MACK-GREEN-GALE
LLC AND SUBSIDIARIES


UNAUDITED
CONSOLIDATED FINANCIAL STATEMENTS


AS
OF APRIL 28, 2009 AND


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009























MACK-GREEN-GALE
LLC AND SUBSIDIARIES


UNAUDITED
CONSOLIDATED FINANCIAL STATEMENTS


AS
OF APRIL 28, 2009 AND


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009





TABLE
OF CONTENTS








Page
      No.Unaudited
      Consolidated Balance Sheet
              1Unaudited
      Consolidated Statement of Operations
              2Unaudited
      Consolidated Statement of Changes in Members’ Capital
              3Unaudited
      Consolidated Statement of Cash Flows
              4Notes
      to Unaudited Consolidated Financial Statements
              5 –
      16

















MACK-GREEN-GALE
LLC AND SUBSIDIARIES


UNAUDITED
CONSOLIDATED BALANCE SHEET


AS
OF APRIL 28, 2009


(Dollar
amounts in thousands)











ASSETSInvestment
      in real estate, net of accumulated depreciation of $38,482
            $   323,799Cash
      and cash equivalents
            3,912Restricted
      cash
            10,227Accounts
      receivable, net of allowance for doubtful accounts of $514
            238Other
      assets, net of accumulated amortization of $2,705
            16,641Acquired
      favorable lease intangibles, net of accumulated amortization of
      $21,126
            14,660$   369,477LIABILITIES
      AND MEMBERS’ CAPITALLiabilitiesMortgage
      notes payable
            $   276,108Accounts
      payable and accrued expenses
            7,973Tenant
      security deposits
            746Prepaid
      rent
            1,800Acquired
      unfavorable lease intangibles, net of accumulated amortization of
      $7,959
            12,010298,637Redeemable
      Noncontrolling interest
            2,348Commitments
      and ContingenciesMembers’
      Capital
            68,492$   369,477



































The
accompanying notes are an integral part of this unaudited consolidated financial
statement.








1


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


UNAUDITED
CONSOLIDATED STATEMENT OF OPERATIONS


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009


(Dollar
amounts in thousands)











Revenues:Base
      Rents
            $    15,941Escalations
      and other tenant recoveries
            1,000Other
      income
            64117,582Expenses:Real
      estate taxes
            1,772Other
      operating expenses
            5,015Interest
            4,883Depreciation
      and amortization
            6,493Selling,
      general and administrative
            31918,482Net
      Loss Before Noncontrolling Interest
            (900)Loss
      Attributable to Noncontrolling interest
            30Net
      Loss
            $       (870)

































































The
accompanying notes are an integral part of this unaudited
consolidated financial statement.








2


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


UNAUDITED
CONSOLIDATED STATEMENT OF CHANGES


IN
MEMBERS’ CAPITAL


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009


(Dollar
amounts in thousands)














Mack-Cali
      Ventures
              L.L.C.
            Gale
      SLG NJ LLC
            TotalMembers’
      Capital, January 1, 2009
            $    74,122
            $    (4,760)
            $  69,362Net
      loss
            (758)
            (112)
            (870)Members’
      Capital, April 28, 2009
            $    73,364
            $   (4,872)
            $    68,492

























































































The
accompanying notes are an integral part of this unaudited
consolidated financial statement.











3


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009


(Dollar amounts in
thousands)








Cash
      Flows from Operating Activities:Net
      Loss
            $
      (870)Adjustments to reconcile net
      loss to net cash provided by operating activities:Depreciation
      and amortization
            6,493Amortization
      of deferred loan cost
            20Amortization
      of acquired above and below market lease intangibles
            (708)Loss
      Attributable to Noncontrolling interest in loss
            (30)Restricted
      cash
            705Accounts
      receivable, net
            129Deferred
      rents receivable
            (233)Deferred
      lease costs
            (879)Other
      assets
            (838)Accounts
      payable and accrued expenses
            (32)Tenant
      security deposits
            (42)Prepaid
      rent
            99Other
      liabilities
            (399)Net
      cash provided by operating activities
            3,415Cash
      Flows Used In Investing Activities:Additions
      to real estate and intangible assets
            (1,037)Net
      cash used in investing activities
            (1,037)Cash
      Flows Used In Financing Activities:Principal
      repayments on mortgage notes payable
            (644)Redemptions
            (6)Net
      cash used in financing activities
            (650)Net
      change in cash and cash equivalents
            1,728Cash
      and cash equivalents, beginning of period
            2,184Cash
      and cash equivalents, end of period
            $
      3,912Supplemental
      Disclosure of Cash Flow Information:
              Cash
      paid during the period for interest
            $
      4,950





























The
accompanying notes are an integral part of this unaudited
consolidated financial statement.








4


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009
 (Dollar
amounts in thousands)





1.
            ORGANIZATION
      AND RELATED MATTERS





Mack-Green-Gale
LLC, together with its subsidiaries, (the “Company”), a Delaware limited
liability company, was established as a joint venture between Mack-Cali Ventures
L.L.C. (the “CLI Member”) and Gale SLG NJ LLC (the “Gale/SLG Member”) to acquire
100% of the membership interests in Gale SLG NJ GP LLC, a Delaware limited
liability company and the 0.9600% general and 95.6025% limited partnership
interests in the Gale SLG NJ Operating Partnership, L.P.





On April
29, 2009, the CLI Member acquired Gale/SLG Member’s interests in the
Company.  As a result, the CLI Member owns 100 percent of the
Company.  Concurrent with the transaction, the loan agreement with
Gramercy Warehouse Funding I LLC on six office properties indirectly owned by
the Company was restructured.  (See Note 8).








a.      Other
Matters





As of
April 28, 2009, a summary of the real estate by regional market/park where the
Company’s assets are located are as follows:





Aggregate
      Square Feet
            Number
      of PropertiesNew
      Jersey:Lyndhurst
            242,517
            2Parsippany
            456,514
            3Roseland
            862,972
            6Bridgewater
            198,376
            1Princeton
            293,761
            3Warren
            120,528
            1Branchburg
            63,213
            1Total
            2,237,881
            17








2.      SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES





a.
            Principles
      of Consolidation





The
accompanying consolidated financial statements include the consolidated accounts
of the Company.  All significant inter-company accounts and
transactions have been eliminated.




















5


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009
 (Dollar
amounts in thousands)





2.      SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued)





b.
            Basis
      of Presentation


The
preparation of financial statements in conformity with generally accepted
accounting principles (“GAAP”) requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during
the reporting period.  Actual results could differ from those
estimates.





On July
1, 2009, the Financial Accounting Standards Board (“FASB”) issued the FASB
Accounting Standards Codification (“ASC”) 105-10, General Accepted Accounting
Principles, (“ASC 105-10”). ASC 105-10 establishes the FASB Accounting Standard
Codification (“Codification”) as the single source of authoritative U.S. GAAP
recognized by the FASB to be applied by nongovernmental entities. Following the
Codification, the FASB will not issue new standards in the form of Statements,
FASB Staff Positions or Emerging Issues Task Force
Abstracts.  Instead, it will issue Accounting Standards Updates, which
will serve to update the Codification, provide background information about the
guidance and provide the basis for conclusions on the changes to the
Codification.  GAAP was not intended to be changed as a result of the
FASB’s Codification project, but it will change the way the guidance is
organized and presented.  The Company has implemented the Codification
in this report by providing references to the Codification topics, as
appropriate.





c.
            Cash
      Equivalents


Cash
equivalents consist of short-term, highly liquid investments, which are readily
convertible into cash, and have original maturity dates of three months or less
at the time of purchase.




d.
            Accounts
      Receivable




The
Company periodically performs a detailed review of amounts due from tenants and
clients to determine if accounts receivable balances are impaired based on
factors affecting the collectibility of those balances.  The Company’s
estimate of the allowance for doubtful accounts requires the Company to exercise
significant judgment about the timing, frequency and severity of collection
losses, which affects the allowance and net income.





e.
            Restricted
      Cash


Restricted
cash is comprised of tenant security deposits and escrow and reserve funds for
debt service, real estate taxes, property insurance, operating expenses, capital
improvements, tenant improvements and leasing costs, established pursuant to
certain mortgage financing arrangements and is comprised of the
following:





Security
      deposits
            $       808Escrow
      and other reserve funds
            9,419$  10,227











6


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009
 (Dollar
amounts in thousands)





2.  SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued)





f.
            Rental
      Properties and Intangible Assets





The
Company assesses the fair value of acquired assets (including land, buildings
and improvements, and identified intangibles such as above and below market
leases and acquired in-place leases) and acquired liabilities in accordance with
ASC 805, Business Combinations, and allocates the purchase price based on these
assessments.  The Company assesses fair value based on estimated cash
flow projections that utilize appropriate discount and capitalization rates and
available market information.  Estimates of future cash flows are
based on a number of factors including the historical operating results, known
trends, and market/economic conditions that may affect the
property.





The cost
of maintenance and repairs is charged to expense as incurred. Depreciation is
computed on a straight-line basis over the estimated useful lives of the assets
as follows:








Buildings
      and improvements
            40
      yearsLand
      improvements
            15 yearsTenant
      improvements
            Lesser
      of lease term or estimated useful lifeFurniture,
      fixtures and equipment
            5-7
      years








Above and
below market lease values for acquired properties are recorded based on the
present value (using a discount rate which reflects the risks associated with
the leases acquired) of the difference between (i) the contractual amounts to be
paid pursuant to each in place lease and (ii) management’s estimate of the fair
market lease rates for each corresponding in-place lease, measured over a period
equal to the remaining term of the lease.  The capitalized above and
below market lease values are amortized as a reduction or addition to base
rental revenue over the remaining term of the respective leases.





Other
intangible assets acquired include amounts for the in-place lease values which
are based on management’s evaluation of the specific characteristics of each
tenant’s lease. Factors considered by management in its analysis of in-place
lease values include an estimate of carrying costs during the hypothetical
expected time it would take management to find a tenant to lease the space for
the existing lease term (a “lease-up period”) considering current market
conditions, and costs to execute similar leases.  Management estimates
carrying costs, including such factors as real estate taxes, insurance and other
operating expenses during the expected lease-up period, considering current
market conditions.  In estimating costs to execute similar leases,
management considers leasing commissions, legal and other related
expenses.  The value of in-place leases is amortized to expense over
the remaining initial terms of the respective leases.




















7


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009
 (Dollar
amounts in thousands)





2.  SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued)





f.      Rental
Properties and Intangible Assets (continued)





The Company reviews real estate and the
related intangible assets for impairment whenever events or changes in
circumstances indicate that the carrying value of assets to be held and used may
not be recoverable. In performing the review for recoverability of carrying
value of property held for use, estimates are made of the future undiscounted
cash flows from each of the properties during the period the property will be
held and upon its eventual disposition.  If the expected future
undiscounted cash flows are less than the carrying value of such property, an
impairment charge is recognized resulting in a write-down of the carrying
value of the
property to an
amount based on its fair value.





Property
held for sale is reported at the lower of its carrying amount or its estimated
fair value less costs to sell.  Once property is held for sale,
depreciation expense is no longer recorded.  The operations of the
property held for sale or property which has been sold are reported in
discontinued operations in the accompanying consolidated statement of operations
and assets and liabilities attributable to property held for sale are classified
separately in the consolidated balance sheet.





For
property to be disposed of, an impairment charge is recognized when the fair
value of the property, less the estimated costs to sell, is less than the
carrying amount of the property measured at the time the Company makes a
commitment to sell the property.





g.      Other
Assets





Deferred
lease costs consist of commissions paid on leases, inducements paid to tenants
and other costs directly attributable to acquiring and effectuating lease
agreements, all of which are capitalized and amortized using the straight-line
method over the lives of the related lease terms.





Deferred
financing costs consist of fees and costs incurred to obtain financing and are
amortized over the terms of the respective agreement. Unamortized deferred
financing costs are expensed when the associated debt is retired prior to
maturity.





h.      Revenue
and Profit Recognition





Rental
revenue is recognized on a straight-line basis over the non-cancelable term of
the lease. The excess of rents so recognized over amounts contractually due
pursuant to the underlying leases is included in other assets on the
accompanying consolidated balance sheet.





Sales of
real estate assets are recognized at closing subject to the receipt of adequate
down payment and the meeting of other requirements in accordance with applicable
accounting guidelines.














8


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009


(Dollar
amounts in thousands)





2.   SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued)





h.      Revenue
and Profit Recognition (continued)





Gains and
losses recognized on sales of real estate in which the Company has no continuing
involvement are classified as discontinued operations in the consolidated
statement of operations.





i.      Income
Taxes





The
Company is organized as limited partnerships and limited liability companies
and, accordingly, no provision is made for federal or state income taxes, since
income or loss of the Company must be reported by the respective Members on
their individual tax returns.





The
Company adopted the amended provisions related to uncertain tax provisions of
ASC 740, Income Taxes, on January 1, 2007.  As a result of the
implementation of the guidance, the Company recognized no material adjustments
regarding its tax accounting treatment.  The Company expects to
recognize interest and penalties related to uncertain tax positions, if any, as
income tax expense, which is included in general and administrative
expense.





In the
normal course of business, the Company or one of its subsidiaries is subject to
examination by federal, state and local jurisdictions in which it operates,
where applicable.  As of April 28, 2009, the tax years that remain
subject to examination by the major tax jurisdictions under the statute of
limitations is from the year 2006 forward.








j.      Concentration
of Tenant and Credit Risk





Management
of the Company performs ongoing evaluations of its tenants and requires certain
tenants to provide security deposits.  Credit risk is dependent on the
economic conditions in the respective markets and the financial condition of the
tenant.





The Company maintains its cash and cash
equivalents in financial institutions.  The combined balances at each
institution periodically exceed FDIC insurance coverage limits.  The
Company believes the risk is not significant.





k.
            Redeemable
      Noncontrolling Interest





Redeemable
noncontrolling interest represents investors’ interests of 3.4% at April 28,
2009 which, under certain conditions, are redeemable for cash at a redemption
price determined by using a formula which is tied to the trading prices of
shares of common stock of four leading Real Estate Investment Trusts
specializing in the ownership and management of office
properties.  The amount the Company would be required to pay to redeem
the interests at April 28, 2009 is $2,244.








9


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009
 (Dollar
amounts in thousands)








3.  IMPACT
OF RECENTLY ISSUED ACCOUNTING STANDARDS





Statement of Financial Accounting
Standards No. 167, Amendments to FASB Interpretation No. 46(R) (“FASB No.
167”)





FASB No.
167 amends, among other items, for FIN 46 (R) to require an enterprise to
perform an analysis to determine whether the enterprise’s variable interest or
interests give it a controlling financial interest in a variable interest
entity.  This analysis identifies the primary beneficiary of a
variable interest entity as the enterprise that has both of the following
characteristics:





a.
            The
      power to direct the activities of a variable interest entity that most
      significantly impact the entity’s economic
  performance





b.
            The
      obligation to absorb losses of the entity that could potentially be
      significant to the variable interest entity or the right to receive
      benefits from the entity that could potentially be significant to the
      variable interest entity.





Additionally,
an enterprise is required to assess whether it has an implicit financial
responsibility to ensure that a variable interest entity operates as designed
when determining whether it has the power to direct the activities of the
variable interest entity that most significantly impact the entity’s economic
performance.





FASB No.
167 also amends FIN 46(R) to require ongoing reassessments of whether an
enterprise is the primacy beneficiary of a variable interest
entity.  Additionally, FASB No. 167 amends FIN 46(R) to eliminate the
quantitative approach previously required for determining the primary
beneficiary of a variable interest entity, which was based on determining which
enterprise absorbs the majority of the entity’s expected losses, receives a
majority of the entity’s expected residual returns, or both.  FASB No.
167 amends certain guidance in Interpretation 46(R) for determining whether an
entity is a variable interest entity.  Also, FASB No. 167 amends FIN
46(R) to require enhanced disclosures that will provide users of financial
statements with more transparent information about an enterprise’s involvement
in a variable interest entity.  The enhanced disclosures are required
for any enterprise that holds a variable interest in a variable interest
entity.  As FASB No. 167 will be effective as of the beginning of each
reporting entity’s first annual reporting period that begins after November 15,
2009 with earlier application prohibited, the Company is currently assessing the
potential impact that the adoption of FASB No. 167 will have on its financial
position and results of operation.























10


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009


(Dollar
amounts in thousands)





4.      FAIR
VALUE OF FINANCIAL INSTRUMENTS





The
techniques used to value financial instruments where quoted market prices are
not available are significantly affected by the assumptions used, including the
discount rates and the estimates of future cash flows. In that regard, the
derived fair value estimates cannot be substantiated by comparison to
independent markets and, in many cases, could not be realized in immediate
settlement of the instrument.





The
methods and assumptions used to estimate the fair value of financial instruments
are as follows:





a.
            The
      carrying value of cash and cash equivalents, restricted cash, accounts
      receivable, accounts payable and accrued expenses, and tenant security
      deposits, approximates their fair value due to the short maturities of
      these items.





b.
            At
      April 28, 2009, the $276,108 carrying value of the mortgage notes payable
      have an approximate fair value of
$232,607.



















































































11


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009
 (Dollar
amounts in thousands)





5.      INVESTMENT
IN REAL ESTATE





Investment
in real estate consists of the following:








Land
            $    53,917Building
      and improvements
            308,364362,281Accumulated
      depreciation
            (38,482)$  323,799











6.      OTHER
ASSETS





Other
assets are comprised of the following:








Deferred
      financing costs
            $    1,733Deferred
      lease costs
            7,903Unbilled
      rents receivable
            8,135Prepaid
      and other
            1,57519,346Accumulated
      amortization
            (2,705)$  16,641



























































12


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009
 (Dollar
amounts in thousands)





7.      ACQUIRED
FAVORABLE AND UNFAVORABLE LEASE INTANGIBLES





In
accordance with ASC 805, Business Combinations, intangible lease costs and
in-place lease obligations are comprised of the following:








Above
      market lease value
            $    2,520In-place
      lease value
            33,26635,786Accumulated
      amortization
            (21,126)$  14,660





The
acquired unfavorable lease intangibles are $12,010, net of $7,959 in accumulated
amortization, at April 28, 2009. The net amortization of the acquired above and
below market lease intangibles of $708 for the period from January 1, 2009
through April 28, 2009, is reflected as an increase to rental revenue in the
accompanying consolidated statement of operations.





The
estimated annual amortization of acquired below market value leases net of
acquired above market value leases for each of the succeeding five years and
thereafter is as follows:





April
      29, 2009 - December 31, 2009
            $   1,1872010
            1,7062011
            1,7452012
            1,7782013
            1,6092014
            1,086Thereafter
            1,998$  11,109








Amortization
of acquired in-place lease value of $2,087 for the period from January 1, 2009
through April 28, 2009, is included in depreciation and amortization in the
accompanying consolidated statement of operations. The estimated annual
amortization of acquired in-place lease value for each of the succeeding five
years and thereafter is as follows:





April
      29, 2009 - December 31, 2009
            $    4,0512010
            4,5082011
            2,5972012
            1,8942013
            5922014
            117Thereafter
            --$  13,759








13


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009
 (Dollar
amounts in thousands)


8.      MORTGAGE
NOTES PAYABLE





Mortgage
notes payable at April 28, 2009 consisted of the following:





Lender
            Outstanding
      Balance
            Interest
      Rate
            MaturityI.  Wachovia Bank,
      N.A.2014
      Loans
            $  107,127
            6.26%
            August
      11, 20142016
      Loans
            78,694
            6.27%
            May
      11, 2016II.
      Gramercy Warehouse Funding I LLC
            90,287
            LIBOR
      + 2.75%*
            May
      9, 2009$  276,108





* London
Interbank Offered Rate (LIBOR) at April 28, 2009 was 0.56%.





I.
            The
      fixed rate loans require monthly payments of principal and interest, and
      tax, insurance and replacement escrows.  The loans may be
      prepaid subject to usual and customary yield maintenance provisions, and
      are secured by ten properties located in New
  Jersey.





II.
            The
      cross-collateralized, cross-defaulted, interest-only loan is secured by
      six properties (the “Portfolio Properties”).  Subsequent to
      April 28, 2009, the mortgage loans were modified to provide for, among
      other things, interest to accrue at the current rate of LIBOR plus 275
      basis point per annum, with the interest pay rate capped at 3.15 percent
      per annum.  Under the Agreement, the payment of debt service is
      subordinate to the payment of operating expenses.  Interest at
      the pay rate is payable only out of funds generated by the Portfolio
      Properties and only to the extent that the Portfolio Properties’ operating
      expenses have been paid, with any accrued unpaid interest above the pay
      rate serving to increase the balance of the amounts due at the termination
      of the agreement.  Any excess funds after payment of debt
      service generally will be escrowed and available for future capital and
      leasing costs, as well as to cover future cash flow shortfalls, as
      appropriate.  The Agreement terminates on May 9,
      2011.  Approximately six months in advance of the end of the
      term of the Agreement, the entities that own the Portfolio Properties (the
      “Portfolio Entities”) are to provide estimates of each property’s fair
      market value (“FMV”).  Gramercy has the right to accept or
      reject the FMV.  If Gramercy rejects the FMV, Gramercy must
      market the property for sale in cooperation with the Portfolio Entities
      and must approve the ultimate sale.  However, Gramercy has no
      obligation to market a Portfolio Property if the FMV is less than the
      allocated amount due, including accrued, unpaid interest.  If
      any Portfolio Property is not sold, the Portfolio Entities have agreed to
      give a deed in lieu of foreclosure, unless the FMV was equal to or greater
      than the allocated amount due for such Portfolio Property, in which case
      they can elect to have that Portfolio Property released by paying the
      FMV.  If Gramercy accepts the FMV, the Portfolio Property will
      be released from the Gramercy Agreement upon payment of the
      FMV.





The
Company’s real estate and related leases collateralized the mortgage notes
payable noted above.





14


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009


(Dollar amounts in
thousands)





8.      MORTGAGE
NOTES PAYABLE (Continued)





The
aggregate principal payments and maturities of mortgage notes payable for each
of the next five years and thereafter at April 28, 2009 are as
follows:





April
      29, 2009 - December 31, 2009
            $      1,2842010
            2,0552011
            92,8282012
            2,9522013
            3,1772014
            99,136Thereafter
            74,676$  276,108





9.      BASE
RENTS





The
Company, as lessor, leases commercial space under operating leases. Leased
properties include both single and multi-tenant facilities. The future minimum
rental receipts due on non-cancelable operating leases for the next five years
and thereafter at April 28, 2009 are as follows:





April
      29, 2009 - December 31, 2009
            $    27,6972010
            41,5962011
            39,5832012
            37,5692013
            33,6852014
            27,863Thereafter
            75,639$  283,632








Substantially
all of these lease agreements contain provisions which provide for the
reimbursement of real estate taxes and operating expenses over the base year
amounts and rental increases tied to increases in, among other factors, the
consumer price index.






































15


MACK-GREEN-GALE
LLC AND SUBSIDIARIES


NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


FOR
THE PERIOD JANUARY 1, 2009 THROUGH APRIL 28, 2009


(Dollar
amounts in thousands)








10.         RELATED
PARTY TRANSACTIONS





The
Company, which does not employ any personnel, designated The Gale Management
Company, L.L.C. (a subsidiary of Mack-Cali Realty, L.P.) and/or its affiliates
(“Gale”) to be the administrator of the Company pursuant to a one-year
Management Agreement (the “Management Agreement”) which is automatically
renewable for successive one year periods.  Under the Management
Agreement, Gale provides the Company’s property management, construction,
leasing, accounting and other services as needed.





The
Company incurred $2,679 for management fees, leasing fees, tenant improvements,
other operating costs and direct expenses relating to building operations, and
improvements made to the properties for the period from January 1, 2009 through
April 28, 2009.  Included in accounts payable and accrued expenses in
the accompanying consolidated balance sheet, are amounts due to Gale at April
28, 2009 aggregating $368 attributable to the above-referenced
costs.





Included
in accounts payable and accrued expenses at April 28, 2009, is $1,919 due to the
members.  This amount does not bear interest and is expected to be
repaid in the normal course of business.





The
Company paid interest expense of $1,029 to a related party, Gramercy Warehouse
Funding I LLC, an affiliate of SL Green Realty Corp, Inc. for the period from
January 1, 2009 through April 28, 2009.





11.         COMMITMENTS
AND CONTINGENCIES





The
Company, as an owner of real estate, is subject to various environmental laws of
federal and local governments.  Compliance by the Company with
existing laws has not had a material adverse effect on the Company’s financial
condition and results of operations, and management does not believe it will
have such an impact in the future. However, the Company cannot predict the
impact of new or changed laws or regulations on its current properties or on its
properties that it may acquire in the future.





The
Company is not aware of any litigation threatened against the Company other than
routine litigation arising out of the normal course of business, some of which
is expected to be covered by insurance, none of which is expected to have a
material adverse effect on the Company’s financial condition.





The
Company has entered into certain commitments to tenants regarding improvements
and fix-up allowances.  The estimated potential commitment as of April
28, 2009 total $4,628.




















16