Document:

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                                                                  Exhibit 10.217

                             LOAN GUARANTY AGREEMENT
                                 (SECURED NOTE)

       THIS LOAN GUARANTY AGREEMENT (the "Guaranty Agreement"), is made as of
the 30th day of June, 2004, by Ronald Akel, George Akel II, Ferris Akel II,
Barry Newman, Marc Newman and David Newman (collectively, "Guarantors") to IWEST
GILROY, L.L.C., a Delaware limited liability company (referred to herein as
"Lender").

                              W I T N E S S E T H:

       WHEREAS, Guarantors have requested from Lender a loan in the principal
amount of TWENTY-TWO MILLION AND NO/100 DOLLARS ($22,000,000.00) (the "Loan")
for the purpose of providing financing for the acquisition of that certain real
estate located in the County of Santa Clara, State of California, described on
Exhibit A attached hereto and made a part hereof (the "Property") commonly known
as Pacheco Pass Shopping Center, intersection of Camino Arroyo and State Highway
152, Gilroy, California and it will be of substantial economic benefit to the
Guarantors for the Borrower, hereinafter defined, to issue the Note and borrow
the principal evidenced thereby, Guarantors expecting to receive, directly or
indirectly, economic benefit from Borrower's acquisition, rehabilitation and
management of the Property; and

       WHEREAS, the Loan is to be evidenced by that certain Installment Note of
even date herewith (the "Note") in the principal amount of TWENTY-TWO MILLION
AND NO/100 DOLLARS ($22,000,000.00); the Note is to be executed by NEWMAN
DEVELOPMENT GROUP OF GILROY, L.L.C., a California limited liability company
("Borrower") and is payable to the order of Lender and is to be secured, inter
alia, by that certain First Deed of Trust and Security Agreement (the
"Mortgage") from Borrower to Lender, as Beneficiary, which will encumber the
Property and by other documents, (the Note, the Mortgage and such other
documents, as the same may from time to time be amended, being collectively
referred to herein as the "Loan Documents"); and

       WHEREAS, Lender is willing to extend the Loan only on the condition that
Guarantors, irrevocably and unconditionally, fully guarantee to Lender the full
and prompt payment when due of all principal, interest, default interest, late
charges, fees, premiums and all other sums from time to time outstanding under
the Loan Documents and the performance by Borrower of Borrower's obligations to
duly, promptly and completely observe, perform and discharge each and every
obligation, covenant and agreement contained in the Loan Documents. (All amounts
from time to time outstanding under the Loan Documents, including, without
limitation, principal, interest (whether accruing before or after the
commencement of any bankruptcy case involving Borrower and whether or not
allowed), default interest, late charges, fees, premiums and all other sums from
time to time outstanding under the Loan Documents, are sometimes collectively
referred to herein as the "Indebtedness"); and

       WHEREAS, Guarantors are willing to irrevocably and unconditionally, fully
guarantee the Indebtedness.

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       NOW, THEREFORE, in consideration of the foregoing premises and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Guarantors hereby covenant and agree as follows:

1.     The recitals set forth above are by this reference incorporated herein.

2.     Guarantors hereby irrevocably, absolutely and unconditionally, fully
       guarantee to Lender the full and prompt payment when due, whether by
       lapse of time, declaration, acceleration or otherwise, and at all times
       thereafter, of any and all of the Indebtedness and the prompt payment to
       Lender of all costs and expenses (including reasonable attorneys' fees
       and disbursements) incurred by Lender in collection of the Indebtedness
       or the enforcement of this Guaranty Agreement against Guarantors.
       Guarantors agree that if any of the Indebtedness is not paid in
       accordance with the terms of the Loan Documents, whether by acceleration
       or otherwise, Guarantors shall, upon notice and demand, immediately pay
       all of the Indebtedness as if the Indebtedness constituted the direct and
       primary obligation of Guarantors. Notwithstanding the satisfaction by
       Guarantors of any liability hereunder, Guarantors shall not have any
       right of subrogation, reimbursement or indemnity whatsoever or any right
       of recourse to or with respect to the assets or property of Borrower or
       to any collateral for the Loan unless and until Lender has received full
       payment of all principal, interest and other sums payable under the Loan.
       Guarantors hereby acknowledge that the deferment contained in the
       preceding sentence (the "Deferment Waiver") is given as an inducement to
       Lender to enter into the Loan Documents and, in consideration of Lender's
       willingness to enter into the Loan Documents. Guarantors understand and
       acknowledge that by virtue of this Guaranty it has specifically assumed
       any and all risks of a bankruptcy or reorganization case or proceeding
       affecting Borrower, and, as an example and not by way of limitation, a
       subsequent modification of the Note or any of the other Loan Documents in
       any reorganization case concerning Borrower shall not affect the
       obligations of Guarantors hereunder. Guarantors agree that to the extent
       that Borrower makes a payment or payments to Lender, which payment or
       payments or any part thereof are subsequently invalidated, declared to be
       fraudulent or preferential, set aside or required, for any of the
       foregoing reasons or for any other reasons, to be repaid or paid over to
       a custodian, trustee, receiver or any other party under any bankruptcy
       act, state or federal law, common law or equitable cause, then to the
       extent of such payment or repayment, the obligation or part thereof
       intended to be satisfied shall be revived and continued in full force and
       effect as if such payment had not been made and Guarantors shall be
       primarily liable for this obligation.

3.     This Guaranty Agreement shall be in full force and effect continuously
       from the date hereof to and until the date (the "Termination Date") on
       which the Note is repaid in full and any continuing liability of
       Guarantors pursuant to Paragraphs 6 and 30 of this Guaranty Agreement has
       been satisfied, whereupon this Guaranty Agreement shall terminate.

4.     Guarantors grant Lender, in Lender's sole and absolute discretion and
       without notice to Guarantors, the power and authority to deal in any
       lawful manner with the Indebtedness

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       and, without limiting the generality of the foregoing, further power and
       authority, from time to time:

       (a)   to renew, compromise, extend, accelerate or otherwise change the
             time or place of payment of or to otherwise change the terms of the
             Indebtedness or of any document relating thereto;

       (b)   to modify or to waive any of the terms of any agreement with
             Borrower pertaining to the Indebtedness;

       (c)   to take and hold security for the payment of the Indebtedness, and
             to exchange, enforce, waive or release any such security;

       (d)   to direct the order or manner of sale of any such security as
             Lender in its discretion may determine; and/or

       (e)   to grant any indulgence, forbearance, waiver or release to
             Borrower. The liability of Guarantors shall not be terminated,
             affected, impaired or reduced in any way by any action taken by
             Lender under the foregoing provisions or any other provision hereof
             or by any delay, failure or refusal of Lender to exercise any right
             or remedy Lender may have against Borrower or any other person,
             including other guarantors, if any, liable for all or any part of
             the obligations guaranteed herein by Guarantors.

5.     Guarantors shall not have any right of recourse against Lender by reason
       of any action Lender may take or omit to take under the provisions of
       this Guaranty Agreement or under the provisions of any of the Loan
       Documents.

6.     Satisfaction by Guarantors of any liability hereunder incident to a
       particular default under the Note or under any of the other Loan
       Documents shall not discharge Guarantors except for the default
       satisfied, it being the intent hereof that this Guaranty Agreement and
       the obligations of Guarantors hereunder shall be continuing and
       irrevocable until the Termination Date. Further, if at any time all or
       any part of any payment received by Lender from Borrower or from
       Guarantors under or with respect to this Guaranty Agreement is or must be
       rescinded or returned for any reason whatsoever (including, but not
       limited to, the insolvency, bankruptcy or reorganization of Borrower or
       Guarantors), then Guarantors' obligations hereunder shall, to the extent
       of the payment rescinded or returned, be deemed to have continued in
       existence, notwithstanding such previous receipt of payment by Lender,
       and each Guarantor's obligations hereunder shall continue to be effective
       or be reinstated, as the case may be, as to such payment, all as though
       such previous payment to Lender had never been made.

7.     Guarantors hereby waive notice of acceptance of this Guaranty Agreement
       by Lender, and this Guaranty Agreement shall immediately be binding upon
       each Guarantor.

8.     To the extent permitted by law, each Guarantor hereby waives and agrees
       not to assert or take advantage of; (a) any right to require Lender to
       proceed against Borrower or any other person or to proceed against or
       exhaust any security held by Lender at any time or

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       to pursue any other remedy in Lender's power before proceeding against
       Guarantors hereunder; (b) the defense of the statute of limitations in
       any action hereunder or in any action for the collection of the
       Indebtedness or the performance of any obligation hereby guaranteed; (c)
       any defense that may arise by reason of the incapacity, lack of
       authority, death or disability of any other person or persons or the
       failure of Lender to file or enforce a claim against the estate (in
       administration, bankruptcy or any other proceeding) of any other person
       or persons; (d) demand, presentment for payment, notice of non-payment,
       protest, notice of protest and all other notices of any kind, including,
       without limiting the generality of the foregoing, notice of the
       existence, creation or incurring of any new or additional indebtedness or
       obligation or of any action or non-action on the part of Borrower,
       Lender, any endorser or creditor of Borrower or of Guarantors or of other
       guarantors or on the part of any other person whomsoever under this or
       any other instrument in connection with any obligation or evidence of
       indebtedness held by Lender as collateral or in connection with the
       Indebtedness hereby guaranteed; (e) any defense based upon an election of
       remedies by Lender which destroys or otherwise impairs any or all of the
       subrogation rights, if any, of any Guarantor, the right of any Guarantor
       to proceed against Borrower or any other person for reimbursement, or
       both; (f) all duty or obligation on Lender's part to perfect, protect,
       retain or enforce any security for the payment of the Indebtedness; (g)
       any principle or provision of law, statutory or otherwise, which is or
       might be in conflict with the terms and provisions of this Guaranty
       Agreement; and (h) any duty on the part of Lender to disclose to any
       Guarantor any facts Lender may now or hereafter know about Borrower,
       regardless of whether or not Lender has reason to believe that any such
       facts materially increase the risk beyond that which any Guarantor
       intends to assume or has reason to believe that such facts are unknown to
       such Guarantor or has a reasonable opportunity to communicate such facts
       to such Guarantor, it being understood and agreed that each Guarantor is
       fully responsible for being and keeping informed of the financial
       condition of Borrower and of any and all circumstances bearing on the
       risk that liability may be incurred by each Guarantor hereunder. Without
       limiting the generality of the foregoing, each Guarantor hereby
       authorizes and empowers Lender in its sole discretion, without any notice
       or demand to any Guarantor whatsoever and without affecting the liability
       of any Guarantor hereunder, to exercise any right or remedy which Lender
       may have available to it, including, but not limited to, judicial
       foreclosure, exercise of rights or power of sale without judicial action,
       or taking a deed or an assignment in lieu of foreclosure as to any
       collateral security for the Indebtedness, whether real, personal or
       intangible property, and each Guarantor hereby waives any defense to the
       recovery by Lender against any and all Guarantors of any deficiency after
       such action, notwithstanding any impairment or loss of any right of
       deficiency or other right or remedy against Borrower. Each Guarantor
       specifically waives all rights and defenses arising out of an election of
       remedies by Lender, even though that election of remedies, such as a
       nonjudicial foreclosure with respect to security for a guaranteed
       obligation, has destroyed such Guarantor's rights of subrogation and
       reimbursement against Borrower. Without limiting the generality, scope or
       meaning of any of the foregoing or any other provision of this Guaranty
       Agreement, to the extent it is determined that California law is
       applicable to this Guaranty Agreement, Guarantors:

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       (a)   acknowledge that Section 2856 of the California Civil Code
             authorizes and validates waivers of a guarantor's rights of
             subrogation and reimbursement and certain other right and defenses
             available to guarantors under California law;

       (b)   waive all rights of subrogation, reimbursement, indemnification,
             and contribution and all other rights and defenses that are or may
             become available by reason of Sections 2728 to 2855, inclusive, of
             the California Civil Code;

       (c)   waive all rights and defenses arising out of an election of
             remedies by Lender, even though the election of remedies, such as a
             nonjudicial foreclosure with respect to security for a guaranteed
             obligation has destroyed each Guarantor's rights of subrogation and
             reimbursement against Borrower by the operation of Section 580d of
             the California Code of Civil Procedure or otherwise;

       (d)   waive all rights and defenses that Guarantors may have because the
             Borrower's debt is secured by real property, which means, among
             other things:

             (i)    Lender may collect from Guarantors without first foreclosing
                    on any real or personal property collateral pledged by
                    Borrower; and

             (ii)   If Lender forecloses on any real property collateral pledged
                    by Borrower;

                    A.    The amount of the debt may be reduced only by the
                          price for which that collateral is sold at the
                          foreclosure sale, even if the collateral is worth more
                          than the sale price; and

                    B.    Lender may collect from Guarantors even if Lender, by
                          foreclosing on the real property collateral, has
                          destroyed any rights Guarantors may have to collect
                          from Borrower.

       This is an unconditional and irrevocable waiver of any rights and
defenses Guarantors may have because Borrower's debt is secured by real
property. These rights and defenses include, but are not limited to, any rights
or defenses based upon Sections 580a, 580b, 580d, or 726 of the California Code
of Civil Procedure; and

       (e)   waive all rights and defenses, if any, now or hereafter arising
             under the laws of the State of Illinois, which are the same as or
             similar to the rights and defenses waived as described above.

9.     In addition to all liens and rights of setoff given to Lender by law
       against any property of Borrower or of Guarantors, Lender shall have a
       general lien on and security interest in and a right of setoff against
       all property of each Guarantor now or hereafter in the physical
       possession of or on deposit with Lender, whether held in a general or
       special account, on deposit or for safekeeping or otherwise. Each such
       lien, security interest and right of setoff may be enforced or exercised
       without demand upon or notice to any Guarantor at any time following the
       failure of performance by any Guarantor hereunder, shall continue in full
       force unless specifically waived or released by Lender in writing and
       shall not be deemed waived by any conduct of Lender, by any failure of
       Lender to

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       exercise any such right of setoff or to enforce any such lien or security
       interest or by any neglect or delay in so doing.

10.    With or without notice to any Guarantor, Lender, in Lender's sole
       discretion and at any time and from time to time and in such manner and
       upon such terms as Lender deems fit, may: (a) apply any or all payments
       or recoveries from Borrower or from any other guarantor or endorser under
       any other instrument or realized from any security, in such manner and
       order of priority as set forth in the Note; or (b) refund to Borrower any
       payment received by Lender upon the Indebtedness hereby guaranteed
       without affecting in any way any Guarantor's obligation or liability
       hereunder for payment of the Indebtedness. Any recovery realized from any
       other guarantor under any other instrument shall be first credited upon
       that portion of the Indebtedness which exceeds the maximum liability of
       Guarantors, if any, hereunder.

11.    The amount of Guarantors' liability and all rights, powers and remedies
       of Lender hereunder shall be cumulative and not alternative and such
       rights, powers and remedies shall be in addition to all rights, powers
       and remedies given to Lender by law or under the Loan Documents. This
       Guaranty Agreement is in addition to and separate and apart from the
       guaranty of any other guarantor of the Indebtedness or of any other
       indebtedness or obligation.

12.    The liability of each Guarantor under this Guaranty Agreement shall be an
       absolute, direct, immediate and unconditional guarantee of payment and
       not of collectibility. The obligations of each Guarantor hereunder are
       independent of the obligations of Borrower and, in the event of any
       default hereunder, a separate action or actions may be brought and
       prosecuted against each Guarantor whether or not Borrower is joined
       therein or a separate action or actions are brought against Borrower.
       Lender may maintain successive actions for other defaults. Lender's
       rights hereunder shall not be exhausted by its exercise of any of its
       rights or remedies or by any such action or by any number of successive
       actions. The obligations of each Guarantor hereunder are joint and
       several obligations and Lender may maintain a separate action or actions
       against each, prosecute an action or actions against either or any of
       them without prosecuting an action or actions against the other or may
       prosecute an action or actions jointly against all persons and entities.
       The death or dissolution of any Guarantor shall not terminate this
       Guaranty Agreement as to any surviving Guarantor, and shall not terminate
       this Guaranty Agreement as to the estate of any deceased Guarantor.

13.    In the event of the dissolution, liquidation or insolvency (howsoever
       evidenced) of, or the institution of bankruptcy or receivership
       proceedings against or by the Borrower, or its beneficiary(ies), if any,
       or the inability of the Borrower or the beneficiary(ies) to pay debts as
       they mature, Guarantors shall pay to Lender upon demand, the full amount
       which would be payable hereunder by the Guarantors as if all Indebtedness
       were then due and payable without regard as to whether or not any such
       events shall occur at a time when any of the Indebtedness may not then be
       due and payable.

14.    Notwithstanding the fact that Borrower may be a trust, a corporation, a
       limited liability company, a joint venture or a partnership, Lender does
       not have to confirm or inquire into

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       the powers of Borrower, its beneficiary(ies), its directors, officers,
       members, joint venturers, partners, associates or other agents acting or
       purporting to act on its behalf, Guarantors hereby representing that such
       powers exist, and monies in fact borrowed from Lender in connection with
       the Loan in the professed exercise of such powers shall be deemed to form
       a part of the liabilities guaranteed, even though the borrowing or
       obtaining of such monies is in excess of the powers of Borrower or of the
       beneficiary(ies), directors, officers, joint venturers, partners,
       associates or other agents thereof, or shall be in any way irregular or
       defective or informal.

15.    It is expressly understood that the obligations of Guarantors hereunder
       are an additional and cumulative benefit given to Lender for Lender's
       security and as an inducement for Lender to make the Loan and in order to
       induce any person or persons who may be and become the holder of the Note
       to accept the same.

16.    All payments hereunder shall be made in lawful money of the United States
       of America. No delay in making demand on any Guarantor for satisfaction
       of its liabilities hereunder shall prejudice Lender's rights to enforce
       such liabilities.

17.    Guarantors hereby warrant and represent unto Lender that any and all
       balance sheets, net worth statements and other financial data which have
       heretofore been given or may hereafter be given to Lender with respect to
       each Guarantor, if any, did or will at the time of such delivery fairly
       and accurately present the financial condition of such Guarantor.

18.    Guarantors shall pay to Lender, upon demand, reasonable attorneys' fees
       and disbursements and all costs and other expenses which Lender expends
       or incurs in collecting or compromising the Indebtedness or in enforcing
       this Guaranty Agreement against Guarantors whether or not suit is filed,
       including, without limitation, all costs, reasonable attorneys' fees and
       expenses incurred by Lender in connection with any insolvency,
       bankruptcy, reorganization, arrangement or other similar proceedings
       involving Borrower or Guarantors which in any way affect the exercise by
       Lender of its rights and remedies hereunder from the fifth day after
       written notice to Guarantors until paid to Lender, such reasonable
       attorneys' fees, costs and expenses shall bear interest at the default
       rate of interest described in the Note.

19.    Any provision of this Guaranty Agreement which is unenforceable, invalid
       or contrary to law, or the inclusion of which would affect the validity,
       legality or enforcement of this Guaranty Agreement shall be of no effect,
       and in such case, all the remaining terms and provisions of this Guaranty
       Agreement shall subsist and shall be fully effective according to the
       terms of this Guaranty Agreement, the same as though any such provision
       had not been included herein.

20.    No provision of this Guaranty Agreement or right of Lender hereunder can
       be waived nor can any Guarantor be released from such Guarantor's
       obligations hereunder except by a writing duly executed by Lender. This
       Guaranty Agreement may not be modified, amended, revised, revoked,
       terminated, changed or varied in any way whatsoever except by the express
       terms of a writing duly executed by Lender and the Guarantors to whom
       such modification, amendment, revision, revocation or termination may
       apply.

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21.    When the context and construction so require, all words used in the
       singular herein shall be deemed to have been used in the plural, and the
       masculine shall include the feminine and neuter and vice versa. The word
       "person" as used herein shall include any individual, company, firm,
       association, partnership, corporation, trust or other legal entity of any
       kind whatsoever.

22.    This Guaranty Agreement is a general guaranty agreement and is assignable
       with any and/or all of the Indebtedness which it guarantees and when so
       assigned, each Guarantor shall be bound as above to the assignee(s)
       without in any manner affecting such Guarantor's liability hereunder. The
       delivery of the Note for value to any person shall, without more,
       constitute conclusive evidence of the acceptance hereof, and of the
       reliance hereon by each and every holder, from time to time, of the Note
       or any interest in the Indebtedness.

23.    The validity of this Guaranty Agreement and the obligations of each
       Guarantor hereunder shall in no way be terminated, affected, impaired or
       reduced by reason of the conveyance, transfer, sale, assignment, exchange
       or lease of the Property, or any part thereof or any interest therein
       including the beneficial interest in any land trust, to any other person
       or by reason of the further encumbrancing of the Property or any part
       thereof (it being strictly understood, however, that the provisions of
       this paragraph are not deemed to be a waiver of any restrictions of such
       acts contained in the Loan Documents, or to constitute consent to any
       such acts).

24.    This Guaranty Agreement, and each and every part hereof, shall be binding
       upon each Guarantor, jointly and severally, and upon the heirs,
       administrators, legal representatives, successors and assigns of each of
       the Guarantors, and shall inure to the pro rata benefit of each and every
       future holder of the Note or any interest in the Indebtedness.

25.    This Guaranty Agreement has been made and delivered by the undersigned in
       the State of Illinois and shall be construed for all purposes and
       enforced in accordance with the laws of the State of Illinois and the
       accrual of any claim hereunder in favor of Lender shall be deemed to have
       caused an event to occur in the State of Illinois, notwithstanding any
       references herein to California law. Without limiting the right of the
       Lender to bring any action or proceeding against the undersigned or
       against property of the undersigned arising out of or relating to this
       Guaranty Agreement (an "Action") in the courts of other jurisdictions,
       the undersigned hereby irrevocably submit to the jurisdiction of (i) any
       Illinois state court sitting in Cook or DuPage County, Illinois, or
       Federal court sitting in Chicago, Illinois, or (ii) any California state
       court sitting in San Mateo, County, California or federal court for the
       Northern District of California, and the undersigned hereby irrevocably
       agree that any Action may be heard and determined in such state courts or
       in such Federal courts. The undersigned hereby irrevocably waive any
       rights it may have to assert that such Illinois state courts or federal
       court in Illinois provide either an improper or inconvenient venue. The
       undersigned hereby irrevocably waive, to the fullest extent possible, the
       defense or assertion of any inconvenient forum to the maintenance of any
       Action in any jurisdiction. The undersigned hereby irrevocably agrees
       that the summons and complaint or any process in any Action in any
       jurisdiction may be served on the undersigned by mailing by certified
       mail, return receipt requested,

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       to the address of the undersigned set forth herein or by hand delivery to
       a person of suitable age and discretion at the undersigned's address set
       forth herein. If such service is so mailed or delivered, it will be
       deemed complete on the date the return receipt is executed, or, if no
       such receipt is executed, three (3) days after the date of mailing as
       aforesaid, or when delivered, and the undersigned will have thirty days
       from such completion of service in which to respond in the manner
       provided by law. The undersigned may also be served in any other manner
       permitted by law, in which event the undersigned's time to respond shall
       be the time provided by law. THE UNDERSIGNED HEREBY IRREVOCABLY WAIVE ALL
       RIGHT TO TRIAL BY JURY IN ANY ACTION PROCEEDING OR COUNTERCLAIM ARISING
       OUT OF OR RELATING TO THIS GUARANTY AGREEMENT.

26.    Any notice request or demand to be given hereunder shall be in writing,
       and shall be deemed to have been given when placed in the United States
       mail, with proper registered or certified postage prepaid, return receipt
       requested, addressed to the party concerned at the address shown below
       and shall be effective the date of mailing:

<Table>
        <S>                                 <C>
        To Lender:                          To Guarantors:

        IWEST GILROY, L.L.C.                c/o NEWMAN DEVELOPMENT GROUP
        2901 Butterfield Road               OF GILROY, L.L.C.
        Oak Brook, Illinois 60523           Plymouth Greene Office Campus, Unit E-2
        Attn: Jason Lazarus                 1000 Germantown Pike
                                            Plymouth Meeting, Pennsylvania 19462

        with a copy to:                     with a copy to:

        IWEST GILROY, L.L.C.                NEWMAN DEVELOPMENT GROUP
        2901 Butterfield Road               OF GILROY, L.L.C.
        Oak Brook, Illinois 60523           3101 Shippers Road
        Attn: Charles J. Benyenuto, Esq.    Vestal, New York 13850
                                            Attn: Marc Newman
</Table>

provided however, that each of the foregoing addresses for notice may be changed
from time to time by notice given to the other party, in the manner herein
provided for.

27.    This Guaranty Agreement shall constitute the entire agreement of
       Guarantor with Lender with respect to the subject matter hereof and no
       representation, understanding, promise or condition concerning the
       subject matter hereof shall be binding upon Lender unless expressed
       herein.

28.    Any non-recourse provisions contained in the Loan Documents are in no
       event to be construed as inconsistent with or contrary to the terms and
       provisions of this Guaranty Agreement and in the event of any
       inconsistency between said non-recourse provisions and the provisions of
       this Guaranty Agreement, the provisions of this Guaranty Agreement shall
       control.

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29.    Guarantor hereby waives all rights of subrogation, indemnity,
       contribution, exoneration, reimbursement or other claim which such
       Guarantor now or may hereafter have or claim against Borrower or any
       other person liable in any way with respect to the Indebtedness until the
       date which is one (1) year and one (1) day from the date the Loan is paid
       in full.

30.    Subject to all of the other terms and provisions of this Guaranty
       Agreement, in the event of default by Borrower under the Loan Documents
       and the institution of foreclosure proceedings and/or security
       enforcement proceedings by Lender pursuant to the Loan Documents as a
       result of that default, each Guarantor shall continue to be liable to
       Lender for the payment to Lender of the amount, if any, by which the
       Indebtedness at the time of the foreclosure or security enforcement sale
       by Lender shall exceed the actual net cash received by Lender from any
       party in connection with such foreclosure or security enforcement sale.
       The preceding sentence shall not in any event be construed to require
       Lender to refund to any Guarantor any amounts which were paid by
       Guarantor pursuant to this Guaranty Agreement prior to the acceleration
       of the Indebtedness and which were properly due and payable by Guarantors
       at the time said payments were made.

31.    The obligations and liabilities of each Guarantor hereunder shall be
       joint and several.

32.    This Guaranty Agreement may be executed in multiple counterparts, each of
       which shall be deemed an original and all of which shall constitute one
       and the same instrument. Failure of any Guarantor to execute this
       Agreement shall not make this Agreement ineffective as to the other
       Guarantors.

                       [END OF TEXT, SIGNATURES NEXT PAGE]

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       IN WITNESS WHEREOF, each Guarantor has executed this Agreement as of the
day and year first above written in the presence of the Notary Public who has
acknowledged its signature(s) as more fully set forth below.

                                             /s/ Ronald Akel
                                             -----------------------------------
                                             Ronald Akel

                                             /s/ George Akel II
                                             -----------------------------------
                                             George Akel II

                                             /s/ Ferris Akel II
                                             -----------------------------------
                                             Ferris Akel II

                                             /s/ Barry Newman
                                             -----------------------------------
                                             Barry Newman

                                             /s/ Marc Newman
                                             -----------------------------------
                                             Marc Newman

                                             /s/ David Newman
                                             -----------------------------------
                                             David Newman

                                       11
<Page>

STATE OF New York  )
                   ) SS
COUNTY OF Broome   )

       On June 29, 2004, before me, Howard M. Rittberg
                 (NAME, TITLE OF OFFICER, E.G., "JANE DOE, NOTARY PUBLIC")

personally appeared Ronald Akel
               (NAME(S) OF SIGNER(S))

       /X/      personally known to me -OR-

       / /      proved to me on the basis of satisfactory evidence

to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity/ies, and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which person(s) acted,
executed the instrument.

       Witness my hand and official seal.

                                                   /s/ Howard M. Rittberg
                                                   -----------------------------
                                                           (Signature of Notary)

(SEAL)

My Commission expires:

          HOWARD M. RITTBERG
-------------------------------------
    Notary Public, State of New York
             No. 4623413
      Residing in Broome County
 My Commission Expires Aug. 31, 2007

<Page>

STATE OF New York  )
                   ) SS
COUNTY OF Broome   )

       On June 29, 2004, before me, Howard M. Rittberg
                 (NAME, TITLE OF OFFICER, E.G., "JANE DOE, NOTARY PUBLIC")

personally appeared George Akel II
                (NAME(S) OF SIGNER(S))

       /X/      personally known to me -OR-

       / /      proved to me on the basis of satisfactory evidence

to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity/ies, and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which person(s) acted,
executed the instrument.

       Witness my hand and official seal.

                                                   /s/ Howard M. Rittberg
                                                   -----------------------------
                                                           (Signature of Notary)

(SEAL)

My Commission expires:

          HOWARD M. RITTBERG
-------------------------------------
    Notary Public, State of New York
             No. 4623413
      Residing in Broome County
 My Commission Expires Aug. 31, 2007

<Page>

STATE OF New York  )
                   ) SS
COUNTY OF Broome   )

       On June 29, 2004, before me, Howard M. Rittberg
                 (NAME, TITLE OF OFFICER, E.G., "JANE DOE, NOTARY PUBLIC")

personally appeared Ferris Akel II
                (NAME(S) OF SIGNER(S))

       /X/      personally known to me -OR-

       / /      proved to me on the basis of satisfactory evidence

to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity/ies, and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which person(s) acted,
executed the instrument.

       Witness my hand and official seal.

                                                   /s/ Howard M. Rittberg
                                                   -----------------------------
                                                           (Signature of Notary)

(SEAL)

My Commission expires:

          HOWARD M. RITTBERG
-------------------------------------
    Notary Public, State of New York
             No. 4623413
      Residing in Broome County
 My Commission Expires Aug. 31, 2007

<Page>

STATE OF New York  )
                   ) SS
COUNTY OF Broome   )

       On June 29, 2004, before me, Howard M. Rittberg
                 (NAME, TITLE OF OFFICER, E.G., "JANE DOE, NOTARY PUBLIC")

personally appeared Barry Newman
               (NAME(S) OF SIGNER(S))

       /X/      personally known to me -OR-

       / /      proved to me on the basis of satisfactory evidence

to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity/ies, and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which person(s) acted,
executed the instrument.

       Witness my hand and official seal.

                                                   /s/ Howard M. Rittberg
                                                   -----------------------------
                                                           (Signature of Notary)

(SEAL)

My Commission expires:

          HOWARD M. RITTBERG
-------------------------------------
    Notary Public, State of New York
             No. 4623413
      Residing in Broome County
 My Commission Expires Aug. 31, 2007

<Page>

STATE OF New York  )
                   ) SS
COUNTY OF Broome   )

       On June 29, 2004, before me, Howard M. Rittberg
                 (NAME, TITLE OF OFFICER, E.G., "JANE DOE, NOTARY PUBLIC")

personally appeared David Newman
               (NAME(S) OF SIGNER(S))

       /X/      personally known to me -OR-

       / /      proved to me on the basis of satisfactory evidence

to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity/ies, and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which person(s) acted,
executed the instrument.

       Witness my hand and official seal.

                                                   /s/ Howard M. Rittberg
                                                   -----------------------------
                                                           (Signature of Notary)

(SEAL)

My Commission expires:

          HOWARD M. RITTBERG
-------------------------------------
    Notary Public, State of New York
             No. 4623413
      Residing in Broome County
 My Commission Expires Aug. 31, 2007

<Page>

STATE OF New York  )
                   ) SS
COUNTY OF Broome   )

       On June 29, 2004, before me, Howard M. Rittberg
                 (NAME, TITLE OF OFFICER, E.G., "JANE DOE, NOTARY PUBLIC")

personally appeared Marc Newman
               (NAME(S) OF SIGNER(S))

       /X/      personally known to me -OR-

       / /      proved to me on the basis of satisfactory evidence

to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity/ies, and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which person(s) acted,
executed the instrument.

       Witness my hand and official seal.

                                                   /s/ Howard M. Rittberg
                                                   -----------------------------
                                                           (Signature of Notary)

(SEAL)

My Commission expires:

          HOWARD M. RITTBERG
-------------------------------------
    Notary Public, State of New York
             No. 4623413
      Residing in Broome County
 My Commission Expires Aug. 31, 2007

<Page>

                                    EXHIBIT A

                                LEGAL DESCRIPTION

The land refereed to herein is situated in the City of Gilroy, County of Santa
Clara, State of California, and is described as follows:

Parcel A:

Lots 2, 4, and 5, as shown on that certain map entitled "Tract No. 9401, Highway
152 Retail Center, Gilroy, California" filed for record in the office of the
Recorder for the County of Santa Clara, State of California on August 16, 2002
in Book 751 of Maps, pages 10, 11, 12, 13, 14, and 15, Santa Clara County
Records.

Parcel B:

A non-exclusive easement for ingress and egress over Lots 1 and 3 as shown on
that certain map entitled "Tract No. 9401, Highway 152 Retail Center, Gilroy,
California" filed for record in the office of the Recorder for the County of
Santa Clara, State of California on August 16, 2002 in Book 751 of Maps, pages
10, 11, 12, 13, 14, and 15, Santa Clara County Records.

Parcel C:

A non-exclusive non-buildable structure easement over Lot 1 as shown on that
certain map entitled "Tract No. 9401, Highway 152 Retail Center, Gilroy,
California" filed for record in the office of the Recorder for the County of
Santa Clara, State of California on August 16, 2002 in Book 751 of Maps, pages
10, 11, 12, 13, 14 and 15, Santa Clara County Records.

Parcel D:

Easements granted in that certain document entitled "Declaration of Covenants,
Conditions and Restrictions and Grant of Reciprocal Easements" recorded August
16, 2002 as Instrument No. 16425383 of Official Records.

Parcel E:

Parcels 1, 2, and 3 as shown on that certain Parcel map entitled "PARCEL MAP,
Southwest quadrant of the Pacheco Pass retail center, City of Gilroy...", filed
for record in the office of the Recorder for the County of Santa Clara, State of
California on June 25, 2002 in Book 761 of Maps, pages 52 and 53, Santa Clara
County Records.

APN: 841-10-060; 841-18-059; 841-18-061; 841-18-062; 841-18-063; 841-18-064:
841-18-065; & 841-18-066<Page>

                                                                  Exhibit 10.218

                                ESCROW AGREEMENT

       THIS ESCROW AGREEMENT ("ESCROW AGREEMENT") is made as of this 1 day of
July 2004, by and among by RED BOARDWALK, LLC, a Missouri limited liability
company and REDBARRY, L.L.C., a Missouri limited liability company
(collectively, "RED"), INLAND WESTERN KANSAS CITY, L.L.C., a Delaware limited
liability company ("INLAND") and CHICAGO TITLE INSURANCE COMPANY ("ESCROW
AGENT").

                                    RECITALS:

       A.     RED and Inland Real Estate Acquisitions, Inc. previously entered
into that certain agreement dated as of March 9, 2004, as amended (the
"AGREEMENT"), with respect to that certain real property known as The Shops at
Boardwalk, located in Kansas City, Missouri (the "PROPERTY"), as more fully
described in the Agreement. A copy of the Agreement has been delivered to Escrow
Agent and is incorporated by reference herein. Inland Real Estate Acquisitions,
Inc. subsequently assigned its interest in the Agreement to Inland by Assignment
of Contract effective June 30, 2004.

       B.     Pursuant to the terms of the Agreement, RED has agreed to deposit
with Escrow Agent the sum of Two Million Nine Hundred Eighty Six Thousand Three
Hundred Thirty and no/100 Dollars ($2,986,330.00) (the "ESCROW DEPOSIT") with
respect to RED's obligation to pay certain lease commissions, for payment of
certain tenant improvements for certain tenant space not leased or fully
occupied as of the date hereof (the "VACANT SPACES"), and for certain rent
obligations, all as described by this Escrow Agreement.

       C.     Escrow Agent is willing to accept the Escrow Deposit and hold and
disburse same in accordance with the terms and conditions set forth below.

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

       1.     DEPOSIT. RED hereby deposits with Escrow Agent, and Escrow Agent
hereby acknowledges receipt of the sum of Two Million Nine Hundred Eighty Six
Thousand Three Hundred Thirty and no/100 Dollars ($2,986,330.00) as the total
Escrow Deposit. Escrow Agent hereby agrees to deposit $1,000,000.00 of the
Escrow Deposit into an interest bearing account with the First National Bank of
Olathe, and the balance of the Escrow Deposit into an interest bearing account
in a Permitted Investment, with interest accruing for the benefit of RED. The
federal taxpayer identification of RED is as follows: 42-1542960.

       2.     DISBURSEMENTS. Escrow Agent shall retain the Escrow Deposit in the
account, and shall cause the same to be disbursed therefrom as follows:

              (a)   TENANT IMPROVEMENT DEPOSIT. That portion of the Escrow
       Deposit identified as the sum of Three Hundred Forty Five Thousand Five
       Hundred Twenty Five

                                        1
<Page>

and no/100 Dollars ($345,525.00) is hereby referred to as the "TENANT
IMPROVEMENT DEPOSIT." The Tenant Improvement Deposit is attributable to the
Vacant Spaces in the following amounts:

<Table>
<Caption>
        SUITE #                            SQUARE FEET         AMOUNT
        -------                            -----------         ------
        <S>                                   <C>          <C>
        05-02                                  2,345       $     35,175
        05-08                                  5,579       $     83,685
        05-14                                  1,500       $     22,500
        05-15                                  6,486       $     97,290
        05-24A                                 2,088       $     31,320
        05-24B                                 5,037       $     75,555
                                           -----------------------------
                                              23,035       $    345,525
                                           =============================
</Table>

       The tenant improvement allowances shall be used for the hard and soft
costs of constructing tenant improvements and related costs, including without
limitation design fees, cost of plans and specifications, permit fees and
construction costs, but shall exclude leasing commissions, broker's or finder's
fees. Notwithstanding anything to the contrary set forth herein, if the tenant
is doing all or any part of the leasehold improvements in its respective
premises and the tenant's lease (which shall have approved by Inland, such
approval not to be unreasonably withheld, conditioned or delayed) provides that
the landlord is to provide a tenant improvement allowance to such tenant, the
amount of tenant improvement allowance deposited hereunder shall be disbursed in
accordance with the terms of the lease. Interim disbursements may be made not
more often than one (1) time per month. The Tenant Improvement Deposit shall be
disbursed by Escrow Holder in accordance with the terms of the leases to pay the
costs thereof to contractors and vendors providing labor or material, or in the
event RED has paid such costs itself, to reimburse RED, within 10 days of
request for disbursement after the following conditions have been satisfied:

              (i)   The portion of the tenant improvements for which
       disbursement is requested must have been constructed substantially in
       conformance with the plans and specifications therefor approved by
       Inland, which approval shall not be unreasonably conditioned, withheld or
       delayed.

              (ii)  To the extent RED has paid all or any portion of tenant
       improvement allowance or RED is requesting an interim disbursement to a
       contractor, each request for disbursement shall be (i) on an Application
       and Certification for Payment of Tenant Improvements, (ii) shall contain
       a certification by RED that all tenant improvement work for which interim
       or full payment is requested has been substantially completed (iii) shall
       be accompanied by lien waivers executed by all the parties who performed
       work or supplied materials for the work or who are to be paid by such
       disbursement and completed under any previous draw, (iv) such Application
       and Certification shall be in the form attached hereto as EXHIBIT A and
       shall also be approved by Inland (as evidenced by Inland signing thereon
       before the disbursement is made) such

                                        2
<Page>

       approval not to be unreasonably conditioned, delayed or withheld. If RED
       is requesting that such amount be payable to RED, in addition to the
       foregoing, RED shall provide Inland and Escrow Holder with reasonable
       evidence of RED's payment of such tenant improvement allowance.

              (iii) Simultaneously, Chicago Title Insurance Company ("CTIC")
       shall issue an endorsement to Inland's title insurance policy insuring
       that there are no unbonded mechanics' or materialmen's liens relating to
       the work for which the disbursement is sought.

              (iv)  The final disbursement for tenant improvements for each
       tenant space shall be the balance of the amount specified above for the
       respective tenant space, subject to RED delivering to Inland an estoppel
       certificate from the Tenant confirming that all Landlord work required by
       the lease has been completed and a final, unconditional certificate of
       occupancy for each space that is the subject of the disbursement and
       final lien waivers signed by the general contractor and all
       subcontractors performing work or providing materials for improvements
       for such tenant improvements.

              (v)   If any portion of the Tenant Improvement Deposit has not
       been disbursed on or before the Termination Date, if all of the tenant
       improvements for the Vacant Space as required by the respective tenant
       leases have been completed and the documentation described above has been
       submitted and only Inlands consent is left to be provided, prior to the
       Termination Date, any portion of the Tenant Improvement Deposit,
       remaining on the Termination Date shall be released to RED; otherwise any
       remaining Tenant Improvement Deposit shall be released to Inland and in
       either case, RED shall have no further obligation with regard to any
       tenant improvements for the Property.

       (b)    LEASING COMMISSIONS DEPOSIT. That portion of the Escrow Deposit
identified as the sum of Sixty Nine Thousand One Hundred Five and no/100 Dollars
($69,105.00) is hereby referred to as the "LEASING COMMISSIONS DEPOSIT." The
Leasing Commissions Deposit is a reserve for leasing/brokerage commissions
attributable to the Vacant Spaces in the following amounts:

<Table>
<Caption>
        SUITE #                            SQUARE FEET         AMOUNT
        -------                            -----------         ------
        <S>                                   <C>          <C>
        05-02                                  2,345       $      7,035
        05-08                                  5,579       $     16,737
        05-14                                  1,500       $      4,500
        05-15                                  6,486       $     19,458
        05-24A                                 2,088       $      6,264
        05-24B                                 5,037       $     15,111
                                           -----------------------------
                                              23,035       $     69,105
                                           =============================
</Table>

                                        3
<Page>

       The Escrow Agent shall disburse within 10 days of request for
disbursement to the procuring real estate broker a leasing commission for each
approved lease of Vacant Space upon Escrow Holder's receipt of notice signed by
RED that such commissions have been earned and are payable pursuant to the terms
of the applicable commission agreement with respect to the applicable approved
lease. Such notice shall be in the form of EXHIBIT B attached hereto and shall
be executed by RED and approved by Inland (such approval not to be unreasonably
withheld, conditioned or delayed). If no Leasing Commissions are due or owing on
the Termination Date and all leasing commissions have been paid for all of the
Vacant Spaces, any remaining Leasing Commission Deposit shall be released to RED
and RED shall have no further obligation whatsoever as to such Leasing
Commissions for the Property. If at Termination, Leasing Commissions are pending
due to requirements that Tenant open for business or other such requirements, or
no leasing commission is owing due to no executed lease as to the Vacant Space,
the applicable Leasing Commissions shall either continue to be escrowed until
paid, or any remaining funds shall be paid to Inland as the case may be and RED
shall have no further obligation whatsoever as to such Leasing Commissions for
the Property. In no event shall RED be required to replenish the Leasing
Commission Deposit escrow.

       (c)    ESCROW FOR THE BASE RENT. That portion of the Escrow Deposit
identified as the sum of Two Million Five Hundred Thousand and no/100 Dollars
($2,500,000.00) is hereby referred to as the "BASE RENT DEPOSIT." On or before
the tenth (10th) day of each month until the Termination Date, Inland shall
provide to Escrow Agent and RED a certified monthly statement, according to the
form attached as EXHIBIT C, (the "Statement") effective as of the last day of
the preceding month, indicating the total base rents payable under leases net of
abatements, concession and other offsets permitted under the Leases, (but not
net of delinquencies or disputed amounts with Inland), (the "SCHEDULED RENT")
for all tenants which have opened for business and have commenced full payments
of base rent, and estimates of common area charges, taxes and insurance (the
"BASE RENT STATEMENT"). On or before two (2) days after receipt by the Title
Company of the foregoing certified monthly statement, the Base Rent Deposit
shall be disbursed as follows:

              (i)   Commencing on August 1, 2004, and monthly thereafter, Inland
       shall be shall entitled to make a draw request against the Base Rent
       Deposit, in an amount equal to the difference between: (x) the pro forma
       monthly rent, which the parties agree is $227,644.70, and (y) the
       Scheduled Rent. The form of draw request shall be in the form attached as
       EXHIBIT C.

              (ii)  If a Base Rent Statement indicates that Scheduled Rent (when
       annualized) will be at least $2,612,010.00, then after disbursement to
       Inland provided in Section 2(c)(i) above, Escrow Agent shall disburse to
       RED any portion of the remaining Base Rent Deposit which exceeds
       $2,000,000.00.

              (iii) If a Base Rent Statement indicates that Scheduled Rent (when
       annualized) will be at least $2,649,710.00, then after disbursement to
       Inland provided in Section 2(c)(i) above, Escrow Agent shall disburse to
       RED any portion of the remaining Base Rent Deposit which exceeds
       $l,500,000.00.

                                        4
<Page>

              (iv)  If a Base Rent Statement indicates that Scheduled Rent (when
       annualized) will be at least $2,687,410.00, then after disbursement to
       Inland provided in Section 2(c)(i) above, Escrow Agent shall disburse to
       RED any portion of the remaining Base Rent Deposit which exceeds
       $1,000,000.00.

              (v)   If a Base Rent Statement indicates that Scheduled Rent (when
       annualized) will be at least $2,725,110.00, then after disbursement to
       Inland provided in Section 2(c)(i) above, Escrow Agent shall disburse to
       RED any portion of the remaining Base Rent Deposit which exceeds
       $500,000.00.

              (vi)  If a Statement indicates that Scheduled Rent (when
       annualized) will be at least $2,763,000.00, then after disbursement to
       Inland provided in Section 2(c)(i) above, Escrow Agent shall disburse to
       RED all of the remaining Base Rent Deposit.

              (vi)  Under no circumstance shall RED be required to replenish the
       Base Rent Deposit. If, as of the Termination Date, any balance of Base
       Rent Deposit remains held by the Escrow Agent, the Escrow Agent shall
       disburse such amount to Inland and RED shall have no further obligation
       to lease any property or any other obligation under this Agreement.

              (vii) At any time upon not less than ten (10) business days prior
       notice, RED may, at RED's sole cost and expense, examine the books and
       records of Inland with respect to base rents payable during the period
       commencing on the date hereof and ending on the date of the audit. The
       audit shall be conducted an accountant to be selected by RED, or by a
       qualified member of RED's staff. If the audit reveals a difference in the
       base rent reported by Inland in the Statement, which would have resulted
       in a right of RED to request a release of funds from the Base Rent
       Deposit, then RED may immediately draw on the Vacant Space Escrow as
       appropriate. Any audit shall be performed at a mutually convenient
       location and shall cause as little interference with Inland's operations
       as reasonably possible. The provisions of this paragraph shall survive
       the expiration of this Escrow Agreement.

       (d)    ESCROW FOR NOGGIN NOODLE. That portion of the Escrow Deposit
identified as the sum of Seventy One Thousand Seven Hundred and no/100 Dollars
($71,700.00) is hereby referred to as the "NOGGIN NOODLE DEPOSIT." On or before
the tenth (10th) day of each month until the Termination Date, Inland shall
provide to Escrow Agent and RED a certified monthly statement, effective as of
the last day of the preceding month, indicating the total base rents, common
area maintenance, taxes and insurance paid by the tenant of Space No. SP-21
(which is currently Noggin Noodle) (the "NOGGIN NOODLE STATEMENT"). The Base
Rent Deposit shall be disbursed as follows:

              (i)   Commencing on August 1, 2004, and monthly thereafter, Inland
       shall be shall entitled to make a draw request against the Noggin Noodle
       Deposit, in an amount equal to the difference between: (x) the pro forma
       monthly base rent, common area expenses, taxes and insurance for Space
       No. SP-21, which the parties agree is $2,390.00, and (y) the total base
       rent, common area expenses, taxes and insurance for Space No. SP-

                                        5
<Page>

       21, actually received from the tenant of Space No. SP-21 for the previous
       calendar month. The form of draw request shall be in the form attached as
       EXHIBIT D.

              (ii)  If, on a date which is one (1) year after the date hereof,
       if any balance of the Noggin Noodle Deposit remains on deposit with the
       Escrow Agent, it shall be disbursed by the Escrow Agent to RED.

       4.     DISPUTES. Inland shall have no right to claim an offset against
any Escrow herein, for any other obligation related to any other matter
whatsoever, other than as may be detailed in this Escrow Agreement including but
not limited to any alleged misrepresentation, failure of a warranty or any
other matter relating to the purchase of the Property. Any such claim shall be
separately adjudicated. In the event either party objects to the disbursement of
the Escrow Deposit as provided above, the Escrow Agent shall have the right, at
its option, either (a) to hold the Escrow Deposit in escrow pending resolution
of such objection by mutual agreement of the parties or by judicial resolution
of same or (b) to disburse the Escrow Deposit into the registry of the court
having jurisdiction over such objection. After any disbursement of the Escrow
Deposit under the terms of this Escrow Agreement, Escrow Agent's duties and
obligations hereunder shall cease. In the event of any dispute regarding
disbursement of the Escrow Deposit, the party ultimately receiving the Escrow
Deposit after resolution of such dispute shall be entitled to receive from the
other party all the prevailing party's costs and expenses incurred in connection
with the resolution of such dispute including, without limitation, all court
costs and reasonable attorney's fees.

       5.     PERMITTED INVESTMENTS. The Escrow Agent agrees to invest the
Escrow Deposit as provided in Paragraph 1 at either (i) the First National Bank
of Olathe or (ii) in Permitted Investments, as hereinafter defined. The Escrow
Agent shall not invest the Escrow Deposit in any investment that would require
the Escrow Agent to pay a penalty for early withdrawal to pay a monthly
disbursement. Interest earned on the Escrow Deposit shall be paid to RED. For
tax purposes, interest earned on the escrowed funds shall be for the account of
RED. All disbursements under this Agreement shall be made first from the funds
held at financial institutions other than First National Bank of Olathe, to the
extent such funds are available. The term "PERMITTED INVESTMENTS" means:

                     (i)    Government Obligations as hereinafter defined;

                     (ii)   Negotiable or non-negotiable certificates of deposit
                            and time deposits (including Eurodollar certificates
                            of deposit), maturing within ninety (90) days from
                            the date of acquisition, issued by a federally
                            chartered bank having at least $10 billion in total
                            assets (an "APPROVED BANK"); and

                     (iii)  money market funds of Chase Manhattan Bank or Bank
                            of America, N.A. or other comparable institution.

                                   The term "GOVERNMENT OBLIGATIONS" means (a)
                            direct obligations of the United States of America
                            for the

                                        6
<Page>

                            payment of which the full faith and credit of the
                            United States of America is pledged, or (b)
                            obligations issued by a person controlled or
                            supervised by and acting as an instrumentality of
                            the United States of America, the payment of the
                            principal of, premium, if any, and interest on which
                            is fully guaranteed as a full faith and credit
                            obligation, of the United States of America
                            (including any securities, described in (a) or (b)
                            above in this sentence issued or held in book-entry
                            form on the books of the Department of the Treasury
                            of the United States of America), which obligations,
                            in either case, are not subject to redemption prior
                            to maturity at less than par by anyone other than
                            the owner.

       6.     COSTS. The costs of administration of this Escrow Agreement by
Escrow Agent shall be paid equally by Inland and RED. This Escrow Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, principals, successors and assigns and shall be governed and
construed in accordance with the laws of the State of Illinois. No modification,
amendment or waiver of the terms hereof shall be valid or effective unless in
writing and signed by all of the parties hereto. This Escrow Agreement may be
executed in multiple counterpart originals, each of which shall be deemed to be
and shall constitute an original. If there is any conflict between the terms of
this Escrow Agreement and the terms of the Agreement, the terms of the
Agreement shall control in all events.

       7.     TERMINATION DATE. The Termination Date of this Escrow Agreement is
the date which is thirty six (36) months from the date hereof.

       8.     CAM EXPENSES. On the "Closing Date" (as defined in the Agreement),
Inland shall receive a credit against the Purchase Price in an amount equal to
the prorata amount (calculated from the Closing Date to the last day of the
month in which the Closing Date occurs) for the monthly common area maintenance
expense, tax expense and insurance expense allocable to the Vacant Spaces
(collectively, the "CAM EXPENSES") for the calendar month in which the Closing
Date. Thereafter, commencing in the second calendar month after the Closing
Date, and monthly thereafter until Termination Date, or such earlier date as
tenants have commenced full payment of CAM Expenses under approved leases with
respect to all of the Vacant Spaces, RED shall deliver to Inland (outside of
this Escrow Agreement) an amount equal to the monthly CAM Expenses for the
current calendar month allocable to the Vacant Spaces as stated below:

<Table>
<Caption>
        SUITE #                            SQUARE FEET         AMOUNT
        -------                            -----------         ------
        <S>                                    <C>         <C>
        05-10                                  2,763       $   1,832.79
        05-29                                  3,294       $   2,185.02
        05-02                                  2,345       $   1,555.52
        O5-O8                                  5,579       $   3,700.74
        05-14                                  1,500       $     995.00
</Table>

                                        7
<Page>

<Table>
        <S>                                   <C>          <C>
        05-15                                  6,486       $   4,302.38
        05-24A                                 2,088       $   1,385.04
        05-24B                                 5,037       $   3,341.21
                                           -----------------------------
                                              29,092       $  19,297.69
                                           =============================
</Table>

less the pro rata amount of the monthly CAM Expenses under approved leases for
Vacant Spaces for which the tenant is open for business and for which CAM
Expense payments had commenced on or after the second day of the prior calendar
month. The amount to be disbursed to Inland shall be set forth in a Disbursement
Request in the form of EXHIBIT E attached hereto signed by Inland and delivered
to RED. Such amount shall be disbursed to Inland one (1) time per month within
ten (10) days after Inland's submission of a Disbursement Request.
Notwithstanding the foregoing, the amount set forth above for each Vacant space
shall be increased by 5% on January 1 of each year during the term of this
Agreement, provided however at the Termination Date, the actual amount of CAM
shall be determined and an adjustment shall be made between Inland and RED with
respect to any overpayment or underpayment.

       8.     NO WAIVER. No delay or leniency of Inland in requiring strict
performance of the terms and conditions hereof shall constitute a waiver of its
rights hereunder.

       9.     NO PLEDGE OR ENCUMBRANCE. RED shall not, pledge, assign or grant
any security interest in the Escrow Deposit nor permit any lien or encumbrance
to attach thereto.

       10.    NOTICES. All notices, payments, requests, reports, information or
demands which any party hereto may desire or may be required to give to any
other party hereunder, shall be in writing and shall be personally delivered
or sent by telefax (answer back received), or by overnight courier, and sent
to the party at its address appearing below or such other address as any other
party shall hereafter inform the other party hereto by written notice given as
aforesaid:

       If to RED, to:              RED Boardwalk, LLC and REDBARRY, L.L.C.
                                   4717 Central
                                   Kansas City, Missouri 64112
                                   Attention: Dan Lowe
                                   Telephone No.: (816)777-3500
                                   Telefax No.: (816)777-3501

       with a copy to:             Rick Katz, Esq.
                                   The Katz Law Firm
                                   6299 Nall Avenue
                                   Suite 210
                                   Mission, Kansas 66202
                                   Telephone No.: (913) 312-5050
                                   Telefax No.: (913) 312-5047

       And with a copy to:         Joe Harter, Esq.
                                   McDowell, Rice, Smith & Gaar, PC
                                   605 West 47th Street, Suite 350

                                        8
<Page>
                                   Kansas City, Missouri 64112
                                   Telephone No.: (816) 221-5400 x310
                                   Telefax No.: (816) 753-9996

       If to the Purchaser, to:    Inland Western Kansas City, L.L.C.
                                   2901 Butterfield Road
                                   Oak Brook, IL 60523
                                   Attention: Lou Quilici
                                   Telephone No.: (630) 218-8000
                                   Telefax No.: (630) 218-4935

       With copy to:               The Inland Real Estate Group, Inc.
                                   2901 Butterfield Road
                                   Oak Brook, IL 60523
                                   Attention: Robin Rash, Esq.
                                   Telephone No.: (630) 218-8000 ext. 2854
                                   Telefax No.: (630) 218-4900

       With a copy to:             Principal Life Insurance Company
                                   c/o Principal Real Estate Investors, LLC
                                   801 Grand Avenue
                                   Des Moines, Iowa 50392-1450
                                   Re: Loan No. 753948

       If to Escrow Agent:         Chicago Title Insurance Company
                                   171 N. Clark
                                   Chicago, IL 60601
                                   Attention: Nancy Castro
                                   Telephone No.: (312) 223-2709
                                   Telefax No.: (312) 223-2108

Except as otherwise specified herein, all notices and other communications shall
be deemed to have been duly given on the first to occur of (i) the date of
delivery if delivered personally, or (ii) on the date of deposit with the
overnight courier if sent by overnight courier or the date of the telefax, if
give by telefax. Any party may change its address for purposes hereof by notice
to the other. All notices hereunder and all documents and instruments delivered
in connection with this transaction or otherwise required hereunder shall be in
the English language. Each party shall be entitled to rely on all communications
which purport to be on behalf of the party and purport to be signed by an
authorized party or the above indicated attorneys. A failure to send the
requisite copies does not invalidate an otherwise properly sent notice to RED
and/or Inland.

       11.    COUNTERPARTS. This Escrow Agreement may be executed in
counterparts and shall constitute an agreement binding on all parties
notwithstanding that all parties are not signatories of the original or the same
counterpart. Furthermore, the signatures from one counterpart may be attached to
another to constitute a fully executed original. The Escrow Agreement may be
executed by facsimile.

                                        9
<Page>

       12.    GOVERNING LAW, JURISDICTION AND VENUE. This Agreement shall be
governed by and construed and enforced in accordance with the substantive laws
of the State of Illinois without regard to Missouri conflict of laws principles.
If any term or provision of this Agreement shall be determined to be illegal or
unenforceable, all other terms and provisions hereof shall never the less remain
effective and shall be enforced to the fullest extent permitted by applicable
law, and in lieu such illegal or unenforceable provisions there shall be added
automatically as part of this Agreement a provision as similar in terms to such
invalid, illegal or unenforceable provision as may be possible and be valid,
legal and enforceable.

       13.    BINDING EFFECT. This Escrow Agreement and all the covenants,
promises and agreements contained herein shall be binding upon and inure to the
benefit of the respective legal representatives, personal representatives,
devisees, heirs, successors and assigns of the RED and Inland.

       14.    LENDER PROVISIONS. Inland has on June 30, 2004 executed an
Agreement (the "PROPERTY RESERVE AGREEMENT") by and between Inland and Principal
Life Insurance Company ("LENDER") in connection with that certain $20,150,000
loan from Lender to Inland providing financing for the Property. RED, Escrow
Agent and Inland hereby acknowledge that the rights and remedies of Inland
pursuant to this Agreement shall inure to the benefit of Lender and that Lender
shall have the same right, but not the obligation, to enforce all rights and
remedies of Inland under this Agreement. RED and Escrow Agent further agree that
upon the exercise of Lender's remedies under the Property Reserve Agreement as
and against Inland, RED and Escrow Agent shall continue to perform their
respective obligations for the benefit of Lender and Escrow Agent shall remit
all funds due to Inland directly to Lender all in accordance with this
Agreement. Nothing herein shall be interpreted to cause RED to incur any
additional obligations under the Property Reserve Agreement.

       15.    ADDITIONAL DEPOSIT. In addition to the Escrow Deposit, the parties
are depositing, from the proceeds of the Closing escrow, the sum of $656,364.00
(the ADDITIONAL DEPOSIT"). The Escrow Agent is authorized to deposit such funds
in Permitted Investments (without penalty for early withdrawal) until such time
as the parties mutually and reasonably agree to instruct which shall in all
events be within 3 days Escrow Agent to transfer such funds to the First
National Bank of Olathe, at which time the Escrow Agent shall have not further
responsibility with respect to the Additional Deposit.

                      [SIGNATURES BEGIN ON FOLLOWING PAGE]

                                       10
<Page>

                    SIGNATURE PAGE FOR ESCROW AGREEMENT AMONG
       RED BOARDWALK, LLC, REDBARRY, L.L.C., INLAND WESTERN KANSAS CITY,
                   L.L.C. AND CHICAGO TITLE INSURANCE COMPANY

                           RED:

                           RED BOARDWALK, LLC,
                           a Missouri limited liability company

                           By: R.E.D. BARRY NORTH, L.L.C.,
                               a Missouri limited liability company, its manager

                               By: /s/ Daniel H. Lowe
                                   --------------------------------
                                   Daniel H. Lowe, Authorized Signatory

                           REDBARRY, L.L.C.,
                           a Missouri limited liability company

                           By: NET PROPERTY INVESTORS, L.L.C.,
                               a Missouri limited liability company, its manager

                               By: /s/ R. Pete Smith
                                   ------------------------------------
                                   R. Pete Smith, Manager

                           INLAND:

                           INLAND WESTERN KANSAS CITY, L.L.C., a Delaware
                           limited liability company

                           By: Inland Western Retail Real Estate Trust, Inc., a
                               Maryland corporation, its sole member

                               By:         /s/ Valerie Medina
                                      ---------------------------------
                               Name:       Valerie Medina
                                      ---------------------------------
                               Title:      Asst. Secretary
                                      ---------------------------------

                           ESCROW AGENT:

                           CHICAGO TITLE INSURANCE COMPANY
                           By:
                                  -------------------------------------
                           Name:
                                  -------------------------------------
                           Title:
                                  -------------------------------------

                                       11

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