amount not paid upon  demand by Lender,  shall be added
to, and thereafter bear interest as herein provided as part of, principal.

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


                                    PUBLIC STORAGE PROPERTIES, LTD.

                                    By:  Public Storage, Inc.
                                         General Partner

                                        By:   /s/ John Reyes
                                              -------------------------
                                              John Reyes
                                              Senior Vice President and
                                              Chief Financial Officer