Document:

EXHIBIT 10.27

              FIRST AMENDMENT TO LOAN AGREEMENT, PLEDGE AGREEMENT,
                       PROMISSORY NOTE AND OTHER DOCUMENTS

     THIS FIRST AMENDMENT TO LOAN AGREEMENT,  PLEDGE AGREEMENT,  PROMISSORY NOTE
AND OTHER  DOCUMENTS  (this  "AGREEMENT") is made and entered into as of this __
day  of  August,  2000,  by and  between  DVL,  INC.  ("BORROWER"),  a  Delaware
corporation,  and  PENNSYLVANIA  BUSINESS  BANK, a  Pennsylvania  state  banking
association (the "BANK").

                                    RECITALS

     1.   Pursuant to a certain Loan and Pledge  Agreement  dated March 6, 2000,
between the Bank and Borrower (the "LOAN AGREEMENT"), the Bank agreed to lend to
Borrower the principal amount of $1,000,000 (the "LOAN").  The Loan is evidenced
by a certain  Promissory Note executed and delivered by Borrower in favor of the
Bank in the original principal amount of $1,000,000 (the "NOTE"). The purpose of
the Loan was to finance the acquisition by Borrower of certain  Promissory Notes
(individually,  a "COLLATERAL NOTE" and, collectively,  the "COLLATERAL NOTES").
The   Collateral   Notes  are  secured  by,   INTER  ALIA,   certain   Mortgages
(individually,  a  "COLLATERAL  MORTGAGE"  and,  collectively,  the  "COLLATERAL
MORTGAGES") on various lands and  improvements  (individually  a "PROPERTY" and,
collectively,  the  "PROPERTIES)  described  in each  Collateral  Mortgage.  The
Collateral  Notes,  the Collateral  Mortgages and all of the other documents and
instruments  evidencing,  securing or executed in connection with the Collateral
Notes are referred to herein as the "COLLATERAL LOAN DOCUMENTS."

     2.   The Note is secured by, among other things,  the following  documents,
all of which  are  dated  March  6,  2000 and all of  which  were  executed  and
delivered  by Borrower in favor of the Bank:  (i) a certain  Pledge,  Collateral
Assignment and Security Agreement (the "PLEDGE AGREEMENT") pursuant to which the
Collateral Loan Documents were collaterally assigned to secure the Note and (ii)
certain  Collateral   Assignments  of  Mortgage  and  Other  Recorded  Documents
(individually,  an "ASSIGNMENT OF MORTGAGE" and, collectively,  the "ASSIGNMENTS
OF MORTGAGE")  pursuant to which each Collateral  Mortgage and all other related
recorded  documents  were  collaterally  assigned  to secure the Note.  The Loan
Agreement,  Note,  Pledge  Agreement,  Assignments  of  Mortgage  and all  other
documents  executed  in  connection  with  or  as  security  for  the  Loan  are
collectively referred to herein as the "BANK LOAN DOCUMENTS."

     3.   Pursuant to the terms of the Loan Agreement, the Loan was fully funded
by the  Bank  at the  time  of the  original  closing.  Following  closing,  the
principal  outstanding  under the Loan was paid down by  Borrower by $700,000 to
$300,000 and the Collateral Note,  Collateral  Mortgage and the other Collateral
Loan  Documents  relating to the  property  located in Kinder,  Parish of Allen,
Louisiana were released from all of the collateral  assignments evidenced by the
Bank Loan Documents.

     4.   Borrower has requested  and the Bank has agreed,  subject to the terms
and  conditions  set forth  herein,  to lend to  Borrower  $700,000  (the  "Loan
Increase")  which  Loan  Increase  shall be used to acquire  certain  additional
Promissory Notes (the "NEW PROMISSORY NOTES").

     NOW THEREFORE, in consideration of the mutual covenants and benefits herein
contained  and for other  good and  valuable  consideration,  the  legality  and
sufficiency of which is hereby acknowledged, the parties hereto, intending to be
legally bound, do hereby covenant and agree as follows:

          1.   DEFINED TERMS. Capitalized terms used herein and not otherwise
               defined herein shall have the meanings assigned to them in the
               Loan Agreement.

<PAGE>

          2.   AMENDMENT TO LOAN AGREEMENT. The Loan Agreement is hereby amended
               as follows:

               1.   Schedules I, II, III, IV, V and VI to the Loan Agreement are
                    each hereby replaced with Schedules I, II, III, IV, V and VI
                    hereto;

                    2.   The definition of "Loan" set forth in Section 1.1 is
                         hereby amended and restated to read in full as follows:

                    "Loan" shall mean the loan to be made by Bank, including the
               Loan  Increase,  pursuant  to  this  Agreement  in the  aggregate
               principal amount of One Million Dollars ($1,000,000).

               3.   Section 1.1 is hereby amended by inserting therein, in their
                    proper alphabetical location, the following:

                    "Champlain   Property"  shall  mean  that  certain  property
               located  in  Champlain,   Clinton  County,   New  York  which  is
               encumbered by one of the Collateral Mortgages.

                    "Loan Increase" shall mean that portion of the Loan equal to
               $700,000  funded for purpose of acquiring  the  Collateral  Notes
               with  respect to the New  Hampshire  Property  and the  Champlain
               Property.

                    "New Hampshire  Property"  shall mean that certain  property
               located  in  Ossipee,  Carroll  County,  New  Hampshire  which is
               encumbered by one of the Collateral Mortgages.

               4.   The first sentence of Section 2.3 is hereby amended and
                    restated to read in its entirety as follows:

                    The term of the Loan (the "Term")  shall  commence as of the
               date  hereof and shall  terminate  on May 1, 2006 (the  "Maturity
               Date").

     e. Notwithstanding anything to the contrary contained in the Loan
Agreement, the Note or this Agreement, the monthly aggregate amount paid to
Lender during the term of the Loan on account of interest and Mandatory
Principal Payments with respect to the Loan shall be at least equal to the
figures set forth in the Total column of the payment schedule attached hereto as
Schedule VII.

     3.   CONDITIONS PRECEDENT.  Concurrently with the execution and delivery of
          this  Agreement  and as a  condition  to  the  effectiveness  of  this
          Agreement,  Borrower shall deliver to the Bank the  following,  all of
          which  shall be in form and  substance  acceptable  to the Bank in its
          reasonable discretion:

          1.   Executed   allonges/endorsements   (the  "ENDORSEMENTS")  to  the
               Additional  Promissory Notes, in the form previously  executed by
               Borrower;

          2.   Executed  Collateral  Assignments  of Mortgage and Other Recorded
               Documents  from Borrower in favor of the Bank with respect to the
               Collateral  Mortgages  on the  Champlain  Property  and  the  New
               Hampshire Property (collectively, the "NEW COLLATERAL ASSIGNMENTS
               OF MORTGAGE");

                    3.   Executed First Amendments to Collateral Assignments of
                         Mortgage and Other Recorded Documents from Borrower in
                         favor of the Bank for each of the Assignments of
                         Mortgage (collectively, the "FIRST AMENDMENTS TO
                         COLLATERAL ASSIGNMENTS OF MORTGAGE");

          4.   Executed UCC-1 and UCC-3 Financing Statements in form and
               substance

<PAGE>
               acceptable to the Bank

          5.   The Bank shall have received all duly executed and, if necessary,
               acknowledged Bank Loan Documents, Borrower Documents and
               Collateral Documents with respect to the Additional Promissory
               Notes, including originals of all of the Additional Promissory
               Notes and all amendments and modification thereto;

          6.   The security  interests in all personal property described in the
               Collateral  Assignment  Documents  shall  have  been,  subject to
               recording of any financing  statements,  duly perfected and shall
               constitute  valid  and  enforceable   first  priority  liens  and
               security interests in such property;

          7.   A loan fee in the amount of $7,000 shall have been paid to Bank;

          8.   No Event of Default or  Conditional  Default  shall have occurred
               and be continuing  under this  Agreement or any of the other Bank
               Loan Documents;

          9.   No default shall have occurred and be continuing under any of the
               Senior Loan Documents or any of the Tenant Leases;

         10.   The Bank  shall have  received  or be  reimbursed  for all of the
               Bank's reasonable  out-of-pocket  expenses incurred in connection
               with the Loan, including, but not limited to, the reasonable fees
               and expenses of the Bank's legal counsel;

         11.   All of the  representations  and  warranties  of  Borrower as set
               forth  in  Article  VIII of the  Loan  Agreement  shall  be true,
               correct and accurate in all material respects;

         12.   The Bank shall have  received,  reviewed  and approved all of the
               Collateral Loan Documents pertaining to the New Promissory Notes;

         13.   The Bank  shall  have  received  commitments  for Title  Policies
               insuring the lien of the New Collateral Assignments of Mortgage;

         14.   The Bank shall have received and reviewed all of the documents in
               connection  with the acquisition of the Collateral Loan Documents
               pertaining to the New Promissory Notes by Borrower;

         15.   Borrower and, if  necessary,  each of the  Collateral  Borrowers,
               shall have executed and  delivered to the Bank letters  addressed
               to each of the Tenants  directing payment to the Bank of all sums
               to be paid by the Tenants under the Tenant Leases;

         16.   Endorsements  to the existing  Title  Policies  bringing down the
               effective  date of each  Title  Policy  to the  date  hereof  and
               insuring the lien of the  Collateral  Assignments  of Mortgage as
               amended by the First  Amendments  to  Collateral  Assignments  of
               Mortgage,  subject to no other  exceptions  than are contained in
               the existing Title Policies;

         17.   An opinion  of  Borrower's  counsel  dated the date  hereof  with
               respect to the due authorization,  execution and delivery of this
               Agreement,  the Endorsements,  the New Collateral  Assignments of
               Mortgage,  the First  Amendments  to  Collateral  Assignments  of
               Mortgage and the transactions contemplated herein; and

         18.   Such additional  documents,  certificates  and information as the
               Bank may

<PAGE>

               reasonably  require in connection  with, and to  effectuate,  the
               foregoing.

     4.   ADVANCE OF LOAN INCREASE; NO REBORROWING.  Notwithstanding anything to
          the  contrary   contained  in  the  Loan   Agreement  and  subject  to
          satisfaction  of all of the  other  terms  and  conditions  set  forth
          herein,  including,  but not  limited to,  Section 3 hereof,  the Bank
          shall advance to Borrower the Loan Increase upon  satisfaction  of all
          of the conditions  for Loan Advances set forth in the Loan  Agreement,
          as amended  hereby,  and such Loan Increase along with such other sums
          owing by Borrower to Bank with  respect to the Loan shall be evidenced
          by the Note and secured by the  Collateral  Assignment  Documents,  as
          amended by this  Agreement  and the other  amendments  to be delivered
          pursuant to the terms of this Agreement.  Notwithstanding  the funding
          of the Loan  Increase  by the Bank  pursuant to the terms  hereof,  no
          portion of the Loan including,  without limitation,  the Loan Increase
          may be reborrowered, following repayment, by Borrower.

     5.   AMENDMENT  TO THE BANK  LOAN  DOCUMENTS.  All  references  to the Loan
          Agreement,   the  Note,  the  Pledge  Agreement,  the  Assignments  of
          Mortgage,  and in any of the  other  Bank  Loan  Documents  and in any
          documents executed in connection therewith shall be deemed to refer to
          the Loan Agreement, the Note, the Pledge Agreement, the Assignments of
          Mortgage and such other documents as amended by this Agreement and the
          other  amendments  to be  delivered  pursuant  to the  terms  of  this
          Agreement.

     6.   RATIFICATION OF THE BANK LOAN DOCUMENTS.  Notwithstanding  anything to
          the  contrary  herein  contained  or any claims of the  parties to the
          contrary, the Bank and Borrower agree that the Bank Loan Documents and
          each of the  documents  executed in  connection  therewith are in full
          force and effect and all such documents shall remain in full force and
          effect,  as expressly amended by this Agreement or any other amendment
          expressly relating thereto,  and Borrower hereby ratifies and confirms
          its obligations thereunder.

     7.   BORROWER REPRESENTATIONS AND WARRANTIES.

          a.   Borrower  hereby  certifies  that  (i)  the  representations  and
warranties of Borrower in the Loan  Agreement and the other Bank Loan  Documents
are true and correct,  in all material  respects,  as of the date hereof,  as if
made on the date hereof and (ii) no Event of Default and no Conditional  Default
under the Loan  Agreement,  the Note,  the Pledge  Agreement or any of the other
Bank Loan Documents  exists on the date hereof or shall occur as a result of the
funding of the Loan Increase as described in Section 4 hereof.

          b.   Borrower  further  represents that it has all the requisite power
and authority to enter into and to perform its obligations under this Agreement,
the  Endorsements,  the  New  Collateral  Assignments  of  Mortgage,  the  First
Amendments to  Collateral  Assignments  of Mortgage and the other  documents and
instruments  executed and delivered in connection  with this  Amendment and that
the execution, delivery and performance of this Agreement, the Endorsements, the
New  Collateral  Assignments  of Mortgage,  the First  Amendments  to Collateral
Assignments of Mortgage and the other documents and  instruments  have been duly
authorized  by all  requisite  limited  liability  company  action  and will not
violate or constitute a default under any provision of any applicable law, rule,
regulation,  order, writ, judgment,  injunction,  decree, determination or award
presently  in  effect or of the  certificate  of  incorporation  or  by-laws  of
Borrower,  or of any indenture,  note, loan or credit agreement,  license or any
other  agreement,  lease or instrument to which  Borrower is a party or by which
Borrower or any of its properties are bound.

     8.   RELEASE.  Recognizing and in  consideration of the Bank's agreement to
          amend the Loan Agreement,  including,  without  limiting,  to fund the
          Loan  Increase,  Borrower,  as of the date hereof,  hereby  waives and
          releases the Bank and its  officers,  attorneys,  agents and employees
          from any liability, suit,

<PAGE>

          damage,  claim,  loss or expense of any kind or nature  whatsoever and
          howsoever  arising that Borrower as of the date hereof ever had, could
          have had or now has  against  the  Bank,  and the  existence  of which
          Borrower  knows or should  reasonably  have  known,  arising out of or
          relating to the Loan Agreement,  the Note, the Pledge  Agreement,  the
          Collateral  Assignments  of  Mortgage,  any of  the  other  Bank  Loan
          Documents  or any other  document  delivered  pursuant  thereto or the
          Bank's acts or omissions with respect thereto. Borrower further hereby
          indemnifies  and agrees to hold the Bank and its officers,  attorneys,
          agents  and  employees  harmless  from  any  loss,  damage,  judgment,
          liability or expense  (including  reasonable counsel fees) suffered by
          or rendered  against the Bank on account of any  respective  breach or
          non-performance of Borrower under the terms of the Loan Agreement, the
          Note, the Pledge  Agreement,  the Collateral  Assignments of Mortgage,
          any of the other Bank Loan Documents or any other  document  delivered
          pursuant thereto.

     9.   MISCELLANEOUS.

          1.   Borrower  shall  pay or  reimburse  all of the  Bank's  costs and
               expenses  incurred in connection with this  Agreement,  including
               without  limitation,  reasonable  attorneys'  fees, and all other
               charges,  fees and  expenses  incurred by the Bank in  connection
               herewith.

          2.   This Agreement  shall inure to the benefit of and be binding upon
               the parties hereto and their  respective  successors and assigns.
               Nothing expressed or referred to in this Agreement is intended or
               shall be  construed  to give any person or entity  other than the
               parties  hereto  any legal or  equitable  right,  remedy or claim
               under or with respect to this Agreement, or any provision hereof.

          3.   In the  event  any  provisions  of this  Agreement  shall be held
               invalid or unenforceable by any court of competent  jurisdiction,
               such holding  shall not  invalidate or render  unenforceable  any
               other provision hereof.

          4.   This  Agreement  shall be governed by and construed in accordance
               with the laws of the Commonwealth of Pennsylvania.

          5.   This  Agreement  may be executed in  counterparts,  each of which
               shall be  deemed an  original,  but all of which  together  shall
               constitute one and the same instrument.

          6.   The  headings  used in this  Agreement  are  for  convenience  of
               reference  only,  do not form a part of this  Agreement and shall
               not  affect  in any way the  meaning  or  interpretation  of this
               Agreement.

     10.  CONFESSION  OF  JUDGMENT;  WAIVER OF JURY  TRIAL.  BORROWER  EXPRESSLY
          RATIFIES AND CONFIRMS  THE  CONFESSION  OF JUDGMENT AND WAIVER OF JURY
          TRIAL PROVISIONS CONTAINED IN THE BANK LOAN DOCUMENTS.

<PAGE>

          IN WITNESS  WHEREOF,  the parties  hereto under Seal,  intending to be
legally  bound,  have executed this Agreement as of the day and year first above
written.

[SEAL]                                         BORROWER:

ATTESTATION:                                   DVL, INC., a Delaware Corporation

By:      ______________________                By: _____________________________
Name:    ______________________                Name: ___________________________
Title:   ______________________                Title: __________________________

                                               BANK:

                                               PENNSYLVANIA BUSINESS BANK

                                               By: _____________________________
                                               Name: ___________________________
                                               Title: __________________________

<PAGE>

                                   SCHEDULE I
                                   ----------

                         ASSIGNMENTS OF LEASES AND RENTS
                         -------------------------------

--------------------------------------------------------------------------------
                     DOCUMENT         EXECUTION  RECORDING        BOOK/PAGE
                                        DATE        DATE    (LASALLE PARISH, LA)
--------------------------------------------------------------------------------
Assignment of Lease & Rentals from    11/28/83   11/30/83    123/378
Kenbee Management-Oklahoma, Inc.                             Registry No. 124040
("Kenbee") to State of Wisconsin
Investment Board
--------------------------------------------------------------------------------
Assignment of Leases & Rents in       11/23/82   11/30/82    394/129
favor of Kenbee
Management-Oklahoma, Inc. (held by
assignment to Del-Val)
--------------------------------------------------------------------------------
Assignment of Leases and Rents from   11/19/85   11/20/85    904/337
Alexandria to Kenbee
Management-Oklahoma, Inc.
--------------------------------------------------------------------------------
Second Assignment of Leases and       11/7/83    11/9/83     0916/185
Rents from Ava Associates to Kenbee
Management-Connecticut Inc.
--------------------------------------------------------------------------------

<PAGE>

                                   SCHEDULE II
                                   -----------

                                COLLATERAL NOTES
                                ----------------

--------------------------------------------------------------------------------
                                                                       EXECUTION
                     DOCUMENT                                             DATE
--------------------------------------------------------------------------------
$900,000 Note from Jena Associates to Kenbee Management-Oklahoma,      11/28/83
Inc., as amended 11/28/83
--------------------------------------------------------------------------------
$3,550,000 Note from St. Albans Associates to Spring Valley            12/28/79
Development Corporation, Inc.
--------------------------------------------------------------------------------
$1,090,000 Note from Stigler Associates to Kenbee                      11/23/82
Management-Oklahoma, Inc.
--------------------------------------------------------------------------------
$685,000 Note from Alexandria Associates to Kenbee                     11/19/85
Management-Oklahoma, Inc.
--------------------------------------------------------------------------------
$1,083,000 Note from Champlain Associates to Kenbee                    01/29/82
Management-Connecticut, Inc., as amended 1/1/87 and 1/1/92
--------------------------------------------------------------------------------
$260,000 Note from Ava Associates to Kenbee                            11/07/83
Management-Connecticut, Inc., as amended 11/7/83
--------------------------------------------------------------------------------

<PAGE>

                                  SCHEDULE III
                                  ------------

                                    MORTGAGES
                                    ---------

--------------------------------------------------------------------------------
           DOCUMENT                EXECUTION    RECORDING         BOOK/PAGE
                                     DATE          DATE
--------------------------------------------------------------------------------
$900,000 Wrap-Around Mortgage      11/28/83      11/30/83    MB 123/414
from Jena Associates to Kenbee                               Registry No. 124044
Management-Oklahoma, Inc., as
amended 10/9/87
--------------------------------------------------------------------------------
$3,550,000 Mortgage from St.       12/28/79      01/10/80    39/336 (City)
Albans Associates to Spring                                  35/72 (Town)
Valley Development
Corporation, Inc., as modified
1/1/92 & 6/30/95
--------------------------------------------------------------------------------
$1,090,000 Mortgage from           11/23/82      11/30/82    MB 394/118
Stigler Associates to Kenbee
Management-Oklahoma, Inc., as
modified 12/13/83, 1/1/88 &
1/1/92
--------------------------------------------------------------------------------
$685,000 Mortgage from             11/19/85      11/20/85    480/219
Alexandria Associates to
Kenbee Management-Oklahoma,
Inc., as modified 3/18/86
--------------------------------------------------------------------------------
$1,083,000 Mortgage from           01/29/82      02/08/82    Liber 343/111
Champlain Associates to Kenbee
Management- Connecticut, Inc.,
as modified 1/1/87 and 1/1/92
--------------------------------------------------------------------------------
$260,000 Mortgage from Ava         11/07/83      11/09/83    0916/177
Associates to Kenbee
Management-Connecticut, Inc.,
as modified 11/7/83
--------------------------------------------------------------------------------

<PAGE>

                                   SCHEDULE IV
                                   -----------

                                  TENANT LEASES
                                  -------------

--------------------------------------------------------------------------------
                                                                       EXECUTION
                                  DOCUMENT                                DATE
--------------------------------------------------------------------------------
Lease between Kenbee Management-Oklahoma, Inc. and                     11/28/83
Wal-Mart Stores, Inc.
--------------------------------------------------------------------------------
Lease between St. Albans Associates and The Fonda Group, Inc., as      09/01/89
amended August 24, 1990, August 7, 1992 and March 24, 1995.
--------------------------------------------------------------------------------
Lease Between Stigler Associates                                       11/23/82
& Wal-Mart Stores, Inc.
--------------------------------------------------------------------------------
Lease between Tanner Building Co., Inc. & Fay's Drug Company           03/25/85
--------------------------------------------------------------------------------
Lease between Ava Associates and Hannaford Bros. Co.                   01/01/99
--------------------------------------------------------------------------------
Lease between Champlain Associates and Ames Department Stores, Inc.    01/29/82
--------------------------------------------------------------------------------

<PAGE>

                                   SCHEDULE V
                                   ----------

                    SENIOR LOAN AND COLLATERAL LOAN BALANCES
                    ----------------------------------------

--------------------------------------------------------------------------------
 Property                Senior Loan Balances           Collateral Loan Balances
--------------------------------------------------------------------------------
Alexandria                   $93,371.94                        $853,042.78
--------------------------------------------------------------------------------
Jena                         332,680.82                       1,710,058.92

                             358,506.36
--------------------------------------------------------------------------------
Stigler                      330,728.77                       2,601,182.08

                             284,762.55
--------------------------------------------------------------------------------
St. Albans                   967,223.88                       2,056,851.15
--------------------------------------------------------------------------------
Ossipee                           [ 0]                           $197,861
--------------------------------------------------------------------------------
Champlain                         [ 0]                           $637,578
--------------------------------------------------------------------------------

<PAGE>

                                   SCHEDULE VI
                                   -----------

                         SENIOR LOANS AND TENANT LEASES
                         ------------------------------

--------------------------------------------------------------------------------
 Property                 Senior Loans                        Tenant Leases
--------------------------------------------------------------------------------
Alexandria   Central Life Assurance Company dated          Fay's Drug Company
             3/18/86 in original principal amount of
             $603,500
--------------------------------------------------------------------------------
Jena         State of Wisconsin Investment Board dated     Wal-Mart Stores, Inc.
             11/28/83 in original principal amount of
             $800,631

             Firstar Trust Company, as agent for Phoenix
             Home Life Mutual Insurance Company dated
             5/6/94 in original principal amount of
             $231,784.48
--------------------------------------------------------------------------------
Stigler      State of Wisconsin Board of Investment        Wal-Mart Stores, Inc.
             dated 12/15/83 in original principal amount
             of $783,493

             Firstar Trust Company, as agent for Phoenix
             Home Life Mutual Insurance Company dated
             5/23/94 in original principal amount of
             $184,048.84
--------------------------------------------------------------------------------
St. Albans   Lincoln National Life Insurance Company       The Fonda Group
             dated 6/30/95 in original principal amount
             of $1,633,456.25
--------------------------------------------------------------------------------
Ossipee      [None]                                        Hannaford Bros. Co.
--------------------------------------------------------------------------------
Champlain    [None]                                        Ames Department
                                                            Stores, Inc.
--------------------------------------------------------------------------------EXHIBIT 10.28

                          MORTGAGE ASSIGNMENT AGREEMENT

     MORTGAGE ASSIGNMENT AGREEMENT (the "Agreement"), made this 8th day of
August, 2000, by and between Rumson Mortgage Holdings LLC, a Delaware limited
liability company, having an office c/o Pembroke Companies, Inc. 70 East 55th
Street, 7th Floor, New York, New York 10022 ("Assignor") and DVL, Inc., having
an office at 70 East 55th Street, New York, New York 10022 ("Assignee").

     WHEREAS, Assignor is the holder of certain Notes and Mortgages as
heretofore amended and assigned (the "Loan Documents"), secured by various
properties (the "Properties"); and

     WHEREAS, the Properties, the respective owners thereof (the
"Partnerships"), and the documents by which the mortgagee's interest in the Loan
Documents was transferred to Assignor, are listed on Exhibit "A" annexed hereto;
and

     WHEREAS, Assignor wishes to sell, and Assignee wishes to purchase, all of
the Assignor's right, title and interest in and to the Loan Documents;

     NOW, THEREFORE, by mutual agreement and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:

     1.   ASSIGNMENT OF LOAN DOCUMENTS. At the Closing (as hereinafter defined),
the following actions shall be taken:

          A.   Assignor shall transfer and assign all its right, title and
interest in and to the Loan Documents to Assignee and Assignee shall assume the
obligations of mortgagee thereunder, by means of the execution by Assignor and
Assignee of a separate Assignment and Assumption of Mortgage and Note,
pertaining to each Property (each an "Assignment"), with each such Assignment
being substantially in the form annexed hereto as Exhibit "B". The form of
Assignment shall be modified in such manner as may be necessary in order to
conform to the recording requirements of the jurisdiction in which the Property
affected by the Loan Documents is located.

          B.   Assignee shall pay to Assignor, the sum of Nine Hundred Thousand
Dollars AND 00/100 ($900,000.00), at Closing, as consideration for the transfer
and assignment of the Loan Documents (the "Consideration"), as follows: (i)
$700,000, by wire transfer of immediately available funds, in accordance with
the instructions attached hereto as Exhibit "C" and (ii) $200,000, by delivery
of a promissory note made payable to Assignor in substantially the form attached
hereto as Exhibit "D".

     2.   CLOSING. The closing of the transfer of the Assignor's interest in the
Loan Documents (the "Closing") shall be conducted in person at Assignor's office
on August __, 2000 (the "Closing Date"). On the Closing Date, the parties shall
execute the Assignment for each of the Properties and Assignee shall then wire
the Consideration to Assignor.

     3.   REPRESENTATIONS, WARRANTIES AND COVENANTS OF ASSIGNOR. Assignor hereby
represents, warrants and covenants to Assignee as follows:

          A.   The Loan Documents were acquired by Assignor pursuant to the
instruments set forth on Exhibit "A", have not been assigned, pledged or
otherwise encumbered by Assignor, and have not been subjected to any liens
placed thereon by third parties or by operation of law since the respective
dates of Assignor's acquisition thereof as set forth on Exhibit "A".

<PAGE>

          B.   The Assignor has the authority to execute this Agreement and
other documents necessary to effectuate the purpose of this Agreement and has
the authority to sell and transfer the Loan Documents to Assignee.

          It shall be a condition of Assignee's obligation to effect the Closing
that the representations set forth in the Section 3 shall be true and correct as
of the Closing Date as if made at and as of said date.

     4.   REPRESENTATIONS, WARRANTIES AND COVENANTS OF ASSIGNEE. Assignee hereby
represents, warrants and covenants to Assignor as follows:

          A.   The Assignee has the authority to execute this Agreement and
other documents necessary to effectuate the purpose of this Agreement and has
the authority to purchase and assume the transfer the Loan Documents from
Assignor.

          B.   Assignee acknowledges and agrees that the Loan Documents are
sold, transferred and assigned to Assignee on an "AS IS", "WHERE IS" basis and
"WITH ALL FAULTS".

     5.   PARTNERSHIP NOTIFICATION. As soon as practicable after the Closing
Date, Assignee shall notify the Partnerships that the Loan Documents have been
assigned by Assignor to Assignee.

     6.   GOVERNING LAW; ASSIGNMENT. This Agreement shall be interpreted under
the laws of the State of New York. Assignor may not assign this Agreement under
any circumstances. Assignee may assign this Agreement only with Assignor's prior
written consent, except that no such consent shall be required for an assignment
to an affiliate of Assignee.

     7.   NOTICE. Notice by either party to the other hereunder shall be
provided in writing by hand, certified mail, return receipt requested or
overnight courier to the other party at its address first set forth above.

     8.   EXPENSES. Assignee shall pay the costs of recording the Assignments in
connection with this transaction.

     11   SURVIVAL. The provisions of Sections 3, 4 and 5 hereof shall survive
the Closing.

     12.  COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be considered an original, but all of which
together shall constitute the same instrument.

     IN WITNESS WHEREOF, the parties have executed this instrument as of the day
and year first written above.

                                    ASSIGNOR:

                                    RUMSON MORTGAGE
                                    HOLDINGS LLC

                                    BY: PEMMIL MANAGEMENT LLC,
                                        MANAGING MEMBER

                                    BY: PEMBROKE COMPANIES, INC.,
                                        A MEMBER

<PAGE>

                                    By:
                                       -----------------------------------------
                                        Lawrence J. Cohen
                                        President

                                    ASSIGNEE:

                                    DVL, INC.

                                    By:
                                       -----------------------------------------
                                        Gary Flicker
                                        Executive Vice President

<PAGE>

                                    EXHIBIT A

                      PROPERTIES, OWNERS AND LOAN DOCUMENTS

                                                Recording or Other Data
                                                for Document Transferring
                                                Mortgagee's Interest to
PARTNERSHIP                PROPERTY                      ASSIGNOR
-----------                --------                      --------

Champlain Associates     Champlain, NY    Dated as of June 3, 1998 and recorded
                                          June 25, 1998 as Instrument No. 101702
                                          in the Clinton County Clerk's Office,
                                          New York

Ava Associates        Ava, New Hampshire  Dated August 20, 1998 and recorded in
                                          the at Book 1764, Page 121 in the
                                          Carroll County Registry of Deeds,
                                          New Hampshire

<PAGE>

                                    EXHIBIT C
                                    ---------

                           WIRE TRANSFER INSTRUCTIONS
                           --------------------------

                                [To be inserted]

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