Document:

<PAGE>

                                                                    Exhibit 10.4

                      WAIVER, AMENDMENT, AND FIRST CONSENT

              WAIVER, AMENDMENT, AND FIRST CONSENT, dated as of December 15,
1999 (this "Consent"), by and among BPP RETAIL, LLC, a Delaware limited
liability company (the "Borrower"), the Lenders (as defined in the Credit
Agreement referred to below), THE CHASE MANHATTAN BANK, as Administrative Agent
(as defined in the Credit Agreement referred to below), BURNHAM PACIFIC
EMPLOYEES LLC, a Delaware limited liability company (the "Manager"), BURNHAM
PACIFIC OPERATING PARTNERSHIP, L.P., a Delaware limited partnership ("BPOP"),
and STATE OF CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM, a unit of the State
and Consumer Services Agency of the State of California (the "Investor").

                                R E C I T A L S:

              The Borrower, the Lenders and the Administrative Agent entered
into a Credit Agreement dated as of June 14, 1999 (as amended, supplemented or
otherwise modified from time to time, the "Credit Agreement"). Unless the
context requires otherwise, capitalized terms used herein without definition
shall have the meanings ascribed to them in the Credit Agreement.

              The Borrower has informed the Lenders and the Administrative Agent
that the Investor and the Manager wish to amend the Operating Agreement in
various respects and enter into certain transactions with the Borrower,
including having the Manager exchange substantially all of its equity interest
in the Borrower for cash and certain property. The Manager would be released
from its obligation under the Operating Agreement to contribute additional
capital to the Borrower, but the Investor would increase the amount of its
obligation under the Operating Agreement to contribute additional capital to the
Borrower to at least $180,000,000.00 in cash.

              The Borrower has requested that the Lenders and the Administrative
Agent consent to such amendments and transactions and amend and waive certain
provisions of the Credit Agreement and the Member Letter signed by the Manager
and BPOP upon the terms and subject to the conditions set forth herein.

              NOW, THEREFORE, in consideration of the mutual agreements
contained in the Credit Agreement and herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:

                         CONSENT, AMENDMENT, AND WAIVER

              1.1. Notwithstanding anything to the contrary contained in the
Credit Agreement or any of the other Loan Documents, upon the effectiveness of
this Consent, each of the Lenders and the Administrative Agent consents to (i)
the Manager and the Investor entering into the Second Amendment to Operating
Agreement of BPP Retail, LLC substantially in the form attached hereto as
EXHIBIT A (the "Second Amendment") and (ii) the Manager, the Investor, the
Borrower, and BPOP consummating the transactions provided for in the Second
Amendment. Without limiting the generality of the foregoing, upon the
effectiveness of this Consent, (i) the payment of the special CalPERS
Contribution referred to in Section 2(a) of the Second Amendment need not be
funded through the Subscription Account; PROVIDED that nothing contained in this
Consent shall impair or detract from the obligation of the Investor to make all
payments of the Additional Capital Contributions referred to in Section 3.12 of
the Operating Agreement to the Subscription Account, and (ii) notwithstanding
anything to the contrary

<PAGE>

contained in the Credit Agreement or any of the other Loan Documents (including
paragraphs (a), (b), (d) and (e) of the Member Letter signed by the Manager and
BPOP), the Capital Commitment and Unpaid Capital Obligation of the Manager may
be terminated; PROVIDED that the Capital Commitment and Unpaid Capital
Obligation of the Investor are increased to at least $180,000,000.00.

              1.2. Upon the effectiveness of this Consent:

                   (a) The definition of the term "Change of Control" set forth
in Section 1.01 of the Credit Agreement shall be amended by inserting the
following sentence as the last sentence of such definition: "Notwithstanding the
foregoing, a "Change of Control" shall not be deemed to have occurred in the
event that the Manager withdraws as a member and manager of the Borrower so long
as BPOP is substituted as to the Manager's interest as a member and manager
under the Operating Agreement in accordance with the terms and provisions of the
Operating Agreement."

                   (b) Notwithstanding anything to the contrary contained in the
Credit Agreement or any of the other Loan Documents, neither the consent of the
Administrative Agent or the Lenders nor the prepayment of the Obligations
pursuant to Section 2.10(b) of the Credit Agreement shall be required in the
event that the Manager withdraws as a member and manager of the Borrower so long
as (i) BPOP is substituted as to the Manager's interest as a member and manager
under the Operating Agreement in accordance with the terms and provisions of the
Operating Agreement and (ii) the documents and instruments effectuating such
transfer and withdrawal are in form and substance reasonably satisfactory to the
Administrative Agent.

                   (c) From and after the effectiveness of the Second Amendment,
(i) the references in the Member Letter signed by the Investor to the amount
"$171,000,000.00" shall refer instead to the amount "$180,000,000.00", and (ii)
clause (ii)(x) of the definition of the term "Available Borrowing Amount"
contained in Section 1.01 of the Credit Agreement shall be amended by adding the
phrase "less $9,000,000.00" immediately after the phrase "the aggregate Unpaid
Capital Obligations of the Investor" appearing therein.

              1.3. Upon the effectiveness of this Consent, the Lenders hereby
waive their right under Section 2.10(b) of the Credit Agreement to require the
Borrower to prepay the Obligations as a result of the reduction or termination
of the Manager's Capital Commitment.

                                  MISCELLANEOUS

              2.1. Each Credit Party hereby represents and warrants that:

                   (a) Its execution, delivery and performance of this Consent
(i) is within its limited liability company power, (ii) has been duly authorized
by all necessary limited liability company or other action, and (iii) does not
contravene any law, rule or regulation applicable to it or violate or create a
default under its organizational documents or any contractual provision binding
on it or affecting it or any of its property.

                   (b) This Consent constitutes its legal, valid and binding
obligation enforceable against it in accordance with its terms, except as
enforcement hereof may be subject to (i) the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium or similar

                                       2

<PAGE>

law affecting creditors' rights generally, and (ii) general principles of equity
(regardless of whether such enforcement is sought in a proceeding in equity or
at law).

                   (c) No Default has occurred and is continuing or would exist
immediately after giving effect to this Consent and to the transactions
contemplated hereby.

                   (d) The representations and warranties of the Credit Parties
appearing in the Loan Documents were true and correct in all material respects
as of the date when made and, after giving effect to this Consent, continue to
be true and correct in all material respects on the date hereof.

                   (e) No consent of any other Person is required in connection
with the execution, delivery and performance by the Credit Parties of this
Consent (other than any consents that have been obtained and are in full force
and effect).

                   (f) The Borrower has no offsets, defenses, claims,
counterclaims, setoffs or other basis for reduction with respect to any of the
Obligations.

              2.2. The Borrower agrees to pay on demand all reasonable costs and
expenses of the Administrative Agent in connection with or arising out of the
negotiation, preparation, execution and delivery of this Consent (including the
reasonable fees and expenses of counsel) and the consummation of the
transactions contemplated by this Consent.

              2.3. Except to the extent of the consent set forth in this
Consent, each of the Credit Agreement and the other Loan Documents is hereby
ratified and confirmed and shall continue in full force and effect. Without
limiting the generality of the foregoing, each of the Borrower and the Investor
hereby confirms that the Unpaid Capital Obligation of the Investor, after giving
effect to this Consent, to the effectiveness of the Second Amendment, and to the
making of the payment referred to in Section 2(a) of the Second Amendment, is
not less than $180,000,000.00 in cash. This Consent is effective exclusively for
the purposes set forth herein, and any additional consents or any amendment,
modification, or supplement to any Loan Document must be in writing in
accordance with the terms of the Credit Agreement or other applicable Loan
Document. A breach of any of the representations, warranties, or covenants
contained in this Consent shall constitute an Event of Default under the Credit
Agreement, entitling the Administrative Agent and the Lenders to exercise any
and all rights and remedies thereunder or available to it at law or in equity.

              2.4. This Consent sets forth the entire agreement of the parties
with respect to the subject matter hereof.

              2.5. Neither this Consent nor any provision hereof may be waived,
amended or modified except pursuant to an agreement complying with Section
9.02(b) of the Credit Agreement.

              2.6. This Consent shall be construed in accordance with and
governed by the laws of the State of New York (without giving effect to the
principles thereof relating to conflict of laws).

              2.7. This Consent shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns.

                                       3

<PAGE>

              2.8. This Consent may be executed in any number of counterparts
(and by different parties hereto on different counterparts), each of which shall
be deemed an original, and all of which taken together shall constitute but one
agreement. Delivery of an executed signature page of this Consent by telecopy
shall be as effective as delivery of a manually executed counterpart of this
Consent.

              2.9. The Borrower shall furnish the Administrative Agent with
prompt written notice of the effectiveness of the Second Amendment.

                                  EFFECTIVENESS

              3.1. This Consent shall not become effective until the date (the
"Effective Date") on which each of the following conditions is satisfied (or
waived in accordance with Section 9.02 of the Credit Agreement):

                   (a) The Administrative Agent shall have received from each
party hereto either (i) a counterpart of this Consent signed on behalf of such
party or (ii) written evidence satisfactory to the Administrative Agent (which
may include a telecopy transmission of a signed signature page of this Consent)
that such party has signed a counterpart of this Consent).

                   (b) The Borrower shall have executed and delivered to the
Administrative Agent a consent, waiver or amendment to the credit agreement and
loan documents under the Senior Facility, in form and substance satisfactory to
the Administrative Agent.

                   (c) The Administrative Agent shall have received such other
documents and certificates (if any) as the Administrative Agent or its counsel
may reasonably request relating to the organization, existence and good standing
of the Credit Parties and their Related Parties, the authorization of the Second
Amendment or this Consent, or the consummation of the transactions described
therein or herein, all in form reasonably satisfactory to the Administrative
Agent.

                   (d) The Borrower shall have paid (i) to the Administrative
Agent, for the account of each Lender in accordance with its respective
Applicable Percentage, a nonrefundable amendment fee in an aggregate amount
equal to $85,500.00, and (ii) to Chase, for the account of Chase or Chase
Securities Inc. ("CSI"), a nonrefundable advisory fee in the amount separately
agreed upon in writing among the Borrower, Chase, and CSI.

                   (e) The Administrative Agent shall have received a
certificate from a Responsible Officer of the Borrower confirming that, as of
the Effective Date, (i) no Default or Event of Default shall have occurred and
be continuing and (ii) all representations and warranties of the Credit Parties
appearing in the Loan Documents were true and correct in all material respects
as of the date when made and, after giving effect to this Consent, continue to
be true and correct in all material respects as of the Effective Date.

The Administrative Agent shall notify the Borrower and each of the Lenders if
and when such conditions shall have been satisfied, and such notice shall be
conclusive and binding.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK]

                                       4

<PAGE>

              IN WITNESS WHEREOF, the parties hereto have caused this First
Consent to be duly executed and delivered by their respective authorized
officers or other representatives as of the day and year first above written.

                             BPP RETAIL, LLC, a Delaware limited
                             liability company

                             By: BURNHAM PACIFIC EMPLOYEES LLC,
                                 a Delaware limited liability company,
                                 its manager

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

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

                                          By: /s/ Scott C. Verges
                                             --------------------------------
                                             Name:  Scott C. Verges
                                             Title: Secretary

                             BURNHAM PACIFIC EMPLOYEES LLC, a Delaware
                             limited liability company

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

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

                                     By: /s/ Scott C. Verges
                                         --------------------------------
                                         Name:  Scott C. Verges
                                         Title: Secretary

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

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

                                 By: /s/ Scott C. Verges
                                    ------------------------------
                                    Name:  Scott C. Verges
                                    Title: Secretary

                                       5

<PAGE>

                             STATE OF CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
                             SYSTEM, a unit of the State and Consumer Services
                             Agency of the State of California

                             By: /s/ Guy Jacquier
                                 ----------------------------------------------
                                 Name:  Guy Jacquier
                                 Title: Senior Real Estate Investment Officer

                             THE CHASE MANHATTAN BANK, as a Lender
                             and as Administrative Agent

                             By: /s/ John F. Mix
                                 ----------------------------------------------
                                 Name:  John F. Mix
                                 Title: Vice President

                             ALLIED IRISH BANK, NEW YORK BRANCH,
                             as a lender

                             By: /s/ William J. Strickland
                                 ----------------------------------------------
                                 Name:  William J. Strickland
                                 Title: Executive Vice President

                             By: /s/ Germaine Reusch
                                 ----------------------------------------------
                                 Name:  Germaine Reusch
                                 Title: Vice President

                             BANCO DI NAPOLI, NEW YORK BRANCH,
                             as a Lender

                             By: /s/ Vito Spada
                                 ----------------------------------------------
                                 Name:  Vito Spada
                                 Title: Executive Vice President

                             By: /s/ Claude P. Mapes
                                 ----------------------------------------------
                                 Name:  Claude P. Mapes
                                 Title: First Vice President

                                       6

<PAGE>

                             BANCO DI SICILIA, NEW YORK BRANCH,
                             as a Lender

                             By: /s/ Carlo Cracolici
                                 ----------------------------------------------
                                 Name:  Carlo Cracolici
                                 Title: Senior Vice President & General Manager

                             By: /s/ Pierpaolo Carrubba
                                 ----------------------------------------------
                                 Name:  Pierpaolo Carrubba
                                 Title: Vice President

                             BANK AUSTRIA CREDITANSTALT CORPORATE FINANCE, INC.,
                             as a Lender

                             By: /s/ Peter W. Wood
                                 ----------------------------------------------
                                 Name:  Peter W. Wood
                                 Title: Vice President

                             By: /s/ Rachel L. Mena
                                 ----------------------------------------------
                                 Name:  Rachel L. Mena
                                 Title: Assistant Vice President

                             BANK OF IRELAND, as a Lender

                             By: /s/ Niamh O'Flynn
                                 ----------------------------------------------
                                 Name:  Niamh O'Flynn
                                 Title: Manager

                             BANQUE NATIONALE DE PARIS, as a Lender

                             By: /s/ William Shaheen
                                 ----------------------------------------------
                                 Name:  William Shaheen
                                 Title: Vice President

                             By: /s/ Franck P. Blua
                                 ----------------------------------------------
                                 Name:  Franck P. Blua
                                 Title: Assistant Treasurer

                                       7

<PAGE>

                             CARIPLO - CASSA DI RISPARMIO DELLE PROVINCIE
                             LOMBARDE S.p.A., GRAND CAYMAN BRANCH, as a Lender

                             By: /s/ Giancarlo Baiocchi
                                 ----------------------------------------------
                                 Name:  GianCarlo Baiocchi
                                 Title: Assistant Vice President

                             By: /s/ Maria Elena Greene
                                 ----------------------------------------------
                                 Name:  Maria Elena Greene
                                 Title: Assistant Vice President

                             DG BANK, DEUTSCHE GENOSSENSCHAFTSBANK AG, NEW YORK
                             BRANCH, as a Lender

                             By: /s/ Linda J. O'Connell
                                 ----------------------------------------------
                                 Name:  Linda J. O'Connell
                                 Title: Vice President

                             By: /s/ Michael Campto
                                 ----------------------------------------------
                                 Name:  Michael Campto
                                 Title: Assistant Vice President

                             ERSTE BANK NEW YORK BRANCH, as a Lender

                             By: /s/ Paul Judicke
                                 ----------------------------------------------
                                 Name:  Paul Judicke
                                 Title: Vice President

                             By: /s/ John S. Runnion
                                 ----------------------------------------------
                                 Name:  John S. Runnion
                                 Title: First Vice President

                                       8

<PAGE>

                             KBC BANK N.V., as a Lender

                             By: /s/ Patrick J. Owens
                                 ----------------------------------------------
                                 Name:  Patrick J. Owens
                                 Title: Vice President

                             By: /s/ Michael V. Curran
                                 ----------------------------------------------
                                 Name:  Michael V. Curran
                                 Title: Vice President

                             REPUBLIC NATIONAL BANK OF NEW YORK, as a Lender

                             By: /s/ Theodore Koerner
                                 ----------------------------------------------
                                 Name:  Theodore Koerner
                                 Title: First Vice President

                             By: /s/ Monisha V. Khadse
                                 ----------------------------------------------
                                 Name:  Monisha V. Khadse
                                 Title: Vice President

                             RZB FINANCE LLC, as a Lender

                             By: /s/ Dieter Beintrexler
                                 ----------------------------------------------
                                 Name:  Dieter Beintrexler
                                 Title: President

                             By: /s/ Robert E. Woods
                                 ----------------------------------------------
                                 Name:  Robert E. Woods
                                 Title: First Vice President

                             VIA BANQUE, as a Lender

                             By: /s/ C. Prot       /s/ J.F. VITTE
                                 ----------------------------------------------
                                 Name:  C. Prot        J.F. Vitte
                                 Title:

                                       9<PAGE>

                                                                    Exhibit 10.5

            WAIVER, AMENDMENT AND SECOND CONSENT TO CREDIT AGREEMENT

                  This WAIVER, AMENDMENT AND SECOND CONSENT TO CREDIT AGREEMENT
(this "SECOND CONSENT"), dated as of December 15, 1999, is among BPP RETAIL,
LLC, a Delaware limited liability company (the "COMPANY"), BPAC TEXAS, L.P., a
Delaware limited partnership ("BPAC"; together with the Company, collectively,
the "BORROWERS"), the Lenders (as defined in the Credit Agreement (as defined
below)), and THE CHASE MANHATTAN BANK, as administrative agent for itself, the
Issuing Bank (as defined in the Credit Agreement) and the Lenders (in such
capacity, the "ADMINISTRATIVE AGENT").

                               W I T N E S S E T H

                  WHEREAS, the Borrowers, the Lenders, the Administrative Agent,
the Issuing Bank and The First National Bank of Chicago, as Syndication Agent,
entered into a Credit Agreement, dated as of June 14, 1999, as amended by that
certain First Consent, dated as of August 6, 1999, among the Borrowers, the
Lenders, the Administrative Bank, the Issuing Bank and The First National Bank
of Chicago, as Syndication Agent (as amended, supplemented or modified from time
to time, including, by this Second Consent, the "CREDIT AGREEMENT"; capitalized
terms not defined herein shall have the meaning ascribed thereto in the Credit
Agreement);

                  WHEREAS, pursuant to Section 2.10(d)(iv) of the Credit
Agreement, BPPI or an Affiliate thereof is required to maintain at least a 12.5%
Percentage Interest (as defined in the Operating Agreement) in the Company
("OWNERSHIP REQUIREMENT");

                  WHEREAS, the Company has informed the Lenders and the
Administrative Agent that the Company desires to amend its Operating Agreement
pursuant to a Second Amendment to Operating Agreement (the "AMENDMENT"), dated
on or about December 15, 1999, between the State of California Public Employees'
Retirement System ("CalPERS") and Burnham Pacific Employees LLC ("BPE"),
pursuant to which, among other things, BPE's Percentage Interest (as defined in
the Operating Agreement) in the Company shall be decreased to 1%;

                  WHEREAS, in connection with such Amendment, the Company shall
also cause the Nominee Project commonly known as Bell Gardens Shopping Center
located in Bell Gardens, California (the "BELL GARDENS PROPERTY") to be
transferred to BPE;

                  WHEREAS, the Company has requested that the Lenders
acknowledge their consent to such Amendment and to amend and waive certain
provisions of the Credit Agreement as a result thereof (including, the waiver
and removal of the Ownership Requirement), and the Lenders have agreed, as set
forth herein; and

                  WHEREAS, the Lenders have requested and CalPERS has agreed to
execute this Second Consent to acknowledge and confirm their consent to the
execution by the Company of this Second Consent.

                  NOW, THEREFORE, for fair and valuable consideration, the
adequacy of which is hereby acknowledged, the parties agree as follows:

<PAGE>

         1.       CONSENT TO AMENDMENT. Subject to the satisfaction of the
Consent Conditions (as defined below) and the terms of this Second Consent, the
Lenders hereby consent to the Amendment, which amendment shall be substantially
in the form attached hereto as EXHIBIT A, notwithstanding anything to the
contrary that may be contained in the Credit Agreement (including, without
limitation, the terms and provisions of SECTIONS 3.02, 6.03, 6.06, 6.11 AND 6.14
of the Credit Agreement). In connection with consummating the transactions
provided for in the Amendment, the Manager (as defined in the Operating
Agreement) will be released from its obligation to contribute additional capital
to the Company.

         2.       AMENDMENTS TO CREDIT AGREEMENT.  Upon satisfaction of the
Consent Conditions,

                  (a) SECTION 2.10(D)(IV) of the Credit Agreement is hereby
deleted in its entirety and replaced with the following: "(iv) BPPI or an
Affiliate thereof fails to maintain at least a 1% Percentage Interest (as
defined in the Operating Agreement) in the Company; ".

                  (b) The definitions "Nominee Acknowledgment", "Nominee
Agreements", "Nominee Party" and "Nominee Projects" shall be deleted in its
entirety from SECTION 1.01 of the Credit Agreement and all references in the
Credit Agreement to such terms shall be amended accordingly to reflect such
deletion (including, without limitation, SECTIONS 1.01, 3.05, 3.07, 3.13,
4.01(F), 5.02, 5.05, 5.11, 5.15, 6.01(H), 6.14 AND 9.02(B) of the Credit
Agreement). In addition, SCHEDULE 3.05(G) of the Credit Agreement is hereby
deleted in its entirety.

                  (c) SCHEDULE 3.02 of the Credit Agreement is hereby deleted in
its entirety and replaced with Schedule 3.02 attached hereto.

                  (d) SCHEDULE 3.05(A) of the Credit Agreement is hereby deleted
in its entirety and replaced with Schedule 3.05(a) attached hereto.

                  (e) The definition "Change of Control" set forth in SECTION
1.01 of the Credit Agreement shall be amended by inserting the following
sentence as the last sentence of such definition: "Notwithstanding the
foregoing, a "Change in Control" shall not be deemed to have occurred in the
event that BPE withdraws as a member and manager of the Company so long as BPOP
is substituted as to BPE's interest as a member and manager under the Operating
Agreement in accordance with the terms and provisions of the Operating
Agreement."

                  (f) From and after the effective date of the transfer of the
Bell Gardens Property to BPE, the Bell Gardens Property shall no longer be
considered an Eligible Project.

                  (g) Notwithstanding anything to the contrary contained in the
Credit Agreement, the consent of the Administrative Agent or the Lenders shall
not be required in the event that BPE withdraws as a member and manager of the
Company so long as (i) BPOP is substituted as to BPE's interest as a member and
manager under the Operating Agreement in accordance with the terms and
provisions of the Operating Agreement (as amended by the Amendment) and (ii) the
documents and instruments effectuating such transfer and withdrawal are in form
and substance reasonably satisfactory to the Administrative Agent.

                  (h) Notwithstanding anything to the contrary contained in the
Credit Agreement, the parties hereto acknowledge and agree that the Term Loan
Commitments terminated on December 1, 1999.

                  3. WAIVER. Upon the satisfaction of the Consent Conditions,
the Lenders hereby waive (a) their right under SECTION 2.10 of the Credit
Agreement to require the Borrowers to prepay the Loans in their entirety as a
result of the reduction in BPE's Percentage Interest in the Company to 1% and
(b) any Event of Default under the Credit Agreement or under SECTION 4 hereof,
arising for the period commencing on the Effective Date thorugh the effective
date of this Second Consent (including any default interest on account thereof)
as a result of a breach of the Ownership Requirement.

                  4. CONDITIONS TO EFFECTIVENESS. This Second Consent shall not
become effective until the date on which each of the following conditions is
satisfied (or waived in accordance with SECTION 9.02 of the Credit
Agreement)(collectively, the "CONSENT CONDITIONS"):

                  (a)      The Administrative Agent (or its counsel) shall have
                           received either (i) one or more copies of this Second
                           Consent, executed by each of the Borrowers, the
                           Administrative Agent and the Lenders or (ii) written
                           evidence satisfactory to the Administrative Agent
                           (which may include a facsimile transmission of a
                           signed copy of this Second Consent) that each of such
                           parties has signed a copy of this Second Consent.

                  (b)      The Borrowers shall have delivered to the
                           Administrative Agent a certificate signed by an
                           executive officer of the managing member or general
                           partner of each Borrower, as applicable, certifying
                           to the Administrative Agent and the Lenders that (i)
                           the representations and warranties made by any Credit
                           Party or Constituent Party set forth in the Credit
                           Agreement or any other Loan Document (including this
                           Second Consent) are true and correct in all material
                           respects on and as of the date of this Second Consent
                           (except with respect to such representations and
                           warranties that are made expressly as of an earlier
                           date, in which case, such representations and
                           warranties were true and correct in all material
                           respects on and as of such date), (ii) immediately
                           prior to, at the time of, and immediately after
                           giving effect to this Second Consent, no Default or
                           Event of Default shall have occurred and be
                           continuing, and (iii) no Borrower has received
                           written notice from the Required Lenders that an
                           event has occurred since the date of the Credit
                           Agreement which has had, and continues to have, or is
                           reasonable likely to have, a Material Adverse Effect.

                  (c)      Intentionally Omitted..

                  (d)      The Borrowers shall have delivered to the
                           Administrative Agent an updated Compliance
                           Certificate (together with all appropriate schedules
                           and back-up documentation) demonstrating compliance
                           with the financial

<PAGE>

                           covenants and ratios set forth in Article VI of the
                           Credit Agreement both immediately prior to, and after
                           giving effect to the Amendment.

                  (e)      The Company shall execute and deliver to the
                           Administrative Agent a consent, waiver or amendment
                           to the credit agreement and loan documents under the
                           Secured Facility, in form and substance satisfactory
                           to the Administrative Agent.

                  (f)      The Administrative Agent shall have received such
                           other documents and certificates as the
                           Administrative Agent or its counsel may reasonably
                           request relating to the organization, existence and
                           good standing of the Credit Parties and their Related
                           Parties, the authorization of the Amendment or this
                           Second Consent or the consummation of the
                           transactions described therein and herein, all in
                           form reasonably satisfactory to the Administrative
                           Agent.

                  (g)      The Borrowers shall have paid to the Administrative
                           Agent, (i) for the account of each Lender in
                           accordance with its respective Applicable Percentage,
                           a nonrefundable amendment fee in an amount equal to
                           0.05% of the sum of (A) the aggregate outstanding
                           principal amount of the Term Loans on the date hereof
                           and (B) $20,000,000; and (ii) for the account of the
                           Chase Manhattan Bank ("CHASE") or Chase Securities,
                           Inc. ("CSI"), a nonrefundable advisory fee in an
                           amount separately agreed upon in writing among Chase,
                           CSI and the Borrowers.

By entering into this Second Consent, each Borrower shall be deemed to represent
and warrant on the date hereof that each of the Consent Conditions have been
satisfied. The Administrative Agent shall notify the Borrowers and each of the
Lenders if and when the Consent Conditions have been satisfied, and such notice
shall be conclusive and binding.

                  5.       ADDITIONAL COVENANTS, REPRESENTATIONS AND WARRANTIES
OF THE BORROWERS. (a) Each Borrower hereby represents and warrants to the
Administrative Agent and the Lenders as follows:

                  (i) Each Borrower has the legal power and authority to enter
into this Second Consent without consent or approval by and third party (or such
consent has been obtained) and this Second Consent constitutes the legal, valid
and binding obligation of each Borrower enforceable against such Borrower in
accordance with its terms.

                  (ii) The execution and deliver by each Borrower of this Second
Consent has been duly authorized by all requisite limited liability company or
partnership action, as the case may be, on the part of such Borrower and will
not violate any provision of such Borrower's organizational documents or any
other agreements or contracts to which such Borrower is a party or to which its
assets or property are bound.

                  (iii) Each Borrower hereby confirms and acknowledges that such
Borrower has no offsets, defenses, claims, counterclaims, setoffs or other basis
for reduction with respect to any of the Obligations owed to the Lenders.

<PAGE>

                  (iv) Each Borrower hereby represents and warrants that it owns
good and marketable fee simple absolute title to all of the Real Property listed
on SCHEDULE 3.05(A) to the Credit Agreement (as amended by this Second Consent).
There are no Real Properties owned by any Person for the benefit of any Borrower
pursuant to any nominee or similar arrangements as of the date hereof and the
Borrowers covenant that it shall not enter into any such arrangements after the
date hereof, without the prior written consent of the Administrative Agent.

                  (b) The Borrowers acknowledge and agree that a breach of any
of the representations, warranties and covenants contained in this Second
Consent shall constitute an Event of Default under the Credit Agreement,
entitling the Administrative Agent and the Lenders to exercise any all rights
and remedies thereunder or available to it at law or in equity.

                  6.       TERMINATION OF NOMINEE ACKNOWLEDGEMENTS. Upon the
satisfaction of the Consent Conditions and the transfer of fee simple title (a)
of the Point Loma Project to the Company and (b) of the Bell Gardens Property to
BPE, each of the Acknowledgement and Agreement of Nominee Party, dated as of
June 14, 1990, executed by BPOP and the Company in favor of the Administrative
Agent for the benefit of the Lenders with respect to the Point Loma Project and
the Bell Gardens Property shall be terminated and of no further force and effect
(other than any indemnity obligations expressly provided for under the terms of
such agreements).

                  7.       MISCELLANEOUS. (a) Except as specifically set forth
herein, all terms and conditions of the Credit Agreement and the other Loan
Documents shall remain in full force and effect and are hereby ratified and
confirmed. This Second Consent is effective exclusively for the purposes set
forth herein, and any additional consents, waivers or amendments, modifications
or supplements to any Loan Document must be in writing in accordance with the
terms of the Credit Agreement or other applicable Loan Document. The execution,
delivery and effectiveness of this Second Consent shall not operate as a waiver
of any right, power or remedy of the Administrative Agent or any Lender under
the Loan Documents (except to the extent expressly set forth herein), or in any
other document, instrument or agreement executed and/or delivered in connection
therewith.

                  (b) Any inconsistency between this Second Consent and the
terms and provisions of the Credit Agreement prior to its modification
hereunder, shall be resolved in favor of this Second Consent, whether or not
this Second Consent specifically modifies the particular provision(s) in the
original Credit Agreement inconsistent with this Second Consent. All references
to the "Credit Agreement" in the Loan Documents and to "this Agreement" in the
original Credit Agreement shall mean and refer to the original Credit Agreement
as modified and amended hereby.

                  (c) This Second Consent may be executed in counterparts (and
by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract. This Second Consent constitutes the entire understanding among
the parties relating to the subject matter hereof and supersede any and all
previous agreements and understandings, oral or written, relating to the subject
matter hereof. This Second Consent shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.
Delivery of an executed counterpart of a signature

<PAGE>

page of this Second Consent by telecopy shall be effective as delivery of a
manually executed counterpart of this Second Consent.

                  (d) The Borrowers agree to pay on demand all reasonable costs
and expenses of the Administrative Agent and the Lenders in connection with, or
arising out of the negotiation, preparation, execution and delivery of this
Second Consent (including the reasonable fees and expenses of counsel) and the
consummation of the transactions contemplated by the Amendment.

                  (e) This Second Consent shall be construed in accordance with
and governed by the law of the State of New York.

                  8.       CALPERS. By its execution of this Second Consent,
CalPERS hereby acknowledges and consents to the entering into of this Second
Consent by the Company and confirms that the Loans as modified by this Second
Consent do not violate any policy, guidelines or limitations applicable to the
Company under the Operating Agreement, as amended by the Amendment.

                           Signatures Commence on Following Page.

<PAGE>

                           IN WITNESS WHEREOF, the parties hereto have caused
this Waiver, Amendment and Second Consent to Credit Agreement be duly executed
by their respective authorized officers as of the day and year first above
written.

                              BPP RETAIL, LLC,
                              a Delaware limited liability company,

                              By:   Burnham Pacific Employees LLC,
                                    a Delaware limited liability company,
                                    its managing member

                                    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/ Scott C. Verges
                                                  ------------------------------
                                                 Name:  Scott C. Verges
                                                        ------------------------
                                                 Title: Secretary
                                                        ------------------------

                              BPAC TEXAS, L.P.,
                              a Delaware limited partnership

                              By:  BPAC Texas GP, LLC,
                                   a Delaware limited liability company,
                                   its general partner

                                   By:  BPAC Texas, Inc.,
                                        a Delaware corporation,
                                        its managing member

                                        By:  /s/ Scott C. Verges
                                            ------------------------------------
                                             Name:  Scott C. Verges
                                                    ----------------------------
                                             Title: Secretary
                                                    ----------------------------

<PAGE>

                                   THE CHASE MANHATTAN BANK, individually
                                   and acknowledged as Administrative Agent

                                   By:  /s/ John F. Mix
                                        -----------------------------------
                                         Name:  John F. Mix
                                                ------------------------------
                                         Title: Vice President
                                                -----------------------------

                                   LAND BANK OF TAIWAN

                                   By:   /s/ Mayer Chen
                                         ------------------------------------
                                         Name:  Mayer Chen
                                                -----------------------------
                                         Title: Vice President & General Manger
                                                -----------------------------

                                   CHANG HWA COMMERCIAL BANK, LTD.

                                   By:   /s/ James Lin
                                         ------------------------------------
                                         Name:  James Lin
                                                -----------------------------
                                         Title: Vice President & General Manger
                                                -----------------------------

                                   BANK ONE, NA as Successor to
                                   THE FIRST NATIONAL BANK OF CHICAGO

                                   By:   /s/ Dell K. McCoy
                                         ------------------------------------
                                         Name:  Dell K. McCoy
                                                -----------------------------
                                         Title: Vice President
                                                -----------------------------

                                   AMSOUTH BANK

                                   By:   /s/ Lawrence Clark
                                         ------------------------------------
                                         Name:  Lawrence Clark
                                                -----------------------------
                                         Title: Vice President
                                                -----------------------------

<PAGE>

                                   CITIZENS BANK OF RHODE ISLAND

                                   By:      /s/ Craig E. Schermerhorn
                                            ------------------------------------
                                            Name:   Craig E. Schermerhorn
                                                    ----------------------------
                                            Title:  Vice President
                                                    ----------------------------

                                   FIRST COMMERCIAL BANK

                                   By:      /s/ Bruce Ju
                                            ------------------------------------
                                            Name:    Bruce Ju
                                                    ----------------------------
                                            Title:   Deputy General Manger
                                                    ----------------------------

                                   USTRUST

                                   By:      /s/ James P. McGoldrick
                                            ------------------------------------
                                            Name:    James P. McGoldrick
                                                    ----------------------------
                                            Title:   Vice President
                                                    ----------------------------

                                   FIRST AMERICAN BANK TEXAS, SSB

                                   By:      /s/ Amy Engelberg
                                            ------------------------------------
                                            Name:    Amy Engelberg
                                                    ----------------------------
                                            Title:   Assistant Vice President
                                                    ----------------------------

                                   COMERICA BANK

                                   By:      /s/ David J. Campbell
                                            ------------------------------------
                                            Name:     David J. Campbell
                                                    ----------------------------
                                            Title:    Vice President
                                                    ----------------------------

<PAGE>

                                   BANK AUSTRIA CREDITANSTALT
                                   CORPORATE FINANCE, INC.

                                   By:      /s/ Jack R. Bertges
                                            ------------------------------------
                                            Name:    Jack R. Bertges
                                                    ----------------------------
                                            Title:   Senior Vice President
                                                    ----------------------------

                                   By:      /s/ James F. McCann
                                            ------------------------------------
                                            Name:     James F. McCann
                                                    ----------------------------
                                            Title:    Vice President
                                                    ----------------------------

                                   UNION BANK OF CALIFORNIA, N.A.

                                   By:      /s/ David B. Murphy
                                            ------------------------------------
                                            Name:    David B. Murphy
                                                    ----------------------------
                                            Title:   Vice President
                                                    ----------------------------

                                   TRAVELERS INSURANCE COMPANY

                                   By:      /s/ Robert Scoville
                                            ------------------------------------
                                            Name:    Robert Scoville
                                                    ----------------------------
                                            Title:   Vice President
                                                    ----------------------------

                                   NEW YORK LIFE INSURANCE COMPANY

                                   By:      /s/ Mary Hebron
                                            ------------------------------------
                                            Name:    Mary Hebron
                                                    ----------------------------
                                            Title:   Assistant Vice President
                                                    ----------------------------

<PAGE>

                                   ACKNOWLEDGED AND CONSENTED TO:

                                   STATE OF CALIFORNIA PUBLIC
                                   EMPLOYEES' RETIREMENT SYSTEM, AN
                                   agency of the State of California

                                   By:     /s/ Guy F. Jacquier
                                           ------------------------------------
                                   Name:   Guy F. Jacquier
                                           ------------------------------------
                                   Title:  Senior Real Estate Investment Officer
                                           ------------------------------------

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