DEMAND NOTE


$22,594,880
New York, New York                                                August 9, 1999

Pursuant to that certain  Splitter  Agreement made as of the date hereof between
FLEET BANK,  NATIONAL  ASSOCIATION,  as Agent  ("Agent"),  having its  principal
office at 1133 Avenue of the Americas, 40th Floor, New York, New York 10036, and
CORPORATE   REALTY  INCOME  FUND  I,  L.P.,  a  Delaware   limited   partnership
("Borrower"),  having an office at 475 Fifth Avenue,  21st Floor,  New York, New
York 10017:

A. Agent and Borrower split,  divided and severed that certain note described on
EXHIBIT A annexed  hereto and made a part  hereof (as the same may be amended or
otherwise  modified from time to time, the "Note") into (x) this Demand Note (as
the same may be amended or  otherwise  modified  from time to time,  the "Demand
Note") and (y) the remaining  principal  indebtedness under the Note which shall
continue to be evidenced by the Note; and

B. The  mortgages  described  on EXHIBIT B annexed  hereto (the "NY  Mortgages")
which heretofore secured the Note, now secure only this Demand Note and no other
portion of the Note.

NOW, THEREFORE, FOR VALUE RECEIVED,

Borrower  promises to pay to the order of Agent the  principal sum of Twenty-Two
Million Five Hundred  Ninety Four Thousand and Eight Hundred and Eighty  Dollars
($22,594,880)  with interest thereon to be computed from the date hereof, at the
rate of eight (8%) percent per annum and to be paid ON DEMAND.

The provisions of SECTION 6.16 of that certain Loan Agreement  between  Borrower
and  Agent  dated as of  September  26,  1996,  amended  by that  certain  First
Amendment of Loan Agreement and Note dated as of December 6, 1996,  that certain
Second  Amendment to Loan Agreement  dated as of March 17, 1997 and that certain
Third  Amendment  to Loan  Agreement  and Second  Amendment  to Note dated as of
September 25, 1998 are hereby incorporated herein by reference.

This Demand Note may not be changed orally,  but only by an agreement in writing
and  signed  by  the  party  against  whom  enforcement  of any  waiver,  change
modification or discharge is sought.


                                   CORPORATE REALTY INCOME FUND I , L.P.,
                                   a Delaware limited partnership

                                   By: /s/ Robert F. Gossett, Jr.
                                       ---------------------------------------
                                       Robert F. Gossett, Jr., general partner

                                   By: 1345 Realty Corporation, general partner

                                        By:  /s/ Robert F. Gosset, Jr.
                                            ---------------------------------
                                            Robert F. Gossett, Jr., President



<PAGE>


                                    EXHIBIT A


       SECURED  PROMISSORY NOTE dated September 26, 1996 in the principal amount
of $24,000,000  made by Corporate Realty Income Fund I, L.P., a Delaware limited
partnership  ("Borrower"),  to and in favor of Fleet Bank, National  Association
("Agent");

       AS MODIFIED by that certain  FIRST  AMENDMENT OF LOAN  AGREEMENT AND NOTE
dated as of December 6, 1996 between  Borrower and Agent  whereby the  principal
amount of Borrower's indebtedness was increased to $44,000,000;

       AS FURTHER MODIFIED by that certain  INTERCREDITOR  AGREEMENT dated as of
February 28, 1997 among Lender, First American Bank Texas, SSB and The Travelers
Insurance Company and agreed to by Borrower; and

       AS FURTHER MODIFIED by that certain THIRD AMENDMENT OF LOAN AGREEMENT AND
SECOND AMENDMENT OF NOTE dated September 25, 1998,  whereby the principal amount
of Borrower's indebtedness was increased to $49,000,000.


                                       2

<PAGE>


                                    EXHIBIT B
                                 (NY Mortgages)


                                  The Mortgages

       Mortgage,  Assignment  of Leases and Rents and  Security  Agreement  from
Corporate Realty Income Fund I, L.P. to Fleet Bank, National Association, in the
original principal amount of $20,207,000.00, dated December 6, 1996 and recorded
on  December  12,  1996 in the  office of the City  Register,  New York  County,
December  12,  1996 in Reel 2402,  Page 593;  which  mortgage  was  assigned  by
Assignment of Mortgage Without Covenant from Fleet Bank, National Association to
Fleet Bank,  National  Association,  as Agent (under that certain Loan Agreement
dated  September 26, 1996 by and between Fleet Bank,  National  Association  and
Corporate  Realty  Income  Fund I, L.P.,  as  amended)  dated March 26, 1997 and
recorded on June 9, 1997 in Reel 2463, Page 1778.

       Second  Mortgage,  Assignment of Leases and Rents and Security  Agreement
from Corporate Realty Income Fund I, L.P. to Fleet Bank, National Association as
Agent in the original  principal  amount of $2,387,880 dated as of September 25,
1998 and recorded on November 10, 1998 in the office of the City  Register,  New
York County at Reel 2748, Page 1075.