Document:

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                                                                  EXHIBIT 10.52

                       SEVENTH AMENDMENT TO LOAN AGREEMENT

         THIS SEVENTH AMENDMENT TO LOAN AGREEMENT (this "MODIFICATION
AGREEMENT") is made as of December 17, 2000, by and among BANK ONE, ARIZONA, NA,
a national banking association ("LENDER"), BPP/VAN NESS, L.P., a California
limited partnership ("BPP/VAN NESS"), and HISTORIC VAN NESS LLC, a California
limited liability company ("HISTORIC VAN NESS", and together with BPP/Van Ness,
"BORROWER") with reference to the following facts:

         A.       Pursuant to that certain Construction Loan Agreement dated as
of December 5, 1997, by and between Lender and BPP/Van Ness, as amended by that
certain Modification Agreement dated as of July 8, 1998 by and between Lender
and BPP/Van Ness, as amended by that certain Second Amendment to Loan Agreement
dated as of November 18, 1998 by and between Lender and BPP/Van Ness, as amended
by that certain Third Amendment to Loan Agreement dated as of November 30, 1998
by and between Borrower and Lender, as amended by that certain Fourth Amendment
to Loan Agreement dated as of December 14, 1998 by and between Borrower and
Lender, as amended by that certain Fifth Amendment to Loan Agreement dated as of
November 17, 1999 by and between Borrower and Lender, and as further amended by
that certain Sixth Amendment to Loan Agreement dated as of December 16, 1999 by
and between Borrower and Lender (collectively, the "LOAN AGREEMENT"), Lender
extended a loan to Borrower in the maximum principal amount of $44,457,000 (the
"LOAN"). The Loan is evidenced by (i) that certain Amended and Restated
Construction Loan Promissory Note (Commercial Loan-BPP) dated November 30, 1998,
in the original principal amount of $9,384,000 executed by BPP/Van Ness and made
payable to Lender (the "BPP COMMERCIAL LOAN NOTE"), (ii) that certain Amended
and Restated Construction Loan Promissory Note (Commercial Loan-BPP/Historic)
dated as of November 30, 1998 in the original principal amount of $15,118,000
executed jointly and severally by BPP/Van Ness and Historic Van Ness payable to
Lender (the "HISTORIC COMMERCIAL LOAN NOTE") and (iii) that certain Construction
Loan Promissory Note (Residential Loan) dated December 5, 1997, in the original
principal amount of $12,080,000 executed by BPP/Van Ness and made payable to
Lender (the "RESIDENTIAL LOAN NOTE"). The Historic Commercial Loan Note and the
BPP Commercial Loan Note (collectively, the "COMMERCIAL LOAN NOTE") and the
Residential Loan Note are secured by, among other documents, that certain
Construction Deed of Trust, Assignment of Leases and Security Agreement
(Including Fixture Filing) dated as of December 5, 1997, executed by BPP/Van
Ness, as trustor, for the benefit of Lender, as beneficiary, which was recorded
on December 17, 1997, Reel H031, Image 333, Series No. 97-G273439-00, in the
Official Records of the County of San Francisco, California (the "OFFICIAL
RECORDS"), as amended by that certain Modification of Deed of Trust dated as of
July 8, 1998, by and between Lender and BPP/Van Ness which was recorded in the
Official Records on August 5, 1998, Reel H191, Image 563, Series No. 98-G401560,
as amended by that certain Second Modification of Deed of Trust made as of
November 18, 1998 by and between Lender and BPP/Van Ness which was recorded in
the Official Records on November 20, 1998, Reel H266, Image 0441, as Series No.
98-G472360, and as further amended by that certain Third Modification of Deed of
Trust dated as of November 30, 1998, by and among Historic Van Ness, BPP/Van
Ness and Lender, which was

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recorded in the Official Records on December 3, 1998, Reel H273, Image 0283 as
Series 98-G477266 (collectively, the "DEED OF TRUST"). The Deed of Trust
encumbers a fee estate in certain real property located in the City of San
Francisco, County of San Francisco, State of California as more particularly
described in Exhibit A attached to the Loan Agreement (the "PROPERTY").
Capitalized terms used herein without definition shall have the meanings set
forth in the Loan Agreement.

         B.       Borrower has requested that Lender amend the Loan Agreement
and the other Loan Documents in order to, among other things, (i) extend the
Commercial Loan Extended Maturity Date from December 17, 2000 to March 19, 2001,
and (ii) provide for an option to extend the Commercial Loan Extended Maturity
Date from March 17, 2001 to June 18, 2001. Lender is willing to so amend the
Loan Agreement and the other Loan Documents as and subject to the terms and
conditions herein set forth.

                  NOW, THEREFORE, in consideration of the foregoing and for
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

                  1.       OUTSTANDING BALANCE. As of December 17, 2000, (i) the
outstanding principal balance of the Historic Commercial Loan Note (which is a
joint and several obligation of BPP/Van Ness and Historic Van Ness) is
$15,118,000.00, (ii) the outstanding aggregate principal balance of the BPP
Commercial Loan Note (which is an obligation of BPP/Van Ness) is $8,781,067.62
and (iii) the Residential Loan Note has been repaid in full. Borrower
acknowledges that as of the Effective Date (defined below) Borrower has no
existing or asserted (and no basis for any unasserted) claims, counterclaims,
defenses or rights of setoff whatsoever with respect to any obligations of
Borrower under the Commercial Loan Note or any other Loan Documents.

                  2.       MODIFICATION OF LOAN DOCUMENTS. Effective as of the
date on which (i) the Lender receives a fully executed original of this
Modification Agreement and (ii) the conditions in SECTION 4 below are satisfied
(the "EFFECTIVE DATE"), the Loan Documents are hereby modified as set forth in
this SECTION 2:

                           a.       MODIFICATIONS OF LOAN AGREEMENT. The Loan
Agreement is hereby modified as follows:

                                    (i)      The following definitions are
hereby added to SECTION 1.1:

                           "Consolidated Loan to Value Ratio" shall have the
         meaning ascribed to said term in the GE Capital Loan Agreement.

                           "Fixed Charge Coverage Ratio" shall have the meaning
         ascribed to said term in the GE Capital Loan Agreement.

                           "Fourth Extended Commercial Loan Maturity Date" shall
         mean June 18, 2001."

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                           "GE Capital Loan Agreement" shall mean that certain
         Loan Agreement, dated as of November 19, 1999, among Burnham Pacific
         Operating Partnership, L.P., a Delaware limited partnership,
         BPP/Cameron Park, L.P., a California limited partnership, BPP/Riley,
         L.P., a California limited partnership, CMF Capital Company, LLC, a
         Delaware limited liability company, successor-in-interest to General
         Electric Capital Corporation, as administrative agent, and certain
         financial institution(s) signatory thereto from time to time as
         lender(s).

                           "Interest Coverage Ratio" shall have the meaning
         ascribed to said term in the GE Capital Loan Agreement.

                           "Leverage Ratio" shall have the meaning ascribed to
         said term in the GE Capital Loan Agreement.

                           "Net Worth" shall have the meaning ascribed to said
         term in the GE Capital Loan Agreement.

                           "Third Extended Commercial Loan Maturity Date" shall
         mean March 19, 2001."

                                    (ii)     Notwithstanding anything to the
         contrary in the Loan Agreement, as amended by this Modification
         Agreement, or the other Loan Documents, Borrower acknowledges and
         agrees that no advance of Loan Proceeds shall be made to Borrower
         pursuant to the Loan Documents, and any commitment of the Lender to
         advance Loan Proceeds to the Borrower pursuant to the Loan Documents is
         hereby terminated.

                                    (iii)    Borrower acknowledges and agrees
         that (a) interest on the Commercial Loan during the period from the
         Second Commercial Loan Extended Maturity Date to the Third Extended
         Commercial Loan Maturity Date (or during the period from the Third
         Extended Commercial Loan Maturity Date to the Fourth Extended
         Commercial Loan Maturity Date, if applicable) shall accrue and be
         payable as set forth in the Commercial Loan Note and (b) the entire
         principal balance of the Commercial Loan shall be due and payable in
         full on the Third Extended Commercial Loan Maturity Date or Fourth
         Extended Commercial Loan Maturity Date, as applicable.

                                    (iv)     The following section is hereby
         added as SECTION 2.1.6 to the Loan Agreement:

         "2.1.6 EXTENSION OF MATURITY DATE. Borrower shall have the right to
         extend the Third Extended Commercial Loan Maturity Date to the Fourth
         Extended Commercial Loan Maturity Date upon Borrower's satisfaction of
         the following minimum terms and conditions on or prior to the Third
         Extended Commercial Loan Maturity Date:

                                    (a)      At least thirty (30) days prior to
                           the Third Extended Commercial Loan Maturity Date,
                           Borrower shall give Lender written notice that
                           Borrower desires an extension of said maturity date;

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                                    (b) At the time of delivery of said
                           extension notice and at the time of such extension,
                           no Event of Default or event or condition which with
                           notice or lapse of time (or both) would become an
                           Event of Default shall have occurred or be
                           continuing;

                                    (c) There shall have been no material
                           adverse change in Borrower's or Guarantor's financial
                           condition since the Third Extended Commercial Loan
                           Maturity Date;

                                    (d)      Borrower shall have complied with
                           its obligation to provide Lender with the items set
                           forth in SECTION 10.11;

                                    (e) If requested by Lender, each Lessee
                           shall have delivered to Lender an estoppel
                           certificate, in form and substance reasonably
                           satisfactory to Lender, confirming to Lender that the
                           Lease to which such Lessee is a party remains
                           unmodified (except as previously consented to by
                           Lender in writing) and in full force and effect with
                           no defaults on the part of Borrower thereunder, that
                           the construction of the Commercial Improvements
                           demised pursuant to such Lease has been completed in
                           a manner satisfactory to such Lessee, and that such
                           Lessee is in occupancy of such Commercial
                           Improvements pursuant to such Lease, with no offsets,
                           defenses or counterclaims to its obligations under
                           such Lease and under the Subordination to which such
                           Lessee is a party; provided, however, that to the
                           extent that a Lease does not require a Lessee to
                           provide Lender with an estoppel certificate in the
                           form described above or a Lessee otherwise fails to
                           deliver to Lender an estoppel certificate in the form
                           described above (notwithstanding Borrower's
                           reasonable efforts to obtain such an estoppel
                           certificate for Lender), Borrower shall provide
                           Lender with such an estoppel certificate in
                           connection with the Lease to which any such Lessee is
                           a party (and such estoppel certificate shall also be
                           a "Loan Document");

                                    (f) On or prior to the Third Extended
                           Commercial Loan Maturity Date, Borrower shall pay
                           Lender an extension fee in the amount equal to
                           one-half of one percent (.50%) of the outstanding
                           principal balance of the Commercial Loan as of the
                           Third Extended Commercial Loan Maturity Date (taking
                           into account the payment of $3,000,000.00 pursuant to
                           SECTION 2.1.6(h) below). Borrower shall pay any fees
                           owed pursuant to this SECTION 2.1.6(f) in cash or
                           immediately available United States funds. Fees
                           payable pursuant to this SECTION 2.1.6(f) shall be
                           (i) payable to Lender in addition to the amounts
                           payable under SECTIONS 2.1.6(g) and 2.1.6(h), and
                           (ii) fully earned and non-refundable regardless of
                           whether the Commercial Loan is paid prior to the
                           Fourth Extended Commercial Loan Maturity Date;

                                    (g) On or prior to the Third Extended
                           Commercial Loan Maturity Date, Borrower shall pay to
                           Lender, in cash or immediately available United
                           States funds, all interest, fees and other amounts
                           (other than principal) then due and owing under the
                           Commercial Loan, which shall be payable to

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                           Lender in addition to the amounts payable under
                           SECTIONS 2.1.6(f) and 2.1.6(h);

                                    (h) On or prior to the Third Extended
                           Commercial Loan Maturity Date, Borrower shall pay to
                           Lender, in cash or immediately available United
                           States funds, in addition to all other payments of
                           principal required on the Commercial Loan, the
                           additional amount of Three Million Dollars
                           ($3,000,000.00), which amount (a) shall be payable to
                           Lender in addition to the amounts payable under
                           SECTIONS 2.1.6(f) and 2.1.6(g), and (b) shall be
                           applied toward the payment of the outstanding
                           principal balance of the Commercial Loan;

                                    (i) On the Third Extended Commercial Loan
                           Maturity Date, all of the conditions set forth in
                           SECTION 3.1 and in EXHIBIT D shall, unless waived by
                           Lender, continue to be satisfied; and

                                    (j) Borrower shall, on or prior to the Third
                           Extended Commercial Loan Maturity Date, cause the
                           Title Company to deliver to Lender, at Borrower's
                           sole cost and expense, any endorsements to the Title
                           Insurance Policy as reasonably may be requested by
                           Lender."

                                    (v)      SECTION 10.24 of the Loan Agreement
                           is hereby deleted in its entirety and replaced with
                           the following:

         "10.24            FINANCIAL COVENANTS.

                           10.24.1 LIQUIDITY. Borrower and Guarantor shall at
         all times during each quarterly fiscal period of Borrower maintain
         Liquidity in an aggregate amount of not less than ten percent (10%) of
         the maximum Commercial Loan Amount, less any prepayments (whether
         voluntary or as a result of loan remargining or loan rebalancing),
         regardless of the principal balance of the Loan actually outstanding
         during such quarterly fiscal period. The foregoing liquidity covenant,
         together with all other financial covenants and restrictions set forth
         in this Agreement, shall be monitored on a quarterly basis by Borrower
         and Lender and tested at the times compliance certificates are required
         to be delivered to Lender pursuant to SECTION 10.11.4 with respect to
         the period covered by such compliance certificates.

                           10.24.2 FIXED CHARGE COVERAGE RATIO. Guarantor shall
         at all times during each quarterly fiscal period of Guarantor maintain
         a Fixed Coverage Ratio of not less than 1.5 to 1.0.

                           10.24.3  INTEREST COVERAGE RATIO. Guarantor shall at
         all times during each quarterly fiscal period of Guarantor maintain a
         Interest Coverage Ratio of not less than 1.75 to 1.0.

                           10.24.4 CONSOLIDATED LOAN TO VALUE RATIO. Guarantor
         shall at all times during each quarterly fiscal period of Guarantor
         maintain a Consolidated Loan to Value Ratio of not greater than 65%.

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                           10.24.5  LEVERAGE RATIO. Guarantor shall at all times
         during each quarterly fiscal period of Guarantor maintain a Leverage
         Ratio of not greater than 8.0 to 1.0.

                           10.24.6  NET WORTH REQUIREMENT. Guarantor's Net Worth
         at all times shall be not less than One Hundred Fifty Million Dollars
         ($150,000,000.00)."

                           b.       MODIFICATION TO THE COMMERCIAL LOAN NOTE.
The Commercial Loan Note is hereby modified as follows:

                                    (i)      The third sentence of SECTION 2(A)
         of each of the BPP Commercial Note and the Historic Commercial Note is
         hereby deleted in its entirety and replaced by the following:

         "The entire unpaid balance of the principal sum hereof with interest
         thereon shall be due and payable in full on the Third Extended
         Commercial Loan Maturity Date or Fourth Extended Commercial Loan
         Maturity Date (as such terms are defined in the Loan Agreement), as
         applicable."

                                    (ii)     SECTION I of EXHIBIT A to each of
         the BPP Commercial Note and the Historic Commercial Note is hereby
         deleted in its entirety and replaced by the following:

         "I.      AVAILABLE INTEREST RATES

                           On and subject to the terms and conditions of this
         Exhibit A, Maker may choose to have all or a portion of the Commercial
         Loan evidenced hereby bear interest at any one of the following rates:

                  A.       Prime Rate plus one percent (1.00%) per year (the
         "Prime-Based Rate");

                  B.       LIBOR Rate plus three percent (3.00%) per year (the
         "LIBOR Alternative");

                           The terms used above are defined in Article II of
         this Exhibit A. The Prime-Based Rate is a variable rate. Each rate
         other than the Prime-Based Rate (a "Contract Rate") may be fixed by
         agreement between Maker and Payee as to a given principal amount (the
         "Rate Portion") during a given period of time (the "Rate Period")."

                           c.       MODIFICATION OF THE DEED OF TRUST. The Deed
of Trust is hereby modified by that certain Fourth Modification of Deed of Trust
of even date herewith by and between Borrower and Lender (the "FOURTH AMENDMENT
TO DEED OF TRUST") in the form attached hereto as EXHIBIT A.

                           d.       MODIFICATION OF REAFFIRMATION OF GUARANTIES.
The Completion Guaranty and Repayment Guaranty are hereby reaffirmed in their
entirety by that certain Reaffirmation of Guaranties of even date herewith made
by Guarantor in favor of Lender (the "REAFFIRMATION") in the form attached
hereto as EXHIBIT B.

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                           e.       SECURITY. This Modification Agreement is
secured by the Deed of Trust, as amended by the Fourth Amendment to Deed of
Trust. Each of the Loan Documents is modified to provide that it shall be a
default or an Event of Default thereunder if Borrower shall fail to comply with
any of the covenants in this Modification Agreement or if any representation or
warranty made by (i) Borrower in this Modification Agreement, (ii) Borrower
under the Fourth Amendment to Deed of Trust, or (iii) Guarantor in the
Reaffirmation (as defined below) is materially incomplete, incorrect, or
misleading as of the date hereof.

                  3.       REPRESENTATIONS OF BORROWER.

                           a.       Borrower represents and warrants to Lender
that no default or Event of Default under any of the Loan Documents, as modified
herein, nor any event, that, with the giving of notice or the passage of time or
both, would be a default or an Event of Default under any of the Loan Documents
as modified herein has occurred and is continuing.

                           b.       Borrower represents and warrants to Lender
that neither Borrower, nor any agent or affiliate of Borrower, has knowledge or
notice of the presence, alleged presence, threatened presence, release, alleged
release or threatened release of "Hazardous Substances" (as defined in the
Environmental Indemnity) on, under, in, from or about the Property, except as
has been disclosed to Lender in writing as a result of Lender's written request
to Borrower for information concerning the environmental condition of the
Property, including, without limitation, (i) the presence, alleged presence or
threatened presence, and (ii) the release, alleged release or threatened
release, of Hazardous Substances on, under, in, from or about the Property. As
used herein, the term "release" has the meaning assigned to such term in
California Code of Civil Procedure Sections 726.5 and 736, as such sections may
be amended from time to time.

                           c.       Borrower represents and warrants to Lender
that there has been no material adverse change in the financial condition of
Borrower, Guarantor or any other person whose financial statement has been
delivered to Lender in connection with the Loan, from the most recent financial
statement received by Lender.

                           d.       Each of BPP/Van Ness and Historic Van Ness
represents and warrants to Lender that each of BPP/Van Ness and Historic Van
Ness is validly existing and in good standing under the laws of the State of
California and has the requisite power and authority to execute and deliver this
Modification Agreement and to perform Borrower's obligations under the Loan
Documents as modified herein. The execution and delivery of this Modification
Agreement and the performance of Borrower's obligations under the Loan Documents
as modified herein have been duly authorized by all requisite action by or on
behalf of each of BPP/Van Ness or Historic Van Ness.

                           e.       Each of BPP/Van Ness and Historic Van Ness
represents and warrants to Lender that the Loan Documents as modified herein are
the legal, valid, and binding obligations of BPP/Van Ness and Historic Van Ness,
enforceable against BPP/Van Ness and Historic Van Ness in accordance with their
respective terms.

                           f.       Each of BPP/Van Ness, Historic Van Ness and
Burnham Pacific Properties, Inc. a Maryland corporation ("BURNHAM PACIFIC")
represents and warrants to Lender

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respectively that Burnham Pacific is duly authorized by all requisite action to
act on behalf of each of BPP/Van Ness or Historic Van Ness in the execution and
delivery of this Modification Agreement.

                  4.       BORROWER COVENANTS; CLOSING CONDITIONS. The
obligation of Lender to execute and deliver this Modification Agreement to
Borrower and to perform its obligations under this Modification Agreement are
expressly conditioned upon the following:

                           a.       BPP/Van Ness and Historic Van Ness shall,
contemporaneously with their execution and delivery of this Modification
Agreement, execute and deliver such organization and authority documents as are
reasonably requested by Lender.

                           b.       BPP/Van Ness and Historic Van Ness shall, in
connection with this Modification Agreement, cause the Title Company to deliver
to Lender, at Borrower's sole cost and expense, any endorsements to the Title
Insurance Policy as may be reasonably requested by Lender.

                           c.       BPP/Van Ness or Historic Van Ness shall pay
to Lender, in cash or immediately available United States funds, (i) Two Million
Dollars ($2,000,000.00) (the "PRINCIPAL REDUCTION PAYMENT") to be applied toward
the outstanding principal balance of the Commercial Loan, and (ii) an extension
fee (the "EXTENSION FEE") in amount equal to one-half of one percent (.50%) of
the outstanding principal balance of the Commercial Loan as of the Second
Extended Commercial Loan Maturity Date (taking into account payment of the
Principal Reduction Payment). The Principal Reduction Payment and the Extension
Fee shall be payable to Lender in addition to all interest, fees and other
amounts (other than principal), including the internal and external costs and
fees referenced in SECTION 4.f of this Modification Agreement then due and owing
under the Commercial Loan. The Extension Fee shall be fully earned by Lender and
non-refundable regardless of whether the Commercial Loan is paid prior to the
Third Extended Commercial Loan Maturity Date.

                           d.       On the Second Extended Commercial Loan
Maturity Date, all of the conditions set forth in SECTION 3.1 of the Loan
Agreement and EXHIBIT D to the Loan Agreement shall, unless waived by the
Lender, continue to be satisfied.

                           e.       Borrower shall deliver to Lender evidence
satisfactory to Lender that the shareholders of Burnham Pacific have formally
approved the plan of liquidation of Burnham Pacific at Burnham Pacific's annual
meeting on December 15, 2000, pursuant to which plan the net proceeds from the
liquidation of Burnham Pacific's fifty-eight (58) properties will be used to
repay Burnham Pacific's debt, provide for operating expenses and make
distributions to shareholders.

                           f.       Borrower shall pay to Lender all internal
and external costs and expenses incurred by Lender in connection with this
Modification Agreement (including, without limitation, a $500 internal
documentation fee plus reasonable attorneys' fees and expenses, processing fees,
title insurance endorsement premiums, escrow fees, appraisal fees, cost review
fees, filing and recording fees and other closing costs, expenses and fees).

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                           g.       Borrower shall, contemporaneously with
Borrower's execution and delivery of this Modification Agreement, cause
Guarantor to execute and deliver the Reaffirmation to Lender.

                           h.       Borrower shall, contemporaneously with
Borrower's execution and delivery of this Modification Agreement, execute and
deliver the Fourth Amendment to Deed of Trust.

                           i.       Borrower shall execute, deliver, and provide
to Lender such additional agreements, documents, and instruments as reasonably
required by Lender to effectuate the intent of this Modification Agreement.

                  5.       RELEASE OF CLAIMS BY BORROWER AND RELATED PARTIES.

                           a.       Each of BPP/Van Ness and Historic Van Ness,
on behalf of itself, its members, its affiliates and its and their successors
and assigns (collectively, the "BORROWER RELEASING PARTIES"), hereby releases
and forever discharges Lender and all of its subsidiaries, affiliates,
divisions, officers, directors, employees, agents, attorneys, advisors,
successors and assigns (collectively, the "LENDER RELEASED PARTIES") from any
and all claims, demands, debts, liabilities, contracts, obligations, accounts,
torts, causes of action or claims for relief of whatever kind or nature, whether
known or unknown, whether suspected or unsuspected, which the Borrower Releasing
Parties, or any of them, may have or which may hereafter be asserted or accrue
against the Lender Released Parties, or any of them, resulting from, arising out
of or in any way relating to any act or omission done or committed by the Lender
Released Parties, or any of them, in connection with the Loan and/or the Loan
Documents prior to the date hereof.

                           b.       The release contained in SECTION 5.A and in
this SECTION 5.B apply to all claims which the Borrower Releasing Parties, or
any of them, have or which may hereafter arise against the Lender Released
Parties, or any of them, as a result of acts or omissions occurring before the
date hereof, whether or not known or suspected by the parties hereto. Borrower,
on behalf of each Borrower Releasing Party, expressly acknowledges that although
it may be that ordinarily a general release does not extend to claims which the
releasing party does not know or suspect to exist in his favor, which if known
by him must have materially affected his settlement with the party released,
Borrower has carefully considered and taken into account in determining to enter
into this Modification Agreement the possible existence of such unknown losses
or claims.

                  Without limiting the generality of the foregoing, each of
BPP/Van Ness and Historic Van Ness, on behalf of each Borrower Releasing Party,
expressly waives any and all rights conferred upon it by any statute or rule of
law which provides that a release does not extend to claims which the claimant
does not know or suspect to exist in his favor at the time of executing the
release, which if known by him must have materially affected his settlement with
the released party, including, without limitation, the following provisions of
California Civil Code Section 1542:

                  A general release does not extend to claims which the creditor
                  does not know or suspect to exist in his favor at the time of
                  executing the release, which if known by him must have
                  materially affected his settlement with the debtor.

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                           c.       This release by the Borrower Releasing
Parties shall constitute a complete defense to any claim, cause of action,
defense, contract, liability, indebtedness or obligation released pursuant to
this release. Nothing in this release shall be construed as (or shall be
admissible in any legal action or proceeding as) an admission by Lender or any
other Lender Released Party that any defense, indebtedness, obligation,
liability, claim or cause of action exists which is within the scope of those
hereby released.

                  6.       NO RIGHTS CONFERRED ON OTHERS. Nothing contained in
this Modification Agreement or the Loan Documents shall be construed as giving
any person, other than the parties hereto, any right, remedy or claim under or
with respect to this Modification Agreement or the Loan Documents except for the
rights granted to the Lender Released Parties in SECTION 5.

                  7.       CONFORMING MODIFICATIONS; RATIFICATION AND
COLLATERAL. Each reference in the Loan Documents to any of the Loan Documents
shall be a reference to such Loan Documents as modified by this Modification
Agreement. It is the intention of the parties hereto that this Modification
Agreement shall be deemed to form a part of the Loan Documents and shall always
be construed as amending the Loan Documents. Except as specifically supplemented
and amended hereby, the Loan Documents shall each remain unaffected and
unchanged by reason of this Modification Agreement. The Loan Documents are
ratified and affirmed by Borrower and shall remain in full force and effect as
modified herein. Any property or rights to or interests in property granted as
security in the Loan Documents shall remain as security for the Loan and the
obligations of Borrower in the Loan Documents.

                  8.       NON-WAIVER. Each of BPP/Van Ness and Historic Van
Ness acknowledge and agree that, if and to the extent that Lender has not
heretofore required each of BPP/Van Ness and Historic Van Ness to strictly
comply with the covenants, agreements and obligations contained in the Loan
Documents, such action or inaction shall not constitute a waiver of, or
otherwise affect in any manner, Lender's rights and remedies under the Loan
Documents, as modified herein, including the right to require performance of
such covenants, agreements and obligations strictly in accordance with the terms
and provisions thereof.

                  9.       PRIOR AGREEMENTS. The Loan Documents, as modified by
this Modification Agreement (a) integrate all the terms and conditions mentioned
in or incidental to the Loan Documents, (b) supersede all oral negotiations and
prior and other writings with respect to the subject matter thereof, and (c) are
intended by the parties as the final expression of the agreement with respect to
the terms and conditions set forth in the Loan Documents and as the complete and
exclusive statement of the terms agreed to by the parties. If there is any
conflict between the terms, conditions and provisions of this Modification
Agreement and those of any of the Loan Documents, the terms, conditions and
provisions of this Modification Agreement shall prevail.

                  10.      GOVERNING LAW. This Modification Agreement shall be
governed by and construed in accordance with the laws of the State of
California. If any court of competent jurisdiction determines any provision of
this Modification Agreement or the Loan Documents to be invalid, illegal or
unenforceable, that provision shall be deemed severed from the rest, which shall
remain in full force and effect as though the invalid, illegal or unenforceable
provision had never been a part hereof or of the Loan Documents.

                                       10
<PAGE>

                  11.      MODIFICATION. No provision of the Loan Documents, as
modified herein, may be changed, discharged, supplemented, terminated, or waived
except in a writing signed by Lender and Borrower.

                  12.      BINDING EFFECT. The Loan Documents as modified herein
shall be binding upon, and inure to the benefit of Borrower and Lender and,
subject to the provisions of the Loan Agreement, their respective successors and
assigns.

                  13.      COUNTERPARTS. This Modification Agreement may be
executed in any number of counterparts, each of which when executed and
delivered to Lender will be deemed to be an original, and all of which, taken
together, will be deemed to be one and the same instrument.

                         [Signature page is next page.]

                                       11
<PAGE>

                  IN WITNESS WHEREOF, BPP/Van Ness, Historic Van Ness and Lender
have duly executed this Modification Agreement as of the day and year first
above written.

BPP/VAN NESS:              BPP/VAN NESS, L.P., a California limited partnership

                           By:  Burnham Pacific Operating Partnership, L.P.,
                                a Delaware limited partnership, General Partner

                                By: Burnham Pacific Properties, Inc.
                                    a Maryland corporation, General Partner

                                    By: /s/ DANIEL B. PLATT
                                        -----------------------------------
                                    Name: DANIEL B. PLATT
                                        -----------------------------------
                                    Its: CHIEF FINANCIAL OFFICER
                                        -----------------------------------

HISTORIC VAN NESS:         HISTORIC VAN NESS, LLC, a California limited
                           liability company

                           By:  Burnham Pacific Operating Partnership, L.P.,
                                a Delaware limited partnership, Managing Member

                                By: Burnham Pacific Properties, Inc.
                                    a Maryland corporation, General Partner

                                    By: /s/ DANIEL B. PLATT
                                        -----------------------------------
                                    Name: DANIEL B. PLATT
                                        -----------------------------------
                                    Its: CHIEF FINANCIAL OFFICER
                                        -----------------------------------

LENDER:                    BANK ONE, ARIZONA, NA, a national banking association

                           By: /s/ EDWARD E. FLANIGAN
                               --------------------------------------------
                           Name: EDWARD E. FLANIGAN
                               --------------------------------------------
                           Its:  V.P
                               --------------------------------------------

                       [Signatures continue on next page]

                                       12
<PAGE>

         The undersigned Guarantor hereby joins in the execution of this
Modification Agreement for the purposes of acknowledging and agreeing to the
covenants listed in SECTION 2.A(V) of this Modification Agreement, which
constitute SECTION 10.24 of the Loan Agreement.

GUARANTOR:             BURNHAM PACIFIC PROPERTIES, INC., a Maryland corporation

                       By: /s/ Daniel B. Platt
                           --------------------------------------------
                       Name: Daniel B. Platt
                           --------------------------------------------
                       Its: Chief Financial Officer
                           --------------------------------------------

                                       13<PAGE>

                                                                  EXHIBIT 10.53

            FOURTH MODIFICATION TO LOAN AGREEMENT AND OTHER DOCUMENTS

                  This Fourth Modification to Loan Agreement and Other Documents
(this "MODIFICATION"), dated as of December 29, 2000, is made by and among
BURNHAM PACIFIC OPERATING PARTNERSHIP, L.P., a Delaware limited partnership
("BPOP"), BPP/CAMERON PARK, L.P., a California limited partnership and
BPP/RILEY, L.P., a California limited partnership (each, individually, a
"BORROWER" and collectively, "BORROWERS"), BURNHAM PACIFIC PROPERTIES, INC., a
Maryland corporation ("BPPI", and together with Borrowers, each, individually, a
"LOAN PARTY" and collectively, the "LOAN PARTIES"), and CMF CAPITAL COMPANY,
LLC, a Delaware limited liability company ("CMF"), successor-in-interest to
General Electric Capital Corporation, as Administrative Agent for the Lender (as
hereinafter defined, and in such capacity, together with its successors and
assigns in such capacity, the "ADMINISTRATIVE AGENT") and the Lender.

                                R E C I T A L S :

                  WHEREAS, Borrowers have (i) executed and delivered to the
Administrative Agent that certain Loan Agreement, dated as of November 19, 1999,
among Borrowers, as borrowers, the Administrative Agent, as administrative agent
for itself and certain financial institution(s) signatory thereto from time to
time, as lender(s) (the "Lender") and the Lender as modified by that
Modification to Loan Agreement and Other Documents, dated as of December 20,
1999 and Second Modification to Loan Agreement and Other Documents, dated as of
March 31, 2000 and Third Modification to Loan Agreement and Other Documents,
dated as of November 30, 2000, among the Loan Parties, the Administrative Agent
and the Lender (together with any other supplements, amendments or modifications
thereto, collectively, the "ORIGINAL LOAN AGREEMENT"; capitalized terms used but
not otherwise defined herein shall have the meanings set forth in the Original
Loan Agreement as amended hereby), pursuant to which the Lender has agreed to
make certain loans (the "LOANS") to Borrowers, and (ii) executed and delivered
to the Lender, a Revolving Loan Note (the "ORIGINAL REVOLVING LOAN NOTES") and
Term Loan Note, as the case may be, in the aggregate principal amount of
$176,262,867 evidencing the Loans (collectively, the "ORIGINAL NOTES");

                  WHEREAS, subject to the terms of the Original Loan Agreement,
the maturity date for the Loans is January 2, 2001 (the "ORIGINAL MATURITY
DATE");

                  WHEREAS, Borrowers and the Lender desire to extend the
maturity date of the Loans, to reduce the Revolving Loan Commitments and to
amend the Original Loan Agreement and the other Loan Documents to reflect
certain other changes; and

                  WHEREAS, in order to induce the Administrative Agent and the
Lender to enter into this Modification, the Loan Parties have agreed to confirm
and ratify their respective obligations and liabilities under the Loan Documents
as amended hereby.

<PAGE>

                  NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows, effective as of the
date hereof:

         1.       EXTENSION OF MATURITY DATE. Subject to the terms of this
paragraph, the Maturity Date of the Loans is hereby extended to December 31,
2001, provided, that, Borrowers pay to the Administrative Agent (on behalf of
the Lender) on the date hereof, an extension fee in an amount equal to the
product of (a) one percent (1%) and (b) the sum of (i) the aggregate Term Loan
Commitments and (ii) the aggregate Revolving Loan Commitments. Notwithstanding
anything to the contrary contained in this paragraph, in the event that the
Loans are required to be repaid in full prior to the dates described in this
paragraph as a result of acceleration or otherwise under the Loan Agreement or
any other Loan Document, such earlier date shall constitute the "Maturity Date".

         2.       REDUCTION OF REVOLVING LOAN COMMITMENT; USE OF REVOLVING LOAN
FOR LIQUIDATION EXPENSES. Notwithstanding anything to the contrary contained in
SECTION 2.01 of the Loan Agreement, the maximum aggregate principal amount
available under the Revolving Loan Commitments is hereby reduced to Twenty
Million Dollars ($20,000,000). On the date hereof, Borrowers shall execute and
deliver to the Lender a Second Amended and Restated Revolving Loan Promissory
Note, dated the date hereof and in the form attached hereto as SCHEDULE A (the
"SECOND AMENDED AND RESTATED REVOLVING LOAN NOTE") amending and restating the
Original Revolving Loan Note to reflect such permanent reduction in the
Revolving Loan Commitments. The Lender acknowledges and agrees that the proceeds
of the Revolving Loans may be used by the Borrowers to pay for expenses incurred
in connection with the liquidation of the assets of BPPI.

         3.       MODIFICATION OF APPLICATION OF P&V NET SALES PROCEEDS. The
second sentence of SECTION 2.03(2) of the Loan Agreement is hereby deleted in
its entirety and replaced with the following:

                  "Notwithstanding anything to the contrary contained in the
preceding sentence, in the event that the P&V Sale Properties (individually or
collectively) are sold or transferred to any other Person, the Borrowers shall
pay to the Administrative Agent (on behalf of the Lender) an amount equal to (a)
46.6655% of the P&V Net Sales Proceeds to be applied by the Administrative Agent
(on behalf of the Lender) to repay a portion of the outstanding principal
balance of the Term Loans, and (b) 53.3345% of the P&V Net Sales Proceeds to be
applied by the Administrative Agent (on behalf of the Lender) to repay a portion
of the outstanding principal balance of the Revolving Loans."

                                       2
<PAGE>

         4.       NET WORTH REQUIREMENT. SECTION 7.10 of the Loan Agreement is
hereby deleted in its entirety and replaced with the following:

                  "Section 7.10 NET WORTH REQUIREMENT. The Borrower Net Worth as
         of the end of each fiscal quarter shall be at least (a) $225,000,000 so
         long as the Term Loans are outstanding and (b) $150,000,000 in the
         event that the Term Loans have been repaid in full; in each case, as
         confirmed by the Administrative Agent based on the book value of the
         Borrowers."

         5.       APPLICATION OF MINIMUM RELEASE PRICE PROCEEDS; ALLOCATED LOAN
AMOUNTS. (a) The definition of Minimum Release Price set forth in SECTION 1.01
of the Loan Agreement is hereby deleted in its entirety and replaced with the
following:

                  "MINIMUM RELEASE PRICE" means, with respect to any Project
         that is the subject of a Partial Release, the greater of (a) one
         hundred twenty-five percent (125%) of the Allocated Loan Amount for
         such Project and (b) 90% of the Net Sales Proceeds thereof if the Terms
         Loans have not been repaid in full and 100% of the Net Sales Proceeds
         if the Term Loans have been repaid in full."

         (b)      The definition of "Adjusted Loan Amount" set forth in SECTION
1.01 of the Loan Agreement and the provisions of SECTION 2.04(B) of the Loan
Agreement are hereby deleted in their entirety. From and after the date hereof,
all references in the Loan Agreement to the "Adjusted Loan Amount" are hereby
amended to refer to the "Allocated Loan Amount". For purposes of clarification,
the parties hereto acknowledge and agree that SCHEDULE 3 attached hereto sets
forth the current "Allocated Loan Amounts" for each of the Projects.

         (c)      The following new paragraph is hereby added to SECTION 2.04 of
the Loan Agreement:

                  "(b)     Notwithstanding anything to the contrary contained in
         this Agreement, in connection with any Partial Release, the proceeds
         received by the Administrative Agent on account of the Minimum Release
         Price shall be applied as follows: (i) first, to repay the Term Loans
         until the Term Loans are repaid in full and (ii) second, to repay the
         Revolving Loans until such Revolving Loans are repaid in full, provided
         that, seventy percent (70%) of any such proceeds applied to repay the
         Revolving Loans shall be applied as a permanent reduction of the
         Revolving Loan Commitment. In the event that the Term Loans and the
         Revolving Loans have been paid in full, Borrowers shall be entitled to
         retain all of the applicable Net Sales Proceeds provided, that, the
         Revolving Loan Commitment shall be permanently reduced by an amount
         equal to seventy percent (70%) of the Minimum Release Price for the
         Project that is the subject of such Partial Release."

         6.       MANDATORY REPAYMENT. Notwithstanding anything to the contrary
contained in the Loan Agreement, at any time that (a) the aggregate outstanding
principal balance of the Loans plus any unused Revolving Loan Commitment is less
than $10,000,000, or (b) there are less than

                                       3
<PAGE>

three (3) Projects encumbered by Mortgages, Borrowers shall be required to (i)
repay the Loans in full and (ii) the Revolving Loan Commitment shall terminate
and be of no further force and effect.

         7.       CASH ON CASH RETURN, PORTFOLIO LTV AND DEBT SERVICE COVERAGE.

                  (a)      SECTION 2.01(6)(E) of the Loan Agreement shall be
deleted in its entirety and replaced with the following:

                           "(e) The Administrative Agent (on behalf of the
         Lenders) shall have determined to its satisfaction (provided, however,
         that such determination shall be consistent with, and similar in
         substance to, the determination of such calculations as of the date of
         this Agreement) based on information and documentation provided by
         Borrowers to the Administrative Agent (on behalf of the Lenders) at
         least five (5) Business Days prior to the proposed date of the funding
         of the requested Additional Advance that after giving effect to such
         Additional Advance, the Projects will generate an annualized Net
         Operating Income sufficient to produce: (i) an aggregate Cash on Cash
         Return of at least 17% so long as the Term Loan has not been repaid in
         full, and at least 25% after the Term Loan has been repaid in full;
         (ii) an aggregate Debt Service Coverage of at least, 1.75 to 1.0 so
         long as the Term Loan has not been repaid in full, and at least 2.75 to
         1.00 after the Term Loan has been repaid in full; and (iii) a Portfolio
         LTV equal to, or less than, 50% so long as the Term Loan has not been
         repaid in full, and equal to or less than, 30% after the Term Loan has
         been repaid in full; calculated in each case using the annualized Net
         Operating Income determined at the end of the most recently ended
         fiscal quarter."

                  (b)      SECTION 2.04(A)(4) of the Loan Agreement is hereby
deleted in its entirety and replaced with the following:

                           "(4) The Administrative Agent shall have determined
         to its satisfaction (provided, however, that such determination shall
         be consistent with, and similar in substance to, the determination of
         such calculations as of the date of this Agreement) that after giving
         effect to such Partial Release, the Projects will generate an
         annualized Net Operating Income sufficient to produce (a) an aggregate
         Cash on Cash Return of at least, 17% so long as the Term Loan has not
         been repaid in full, and at least 25% after the Term Loan has been
         repaid in full; (b) an aggregate Debt Service Coverage of at least 1.75
         to 1.00 so long as the Term Loan has not been repaid in full, and at
         least 2.75 to 1.00 after the Term Loan has been repaid in full; and (c)
         a Portfolio LTV equal to, or less than 50% so long as the Term Loan has
         not been repaid in full, and equal to, or less than 30% after the Term
         Loan has been repaid in full;"

                  (c)      Clause (d) of SECTION 3.02(2) of the Loan Agreement
is hereby deleted in its entirety and replaced with the following:

                                       4
<PAGE>

                           "(d) the Administrative Agent determines (based on
         leases which will remain in effect after restoration is complete) that
         after restoration (i) the Debt Service Coverage for the Projects will
         be at least 1.75 to 1.00 so long as the Term Loan has not been repaid
         in full, and at least 2.75 to 1.00 after the Term Loan has been repaid
         in full; (ii) the Cash on Cash Return for the Projects will be at least
         17% so long as the Term Loan has not been repaid in full, and at least
         25% after the Term Loan has been repaid in full; and (iii) the
         Portfolio LTV is equal to, or less than, 50% so long as the Term Loan
         has not been repaid in full, and equal to, or less than, 30% after the
         Term Loan has been repaid in full."

                  (d)      SECTION 7.11 of the Loan Agreement is hereby deleted
in its entirety and replaced with the following:

                           "Section 7.11 PORTFOLIO COVENANTS. With respect to
         the Projects, as of the end of each fiscal quarter (i) the Debt Service
         Coverage shall be at least 1.75 to 1.00 so long as the Term Loan has
         not been repaid in full, and at least 2.75 to 1.00 after the Term Loan
         has been repaid in full; (ii) the Cash on Cash Return shall be at least
         17% so long as the Term Loan has not been repaid in full, and at least
         25% after the Term Loan has been repaid in full; and (iii) the
         Portfolio LTV shall be equal to, or less than, 50% so long as the Term
         Loan has not been repaid in full, and equal to, or less than 30% after
         the Term Loan has been repaid in full; in each case, as determined by
         Administrative Agent (on behalf of the Lenders)."

         8.       OPTION TO PREPAY LOAN BASED ON SALE OF NON-MORTGAGED
PROPERTIES. Notwithstanding anything to the contrary contained in the Loan
Agreement, Borrowers shall have the option at any time during the Term to
prepay, from the application of any Non-Mortgaged Properties Net Sales Proceeds,
(a) the Term Loans or (b) the Revolving Loans. Borrowers shall give the
Administrative Agent ten (10) Business Days' prior written notice before any
such prepayment. All prepayments made pursuant to this paragraph on a day other
than a Payment Date shall be accompanied by an amount sufficient to pay (i) any
and all amounts payable to the Lender pursuant to the provisions of SECTION
2.08(5) of the Loan Agreement as a result of such payment while a Eurodollar
Loan is in effect and (ii) all costs, expenses and fees required to be paid
under the Interest Rate Protection Agreement.

         9.       DEFINED TERMS; ADDITIONAL AMENDMENTS.

                  9.1      The following definitions are hereby added and made a
part of SECTION 1.01 of the Loan Agreement:

                  "BELL GARDENS MORTGAGE AMENDMENTS" means, collectively, the
Modification of Leasehold Deed of Trust, Security Agreement and Fixture

                                       5
<PAGE>

Filing, dated as of November 30, 2000 and that Second Modification of Leasehold
Deed of Trust, Security Agreement and Fixture Filing, dated as of December 29,
2000, executed by BPOP and CMF, together with all amendments or supplements
thereto.

                  "BELL GARDENS ASSIGNMENT OF RENTS AMENDMENTS" means,
collectively, the Modification of Assignment of Rents and Subleases, dated as of
November 30, 2000 and the Second Modification of Assignment of Rents and
Subleases, dated as of December 29, 2000, executed by BPOP and CMF, together
with all amendments and supplements thereto.

                  "FOURTH MODIFICATIONS OF DEEDS OF TRUST" means those certain
Fourth Modifications of Deeds of Trust, Security Agreement and Fixture Filing,
Fourth Modifications of Mortgages, Security Agreement and Fixture Filing, Fourth
Modifications of Leasehold Deeds of Trust, Security Agreement and Fixture
Filing, and Fourth Modifications of Leasehold Mortgages Security Agreement and
Fixture Filing, each of even date herewith, executed by the applicable Borrower
in favor of the Administrative Agent (on behalf of the Lender), together with
all future amendments, modifications and supplements thereto.

                  "FOURTH MODIFICATIONS OF ASSIGNMENTS OF RENTS" means those
certain Fourth Modifications of Assignments of Rents and Leases and Fourth
Modifications of Assignments of Rents and Subleases, of even date herewith,
executed by the applicable Borrower in favor of the Administrative Agent (on
behalf of the Lender), together with all future amendments, modifications and
supplements thereto."

                  9.2      From and after the date hereof, the definition of
"Mortgages" shall be amended to (a) include the Bell Gardens Mortgage as amended
by the Bell Gardens Mortgage Amendments and (b) refer to the Mortgages as
amended by the applicable Fourth Modification of Deeds of Trust.

                  9.3      From and after the date hereof, the definition of
"Revolving Loan Note" shall mean the Original Revolving Loan Note as amended and
restated by the Second Amended and Restated Revolving Loan Note.

                  9.4      From and after the date hereof, the definition of
"Assignments of Rents and Leases" shall be amended to (a) include the Bell
Gardens Assignment of Rents and Subleases as amended by the Bell Gardens
Assignment of Rents Amendments and (b) refer to the Assignments of Rents and
Leases as amended by the applicable Fourth Modification of Assignments of Rents.

         10.      COVENANTS, REPRESENTATIONS AND WARRANTIES OF LOAN PARTIES.

                  10.1     Each Loan Party hereby represents and warrants to the
Administrative Agent and the Lender that (a) it has the legal power and
authority to enter into this Modification without consent or approval by any
third party and this Modification constitutes the legal, valid and binding
obligation of such Loan Party, enforceable against such Loan Party in accordance
with its terms, and (b) the execution and delivery by such Loan Party of this
Modification has

                                       6
<PAGE>

been duly authorized by all requisite limited liability company, partnership or
corporate action, as the case may be, on the part of such Loan Party, will not
violate any provision of such Loan Party's organizational documents, as
applicable, does not contravene any law, rule or regulation applicable to it or
violate or create a default under any contractual provision binding on it or
affecting it or any of its properties or assets, and (c) no consent of any
Person is required in connection with the execution, delivery and performance by
the Loan Parties of this Modification (other than any consents that have been
obtained and are in full force and effect).

                  10.2     Each Loan Party hereby represents and warrants to the
Administrative Agent and the Lender that, as of the date hereof (a) no Potential
Default or Event of Default has occurred and is continuing under any applicable
Loan Document executed by such Loan Party, (b) no Potential Default or Event of
Default will occur as a result of the execution, delivery and performance by
such Loan Party of this Modification, the Fourth Modifications of Deeds of Trust
or Fourth Modifications of Assignments of Rents to which such Loan Party is a
party, as applicable, (c) such Loan Party has not given any notice of any
uncured Potential Default to the Administrative Agent or any Lender, (d) there
are no legal proceedings commenced or threatened against the Administrative
Agent or any Lender by such Loan Party.

                  10.3     Each Loan Party hereby confirms and acknowledges that
such Loan Party has no offsets, defenses, claims, counterclaims, setoffs, or
other basis for reduction with respect to any of Borrowers' indebtedness to the
Lender under the Loans or any obligations or liabilities of such Loan Party to
the Administrative Agent and the Lender under any Loan Document executed by such
Loan Party. Each Loan Party hereby confirms and acknowledges that all
representations and warranties made by such Loan Party in the Loan Documents to
which such Loan Party is a party are true and correct in all material respects
on and as of the date of this Modification.

                  10.4     Each Borrower hereby agrees that a breach of any of
the representations, warranties and covenants made herein shall constitute an
Event of Default under ARTICLE 9 of the Loan Agreement, subject to the notice
and cure provisions provided therein.

         11.      EFFECT UPON LOAN DOCUMENTS.

                  11.1     Except as specifically set forth herein, the Loan
Agreement and Loan Documents shall remain in full force and effect and are
hereby ratified and confirmed by each applicable Loan Party signatory thereto.
The parties hereto acknowledge and agree that the Original Loan Agreement, as
hereby amended, is in full force and effect in accordance with its terms and has
not been supplemented, modified or otherwise amended, canceled, terminated or
surrendered, except pursuant to this Modification. The Loan Agreement is binding
and enforceable as against the parties thereto in accordance with its terms. All
references to the "Loan Agreement" in the Loan Documents and to "this Agreement"
in the Original Loan

                                       7
<PAGE>

Agreement shall mean and refer to the Original Loan Agreement as modified and
amended hereby.

                  11.2     The execution, delivery and effectiveness of this
Modification shall not operate as a waiver of any right, power or remedy of the
Administrative Agent or the Lender under the Loan Documents (except to the
extent expressly set forth herein), or any other document, instrument or
agreement executed and/or delivered in connection therewith.

         12.      GOVERNING LAW. THIS MODIFICATION SHALL BE CONSTRUED,
INTERPRETED AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT REFERENCE
TO ITS CONFLICT OF LAWS PRINCIPLES.

         13.      RELEASE OF LENDER AND ADMINISTRATIVE AGENT. Each Loan Party
hereby release, acquits and forever discharges the Administrative Agent and the
Lender and all subsidiaries, affiliates, officers, directors, shareholders,
agents, employees, servants, attorneys and representatives of the Administrative
Agent and the Lender, as well as their respective successors and assigns
(hereinafter collectively being referred to as the "RELEASED PARTIES") of and
from any and all claims, demands, debts, losses, costs, expenses, proceedings,
judgments, damages, actions, causes of action, suits, contracts, agreements,
obligations, accounts, defenses, offsets and liabilities of any kind or
character whatsoever, known or unknown, suspected or unsuspected, in contract or
in tort, at law or in equity, including, without limitation, such claims and
defenses as fraud, mistake, duress and usury, which the Borrowers or any other
Loan Party ever had, now have or might hereafter have against the Released
Parties, or any of them, jointly or severally, for or by reason of any matter,
cause or thing whatsoever, which relates to, is based on, or arises out of, by
reason of or in connection with, in whole or in part, directly or indirectly,
any act, omission, fact, circumstance or condition existing on or prior to the
date hereof in connection with the origination, servicing, administration and/or
collection of the Loans.

         14.      COUNTERPARTS. This Modification may be executed in any number
of counterparts (and by facsimile), and all such counterparts shall together
constitute the same agreement.

                  Signatures Commence on Following Page.

                                       8
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Modification to be executed as of the day and year first above written.

                             BURNHAM PACIFIC OPERATING PARTNERSHIP, L.P.,
                             a Delaware limited partnership

                             By: BURNHAM PACIFIC PROPERTIES, INC.,
                                 a Maryland corporation, its general partner

                                 By:  /s/ Daniel B. Platt
                                     ------------------------------------------
                                     Name:  Daniel B. Platt
                                     Title: Chief Financial Officer

                             BPP/CAMERON PARK, L.P.,
                             a California limited partnership

                             By: BURNHAM PACIFIC OPERATING PARTNERSHIP, L.P.,
                                 a Delaware limited partnership,
                                 its managing member

                                  By:  BURNHAM PACIFIC PROPERTIES, INC.,
                                       a Maryland corporation,
                                       its general partner

                                        By:  /s/ Daniel B. Platt
                                            -----------------------------------
                                        Name:  Daniel B. Platt
                                        Title: Chief Financial Officer

                                      S-1
<PAGE>

                             BPP/RILEY, L.P.,
                             a California limited partnership

                             By: BURNHAM PACIFIC OPERATING PARTNERSHIP, L.P.,
                                 a Delaware limited partnership,
                                 its general partner

                                 By:  BURNHAM PACIFIC PROPERTIES, INC.,
                                      a Maryland corporation,
                                      its general partner

                                       By:  /s/ Daniel B. Platt
                                           ------------------------------------
                                       Name:  Daniel B. Platt
                                       Title: Chief Financial Officer

                             BURNHAM PACIFIC PROPERTIES, INC.,
                             a Maryland corporation

                             By: /s/ Daniel B. Platt
                                ----------------------------------------------
                                Name:  Daniel B. Platt
                                Title: Chief Financial Officer

                             CMF CAPITAL COMPANY, LLC,
                                a Delaware limited liability company,
                                as Administrative Agent for the Lender
                                and as Lender

                             By:  /s/ A. Juliano
                                 ---------------------------------------------
                                 Name:
                                 Title:

                                      S-2

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