<PAGE>

                          PURCHASE AND SALE AGREEMENT
                          ---------------------------

THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is made by and between CMF
CAPITAL COMPANY L.L.C., a Delaware limited liability company ("Seller"), and T
REIT L.P., a Virginia limited partnership ("Purchaser").

In consideration of the mutual covenants and representations herein contained,
and other good and valuable consideration the receipt and sufficiency of which
are hereby acknowledged, Seller and Purchaser agree as follows:

1.
PURCHASE AND SALE
-----------------

    1.1  Purchase and Sale.  Subject to the terms and conditions of this
         -----------------
Agreement, Seller hereby agrees to sell and convey to Purchaser, and Purchaser
hereby agrees to purchase from Seller, all of the Seller's assignable and
transferable right, title and interest in and to the following described
property (herein collectively called the "Property"):

         (a)  Land.  That certain tract of land commonly known as Thousand Oaks
              ----
    Shopping Center, San Antonio, Bexar County, Texas; being more particularly
    described on Exhibit A attached hereto and made a part hereof (the "Land"
    but sometimes referred to herein as the "Shopping Center").

         (b)  Easements.  All easements, if any, benefiting the Land or the
              ---------
    Improvements (as hereinafter defined).

         (c)  Rights and Appurtenances.  All rights and appurtenances pertaining
              ------------------------
    to the Land, including any right, title and interest of Seller in and to
    adjacent streets, alleys or rights-of-way.

         (d)  Improvements.  All improvements and related amenities (the
              ------------
    "Improvements") in and on the Land.

         (e)  Leases.  All leases (the "Leases") of space in the Property,
              ------
    concession leases, and all tenant security deposits held by Seller on the
    Closing Date (as hereinafter defined).

         (f)  Tangible Personal Property.  All appliances, fixtures, equipment,
              --------------------------
    machinery, furniture, carpet, drapes and other personal property, if any,
    owned by Seller and located on or about the Land and the Improvements (the
    "Tangible Personal Property").

         (g)  Contracts.  To the extent assignable without the consent of third
              ---------
    parties, the Contracts (as hereinafter defined).

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          (h) Intangible Property.  To the extent assignable without the consent
              -------------------
     of third parties, all intangible property (the "Intangible Property"), if
     any, owned by Seller and pertaining to the Land, the Improvements, or the
     Tangible Personal Property including, without limitation, the name of the
     Shopping Center, transferable utility contracts, transferable telephone
     exchange numbers. plans and specifications, engineering plans, studies,
     floor plans, and landscape plans, warranties, licenses and permits.

     1.2  Independent Consideration.  Upon execution of this Agreement,
          -------------------------
Purchaser will deliver to Seller ONE HUNDRED THIRTY-SEVEN THOUSAND FIVE HUNDRED
DOLLARS ($137,500.00) (the "Independent Consideration"), as consideration for
Purchaser's right to purchase the Property and for Seller's execution, delivery,
and performance of this Agreement.  The Independent Consideration is in addition
to and independent of any other consideration or payment provided for in this
Agreement, is non-refundable and shall be retained by Seller notwithstanding any
other provision of this Agreement except solely in the event Seller terminates
this Agreement as a result of the failure of the contingency set forth in
Section 4.9 of this Agreement.

     2.
     PURCHASE PRICE
     --------------

     2.1  Purchase Price.  The purchase price (the "Purchase Price") for the
          --------------
Property shall be THIRTEEN MILLION AND NO/ 100 DOLLARS ($13,000,000.00) and
shall be paid in cash by Purchaser to Seller at the Closing (as defined herein)
as follows:

          (a) A portion of the Purchase Price shall be satisfied by Purchaser's
     execution and delivery to Fair Oak, LLC, a Delaware limited liability
     company ("Lender") of a promissory note (the "Note") in the form attached
     hereto as Exhibit G, in the original principal sum of TEN MILLION EIGHT
     HUNDRED THIRTY-SEVEN THOUSAND FIVE HUNDRED DOLLARS ($10,837,500.00) payable
     to the order of Lender.  The payment and performance by Purchaser under the
     Note shall be secured by (i) a First Deed of Trust and Security Agreement
     (the "Mortgage") in the form attached hereto as Exhibit H executed by
     Purchaser for the benefit of Lender, covering the Property; (ii) an
     Assignment of Rents and Leases (the "Rental Assignment") in the form
     attached hereto as Exhibit I; (iii) UCC-1 Financing Statements (the
     "Financing Statements") in the form attached hereto as Exhibit J; (iv) a
     Hazardous Substances Indemnity Agreement (the "Indemnity Agreement") in the
     form attached hereto as Exhibit K; (v) a Notice and Agreement (the "Notice
     and Agreement") in the form attached hereto as Exhibit L; (vi) an
     Unconditional Guaranty of Payment and Performance (the "Guaranty") in the
     form attached hereto as Exhibit M and (vii) the form of Legal Opinion of
     Counsel (the "Legal Opinion") attached hereto as Exhibit R.  The Note, the
     Mortgage, the Rental Assignment, the Financing Statements, the Indemnity
     Agreement, the Notice and Agreement, the Guaranty and Legal Opinion are
     hereinafter collectively referred to as the "Purchase Money Loan
     Documents"; and

          (b) The balance of the Purchase Price, in the amount of TWO MILLION
     TWO HUNDRED SIXTY-TWO THOUSAND FIVE HUNDRED DOLLARS

                                       2
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     ($2,162,500.00), shall be paid in cash at the Closing by wire transfer of
     immediately available federal funds in accordance with wire transfer
     instructions to be provided by Seller.

                                      3.
                                 EARNEST MONEY
                                 -------------

     3.1  Earnest Money.  Purchaser shall deliver to Chicago Title Insurance
          -------------
Company ("Escrow Agent") pursuant to an escrow agreement identical in form to
that which is attached hereto as Exhibit P and incorporated herein for all
purposes) at 560 East Hospitality Lane, San Bernardino, California 92408,
Attention: Ms. Kandy Knotts within two (2) business days after the date a fully-
executed copy of this Agreement is delivered to the Escrow Agent by Seller, by
wire transfer in accordance with wire transfer instructions provided by the
Escrow Agent, the amount of FOUR HUNDRED THOUSAND AND NO/ 100 DOLLARS
($400,000.00) (which amount, together with all interest accrued thereon, if any,
is herein called the "Earnest Money") to be invested by the Escrow Agent in an
interest-bearing account as Purchaser and Seller shall direct. Seller shall have
the option of terminating this Agreement if the full amount of Earnest Money is
not delivered to the Escrow Agent as prescribed in this Section 3.1.  Purchaser
agrees to promptly deliver or cause the Escrow Agent to deliver written
acknowledgment by the Escrow Agent that the executed copy of this Agreement and
the Earnest Money have been received by and are being held by the Escrow Agent
pursuant to the terms of this Agreement. Except as provided herein, the Earnest
Money shall be nonrefundable upon the Effective Date (as defined in Section
10.13). If the sale of the Property is consummated under this Agreement, the
Earnest Money shall be paid to Seller and applied to the payment of the Purchase
Price at Closing (as hereinafter defined). If Purchaser terminates this
Agreement in accordance with any right to terminate granted to Purchaser by the
terms of this Agreement, the Earnest Money shall be immediately returned to
Purchaser, and no party hereto shall have any further obligations under this
Agreement except for such obligations which by their terms expressly survive the
termination of this Agreement (the "Surviving Obligations"). Purchaser agrees to
deliver to Seller copies of all Reports (as defined in Section 4.2 hereof) at
the time the notice to terminate this Agreement is given and upon payment by
Seller to Purchaser for the actual cost of the Reports. The obligations to
deliver the Reports shall survive the termination of this Agreement. In no event
shall any Earnest Money be returned to Purchaser hereunder until all Reports
have been delivered to Seller.

                                      4.
                             CONDITIONS TO CLOSING
                             ---------------------

     4.1  Seller's Obligations.  Seller shall deliver to Purchaser (at Seller's
          --------------------
expense), within ten (10) days after the Effective Date hereof, the following:

          (a) Title Commitment.  Commitment for Owner's Policy of Title
              ----------------
     Insurance (the "Title Commitment") with respect to the Property, issued by
     the Title Company (as defined in Section 6.1, and legible copies of any
     restrictive covenants, easements, and other items listed as title
     exceptions therein.

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          (b) Survey.  A current as-built survey of the Property (the "Survey")
              ------
     showing the location of all of the Improvements, prepared by a licensed
     surveyor.

          (c) Contracts.  Copies of all contracts pertaining to the Property,
              ---------
     and not cancelable on thirty (30) days notice without penalty or premium
     (the "Contracts"), including, but not limited to, management contracts,
     service contracts, equipment leases and maintenance contracts, to the
     extent in the possession of or in control of GE Capital Realty Group, Inc.
     ("GECRG").

          (d) Rent Roll.  The Leases and a rent roll for the months of July and
              ---------
     August of the year 2000 describing all Leases of space in the Improvements.

Seller's failure to deliver to Purchaser items (a) through (d) above within ten
(10) days after the Effective Date shall not result in the extension of the
Closing Date (as such term is defined in Section 6.1). 6. 1).

       4.1.1  Intentionally Deleted.
              ---------------------

       4.1.2  Title Commitment and Survey.
              ---------------------------

              (a)  In the event (i) the Survey shows any easement, right-of-way,
          encroachment, conflict, protrusion or other matter affecting the
          Property that is unacceptable to Purchaser, or (ii) any exceptions
          appear in the Title Commitment (other than the standard printed
          exceptions set forth in the standard Texas form of Commitment for
          Title Insurance or the exceptions listed on Exhibit 0 attached hereto
          and made a part hereof), that are unacceptable to Purchaser, Purchaser
          shall within five (5) business days after receipt of the Survey, the
          Title Commitment and copies of all documents referred to as exceptions
          in the Title Commitment, notify Seller in writing of such facts and
          the reasons therefore ("Purchaser's Objections"). Upon the expiration
          of said five (5) business day period, except for Purchaser's
          Objections if same are timely raised, Purchaser shall be deemed to
          have accepted the form and substance of the Survey, all matters shown
          thereon, all exceptions to Title Commitment and other items shown
          thereon. Notwithstanding anything to the contrary contained herein,
          Seller shall have no obligations to take any steps or bring any action
          or proceeding or otherwise to incur any effort or expense whatsoever
          to eliminate or modify any of the Purchaser's Objections. In the event
          Seller is unable or unwilling to eliminate or modify all of
          Purchaser's Objections to the reasonable satisfaction of Purchaser,
          Purchaser may (as its sole and exclusive remedy) terminate this
          Agreement by delivering notice thereof in writing to Seller by the
          earlier to occur of (i) the Closing Date or (ii) five (5) days after
          Seller's written notice to Purchaser of Seller's intent to not cure
          one or more of such Purchaser's Objections in which event neither
          party shall have any obligations hereunder other than the Surviving
          Obligations.

              (b)  The term "Permitted Encumbrances" as used herein includes:
          (i) any easement, right of way, encroachment, conflict, discrepancy,
          overlapping of

                                       4
<PAGE>

          improvements, protrusion, lien, encumbrance, restriction, condition,
          covenant, exception or other matter with respect to the Property that
          is reflected or addressed on the Survey or the Title Commitment to
          which Purchaser fails to timely object pursuant to Section 4.1.2(a) of
          this Agreement; (ii) any Purchaser's Objection that remains uncured,
          for whatever reason, at the earlier to occur of (A) Closing hereunder
          or (B) five (5) business days after Seller notifies Purchaser that
          Seller is unwilling or unable to cure or modify Purchaser's Objections
          to the reasonable satisfaction of Purchaser; and (iii) the rights and
          interests of parties claiming under the Leases. The term "Permitted
          Encumbrances" shall include the standard printed exceptions set forth
          in the standard Texas form of Commitment for Title Insurance and the
          exceptions listed on Exhibit Q.

          4.1.3  Limitations of Seller's Obligations.  Notwithstanding anything
                 -----------------------------------
     contained herein to the contrary, Seller shall have no obligation to take
     any steps, bring any action or proceeding or incur any effort or expense
     whatsoever to eliminate, modify or cure any objection Purchaser may have
     pursuant to Section 4.1.2 or Section 4.2.

     4.2  Inspection.  Purchaser may inspect, test, and survey the Property at
          ----------
any reasonable time during business hours at any time during the term of this
Agreement. Notwithstanding the foregoing, Purchaser must obtain Seller's prior
written approval of the scope and method of any environmental testing or
investigation (other than a Phase I environmental inspection) and any inspection
which would materially alter the physical condition of the Property, prior to
Purchaser's commencement of such inspections or testing. In any event, Seller
and its representatives, agents, and/or contractors shall have the right to be
present during any such testing, investigation, or inspection. Purchaser's right
of inspection set forth herein shall not give Purchaser the right to terminate
this Agreement; provided, however, solely in the event Purchaser's Phase I
environmental inspection conducted on the Property reveals an environmental
condition having a material, adverse impact thereon and Purchaser delivers to
Seller the results of such inspection within five (5) days of Purchaser's
receipt of same, Purchaser shall have the right to terminate this Agreement upon
written notice delivered to Seller no later than ten (10) days following
Purchaser's receipt of such Phase I environmental assessment. All information
provided by Seller to Purchaser or obtained by Purchaser relating to the
Property in the course of Purchaser's review, including, without limitation, any
environmental assessment or audit (collectively, the "Reports") shall be treated
as confidential information by Purchaser and Purchaser shall instruct all of its
employees, agents, representatives and contractors as to the confidentiality of
all such information. Purchaser shall restore the Property to its condition
existing immediately prior to Purchaser's inspection thereof, and Purchaser
shall be liable for all damage or injury to any person or property resulting
from, relating to or arising out of any such inspection, whether occasioned by
the acts of Purchaser or any of its employees, agents, representatives or
contractors, and Purchaser shall indemnify and hold harmless Seller and its
agents, employees, officers, directors, affiliates and asset managers from any
liability resulting therefrom.  This indemnification by Purchaser shall survive
the Closing or the termination of this Agreement, as applicable.

     4.3  Purchaser's Representations and Warranties.  Purchaser represents and
          ------------------------------------------
warrants to Seller that (a) Purchaser is a limited partnership, duly organized
and in good standing under the

                                       5
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laws of the State of Virginia, is qualified to do business in the State of
Texas, and has the power to enter into this Agreement and to execute and deliver
this Agreement and to perform all duties and obligations imposed upon it
hereunder, and Purchaser has obtained all necessary authorizations required in
connection with the execution, delivery and performance contemplated by this
Agreement and has obtained the consent of all entities and parties necessary to
bind Purchaser to this Agreement, and (b) neither the execution nor the delivery
of this Agreement, nor the consummation of the purchase and sale contemplated
hereby, nor the fulfillment of or compliance with the terms and conditions of
this Agreement conflict with or will result in the breach of any of the terms,
conditions, or provisions of any agreement or instrument to which Purchaser, or
any partner or related entity or affiliate of Purchaser, is a party or by which
Purchaser, any partner or related entity or affiliate of Purchaser, or any of
Purchaser's assets is bound, and (c) neither Purchaser nor any partner, related
entity or affiliate of Purchaser is in any way affiliated with GE Capital Realty
Group, Inc., General Electric Capital Corporation, General Electric Realty
Advisors, Inc., General Electric Company or any affiliate of General Electric
Company, and (d) that, with respect to each source of funds to be used by it to
purchase the Property (respectively, the "Source"), at least one of the
following statements shall be accurate as of the Closing Date: (i) the Source
does not include the assets of (A) an "employee benefit plan" as defined in
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), which is subject to Title I of ERISA, or (B) a "plan" as defined in
Section 4975(a) of the Internal Revenue Code of 1986, as amended ("Code"), or
(ii) the Source includes the assets of (A) an "employee benefit plan" as defined
in Section 3(3) of ERISA or (B) a "plan" as defined in Section 4975 of the Code
(each of which has been identified to the Seller in writing pursuant to this
Section 4.3 at least ten (10) business days prior to the Closing Date), but the
use of such Source to purchase the Property will not result in a nonexempt
prohibited transaction under Section 406 of ERISA or Section 4975 of the Code.
The Purchaser's representations and warranties set forth in this Section 4.3
shall survive the Closing or termination of this Agreement. Purchaser's
representations and warranties contained herein must be true and correct through
the Closing Date, and Purchaser's failure to notify Seller prior to the Closing
Date of any inaccuracies shall be a default by Purchaser under this Agreement.

     4.4  Seller's Representations and Warranties. Seller represents and
          ---------------------------------------
warrants to Purchaser that (a) Seller has the full company right, power, and
authority, without the joinder of any other person or entity, to enter into,
execute and deliver this Agreement, and to perform all duties and obligation's
imposed on Seller under this Agreement, (b) neither the execution nor the
delivery of this Agreement, nor the consummation of the purchase and sale
contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement conflict with or will result in the breach of any
of the terms, conditions, or provisions of any agreement or instrument to which
Seller is a party or by which Seller or any of Seller's assets is bound, (c) to
Seller's knowledge (as hereinafter defined), Seller has not been served with
process in any litigation affecting the Property which would adversely affect
Seller's ability to perform its obligations under this Agreement, (d) to
Seller's knowledge (as hereinafter defined), Seller has not received any written
notices of zoning change or special assessments with respect to the Property,
(e) to Seller's knowledge (as hereinafter defined), Exhibit N contains a
complete list of all Contracts entered into by Seller or its authorized agents
affecting the Property including all amendments and modifications thereto, and
(f) to Seller's knowledge, Exhibit 0 contains a complete list of all Leases
affecting the Property and all amendments and modifications thereto.

                                       6
<PAGE>

     4.5  Knowledge.  As used herein, the term "to Seller's knowledge" shall
          ---------
mean only the "current actual knowledge without inquiry" (as defined below) of
the following designee of GECRG: Mark Williams. As used herein, the term
"current actual knowledge without inquiry" shall mean only the actual, current,
conscious and not constructive, imputed or implied knowledge of such designee
without having made a review of the files or other inquiry. Anything herein to
the contrary notwithstanding, such designee shall not have any personal
liability or obligation whatsoever with respect to any of the matters set forth
in this Agreement or any of the Seller's representation herein being or becoming
untrue, inaccurate or incomplete in any respect.

     4.6  Survival: Liability.  Any and all of the representations and
          -------------------
warranties of Seller as contained in this Agreement shall be void and of no
further force or effect whatsoever from and after one (1) year from the Closing
Date.  Consequently, Purchaser stipulates and agrees that from and after such
one (1) year period, it is entitled to and agrees to claim no damages of any
kind with respect to any alleged breach and/or violation of any of such
representations and/or warranties of Seller. Furthermore, if Purchaser becomes
aware prior to Closing of any breach and/or violation of any of Seller's
representations or warranties as set forth herein, Purchaser shall give seller
written notice of any such breach or violation, and during the fifteen (15) day
period after such notice, Seller shall have the right, but not the obligation,
to cure any such breach or violation to the reasonable satisfaction of
Purchaser, and the Closing Date shall be extended for such fifteen (15) day
period. In the event Purchaser becomes aware of any breach and/or violation of
any Seller's representations and warranties prior to Closing and (a) Purchaser
fails to give Seller notice thereof as required hereby or (b) following notice
thereof, Seller fails or is unable to cure any such breach or violation to the
reasonable satisfaction of Purchaser, Purchaser's sole remedy for any such
breach or violation shall be to terminate this Agreement by delivering written
notice of such termination to Seller on or before the Closing Date and neither
party shall have any obligation hereunder, except the Surviving Obligations.
Anything herein to the contrary notwithstanding, if Purchaser timely commences
any action(s) to enforce any alleged breach and/or violation of any of the
representations and/or warranties of Seller as set forth in this Agreement, then
Purchaser's sole remedy shall be to seek recovery of its actual damages (but not
special, speculative, punitive or other damages) and the amount of such damages,
in the aggregate (with respect to any and all such breaches and/or violations)
shall not exceed One Hundred Thousand and No/100 Dollars ($ 100,000.00), which
sum shall include all of Purchaser's attorney's fees, costs, expert witness fees
and court costs.

     4.7  Tenant Estoppel Certificates.  Seller agrees to submit or cause its
          ----------------------------
property manager to submit to each tenant or lessee under a Lease a request for
such tenant or lessee to execute and deliver a tenant estoppel certificate to
Purchaser with respect to its Lease in the form attached hereto as Exhibit D.
Seller shall have no obligation or responsibility with respect to any tenant
estoppel certificate other than to submit or cause to be submitted such
certificate to the tenant or lessee and request the execution and return
thereof.

     4.8  Defective Condition Extension, Termination.  The obligations of Seller
          ------------------------------------------
hereunder are subject to and contingent upon the following:

          In the event that subsequent to the execution of this Agreement Seller
     obtains knowledge of, or Purchaser's inspection of the Property reveals,
     either (i) the presence of

                                       7
<PAGE>

     any Hazardous Materials (as defined in Section 5.2 hereof) or the violation
     or potential violation of any Environmental Requirements (as defined in
     Section 5.3 hereof) or (ii) any structural or other defect in the
     Improvements, whether or not in violation of any applicable law, ordinance,
     code, regulation or decree of any governmental authority having
     jurisdiction over the Property (collectively, a "Defective Condition"),
     which Seller, in its sole judgment, determines could constitute a potential
     liability to Seller after the Closing or should be remedied prior to the
     sale of the Property, Seller shall have the right upon written notice to
     Purchaser on or before the scheduled Closing Date either (i) to extend the
     Closing Date for the period of time necessary to complete such remediation
     at Seller's sole cost and expense, or (ii) to terminate this Agreement upon
     written notice to Purchaser, in which event the Earnest Money shall be
     refunded to Purchaser and neither party shall have any further right or
     obligation hereunder other than the Surviving Obligations. The terms of
     this Section 4.8 are solely for the benefit of Seller and Purchaser shall
     have no additional right or remedy hereunder as a result of the exercise by
     Seller of its rights under this section.

     4.9   Contingent Sale.  The obligations of Seller hereunder are subject to
           ---------------
and contingent upon the fully I consummated purchase and sale of each of the
other two (2) shopping centers identified in that certain Purchase and Sale
Agreement by and between Seller and T REIT L.P., a Virginia limited partnership,
for the purchase of Northstar Crossing Shopping Center (the "NSC" Agreement")
and that certain Purchase and Sale Agreement by and between Seller and Triple
Net Properties, L.L.C., a Virginia limited liability company, for the purchase
of Plaza Del Rey Shopping Center (the "PDR" Agreement), respectively.  If Seller
fully consummates this Agreement, the foregoing contingency as contemplated
herein will be deemed waived by Seller.

     4.10  Termination/Cross Default.  A termination by Purchaser for any reason
           -------------------------
of this Agreement or the occurrence of an event which would constitute a
default/(breach by Purchaser under this Agreement shall at the option of Seller
constitute a termination or default/breach of the NSC Agreement and the PDR
Agreement.  A termination by Purchaser for any reason of the NSC Agreement or
the PDR Agreement or the occurrence of an event which would constitute a
default/breach by Purchaser under the NSC Agreement or the PDR Agreement shall
at the option of Seller constitute a termination or default/breach of this
Agreement.

                                      5.
                  NO REPRESENTATIONS OR WARRANTIES BY SELLER;
                  -------------------------------------------
                            ACCEPTANCE OF PROPERTY
                            ----------------------

     5.1   Disclaimer.  PURCHASER ACKNOWLEDGES AND AGREES THAT SELLER HAS NOT
           ----------
MADE, DOES NOT MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS,
WARRANTIES (OTHER THAN THE SPECIAL WARRANTY OF TITLE AS SET OUT IN THE DEED, AS
DEFINED BELOW), PROMISES, COVENANTS, AGREEMENTS OR GUARANTEES OF ANY KIND OR
CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT
OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO (A) THE VALUE, NATURE,
QUALITY OR CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE WATER,
SOIL AND GEOLOGY, (B) THE INCOME TO BE

                                       8
<PAGE>

DERIVED FROM THE PROPERTY, (C) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL
ACTIVITIES AND USES WHICH PURCHASER OR ANY TENANT MAY CONDUCT THEREON, (D) THE
COMPLIANCE OF OR BY THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES,
ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, (E)
THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OF THE PROPERTY, (F) THE MANNER OR QUALITY OF THE
CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE PROPERTY, (G) THE
MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE PROPERTY, OR (H)
COMPLIANCE WITH ANY ENVIRONMENTAL PROTECTION, POLLUTION OR LAND USE LAWS, RULES,
REGULATIONS, ORDERS OR REQUIREMENTS, INCLUDING THE EXISTENCE IN OR ON THE
PROPERTY OF HAZARDOUS MATERIALS (AS DEFINED BELOW) OR (1) ANY OTHER MATTER WITH
RESPECT TO THE PROPERTY. ADDITIONALLY, NO PERSON ACTING ON BEHALF OF SELLER IS
AUTHORIZED TO MAKE, AND BY EXECUTION HEREOF OF PURCHASER ACKNOWLEDGES THAT NO
PERSON HAS MADE, ANY REPRESENTATION, AGREEMENT, STATEMENT, WARRANTY, GUARANTY OR
PROMISE REGARDING THE PROPERTY OR THE TRANSACTION CONTEMPLATED HEREIN; AND NO
SUCH REPRESENTATION, WARRANTY, AGREEMENT, GUARANTY, STATEMENT OR PROMISE IF ANY,
MADE BY ANY PERSON ACTING ON BEHALF OF SELLER SHALL BE VALID OR BINDING UPON
SELLER UNLESS EXPRESSLY SET FORTH HEREIN. PURCHASER FURTHER ACKNOWLEDGES AND
AGREES THAT HAVING BEEN GIVEN THE OPPORTUNITY TO INSPECT THE PROPERTY, PURCHASER
IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY AND NOT ON ANY
INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER AND AGREES TO ACCEPT THE
PROPERTY AT THE CLOSING AND WAIVE ALL OBJECTIONS OR CLAIMS AGAINST SELLER
(INCLUDING, BUT NOT LIMITED TO, ANY RIGHT OR CLAIM OF CONTRIBUTION) ARISING FROM
OR RELATED TO THE PROPERTY OR TO ANY HAZARDOUS MATERIALS ON THE PROPERTY.
PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT ANY INFORMATION PROVIDED OR TO BE
PROVIDED WITH RESPECT TO THE PROPERTY WAS OBTAINED FROM A VARIETY OF SOURCES AND
THAT SELLER HAS NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH
INFORMATION AND MAKES NO REPRESENTATIONS AS TO THE ACCURACY, TRUTHFULNESS OR
COMPLETENESS OF SUCH INFORMATION. SELLER IS NOT LIABLE OR BOUND IN ANY MANNER BY
ANY VERBAL OR WRITTEN STATEMENT, REPRESENTATION OR INFORMATION PERTAINING TO THE
PROPERTY, OR THE OPERATION THEREOF, FURNISHED BY ANY REAL ESTATE BROKER,
CONTRACTOR, AGENT, EMPLOYEE, SERVANT OR OTHER PERSON. PURCHASER FURTHER
ACKNOWLEDGES AND AGREES THAT TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE SALE OF
THE PROPERTY AS PROVIDED FOR HEREIN IS MADE ON AN "AS IS" CONDITION AND BASIS
WITH ALL FAULTS. IT IS UNDERSTOOD AND AGREED THAT THE PURCHASE PRICE HAS BEEN
ADJUSTED BY PRIOR NEGOTIATION TO REFLECT THAT ALL OF THE PROPERTY IS SOLD BY
SELLER AND

                                       9
<PAGE>

     5.2  Hazardous Materials.  "Hazardous Materials" shall mean any
          -------------------
substance which is or contains (i) any "hazardous substance" as now or hereafter
defined in (S) 101 (14) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amend (42 U.S.C. (S)9601 et seq.)
("CERCLA") or any regulations promulgated under CERCLA; (ii) any "hazardous
waste" as now or hereafter defined in the Resource Conservation and Recovery Act
(42 U.S.C. (S)6901 et seq.) ("RCRA") or regulations promulgated under RCRA;
(iii) any substance regulated by the Toxic Substances Control Act (15 U.S.C.
(S)2601 et seq.); (iv) gasoline, diesel fuel, or other petroleum hydrocarbons;
(v) asbestos and asbestos containing materials, in any form, whether friable or
non-friable; (vi) polychlorinated biphenyls; (vii) radon gas; and (viii) any
additional substances or materials which are now or hereafter classified or
considered to be hazardous or toxic under Environmental Requirements (as
hereinafter defined) or the common law, or any other applicable laws relating to
the Property. Hazardous Materials shall include, without limitation, any
substance, the presence of which on the Property, (A) requires reporting,
investigation or remediation under Environmental Requirements; (B) causes or
threatens to cause a nuisance on the Property or adjacent property or poses or
threatens to pose a hazard to the health or safety of persons on the Property or
adjacent property; or (C) which, if it emanated or migrated from the Property,
could constitute a trespass.

     5.3  Environmental Requirements.  "Environmental Requirements" shall
          --------------------------
mean all laws, ordinances, statutes, codes, rules, regulations, agreements,
judgments, orders, and decrees, now or hereafter enacted, promulgated, or
amended, of the United States, the states, the counties, the cities, or any
other political subdivisions in which the Property is located, and any other
political subdivision, agency or instrumentality exercising jurisdiction over
the owner of the Property, the Property, or the use of the Property, relating to
pollution, the protection or regulation of human health, natural resources, or
the environment, or the emission, discharge, release or threatened release of
pollutants, contaminants, chemicals, or industrial, toxic or hazardous
substances or waste or Hazardous Materials into the environment (including,
without limitation, ambient air, surface water, ground water or land or soil).

                                       6.
                                    CLOSING
                                    -------

     6.1  Closing.  The Closing (the "Closing") shall be held at the offices of
          -------
Commonwealth Land Title Company (the "Title Company") at 1700 Pacific Avenue,
Suite 4700, Dallas, Texas 7520 1, Attention: Ms. Amanda Johnson, at a date
designated by Seller and Purchaser on or before forty-five (45) calendar days
after the Effective Date (the "Closing Date"), but in no event shall the Closing
Date be later than November 30, 2000, unless the parties mutually agree in
writing upon another place, time or date.

     6.2  Possession.  Possession (including keys) of the Property shall be
          ----------
delivered to Purchaser at the Closing, subject to the Permitted Encumbrances.

     6.3  Proration.  Except for all leasing commissions and tenant improvement
          ---------
costs associated with existing tenants for existing terms under the existing
lease documents which shall be paid by Seller, all rents, other amounts payable
by the tenants under the Leases, income, utilities and all other operating
expenses with respect to the Property for the month in which the

                                       10
<PAGE>

Closing occurs, and real estate and personal property taxes and other
assessments with respect to the Property for the year in which the Closing
occurs, shall be prorated to the Closing Date.

          (a) If the Closing shall occur before rents and all other amounts
     payable by the tenants under the Leases and all other income from the
     Property have actually been paid for the month in which the Closing occurs,
     the apportionment of such rents and other amounts and other income shall be
     upon the basis of such rents, other amounts and other income actually
     collected and received by Seller. Subsequent to the Closing, if any such
     rents and other income are actually collected and received by Purchaser,
     all such amounts shall first be applied to post-closing rents due to
     Purchaser which are past due and the balance shall be immediately paid by
     Purchaser to Seller. Purchaser shall make a good faith effort and attempt
     for a period not to extend beyond four (4) months after the Closing Date to
     collect any such rents and other amounts and other income not apportioned
     at the Closing for the benefit of Seller, however, Purchaser shall not be
     required to expend any funds or institute any litigation in its collection
     efforts. Nothing in this paragraph shall restrict Seller's right to collect
     delinquent rents directly from a tenant by any legal means.

          (b) Taxes will be prorated on an accrual basis.  If the Closing shall
     occur before the tax rate or the assessed valuation of the Property is
     fixed for the then current year, the apportionment of taxes shall be upon
     the basis of the tax rate for the preceding year applied to the latest
     assessed valuation. Subsequent to the Closing, when the tax rate and the
     assessed valuation of the Property is fixed for the year in which the
     Closing occurs, the parties agree to adjust the proration of taxes and, if
     necessary, to refund or repay such sums as shall be necessary to effect
     such adjustment.  If the Property is not assessed as a separate parcel for
     tax or assessment purposes, then such taxes and assessments attributable to
     the Property shall be determined by Purchaser and Seller. In the event the
     Property has been assessed for property tax purposes at such rates as could
     result in "roll-back" taxes upon changes in land usage or ownership of the
     Property, Seller agrees to pay all such taxes.

          (c) If the Closing shall occur before the actual amount of utilities
     and all other operating expenses with respect to the Property for the month
     in which the Closing occurs are determined, the apportionment of such
     utilities and other operating expenses shall be upon the basis of an
     estimate by Seller of such utilities and other operating expenses for such
     month. Subsequent to the Closing, when the actual amount of such utilities
     and other operating expenses with respect to the Property for the month in
     which the Closing occurs are determined, the parties agree to adjust the
     proration of such utilities and other operating expenses and, if necessary,
     to refund or repay such sums as shall be necessary to effect such
     adjustment.

          (d) Purchaser and Seller acknowledge and agree that certain additional
     rents constituting reimbursement for percentage rent payments, common area
     maintenance charges, property taxes and assessments and the like
     (collectively, "Additional-Rents") which Seller has heretofore advanced
     have not yet been billed to the Tenants by Seller (collectively, "Unbilled
     Additional Rents").  Purchaser and Seller agree that, with respect

                                       11
<PAGE>

     to the Unbilled Additional Rents, Seller shall provide Purchaser following
     the Closing with the data reasonably necessary for Purchaser to provide
     bills to the Tenants for the Unbilled Additional Rents. In the event that
     any Tenant shall, following the Closing, seek to audit or to challenge
     Seller's calculation of rent or Additional Rent actually paid by such
     Tenant during the period of Seller's ownership of the Property, upon the
     agreement of the Tenant and Seller, or if no such agreement is reached,
     upon the entering of a final, non-appealable order (or, if applicable
     pursuant to the applicable lease, an arbitration or other dispute
     resolution award), Seller shall reimburse such Tenant to, the extent of any
     over-payment of rent or Additional Rent actually received by Seller,
     together with any applicable interest or other costs pursuant to a
     settlement, court order or other award, and Purchaser shall use
     commercially reasonable efforts to collect the amount of any under-payment
     of rent or Additional Rent from such Tenant, together with any applicable
     interest or other costs pursuant to a settlement, court order or other
     award for the benefit of Seller.

The agreements of Seller and Purchaser set forth in this Section 6.3 shall
survive the Closing.

     6.4  Closing Costs.  Except as otherwise expressly provided herein, Seller
          -------------
shall pay, on the Closing Date, the title insurance premium for the Owner's
Policy (as defined in Section 6.5(a)) and the cost of the Survey. Purchaser
shall pay, on the Closing Date, all recording costs, all escrow fees and other
customary charges of the Title Company and Escrow Agent and the title insurance
premium for the Mortgagee Policy (as defined in Section 6.6 (f)).  Except as
otherwise provided herein, each party shall pay its own attorneys' fees.

     6.5  Seller's Obligations at the Closing.  At the Closing, Seller shall
          -----------------------------------
deliver to Purchaser the following:

          (a) Title Policy.  Owner's Policy of Title Insurance in Texas standard
              ------------
     form (the "Owner's Policy"), naming Purchaser as insured, in the amount of
     the Purchase Price, ensuring that Purchaser owns good and indefeasible fee
     simple title to the Property, subject only to the Permitted Encumbrances.
     Purchaser, at Purchaser's sole expense, shall elect to cause the Title
     Company to amend the survey exception to read "any shortages in area and
     issue a Mortgagee Policy of Insurance in favor of Lender in the amount of
     the Note subject to no exceptions other than the Permitted Encumbrances."

          (b) Evidence of Authority.  Such organizational and authorizing
              ---------------------
     documents of Seller as shall be reasonably required by the Title Company to
     evidence Seller's authority to consummate the transactions contemplated by
     this Agreement.

          (c) Foreign Person.  An affidavit of Seller certifying that Seller is
              --------------
     not a "foreign person," as defined in the federal Foreign Investment in
     Real Property Tax Act of 1980, and the 1984 Tax Reform Act, as amended.

          (d) Leases.  The originals of all of the Leases, in the possession of
              ------
     or control of GECRG on the Closing Date; provided, however, all security
     deposits, if any, shall be

                                       12
<PAGE>

     credited to Purchaser. Seller shall have no liability to Purchaser for any
     tenant security deposit not actually paid to Seller.

          (e) Contracts.  The originals of all of the Contracts, guaranties and
              ---------
     permits, if any, in the possession of or control of GECRG.

     6.6  Purchaser's Obligations at the Closing.  At the Closing, Purchaser
          --------------------------------------
shall deliver to Seller or Lender, as appropriate, the following:

          (a) Purchase Price.  The Purchase Price, as provided in Section 2.1 by
              --------------                                      ------------
     wire transfer of immediately available funds.

          (b) Purchase Money Loan Documents.  The Note, the Mortgage, the Rental
              -----------------------------
     Assignment, the Financing Statements, the Indemnity Agreement, the Notice
     and Agreement, and the Guaranty, each executed and acknowledged, as
     applicable by Purchaser.

          (c) Post Effective Date Lease Expenses.  Immediately available funds
              ----------------------------------
     in an amount equal to costs and expenses incurred and paid by Seller under
     any new lease of space in the Improvements, executed after the Effective
     Date.  Said costs and expenses shall include, but not be limited to, costs
     incurred and paid by Seller for tenant improvements, leasing commissions,
     capital improvements, and reasonable attorney's fees.

          (d) Evidence of Authority.  Such organizational and authorizing
              ---------------------
     documents of Purchaser as shall be reasonably required by Seller and/or the
     Title Company authorizing Purchaser's acquisition of the Property pursuant
     to this Agreement and the execution of this Agreement and any documents to
     be executed by Purchaser at the Closing.

          (e)  Taxpayer I.D. Certification, in the form attached to this
     Agreement as Exhibit E.

          (f) Mortgagee Policy of Title Insurance in Texas standard form (the
     "Mortgagee Policy") naming Lender as the insured in the amount of the Note
     subject to no exceptions other than the Permitted Encumbrances.

     6.7  Documents to be Executed by Seller and Purchaser.  At the Closing,
          ------------------------------------------------
Seller and Purchaser shall also execute and deliver the following:

          (a)  Deed. Special Warranty Deed with Vendor's Lien (the "Deed")
     conveying the Land and the Improvements to Purchaser subject to no
     exceptions other than the Permitted Encumbrances, in the form attached to
     this Agreement as Exhibit B.

          (b) Tenant Notices.  Signed statements or notices to all tenants of
              --------------
     the Property notifying such tenants that the Property has been transferred
     to Purchaser and that

                                       13
<PAGE>

     Purchaser is responsible for security deposits (specifying the amounts of
     such deposits), and, if applicable, otherwise complying with Section 92.105
     of the Texas Property Code.

          (c) Assignment and Assumption of Personal Property, Service Contracts,
              ------------------------------------------------------------------
     Warranties and Leases.  Assignment in the form attached to this Agreement
     ---------------------
     as Exhibit C.

                                      7.
                                 RISK OF LOSS
                                 ------------

     7.1  Condemnation.  If, prior to the Closing, action is initiated to take
          ------------
any of the Property by eminent domain proceedings or by deed in lieu thereof,
Purchaser may either at or prior to Closing (a) terminate this Agreement, or (b)
consummate the Closing, in which latter event all of Seller's assignable right,
title and interest in and to the award of the condemning authority shall be
assigned to Purchaser at the Closing and there shall be no reduction in the
Purchase Price.

     7.2  Casualty.  Except as provided in Sections 4.2 and 5.1 of this
          --------
Agreement, Seller assumes all risks and liability for damage to or injury
occurring to the Property by fire, storm, accident, or any other casualty or
cause until the Closing has been consummated. If the Shopping Center, or any
part thereof, suffers any damage in excess of $ 100,000.00 prior to the Closing
from fire or other casualty, which Seller, at its sole option, does not elect to
repair, Purchaser may either at or prior to Closing (a) terminate this
Agreement, or (b) consummate the Closing, in which latter event all of Seller's
right, title and interest in and to the proceeds of any insurance covering such
damage (less an amount equal to any expenses and costs incurred by Seller to
repair or restore the Shopping Center and any portion of such proceeds paid or
to be paid on account of the loss of rents or other income from the Shopping
Center for the period prior to and including the Closing Date, all of which
shall be payable to Seller), to the extent the amount of such insurance does not
exceed the Purchase Price, shall be assigned to Purchaser at the Closing. If the
Shopping Center, or any part thereof, suffers any damage less than $ 100,000.00
prior to the Closing, Purchaser agrees that it will consummate the Closing and
accept the assignment of the proceeds of any insurance covering such damage plus
an amount equal to Seller's deductible under its insurance policy and there
shall be no reduction in the Purchase Price.

                                      8.
                                    DEFAULT
                                    -------

     8.1  Breach by Seller.  Except as Purchaser's remedies may otherwise be
          ----------------
expressly limited by the terms of this Agreement (including, without limitation,
the terms of Section 4.4):

          (a) In the event that Seller shall fail to consummate this Agreement
     for any reason, except Purchaser's default or a termination of this
     Agreement by Purchaser or Seller pursuant to a right to do so under the
     provisions hereof, Purchaser, as its sole and exclusive remedy may either
     (a) terminate this Agreement and receive a refund of the Earnest Money or
     (b) pursue the remedy of specific performance of Seller's obligations under
     this Agreement: provided, however, that (i) Purchaser shall only be
     entitled to such remedy if (A) any such suit for specific performance is
     filed within sixty (60) days after

                                       14
<PAGE>

     Purchaser becomes aware of the default by Seller, (B) Purchaser is not in
     default under this Agreement, (C) Purchaser has tendered five percent (5%)
     of the Purchase Price to the Escrow Agent, in immediately available funds
     and the Escrow Agent has acknowledged receipt of same, in writing, to
     Seller, and (D) Purchaser has furnished ten (10) days prior written notice
     to Seller of its intent and election to seek specific enforcement of this
     Agreement; and (ii) notwithstanding anything to the contrary contained
     herein, Seller shall not be obligated to expend any sums to cure any
     defaults under this Agreement and if Purchaser seeks specific performance
     under this Agreement, Purchaser agrees to accept the Property in its "WHERE
     IS, AS IS" condition. Purchaser hereby agrees that prior to its exercise of
     any rights or remedies as a result of any defaults by Seller, Purchaser
     will first deliver written notice of said default to Seller and give Seller
     ten (10) days thereafter in which to cure said default, if Seller so
     elects. In no event whatsoever shall Purchaser file any instrument of
     record against title to the Property; provided, however, Purchaser may file
     a lis pendens of this Agreement simultaneously with its filing of a suit
     for specific performance pursuant to this Section 8. 1. Notwithstanding any
     of the foregoing to the contrary, in no event whatsoever, shall Purchaser
     have the right to seek money damages of any kind as a result of any default
     by Seller under any of the terms of this Agreement. In no event shall
     Seller be liable to Purchaser for any punitive, speculative or
     consequential damages.

     8.2  Breach by Purchaser.  (a) If Purchaser fails to comply with Section 6
          -------------------
of this Agreement, Seller may terminate this Agreement and thereupon shall be
entitled to the Earnest Money as liquidated damages (and not as a penalty) and
as Seller's sole remedy and relief hereunder (except for the Surviving
Obligations). Seller and Purchaser have made this provision for liquidated
damages because it would be difficult to calculate, on the date hereof, the
amount of actual damages for such breach, and Seller and Purchaser agree that
these sums represent reasonable compensation to Seller for such breach, (b)
Notwithstanding the provisions of Section 8.2(a) above, (i) in the event of any
default by Purchaser under this Agreement other than as described in Section
8.2(a) (including without limitation any breach by the Purchaser of the negative
covenant, set forth in Section 8.1 above, not to file any instrument(s) against
title to the Property excepting the lis pendens described in -Section 8.1
above). Seller shall have any and all rights and remedies available at law or in
equity by reason of such default and (ii) the provisions of this Section 8.2
shall not limit or affect any of Purchaser's indemnities as provided in other
Sections of this Agreement.

                                      9.
                               FUTURE OPERATIONS
                               -----------------

     9.1  Future Operations.
          -----------------

          (a)  From the date of this Agreement until the Closing or earlier
     termination of this Agreement:

               (i)  Seller will keep and maintain the Property in substantially
          its condition as of the date of this Agreement;

                                       15
<PAGE>

               (ii)   Seller will perform all Seller's obligations under the
          Contracts and Leases. Seller will not, without the prior written
          consent of Purchaser, modify, enter into, or renew any Contract or
          Lease which cannot be cancelled upon thirty (30) days prior written
          notice.

               (iii)  Seller will continue to manage the Property in a prudent
          manner consistent with Seller's past practices.

          (b)  From the Effective Date until the Closing or earlier termination
     of this Agreement, Seller will not lease any space in the Improvements
     except upon the prior written approval of Purchaser (such approval not to
     be unreasonably withheld or delayed); provided however, this limitation
     upon Seller shall not apply with respect to lease renewals and lease
     extensions pursuant to rights granted under an existing lease. In addition,
     Seller shall not apply security deposits unless the corresponding tenant is
     out of the demised premises by the Closing Date. All costs and expenses
     (the "New Lease Expenses") incurred and paid by Seller under any new lease
     entered into after the Effective Date (each, a "New Lease") shall be paid
     by Purchaser in accordance with Section 6.6(c) hereof. Said costs and
     expenses shall include, but not be limited to, costs incurred and paid by
     Seller for tenant improvements, leasing commissions, capital improvements,
     and reasonable attorney's fees. Notwithstanding anything to the contrary
     contained herein, the New Lease Expenses for each New Lease allocable to
     and payable by Seller shall be determined by multiplying the amount of such
     New Lease Expenses by a fraction, the numerator of which shall be the
     number of days contained in that portion, if any, of the term of such New
     Lease commencing on the date on which the tenant thereunder shall have
     commenced to pay fixed rent (the "Rent Commencement Date") and expiring on
     the date immediately preceding the Closing Pate, and the denominator of
     which shall be the total number of days contained in the period commencing
     on the Rent Commencement Date and expiring on the date of the scheduled
     expiration of the term of such New Lease, and the remaining balance of the
     New Lease Expenses for each New Lease shall be allocable to and payable by
     Purchaser. The Rent Commencement Date under a renewal, extension, expansion
     or modification of a Lease shall be deemed to be (A) in the case of a
     renewal or extension (whether effective prior to or after the Closing, or
     in the form of an option exercisable in the future), the first date during
     such renewal or extension period after the originally scheduled expiration
     of the term of such Lease on which the tenant under such Lease commences to
     pay fixed rent, (B) in the case of an expansion (whether effective prior to
     or after the Closing, or in the form of an option exercisable in the
     future), the date on which the tenant under such Lease commences to pay
     fixed rent for the additional space, and (C) in the case of a modification
     not also involving a renewal, extension or expansion of such Lease, the
     effective date of such modification agreement. At the Closing, Purchaser
     shall reimburse Seller for all New Lease Expenses theretofore paid by
     Seller, if any, in excess of the portion of the New Lease Expenses
     allocated to Seller pursuant to the provisions of the preceding sentence.

                                      10.
                                 MISCELLANEOUS
                                 -------------

                                      16
<PAGE>

     10.1  Notices.  All notices, demands. and requests which may be given or
           -------
which are required to be given by either party to the other, and any exercise of
a right of termination provided by this Agreement, shall be in writing and shall
be deemed effective either: (a) on the date personally delivered to the address
below, as evidenced by written receipt therefore, whether or not actually
received by the person to whom addressed; (b) on the third (3rd) business day
after being sent, by certified or registered mail, return receipt requested,
addressed to the intended recipient at the address specified below; or (c) on
the first (1st) business day after being deposited into the custody of a
nationally recognized overnight delivery service such as Federal Express
Corporation, Emery or Purolator, addressed to such party at the address
specified below. For purposes of this Section 10.1 the addresses of the parties
for all notices areas follows (unless changed by similar notice in writing given
by the particular person whose address is to be changed):


If to Seller:       CMF Capital Company L.L.C.
                    c/o GE Capital Realty Group, Inc.
                    16479 Dallas Parkway, Suite 500
                    Two Bent Tree Tower
                    Addison, Texas 75001-2512
                    Attention: Mark Williams and Legal Department
                    Tel: (972) 447-2552
                    Fax: (972) 447-2599

with a copy to:     Andrews & Kurth, L.L.P.
                    1717 Main Street, Suite 3700
                    Dallas, Texas  75201
                    Attention:  Andrew L. Campbell, Esq.
                    Tel: (214) 659-4511
                    Fax: (214) 659-4401

If to Purchaser:    T REIT, L.P.
                    c/o Triple Net Properties, L.L.C.
                    1551 N. Tustin Avenue, Suite 650
                    Santa Ana, California  92705
                    c/o Jack Maurer
                    Attention:  Anthony W. Thompson
                    Tel: (714) 667-8252
                    Fax: (714) 667-6860

with a copy to:     Hirschler, Fleischer, Weinberg, Cox & Allen
                    701 East Byrd Street, 15/th/ Floor (23219)
                    P. O. Box 500 (23218-0500)
                    Richmond, Virginia
                    Attention:  Louis J. Rogers, Esq.
                    Tel: (804) 771-9567
                    Fax: (804) 644-0957

                                       17
<PAGE>

If to Title
 Company:           Commonwealth Land Title Company
                    1700 Pacific Avenue, Suite 4740
                    Dallas, Texas  75201
                    Attention:  Amanda Johnson
                    Tel: (214) 855-8411
                    Fax: (214) 754-9066

If to
 Escrow Agent:      Chicago Title Insurance Company
                    560 East Hospitality Lane
                    San Bernardino, California  9208
                    Attention:  Ms. Kandy Knotts
                    Tel: (909) 884-0448
                    Fax: (909) 384-7855

          10.2  Real Estate Commissions.  Seller shall pay to The Trammell Crow
                -----------------------
Company (hereinafter called "Agent" whether one or more) upon the Closing of the
transaction contemplated hereby, and not otherwise, a cash commission in the
amount agreed on in a separate listing agreement between Seller and Agent.  Said
commission shall in no event be payable unless and until the transaction
contemplated hereby is closed in accordance with the terms of this Agreement; if
such transaction is not closed for any reason, including, without limitation,
failure of title or default by Seller or Purchaser or termination of this
Agreement pursuant to the terms hereof, then such commission will be deemed not
to have been earned and shall not be due or payable. Seller shall also pay to
Triple Net Realty $250,000.00 in real estate commissions. Except as set forth
above with respect to Agent and Triple Net Realty, neither Seller nor Purchaser
has authorized any broker or finder to act on Purchaser's behalf in connection
with the sale and purchase hereunder and neither Seller nor Purchaser has dealt
with any broker or finder purporting to act on behalf of any other party.
Purchaser agrees to indemnify and hold harmless Seller from and against any and
all claims, losses, damages, costs or expenses of any kind or character arising
out of or resulting from any agreement, arrangement or understanding alleged to
have been made by Purchaser or on Purchaser's behalf with any broker or finder
in connection with this Agreement or the transaction contemplated hereby. Seller
agrees to indemnify and hold harmless Purchaser from and against any and all
claims, losses, damages, costs or expenses of any kind or character arising out
of or resulting from any agreement, arrangement or understanding alleged to have
been made by Seller or on Seller's behalf with any broker or finder in
connection with this Agreement or the transaction contemplated hereby. Purchaser
acknowledges that, in accordance with the terms of the Real Estate License Act
of the State of Texas, Agent has advised Purchaser that Purchaser should have
the abstract covering the Property examined by an attorney of Purchaser's
selection, or that Purchaser should be furnished with or obtain a policy of
title insurance. Notwithstanding anything to the contrary contained herein, this
Section 10.2 shall survive the Closing or any earlier termination of this
-------------
Agreement.

                                       18
<PAGE>

     10.3  Entire Agreement.  This Agreement embodies the entire agreement
           ----------------
between the parties relative to the subject matter hereof, and there are no oral
or written agreements between the parties, nor any representations made by
either party relative to the subject matter hereof, which are not expressly set
forth herein.

     10.4  Amendment.  This Agreement may be amended only by a written
           ---------
instrument executed by the party or parties to be bound thereby.

     10.5  Headings. The captions and headings used in this Agreement are for
           --------
convenience only and do not in any way limit, amplify, or otherwise modify the
provisions of this Agreement.

     10.6  Time of Essence.  Time is of the essence of this Agreement; however,
           ---------------
if the final date of any period which is set out in any provision of this
Agreement falls on a Saturday, Sunday or legal holiday under the laws of the
United States or the State of Texas, then, in such event, the time of such
period shall be extended to the next day which is not a Saturday, Sunday or
legal holiday.

     10.7  Governing Law.  This Agreement shall be governed by the laws of the
           -------------
State of Texas and the laws of the United States pertaining to transactions in
such State.

     10.8  Successors and Assigns; Assignment.  This Agreement shall bind and
           ----------------------------------
inure to the benefit of Seller and Purchaser and their respective heirs,
executors, administrators, personal and legal representatives, successors and
permitted assigns. Purchaser shall not assign Purchaser's rights under this
Agreement without the prior written consent of Seller, which consent may be
withheld absolutely. In the event Seller consents to such assignment, Purchaser
and such assignee shall execute and deliver an Assignment of Purchase and Sale
Agreement in the form attached hereto as Exhibit F.  Any subsequent assignment
may be made only with the prior written consent of Seller.  No assignment of
Purchaser's rights hereunder shall relieve Purchaser of its liabilities under
this Agreement. This Agreement is solely for the benefit of Seller and
Purchaser; there are no third party beneficiaries hereof. Any assignment of this
Agreement in violation of the foregoing provisions shall be null and void.
Seller may, in its sole and absolute discretion, transfer the Property and
Seller's rights and obligations under this Agreement without obtaining
Purchaser's consent.

     10.9  Invalid Provision. If any provision of this Agreement is held to be
           -----------------
illegal, invalid or unenforceable under present or future laws, such provision
shall be fully severable; this Agreement shall be construed and enforced as if
such illegal, invalid or unenforceable provision had never comprised a part of
this Agreement; and, the remaining provisions of this Agreement shall remain in
full force and effect and shall not be affected by such illegal, invalid, or
unenforceable provision or by its severance from this Agreement.

     10.10 Attorneys' Fees.  In the event it becomes necessary for either party
           ---------------
hereto to file suit to enforce this Agreement or any provision contained herein,
the party prevailing in such suit shall be entitled to recover, in addition to
all other remedies or damages, as provided herein, reasonable attorneys' fees
incurred in such suit.

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<PAGE>

     10.11  Multiple Counterparts.  This Agreement may be executed in a number
            ---------------------
of identical counterparts which, taken together, shall constitute collectively
one (1) agreement; in making proof of this Agreement, it shall not be necessary
to produce or account for more than one such counterpart with each party's
signature.

          10.12  Expiration.  The execution of this Agreement by Purchaser and
                 ----------
the delivery hereof to Seller shall constitute an offer which shall be
automatically withdrawn, revoked and terminated unless Seller accepts the same
by executing this Agreement and delivering one fully executed counterpart hereof
to the Escrow Agent prior to 4:00 p.m. Central Standard Time the ___ day of
______________, 2000.

     10.13  Effective Date.  As used herein the term "Effective Date" shall mean
            --------------
the first date the Escrow Agent is in receipt of both this Agreement executed by
Purchaser and Seller (whether in counterparts or not) and the Earnest Money.

     10.14  Exhibits.  The following exhibits are attached to this Agreement and
            --------
are incorporated into this Agreement by this reference and made a part hereof
for all purposes:

            (a)  Exhibit A, the legal description of the Land.
            (b)  Exhibit B, the form of the Deed.
            (c)  Exhibit C, the form of the Assignment and Assumption of
                 Personal Property, Service Contracts, Warranties and Leases.
            (d)  Exhibit D, the form of the Estoppel Certificate.
            (e)  Exhibit E, the form of the Taxpayer I.D. Certification.
            (f)  Exhibit F, the form of Assignment of Purchase and Sale
                 Agreement.
            (g)  Exhibit G, the form of Promissory Note.
            (h)  Exhibit H, the form of First Deed of Trust, Security Agreement
                 and Fixture Filing.
            (i)  Exhibit I, the form of Assignment of Rents and Leases.
            (j)  Exhibit J. the form of UCC-1 Financing Statements.
            (k)  Exhibit K, the form of Hazardous Substances Indemnity
                 Agreement.
            (l)  Exhibit L., the form of Notice and Agreement.
            (m)  Exhibit M, the form of the Company.
            (n)  Exhibit N, the list of Contracts.
            (o)  Exhibit O, the list of Leases.
            (p)  Exhibit P, the form of Escrow Agreement.
            (q)  Exhibit Q, the exceptions.
            (r)  Exhibit R, the form of Legal Opinion.

     10.15  No Recordation.  Seller and Purchaser hereby acknowledge that
            --------------
neither Agreement nor any memorandum or affidavit thereof shall be recorded of
public record in Bexar County, Dallas County, or any other county. Should
Purchaser ever record or attempt to record this Agreement, or a memorandum or
affidavit thereof, or any other similar document, then, notwithstanding anything
herein to the contrary, said recordation or attempt at recordation shall
constitute a default by Purchaser hereunder, and, in addition to the other
remedies provided for

                                       20
<PAGE>

herein, Seller shall have the express right to terminate this Agreement by
filing a notice of said termination in the county in which the Land is located.

10.16  Merger Provision.  Except as otherwise expressly provided herein, any and
       ----------------
all rights of action of Purchaser for any breach by Seller of any
representation, warranty or covenant contained in this Agreement shall merge
with the Deed and other instruments executed at Closing, shall terminate at
Closing and shall not survive Closing.

10.17  DTPA Waiver.  PURCHASER HEREBY REPRESENTS AND WARRANTS TO SELLER THAT (A)
       -----------
PURCHASER IS NOT IN A SIGNIFICANTLY DISPARATE BARGAINING POSITION, (B) PURCHASER
IS REPRESENTED BY LEGAL COUNSEL, AND (C) PURCHASER IS SEEKING TO ACQUIRE THE
PROPERTY, WHICH WILL NOT BE USED AS A FAMILY RESIDENCE, FOR A CONSIDERATION THAT
EXCEEDS $500,000, OR (D) (i) PURCHASER IS A BUSINESS ENTITY THAT EITHER HAS
ASSETS OF $5,000,000 OR MORE OR IS OWNED OR CONTROLLED BY A CORPORATION OR
ENTITY WITH ASSETS OF $5,000,000 OR MORE, OR (ii) PURCHASER IS A SOPHISTICATED
REAL ESTATE INVESTOR AND HAS KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND BUSINESS
MATTERS THAT ENABLE IT TO EVALUATE THE MERITS AND RISKS OF THIS TRANSACTION.
PURCHASER HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHTS,
REMEDIES AND BENEFITS UNDER THE TEXAS DECEPTIVE TRADE PRACTICES- CONSUMER
PROTECTION ACT (SECTIONS 17.41 AND FOLLOWING OF THE TEXAS BUSINESS AND COMMERCE
CODE) (THE "DTPA") AND ANY OTHER SIMILAR CONSUMER PROTECTION LAW, WHETHER
FEDERAL, STATE OR LOCAL. PURCHASER

10.18  Jury Waiver.  PURCHASER AND SELLER DO HEREBY KNOWINGLY, VOLUNTARILY
       -----------
AND INTENTIONALLY WAIVE THEIR RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, OR UNDER OR IN CONNECTION WITH THIS
AGREEMENT, THE DOCUMENTS DELIVERED BY PURCHASER AT CLOSING OR SELLER AT CLOSING,
OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR
WRITTEN) OR ANY ACTIONS OF EITHER PARTY ARISING OUT OF OR RELATED IN ANY MANNER
WITH TIES AGREEMENT OR THE PROPERTY (INCLUDING WITHOUT LIMITATION, ANY ACTION TO
RESCIND OR CANCEL THIS AGREEMENT AND ANY CLAIMS OR DEFENSES ASSERTING THAT THIS
AGREEMENT WAS FRAUDULENTLY INDUCED OR IS OTHERWISE VOID OR VOIDABLE). THIS
WAIVER IS A MATERIAL INDUCEMENT FOR SELLER TO ENTER INTO AND ACCEPT THIS
AGREEMENT AND THE DOCUMENTS DELIVERED BY PURCHASER AT CLOSING AND SHALL SURVIVE
THE CLOSING OF TERMINATION OF THIS AGREEMENT.

PURCHASER:

Date of Execution                                T REIT, L.P.
by Purchaser:                                    a Virginia
limited partnership

October 26, 2000                                 By:  T REIT, INC.
----------------

                                       21
<PAGE>

                                                   a Virginia corporation,
                                                   its general partner


                                               By:  /s/ Anthony W. Thompson
                                                   -----------------------------
                                                   Name:  Anthony W. Thompson
                                                   Title: President
SELLER:

Date of Execution                          CMF CAPITAL COMPANY, L.L.C.
by Seller                                  a Delaware limited Liability company

                                           By: GE CAPITAL REALTY GROUP, INC.
                                               a Texas corporation
                                               its attorney-in-fact

                                               By: /s/ Jerry Tonn
                                                  ------------------------------
                                               Name:  Jerry Tonn
                                               Title: Vice President


The undersigned Escrow Agent hereby acknowledges receipt of the Earnest Money
and a copy of this Agreement, and agrees to hold and dispose of the Earnest
Money in accordance with the provisions of this Agreement.

Date of Execution by                  CHICAGO TITLE INSURANCE COMPANY
Escrow Agent:


November 6, 2000                           By:  /s/ Kandy Knotts
----------------                                --------------------------------
                                                Kandy Knotts, Sr. Escrow Officer
                                                --------------------------------
                                                Authorized Officer


                           NO EXHIBITS ARE ATTACHED

                                      22