|   | x | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934For the quarterly period ended September 30,      2008. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934For      the transition period from _________ to  __________. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Delaware                              | 20-8061759                |
|--------------------------------------------|--------------------------------|
| (State or other jurisdiction      of  | (I.R.S.      Employer     |
| incorporation or      organization)   | Identification      No.)  |

|   | YES     x | NO     o |
|--------|------------------------------------|-----------------------------------|

|   | Large accelerated filer      o                                                                                           | Accelerated filer o               |
|--------|-------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|
|   |                                                                                                                          |                                   |
|   | Non-accelerated      filer   o    (Do not      check if a smaller reporting company)  | Smaller reporting company      x  |

|   | YES     o | NO     x |
|--------|------------------------------------|-----------------------------------|

----

|          |                       |                                                                                                                                                                                                                                                |   | Page   |
|---------------|----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| Part      I.  | Financial      Information |                                                                                                                                                                                                                                                |   |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          | Item      1.               | Financial      Statements                                                                                                                                                                                                                           |   |   |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          |                       | Consolidated      Balance Sheets as of September 30, 2008 and December 31,    2007                                                                                                                                                                  |   | 2      |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          |                       | Consolidated      Statements of Operations for the three and nine months ended September 30,      2008 and for the three months ended September 30, 2007 and the period      January 5, 2007 (date operations commenced) to September 30,      2007 |   | 3      |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          |                       | Consolidated      Statements of Cash Flows for the nine months ended September 30, 2008 and      the period January 5, 2007 (date operations commenced) to September 30,      2007                                                                  |   | 4      |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          |                       | Notes      to Consolidated Financial Statements                                                                                                                                                                                                     |   | 5-8    |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          | Item      2.               | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                                                                                                                               |   | 9-13   |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          | Item      3.               | Quantitative      and Qualitative Disclosures About Market Risk                                                                                                                                                                                     |   | 14     |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          | Item      4.               | Controls      and Procedures                                                                                                                                                                                                                        |   | 14     |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          | Item      4T.              | Controls      and Procedures                                                                                                                                                                                                                        |   | 14     |
|          |                       |                                                                                                                                                                                                                                                |   |   |
| Part      II. | Other      Information     |                                                                                                                                                                                                                                                |   |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          | Item      1.               | Legal      Proceedings                                                                                                                                                                                                                              |   | 15     |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          | Item      1A.              | Risk      Factors                                                                                                                                                                                                                                   |   | 15     |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          | Item      2.               | Unregistered      Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                    |   | 15     |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          | Item      3.               | Defaults      Upon Senior Securities                                                                                                                                                                                                                |   | 15     |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          | Item      4.               | Submission      of Matters to a Vote of Security Holders                                                                                                                                                                                            |   | 15     |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          | Item      5.               | Other      Information                                                                                                                                                                                                                              |   | 15     |
|          |                       |                                                                                                                                                                                                                                                |   |   |
|          | Item      6.               | Exhibits                                                                                                                                                                                                                                            |   | 15     |
|          |                       |                                                                                                                                                                                                                                                |   |   |
| Signatures    |                       |                                                                                                                                                                                                                                                | 16     |

----

| (in      thousands, except share and par value amounts)                                                                                              |   | September 30,2008 |    |   | December 31,2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|-----------------------|--------|
|                                                                                                                                                 |   |                   |    |   |                  |   |
| Assets:                                                                                                                                              |   |                   |    |   |                  |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |
| Real      estate investments, at cost:                                                                                                               |   |                   |    |   |                  |   |
|      Land                                                                                                                   |   | $                      | 26,200  |   |                  | $      | 26,200 |   |
|      Buildings      and improvements                                                                                        |   |                   | 131,553 |   |                  |   | 129,098 |   |
|                                                                                                                                                 |   |                   | 157,753 |   |                  |   | 155,298 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
|      Less      accumulated depreciation                                                                                     |   |                   | 5,936   |   |                  |   | 3,292 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
| Real      estate investments, net                                                                                                                    |   |                   | 151,817 |   |                  |   | 152,006 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
| Acquired      real estate leases, net of accumulated amortization     of      $3,733 and $2,334, respectively               |   |                   | 7,249   |   |                  |   | 8,888 |   |
| Acquired      favorable real estate leases, net of accumulated     amortization      of $2,883 and $1,719, respectively     |   |                   | 5,065   |   |                  |   | 6,315 |   |
| Cash      and cash equivalents                                                                                                                       |   |                   | 24,071  |   |                  |   | 25,353 |   |
| Tenant      rent receivables, less allowance for doubtful accounts                                                                                   |   |                   |    |   |                  |   |   |   |
|           of $20 and $0, respectively                                                                                            |   |                   | 191     |   |                  |   | 107 |   |
| Step      rent receivable                                                                                                                            |   |                   | 2,036   |   |                  |   | 1,466 |   |
| Prepaid      expenses and other assets                                                                                                               |   |                   | 178     |   |                  |   | 137 |   |
| Deferred      leasing costs, net of accumulated     amortization      of $75 and $41, respectively                          |   |                   | 717     |   |                  |   | 400 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
|       Total      assets                                                                                                |   | $                      | 191,324 |   |                  | $      | 194,672 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
| Liabilities      and Stockholders’ Equity:                                                                                                     |   |                   |    |   |                  |   |   |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
| Liabilities:                                                                                                                                         |   |                   |    |   |                  |   |   |   |
| Accounts      payable and accrued expenses                                                                                                           |   | $                      | 8,807   |   |                  | $      | 8,588 |   |
| Distribution      payable                                                                                                                            |   |                   | -       |   |                  |   | 1,708 |   |
| Tenant      security deposits                                                                                                                        |   |                   | 583     |   |                  |   | 790 |   |
| Acquired      unfavorable real estate leases, net of accumulated      amortization      of $183 and $139, respectively |   |                   | 394     |   |                  |   | 474 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
|      Total      liabilities                                                                                                 |   |                   | 9,784   |   |                  |   | 11,560 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
| Commitments      and Contingencies:                                                                                                                  |   |                   | -       |   |                  |   | - |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
| Stockholders’      Equity:                                                                                                                     |   |                   |    |   |                  |   |   |   |
|      Preferred      Stock, $.01 par value, 2,210 shares authorized, issued                                                  |   |                   |    |   |                  |   |   |   |
|              and outstanding, aggregate liquidation preference $221,000                                           |   |                   |    |   |                  |   |   |   |
|              at September 30, 2008 and December 31, 2007                                                          |   |                   | -       |   |                  |   | - |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
|      Common      Stock, $.01 par value, 1 share                                                                             |   |                   |    |   |                  |   |   |   |
|         authorized,      issued and outstanding                                                              |   |                   | -       |   |                  |   | - |   |
|      Additional      paid-in capital                                                                                        |   |                   | 197,162 |   |                  |   | 197,162 |   |
|      Retained      deficit and distributions in excess of earnings                                                          |   |                   | (15,622 | )      |                  |   | (14,050 | ) |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
|      Total      Stockholders’ Equity                                                                                  |   |                   | 181,540 |   |                  |   | 183,112 |   |
|                                                                                                                                                 |   |                   |    |   |                  |   |   |   |
|      Total      Liabilities and Stockholders’ Equity                                                                  |   | $                      | 191,324 |   |                  | $      | 194,672 |   |
| See      accompanying notes to consolidated financial statements.                                                                                    |   |

----

|                                                               |   | For      the Three MonthsEnded      September 30, |   |   | For      the NineMonths      EndedSeptember      30, |   |   | For      the PeriodJanuary 5, 2007(date      operationscommenced)      toSeptember      30, |   |
|--------------------------------------------------------------------|--------|---------------------------------------------------|--------|--------|------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------|--------|
| (in      thousands, except share and per share amounts)            |   | 2008                                              |   |   | 2007                                                 |   |   | 2008                                                                                                  |   |   | 2007 |   |
|                                                               |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |
| Revenues:                                                          |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |
|      Rental                               |   | $                                                 | 5,847  |   |                                                 | $      | 5,601  |                                                                                                  |   | $ | 17,496 |   |   | $ | 16,649 |   |
|                                                               |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |   |   |   |   |
|         Total      revenue |   |                                              | 5,847  |   |                                                 |   | 5,601  |                                                                                                  |   |   | 17,496 |   |   |   | 16,649 |   |
|                                                               |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |   |   |   |   |
| Expenses:                                                          |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |   |   |   |   |
|                                                               |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |   |   |   |   |
|      Rental      operating expenses       |   |                                              | 1,556  |   |                                                 |   | 1,642  |                                                                                                  |   |   | 4,629 |   |   |   | 4,345 |   |
|      Real      estate taxes and insurance |   |                                              | 1,434  |   |                                                 |   | 1,569  |                                                                                                  |   |   | 4,418 |   |   |   | 4,653 |   |
|      Depreciation      and amortization   |   |                                              | 1,491  |   |                                                 |   | 1,414  |                                                                                                  |   |   | 4,368 |   |   |   | 4,100 |   |
|      Interest      expense                |   |                                              | -      |   |                                                 |   | 1,564  |                                                                                                  |   |   | - |   |   |   | 12,074 |   |
|                                                               |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |   |   |   |   |
|        Total      expenses      |   |                                              | 4,481  |   |                                                 |   | 6,189  |                                                                                                  |   |   | 13,415 |   |   |   | 25,172 |   |
|                                                               |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |   |   |   |   |
| Income      (loss) before interest income                          |   |                                              | 1,366  |   |                                                 |   | (588   | )                                                                                                     |   |   | 4,081 |   |   |   | (8,523 | ) |
|                                                               |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |   |   |   |   |
| Interest      income                                               |   |                                              | 137    |   |                                                 |   | 129    |                                                                                                  |   |   | 535 |   |   |   | 297 |   |
|                                                               |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |   |   |   |   |
| Net      income (loss)                                             |   |                                              | 1,503  |   |                                                 |   | (459   | )                                                                                                     |   |   | 4,616 |   |   |   | (8,226 | ) |
|                                                               |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |   |   |   |   |
| Distributions      paid to common stockholder                      |   |                                              | -      |   |                                                 |   | 250    |                                                                                                  |   |   | - |   |   |   | 782 |   |
|                                                               |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |   |   |   |   |
| Net      income (loss) attributable to preferred stockholders      |   | $                                                 | 1,503  |   |                                                 | $      | (709   | )                                                                                                     |   | $ | 4,616 |   |   | $ | (9,008 | ) |
|                                                               |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |   |   |   |   |
| Weighted      average number of preferred shares outstanding,      |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |   |   |   |   |
|      basic      and diluted               |   |                                              | 2,210  |   |                                                 |   | 1,116  |                                                                                                  |   |   | 2,210 |   |   |   | 768 |   |
|                                                               |   |                                              |   |   |                                                 |   |   |                                                                                                  |   |   |   |   |   |   |   |   |
| Net      income (loss) per preferred share, basic and diluted      |   | $                                                 | 680    |   |                                                 | $      | (635   | )                                                                                                     |   | $ | 2,089 |   |   | $ | (11,729 | ) |
| See      accompanying notes to consolidated financial statements.  |   |

----

| (in      thousands)                                                                                                                                                                                        |   | For      theNine      Months EndedSeptember      30, 2008 |   |   | For      the PeriodJanuary      5, 2007(date      operationscommenced)      toSeptember      30, 2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                       |   |                                                      |   |   |                                                                                                  |   |
| Cash      flows from operating activities:                                                                                                                                                                 |   |                                                      |   |   |                                                                                                  |   |
|      Net      income (loss)                                                                                                                                                       |   | $                                                         | 4,616  |   |                                                                                                  | $      | (8,226 | ) |
|      Adjustments      to reconcile net income (loss) to net cash                                                                                                                  |   |                                                      |   |   |                                                                                                  |   |   |   |
|              provided      by operating activities:                                                                                       |   |                                                      |   |   |                                                                                                  |   |   |   |
|                      Depreciation      and amortization                                           |   |                                                      | 4,368  |   |                                                                                                  |   | 4,100 |   |
|                      Amortization      of favorable real estate leases                            |   |                                                      | 1,250  |   |                                                                                                  |   | 1,287 |   |
|                      Amortization      of unfavorable real estate leases                          |   |                                                      | (80    | )      |                                                                                                  |   | (118 | ) |
|                      Bad      debt expense                                                        |   |                                                      | 20     |   |                                                                                                  |   | - |   |
|               Changes      in operating assets and liabilities:                                                                      |   |                                                      |   |   |                                                                                                  |   |   |   |
|                      Tenant      rent receivables                                                 |   |                                                      | (104   | )      |                                                                                                  |   | (163 | ) |
|                      Step      rent receivable                                                    |   |                                                      | (570   | )      |                                                                                                  |   | (1,306 | ) |
|                      Prepaid      expenses and other assets                                       |   |                                                      | (41    | )      |                                                                                                  |   | (150 | ) |
|                      Accounts      payable and accrued expenses                                   |   |                                                      | 737    |   |                                                                                                  |   | 8,257 |   |
|                      Tenant      security deposits                                                |   |                                                      | (207   | )      |                                                                                                  |   | 791 |   |
|                      Payment      of deferred leasing costs                                       |   |                                                      | (402   | )      |                                                                                                  |   | (65 | ) |
|                                                                                                                                                                                                       |   |                                                      |   |   |                                                                                                  |   |   |   |
|                           Net      cash provided by operating activities |   |                                                      | 9,587  |   |                                                                                                  |   | 4,407 |   |
|                                                                                                                                                                                                       |   |                                                      |   |   |                                                                                                  |   |   |   |
| Cash      flows from investing activities:                                                                                                                                                                 |   |                                                      |   |   |                                                                                                  |   |   |   |
|             Purchase      of real estate assets                                                                                                |   |                                                      | (2,973 | )      |                                                                                                  |   | (153,298 | ) |
|             Purchase      of acquired real estate lease                                                                                        |   |                                                      | -      |   |                                                                                                  |   | (11,222 | ) |
|             Purchase      of acquired favorable/unfavorable real estate leases                                                                 |   |                                                      | -      |   |                                                                                                  |   | (7,421 | ) |
|                                                                                                                                                                                                       |   |                                                      |   |   |                                                                                                  |   |   |   |
|                         Net      cash used for investing activities                |   |                                                      | (2,973 | )      |                                                                                                  |   | (171,941 | ) |
|                                                                                                                                                                                                       |   |                                                      |   |   |                                                                                                  |   |   |   |
| Cash      flows from financing activities:                                                                                                                                                                 |   |                                                      |   |   |                                                                                                  |   |   |   |
|             Proceeds      from sale of company stock                                                                                           |   |                                                      | -      |   |                                                                                                  |   | 113,310 |   |
|             Syndication      costs                                                                                                             |   |                                                      | -      |   |                                                                                                  |   | (9,208 | ) |
|             Proceeds      from long term debt                                                                                                  |   |                                                      | -      |   |                                                                                                  |   | 167,000 |   |
|             Principal      payments on long term debt                                                                                          |   |                                                      | -      |   |                                                                                                  |   | (91,063 | ) |
|             Distributions      to stockholders                                                                                                 |   |                                                      | (7,896 | )      |                                                                                                  |   | (2,003 | ) |
|                                                                                                                                                                                                       |   |                                                      |   |   |                                                                                                  |   |   |   |
|                        Net      cash provided by (used for) financing activities        |   |                                                      | (7,896 | )      |                                                                                                  |   | 178,036 |   |
|                                                                                                                                                                                                       |   |                                                      |   |   |                                                                                                  |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                                                                                                                                                  |   |                                                      | (1,282 | )      |                                                                                                  |   | 10,502 |   |
|                                                                                                                                                                                                       |   |                                                      |   |   |                                                                                                  |   |   |   |
| Cash      and cash equivalents, beginning of period                                                                                                                                                        |   |                                                      | 25,353 |   |                                                                                                  |   | - |   |
|                                                                                                                                                                                                       |   |                                                      |   |   |                                                                                                  |   |   |   |
| Cash      and cash equivalents, end of period                                                                                                                                                              |   | $                                                         | 24,071 |   |                                                                                                  | $      | 10,502 |   |
|                                                                                                                                                                                                       |   |                                                      |   |   |                                                                                                  |   |   |   |
| Supplemental disclosure of cash      flow information:                                                                                                                                                     |   |                                                      | -      |   |                                                                                                  |   | - |   |
|                                                                                                                                                                                                       |   |                                                      |   |   |                                                                                                  |   |   |   |
| Cash paid    for:                                                                                                                                                                                          |   |                                                      |   |   |                                                                                                  |   |   |   |
|       Interest                                                                                                                                                               |   | $                                                         | -      |   |                                                                                                  | $      | 12,014 |   |
|                                                                                                                                                                                                       |   |                                                      |   |   |                                                                                                  |   |   |   |
| Disclosure of non-cash investing      activites:                                                                                                                                                           |   |                                                      |   |   |                                                                                                  |   |   |   |
|      Accrued      costs for purchase of real estate assets                                                                                                                        |   | $                                                         | 362    |   |                                                                                                  | $      | 1,345 |   |
|                                                                                                                                                                                                       |   |                                                      |   |   |                                                                                                  |   |   |   |
| Disclosure      of non-cash financing activities:                                                                                                                                                          |   |                                                      |   |   |                                                                                                  |   |   |   |
|      Distributions      declared but not paid                                                                                                                                     |   | $                                                         | -      |   |                                                                                                  | $      | 1,594 |   |
|                                                                                                                                                                                                       |   |                                                      |   |   |                                                                                                  |   |   |   |
| See      accompanying notes to consolidated financial statements.                                                                                                                                          |   |

----

| 1. | Organization, Properties, Basis of      Presentation and Recent Accounting  Pronouncements |
|----|--------------------------------------------------------------------------------------------|

----

| 2. | Income Taxes |
|----|--------------|

| 3. | Related Party      Transactions |
|----|---------------------------------|

----

| 3. | Related Party Transactions      (continued) |
|----|---------------------------------------------|

| 4. | Net Income Per      Share |
|----|---------------------------|

| 5. | Segment      Reporting |
|----|------------------------|

----

| 6. | Cash      Distributions |
|----|-------------------------|

| QuarterPaid                 |   | Distributions PerPreferred    Share |   |   | Distributions PerCommonShare |   |    | TotalDistributions |   |
|-----------------------------|--------|------------------------------------------|--------|--------|-----------------------------------|--------|---------|--------------------|--------|
|                        |   |                                     |   |   |                              |   |    |               |   |
| First quarter of      2008  |   | $                                        | 1,400  |   |                              | $      | -       |               |   | $ | 1,708,000 |   |
|                        |   |                                     |   |   |                              |   |    |               |   |   |   |   |
| Second quarter of      2008 |   | $                                        | 1,400  |   |                              | $      | -       |               |   | $ | 3,094,000 |   |
|                        |   |                                     |   |   |                              |   |    |               |   |   |   |   |
| Third quarter of      2008  |   | $                                        | 1,400  |   |                              | $      | -       |               |   | $ | 3,094,000 |   |
|                        |   |                                     |   |   |                              |   |    |               |   |   |   |   |
| First quarter of      2007  |   | $                                        | -      |   |                              | $      | -       |               |   | $ | - |   |
|                        |   |                                     |   |   |                              |   |    |               |   |   |   |   |
| Second quarter of      2007 |   | $                                        | 642    |   |                              | $      | 532,000 |               |   | $ | 604,000 |   |
|                        |   |                                     |   |   |                              |   |    |               |   |   |   |   |
| Third Quarter of      2007  |   | $                                        | 1,377  |   |                              | $      | 250,000 |               |   | $ | 1,399,000 |   |

| 7. | Subsequent      Event |
|----|-----------------------|

----

----

----

----

----

|   | · | We paid acquisition fees of      $567,000 and other costs of acquisition of $58,000 for the period ending      September 30, 2007 to FSP.  Such fees were included in the cost      of the real estate.  We also paid organizational costs of      $27,000 to FSP for the period ending September 30, 2007 which were      expensed when incurred.  Since the completion of the final      closing of the sale of shares of our Preferred Stock, which occurred on      December 27, 2007, no acquisition fees have been paid to      FSP. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We paid syndication fees      consisting of $9,076,000 for selling commissions and $132,000 for other      expenses for the period ending September 30, 2007 to FSP for services      related to syndication of the Company’s Preferred Stock.  Since      the completion of the final closing of the sale of shares of our Preferred      Stock, which occurred on December 27, 2007, no syndication fees have been      paid to FSP. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We purchased the Property from an      unaffiliated third party for $167,000,000 on January 5,      2007.  The purchase price, which was determined by arm’s length      negotiations, was financed entirely by a loan, which we refer to as the      Acquisition Mortgage Loan, from Franklin Street with interest equal to the      rate paid by Franklin Street on its line of credit.  The      Acquisition Mortgage Loan was collateralized by a first mortgage against      the Property.  During 2007, we repaid the entire principal      balance of the Acquisition Mortgage Loan, with the final payment being      made on December 27, 2007.  For the period ending September 30,      2007, interest paid to Franklin Street on the Acquisition Mortgage Loan      was $5,499,000.  The average interest rate during the time the      Acquisition Mortgage Loan was outstanding was 6.53%.  No      interest payments have been made since December 2007 because the      Acquisition Mortgage Loan wasrepaid. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We paid commitment fees of      $6,515,000 for the period ending September 30, 2007 to FSP for obtaining      the Acquisition Mortgage Loan on the Property.  Such amounts are      included in interest expense in the financial statements.  Since      the completion of the final closing of the sale of shares of our Preferred      Stock, which occurred on December 27, 2007, no commitment fees have been      paid to FSP. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We made distributions of $782,000      to Franklin Street as the sole holder of the one share of our Common Stock      for the period ending September 30, 2007 relating to earnings of the      Company prior to the completion of the offering of Preferred      Stock.  No distributions have been paid to Franklin Street as      the sole holder of our one share of Common Stock since the final closing      of the sale of shares of our Preferred Stock on December 27, 2007, and      Franklin Street is not currently entitled to share in any future earnings      or any related distribution of the Company as the sole holder of our one      share of Common Stock.  On December 27, 2007, Franklin Street      purchased 965.75 shares of our Preferred Stock (or approximately 43.7%),      of the Company for consideration totaling $82,813,000.  Prior to      purchasing any shares of our Preferred Stock, Franklin Street agreed to      vote any shares held by it on any matter presented to the holders of our      Preferred Stock in a manner that approximates as closely as possible the      votes cast in favor of and opposed to such matter by the holders of our      Preferred Stock other than Franklin Street and its      affiliates.  For purposes of determining how Franklin Street      votes its shares of our Preferred Stock, abstentions and non-votes by      stockholders other than Franklin Street are not considered. Franklin      Street is entitled to distributions that are declared on our Preferred      Stock. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item      3. | Quantitative      and Qualitative Disclosures About MarketRisk. |
|--------------|-----------------------------------------------------------------|

| Item      4. | Controls      and Procedures. |
|--------------|-------------------------------|

| Item      4T. | Controls      and Procedures. |
|---------------|-------------------------------|

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| Item      1. | Legal      Proceedings. |
|--------------|-------------------------|

| Item 1A. | Risk    Factors. |
|----------|------------------|

| Item      2. | Unregistered      Sales of Equity Securities and Use ofProceeds. |
|--------------|------------------------------------------------------------------|

| Item      3. | Defaults      Upon Senior Securities. |
|--------------|---------------------------------------|

| Item      4. | Submission      of Matters to a Vote of SecurityHolders. |
|--------------|----------------------------------------------------------|

| Item      5. | Other      Information. |
|--------------|-------------------------|

| Item      6. | Exhibits. |
|--------------|-----------|

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| Date                                          | Signature                                                                                                        | Title                                                          |
|-----------------------------------------------|------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|
|                                          |                                                                                                             |                                                           |
| Date:  November      14, 2008  | /s/ George J.      Carter        George      J. Carter              | President(Principal      Executive Officer)                    |
|                                          |                                                                                                             |                                                           |
| Date:  November      14, 2008  | /s/ Barbara J.      Fournier              Barbara      J. Fournier  | Chief      Operating Officer(Principal      Financial Officer) |

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| Exhibit      No. | Description                                                                                                                                                                                              |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                                                                                                                          |
| 31.1             | Certification      of FSP 303 East Wacker Drive Corp.'s principal executive officer pursuant      to Section 302 of the Sarbanes-Oxley Act of 2002.                                                      |
|             |                                                                                                                                                                                                          |
| 31.2             | Certification      of FSP 303 East Wacker Drive Corp.'s principal financial officer pursuant      to Section 302 of the Sarbanes-Oxley Act of 2002.                                                      |
|             |                                                                                                                                                                                                          |
| 32.1             | Certification      of FSP 303 East Wacker Drive Corp.'s principal executive officer pursuant      to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.  |
|             |                                                                                                                                                                                                          |
| 32.2             | Certification      of FSP 303 East Wacker Drive Corp.'s principal financial officer pursuant      to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.  |

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