Document:

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                                                                    Exhibit 10.3

                                      NOTE

New York, New York                                                  $123,000,000

         NOTE, dated as of September 18, 2002 (this NOTE), by BRE/PARK PLACE
L.L.C., a Delaware limited liability company (BORROWER), having an address at
c/o Blackstone Real Estate Acquisitions III L.L.C., 345 Park Avenue, New York,
New York 10154, in favor of GERMAN AMERICAN CAPITAL CORPORATION, a Maryland
corporation (together with its successors and assigns, LENDER), having an office
at 31 West 52nd Street, 17th Floor, New York, New York 10019.

         NOW, THEREFORE, FOR VALUE RECEIVED, Borrower promises to pay to the
order of Lender the Principal Amount (as defined below), together with interest
from the date hereof and other fees, expenses and charges as provided in this
Note.

1.       DEFINED TERMS.

         a.       Capitalized terms used but not otherwise defined herein shall
                  have the respective meanings given thereto in the Loan
                  Agreement, unless otherwise expressly provided herein. All
                  references to sections shall be deemed to be references to
                  sections of this Note, unless otherwise indicated.

         b.       The following terms shall have the meaning ascribed thereto:

         BORROWER shall have the meaning provided in the first paragraph hereof.

         DEFAULT RATE shall mean, with respect to an acceleration of the Loan, a
         rate per annum equal to the lesser of (a) the Maximum Legal Rate and
         (b) four percent (4%) above the LIBOR Rate, adjusted from time to time
         as set forth herein.

         EXTENSION FEE shall mean a non-refundable fee equal to 0.125% of the
         outstanding Principal Amount and payable in connection with Borrower's
         exercise of each of the Second Extension Option and the Third Extension
         Option on or before the date immediately preceding the commencement
         date of each such extended term.

         EXTENSION NOTICE shall have the meaning set forth in Section 5(a).

         EXTENSION OPTION shall mean the First Extension Option, the Second
         Extension Option, or the Third Extension Option, as applicable.

         FIRST EXTENDED MATURITY DATE shall have the meaning set forth in
         Section 5(a).

         FIRST EXTENSION OPTION shall have the meaning set forth in Section
         5(a).

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         INITIAL MATURITY DATE shall mean November 9, 2004.

         INTEREST DETERMINATION DATE shall mean, with respect to each Interest
         Period, the date which is two (2) Business Days prior to the fifteenth
         (15th) day of each calendar month.

         INTEREST PERIOD shall mean each interest period commencing on the
         fifteenth (15th) calendar day of a calendar month and ending on (and
         including) the fourteenth (14th) calendar day of the following calendar
         month; provided that the first interest period shall commence on the
         date hereof.

         LENDER shall have the meaning provided in the first paragraph hereof.

         LIBOR shall mean, with respect to any Interest Determination Date, the
         rate (expressed as a percentage per annum rounded upwards, if
         necessary, to the nearest one sixteenth (1/16) of one percent (1%)) for
         deposits in U.S. Dollars for a one (1) month period that appears on
         Telerate Page 3750 (as defined below) as of 11:00 a.m., London time, on
         such Interest Determination Date. If such rate does not appear on
         Telerate Page 3750 as of 11:00 a.m., London time, on the applicable
         Interest Determination Date, the Lender shall request the principal
         London office of any four (4) prime banks in the London interbank
         market selected by the Lender to provide such banks' quotations of the
         rates at which deposits in U.S. Dollars are offered by such banks at
         approximately 11:00 a.m., London time, to prime banks in the London
         interbank market for a one (1) month period commencing on the first day
         of the related Interest Period and in a principal amount that is
         representative for a single transaction in the relevant market at the
         relevant time. If at least two (2) such offered quotations are so
         provided, LIBOR will be the arithmetic mean of such quotations
         (expressed as a percentage and rounded upwards, if necessary, to the
         nearest one sixteenth (1/16) of one percent (1%)). If fewer than two
         (2) such quotations are so provided, the Lender will request major
         banks in New York City selected by the Lender to quote such banks'
         rates for loans in U.S. Dollars to leading European banks as of
         approximately 11:00 a.m., New York City time, on the applicable
         Interest Determination Date for a one (1) month period commencing on
         the first day of the related Interest Period and in an amount that is
         representative for a single transaction in the relevant market at the
         relevant time. If at least two (2) such rates are so provided, LIBOR
         will be the arithmetic mean of such rates (expressed as a percentage
         and rounded upwards, if necessary, to the nearest one sixteenth (1/16)
         of one percent (1%)). If fewer than two (2) rates are so provided, then
         LIBOR will be LIBOR used to determine the LIBOR Rate during the
         immediately preceding Interest Period.

         LIBOR MARGIN shall mean 1.08630081% per annum.

         LIBOR RATE shall mean, with respect to each Interest Period, an
         interest rate per annum equal to the sum of (A) LIBOR, determined as of
         the Interest Determination Date immediately preceding the commencement
         of such Interest Period, plus (B) the LIBOR Margin.

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         LIQUIDATED DAMAGES AMOUNT shall have the meaning set forth in Section
         4(d).

         LOAN AGREEMENT shall mean the Loan and Security Agreement, dated the
         date hereof, between Borrower and Lender.

         LOCKOUT PERIOD shall mean the period from the date hereof through but
         excluding the Lockout Release Date during which time no prepayment of
         the Loan shall be permitted.

         LOCKOUT RELEASE DATE shall mean October 10, 2004.

         MATURITY DATE shall mean the Initial Maturity Date, provided that (a)
         in the event of the exercise by Borrower of the First Extension Option
         pursuant to Section 5(a) of this Note, the Maturity Date shall be the
         First Extended Maturity Date, (b) in the event of the exercise by
         Borrower of the Second Extension Option pursuant to Section 5(a) of
         this Note, the Maturity Date shall be the Second Extended Maturity
         Date, and (c) in the event of the exercise by Borrower of the Third
         Extension Option pursuant to Section 5(a) of this Note, the Maturity
         Date shall be the Third Extended Maturity Date, or such earlier date on
         which the final payment of principal of this Note becomes due and
         payable as provided in the Loan Agreement or this Note, whether at such
         stated maturity date, by declaration of acceleration, or otherwise.

         MATURITY DATE PAYMENT shall have the meaning set forth in Section 3(d).

         NOTE shall have the meaning provided in the first paragraph hereof.

         PAYMENT DATE shall be the ninth (9th) calendar day of each calendar
         month and if such day is not a Business Day, then the Business Day
         immediately preceding such day, commencing on November 9, 2002 and
         continuing to and including the Maturity Date.

         PRINCIPAL AMOUNT shall mean $123,000,000 or so much as may be
         outstanding under this Note.

         SECOND EXTENDED MATURITY DATE shall have the meaning set forth in
         Section 5(a).

         SECOND EXTENSION OPTION shall have the meaning set forth in Section
         5(a).

         TELERATE PAGE 3750 shall mean the display designated as "Page 3750" on
         the Dow Jones Telerate Service (or such other page as may replace Page
         3750 on that service) or such other service as may be nominated by the
         British Bankers' Association as the information vendor for the purpose
         of displaying British Bankers' Association Interest Settlement Rates
         for U.S. Dollar deposits.

         THIRD EXTENDED MATURITY DATE shall have the meaning set forth in
         Section 5(a).

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         THIRD EXTENSION OPTION shall have the meaning set forth in Section
         5(a).

2.       INTEREST.

         a.       Prior to the Maturity Date, interest shall accrue on the
                  Principal Amount as follows:

                  i.       from and including the date hereof to, but not
                           including, the first (1st) day of the second (2nd)
                           Interest Period (i.e., the 15th day of the first
                           calendar month immediately after the date hereof), at
                           a rate per annum equal to 2.90630081%; and

                  ii.      from and including the first (1st) full day of the
                           second (2nd) Interest Period immediately following
                           the date of this Note, during the term of this Note
                           and thereafter during each Interest Period, at the
                           LIBOR Rate.

         b.       From and after the Maturity Date and from and after the
                  occurrence (but only during the continuance) of an Event of
                  Default, interest shall accrue on the Principal Amount at the
                  Default Rate.

         c.       Except as expressly set forth in the Loan Documents to the
                  contrary, interest shall accrue on all amounts advanced by
                  Lender pursuant to the Loan Documents at the Default Rate.

         d.       Interest, for any given Interest Period, shall be computed on
                  the Principal Amount on the basis of a fraction, the
                  denominator of which shall be 360 and the numerator of which
                  shall be the actual number of days in the relevant Interest
                  Period.

         e.       The provisions of this Section 2 are subject in all events to
                  the provisions of Section 2.2.4 of the Loan Agreement.

3.       PAYMENTS.

         a.       On each Payment Date, Borrower shall pay to Lender interest
                  accruing hereunder during the entire Interest Period in which
                  said Payment Date occurs.

         b.       All payments made by Borrower hereunder or under any of the
                  Loan Documents shall be made on or before 2:00 p.m. New York
                  City time. Any payments received after such time shall be
                  credited to the next following Business Day.

         c.       All amounts advanced by Lender pursuant to the Loan Documents,
                  other than the Principal Amount, or other charges provided in
                  the Loan Documents, shall be due and payable as provided in
                  the Loan Documents. In the event any such advance or charge is
                  not so repaid by Borrower, Lender may, at its option, first
                  apply any payments received under this Note to repay such
                  advances, together with any

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                  interest thereon, or other charges as provided in the Loan
                  Documents, and the balance, if any, shall be applied in
                  payment of any installment of interest or principal then due
                  and payable.

         d.       The entire Principal Amount of this Note, all unpaid accrued
                  interest, all interest that would accrue on the Principal
                  Amount through the end of the Interest Period during which the
                  Maturity Date occurs (even if such period extends beyond the
                  Maturity Date) and all other fees and sums then payable
                  hereunder or under the Loan Documents (collectively, the
                  MATURITY DATE PAYMENT) shall be due and payable in full on the
                  Maturity Date.

         e.       Amounts due on this Note shall be payable, without any
                  counterclaim, setoff or deduction whatsoever, at the office of
                  Lender or its agent or designee at the address set forth on
                  the first page of this Note or at such other place as Lender
                  or its agent or designee may from time to time designate in
                  writing.

         f.       All amounts due under this Note, including, without
                  limitation, interest and the Principal Amount, shall be due
                  and payable in lawful money of the United States.

         g.       To the extent that Borrower makes a payment or Lender receives
                  any payment or proceeds for Borrower's benefit, which are
                  subsequently invalidated, declared to be fraudulent or
                  preferential, set aside or required to be repaid to a trustee,
                  debtor in possession, receiver, custodian or any other party
                  under any bankruptcy law, common law or equitable cause, then,
                  to such extent, the obligations of Borrower hereunder intended
                  to be satisfied shall be revived and continue as if such
                  payment or proceeds had not been received by Lender.

4.       PREPAYMENTS. Prior to the Lockout Release Date, the outstanding
         Principal Amount may not be paid in whole or in part except in
         connection with a payment pursuant to Section 4(b) of this Note.

         a.       VOLUNTARY PREPAYMENTS. Borrower shall have the right on or
                  after the Lockout Release Date to prepay without penalty the
                  Principal Amount in whole, but not in part, upon satisfaction
                  of the following conditions:

                  i.       Borrower shall provide prior written notice (the
                           PREPAYMENT NOTICE) to Lender specifying the proposed
                           date on which the prepayment is to be made, which
                           date shall be no earlier than thirty (30) days after
                           the date of such Prepayment Notice and no later than
                           sixty (60) days after the date of such Prepayment
                           Notice (the date of such prepayment pursuant to this
                           Section 4(a) and Section 4(b) below being the
                           PREPAYMENT DATE);

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                  ii.      Borrower shall comply with the provisions set forth
                           in Section 4(c) and Section 4(d) of this Note; and

                  iii.     No prepayment shall be permitted on any date during
                           the period commencing on the first calendar day
                           immediately following a Payment Date to, but not
                           including, the Interest Determination Date in such
                           calendar month.

         b.       MANDATORY PREPAYMENTS.

                  i.       On the next occurring Payment Date following the date
                           on which Borrower actually receives any Proceeds, if
                           Lender is not obligated to make such Proceeds
                           available to Borrower for the restoration of the
                           Property, Borrower shall prepay the outstanding
                           principal balance of the Note in an amount equal to
                           one hundred percent (100%) of such Proceeds; and

                  ii.      Borrower shall comply with the provisions set forth
                           in Section 4(c) of this Note.

         c.       PAYMENTS IN CONNECTION WITH A PREPAYMENT.

                  i.       On the date on which a prepayment, voluntary or
                           involuntary, is made under this Note or as required
                           under the Loan Agreement, Borrower shall pay to
                           Lender all unpaid interest on the Principal Amount,
                           such unpaid interest calculated (even if such period
                           extends beyond the date of prepayment) (i) through
                           the end of the Interest Period during which such
                           prepayment is made if the Loan is prepaid from the
                           fifteenth (15th) day of any calender month through
                           the ninth (9th) day of the succeeding calender month,
                           or (ii) through the end of the Interest Period next
                           succeeding the Interest Period in which such
                           prepayment is made if the Loan is prepaid from the
                           Interest Determination Date in any calender month
                           through the fourteenth (14th) day of any calender
                           month;

                  ii.      On the Prepayment Date, Borrower shall pay to Lender
                           all other sums then due under the Note, the Loan
                           Agreement, the Security Instrument, and the other
                           Loan Documents; and

                  iii.     Borrower shall pay all costs and expenses of Lender
                           incurred in connection with the prepayment (including
                           without limitation, any costs and expenses incurred
                           by Lender in connection with a notice of prepayment
                           which is subsequently revoked, and including without
                           limitation, any costs and expenses associated with a
                           release of the Lien of the related Security
                           Instrument as set forth in Section 2.3.3 of the Loan
                           Agreement as well as reasonable attorneys' fees and
                           expenses).

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         d.       LIQUIDATED DAMAGES AMOUNT. IF OTHER THAN IN CONNECTION WITH
                  THE APPLICATION OF PROCEEDS PURSUANT TO SECTION 6.2 OF THE
                  LOAN AGREEMENT, NOTWITHSTANDING THE PROHIBITIONS OF THIS
                  SECTION 4, THE LOAN IS VOLUNTARILY OR INVOLUNTARILY REPAID
                  DURING THE LOCKOUT PERIOD, INCLUDING AS A RESULT OF AN
                  ACCELERATED MATURITY DATE, THEN BORROWER SHALL PAY TO LENDER,
                  AS LIQUIDATED DAMAGES FOR SUCH DEFAULT AND NOT AS A PENALTY,
                  AND IN ADDITION TO ANY AND ALL OTHER SUMS AND FEES PAYABLE
                  UNDER THIS NOTE AND THE OTHER LOAN DOCUMENTS, AN AMOUNT EQUAL
                  TO TWO PERCENT (2%) OF THE PRINCIPAL AMOUNT BEING REPAID (THE
                  LIQUIDATED DAMAGES AMOUNT).

5.       EXTENSION OPTIONS.

         a.       EXTENSION OPTIONS. Subject to the provisions of this Section
                  5, Borrower shall have (i) the option (the FIRST EXTENSION
                  OPTION), by irrevocable written notice (an EXTENSION NOTICE)
                  delivered to Lender no later thirty (30) days prior to the
                  Initial Maturity Date, to extend the Initial Maturity Date to
                  November 9, 2005 (the FIRST EXTENDED MATURITY DATE), (ii) the
                  option (the SECOND EXTENSION OPTION), by delivering to Lender
                  an Extension Notice no later than thirty (30) days prior to
                  the First Extended Maturity Date, to extend the First Extended
                  Maturity Date to November 9, 2006 (the SECOND EXTENDED
                  MATURITY DATE), and (iii) the option (the THIRD EXTENSION
                  OPTION), by delivering to Lender and Extension Notice no later
                  than thirty (30) days prior to the Second Extended Maturity
                  Date, to extend the Second Extended Maturity Date to November
                  9, 2007 (the THIRD EXTENDED MATURITY DATE). Borrower's right
                  to so extend the Maturity Date shall be subject to the
                  satisfaction of the following conditions precedent as of the
                  delivery of the applicable Extension Notice and as of the
                  Initial Maturity Date, the First Extended Maturity Date or the
                  Second Extended Maturity Date, as the case may be, prior to
                  such extension hereunder:

                  i.       No Monetary Default or Event of Default shall have
                           occurred and be continuing both on the date Borrower
                           delivers the Extension Notice and on the Initial
                           Maturity Date (or the First Extended Maturity Date or
                           the Second Extended Maturity Date, as the case may
                           be);

                  ii.      Borrower shall obtain and deliver to Lender not later
                           than one (1) Business Day prior to the first day of
                           the term of the Loan as extended one or more
                           Replacement Interest Rate Cap Agreements from an
                           Approved Counterparty which Replacement Interest Rate
                           Cap Agreement(s) shall be effective for the period
                           commencing on the day immediately following the then
                           applicable Maturity Date (prior to giving effect to
                           the applicable

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                           Extension Option) and ending on the last day of the
                           Interest Period in which the one (1) year anniversary
                           of such date occurs;

                  iii.     Borrower shall deliver a Counterparty Opinion with
                           respect to the Replacement Interest Rate Agreement
                           and the related Acknowledgment;

                  iv.      On or before the date immediately preceding the
                           Second Extended Maturity Date and the Third Extended
                           Maturity Date, as applicable, Borrower shall pay to
                           Lender the Extension Fee.

         b.       EXTENSION DOCUMENTATION. As soon as practicable following an
                  extension of the Maturity Date pursuant to this Section 5,
                  Borrower shall execute and deliver an extension and/or
                  restatement of the Note and shall enter into such extensions
                  of the related Loan Documents as may be necessary or
                  appropriate to evidence the extension of the Maturity Date as
                  provided in this Section 5; provided, however, that no failure
                  by Borrower to enter into any such extensions and/or
                  restatements shall affect the rights or obligations of
                  Borrower or Lender with respect to the extension of the
                  Maturity Date.

6.       MISCELLANEOUS.

         a.       WAIVER. Borrower and all endorsers, sureties and guarantors
                  hereby jointly and severally waive all applicable exemption
                  rights, valuation and appraisement, presentment for payment,
                  demand, notice of demand, notice of nonpayment or dishonor,
                  protest and notice of protest of this Note, and, except as
                  otherwise expressly provided in the Loan Documents, all other
                  notices in connection with the delivery, acceptance,
                  performance, default or enforcement of the payment of this
                  Note. Borrower and all endorsers, sureties and guarantors
                  consent to any and all extensions of time, renewals, waivers
                  or modifications that may be granted by Lender with respect to
                  the payment or other provisions of this Note and to the
                  release of the collateral securing this Note or any part
                  thereof, with or without substitution, and agree that
                  additional makers, endorsers, guarantors or sureties may
                  become parties hereto without notice to them or affecting
                  their liability under this Note.

         b.       NON-RECOURSE. Recourse to the Borrower with respect to any
                  claims arising under or in connection with this Note shall be
                  limited to the extent provided in Section 18.1 of the Loan
                  Agreement and the terms, covenants and conditions of Section
                  18.1 of the Loan Agreement are hereby incorporated by
                  reference as if fully set forth in this Note.

         c.       NOTE SECURED. This Note and all obligations of Borrower
                  hereunder are secured by the Loan Agreement, the Security
                  Instrument and the other Loan Documents.

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         d.       NOTICES. Any notice, election, request or demand which by any
                  provision of this Note is required or permitted to be given or
                  served hereunder shall be given or served in the manner
                  required for the delivery of notices pursuant to the Loan
                  Agreement.

         e.       ENTIRE AGREEMENT. This Note, together with the other Loan
                  Documents, constitutes the entire and final agreement between
                  Borrower and Lender with respect to the subject matter hereof
                  and may only be changed, amended, modified or waived by an
                  instrument in writing signed by Borrower and Lender.

         f.       NO WAIVER. No waiver of any term or condition of this Note,
                  whether by delay, omission or otherwise, shall be effective
                  unless in writing and signed by the party sought to be
                  charged, and then such waiver shall be effective only in the
                  specific instance and for the purpose for which given. No
                  notice to, or demand on, Borrower shall entitle Borrower to
                  any other or future notice or demand in the same, similar or
                  other circumstances.

         g.       SUCCESSORS AND ASSIGNS. This Note shall be binding upon and
                  inure to the benefit of Borrower and Lender and their
                  respective successors and permitted assigns. Upon any
                  endorsement, assignment, or other transfer of this Note by
                  Lender or by operation of law, the term "Lender," as used
                  herein, shall mean such endorsee, assignee, or other
                  transferee or successor to Lender then becoming the holder of
                  this Note. The term "Borrower" as used herein shall include
                  the respective successors and assigns, legal and personal
                  representatives, executors, administrators, devisees, legatees
                  and heirs of Borrower, if any.

         h.       CAPTIONS. All paragraph, section, exhibit and schedule
                  headings and captions herein are used for reference only and
                  in no way limit or describe the scope or intent of, or in any
                  way affect, this Note.

         i.       SEVERABILITY. The provisions of this Note are severable, and
                  if any one clause or provision hereof shall be held invalid or
                  unenforceable in whole or in part, then such invalidity or
                  unenforceability shall affect only such clause or provision,
                  or part thereof, and not any other clause or provision of this
                  Note.

         j.       GOVERNING LAW. THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED
                  IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT
                  TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.
                  BORROWER AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS NOTE
                  OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE
                  STATE OF NEW YORK OR ANY FEDERAL COURT SITTING THEREIN AND
                  CONSENT TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND THE
                  SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON BORROWER
                  IN

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                  THE MANNER AND AT THE ADDRESS SPECIFIED FOR NOTICES IN THE
                  LOAN AGREEMENT. BORROWER HEREBY WAIVES ANY OBJECTION THAT IT
                  MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY
                  SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT
                  COURT.

         k.       JURY TRIAL WAIVER. BORROWER AND ALL PERSONS CLAIMING BY,
                  THROUGH OR UNDER IT, HEREBY EXPRESSLY, KNOWINGLY, VOLUNTARILY
                  AND INTENTIONALLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY
                  CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (I) ARISING UNDER
                  THIS NOTE, INCLUDING, WITHOUT LIMITATION, ANY PRESENT OR
                  FUTURE MODIFICATION THEREOF OR (II) IN ANY WAY CONNECTED WITH
                  OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO
                  OR ANY OF THEM WITH RESPECT TO THIS NOTE (AS NOW OR HEREAFTER
                  MODIFIED) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT
                  EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE
                  TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER
                  SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION IS NOW EXISTING
                  OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT
                  OR OTHERWISE; AND BORROWER HEREBY AGREES AND CONSENTS THAT AN
                  ORIGINAL COUNTERPART OR A COPY OF THIS SECTION MAY BE FILED
                  WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT HERETO TO
                  THE WAIVER OF ANY RIGHT TO TRIAL BY JURY. BORROWER
                  ACKNOWLEDGES THAT IT HAS CONSULTED WITH LEGAL COUNSEL
                  REGARDING THE MEANING OF THIS WAIVER AND ACKNOWLEDGES THAT
                  THIS WAIVER IS AN ESSENTIAL INDUCEMENT FOR THE MAKING OF THE
                  LOAN. THIS WAIVER SHALL SURVIVE THE REPAYMENT OF THE LOAN.

         l.       Counterclaims and other Actions. Borrower hereby expressly and
                  unconditionally waives, in connection with any suit, action or
                  proceeding brought by Lender on this Note, any and every right
                  it may have to (i) interpose any counterclaim therein (other
                  than a counterclaim which can only be asserted in the suit,
                  action or proceeding brought by Lender on this Note and cannot
                  be maintained in a separate action) and (ii) have any such
                  suit, action or proceeding consolidated with any other or
                  separate suit, action or proceeding; provided, however, the
                  foregoing shall not prohibit Borrower from asserting any
                  unrelated claim in a separate suit, action or proceeding.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                       10

<PAGE>

         IN WITNESS WHEREOF, Borrower has caused this Note to be executed and
delivered as of the day and year first above written.

                             BORROWER:

                             BRE/PARK PLACE L.L.C., a Delaware limited liability
                             company

                             By: /s/ Frank Cohen
                                 -------------------------------
                                 Name: Frank Cohen
                                 Title: Vice President

                                 Note Execution<PAGE>
                                                                    Exhibit 10.4

Upon recording return to:
Suzanne M. Amaducci, P.A.
Bilzin Sumberg Baena Price & Axelrod LLP
200 South Biscayne Boulevard, Suite 2500
Miami, Florida  33131-2336

                                           (Space Above For Recorder's Use Only)

                             NOTE AND DEED OF TRUST
                              ASSUMPTION AGREEMENT
                      (COMM 2002-FL 7; LOAN NO. 903000091)

         THIS NOTE AND DEED OF TRUST ASSUMPTION AGREEMENT ("AGREEMENT") is dated
as of April 14, 2004 ("EFFECTIVE DATE"), among LASALLE BANK NATIONAL
ASSOCIATION, A NATIONAL BANKING ASSOCIATION, AS TRUSTEE FOR THE HOLDER OF COMM
2002-FL7 COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES ("LENDER"), having an
address at 135 South LaSalle Street, Suite 1625, Chicago, Illinois 60603, Re:
COMM 2002-FL 7; Loan No. 903000091; BRE/PARK PLACE, L.L.C., a Delaware limited
liability company ("ORIGINAL BORROWER"), having an address at c/o Blackstone
Real Estate Advisors, 345 Park Avenue, 32nd Floor, New York, New York 10154, and
MAGUIRE PROPERTIES - PARK PLACE, LLC, a Delaware limited liability company ("NEW
BORROWER"), having an address at 333 South Grand Avenue, Suite 400, Los Angeles,
California 90071. New Borrower's taxpayer identification number is 20-0877160.
Original Borrower and New Borrower are hereinafter sometimes collectively
referred to as "BORROWER PARTIES".

                              PRELIMINARY STATEMENT

         A. Original Borrower is the current fee simple owner of that certain
real property ("LAND") and the buildings and improvements thereon
("IMPROVEMENTS"), located at 3333, 3337 and 3345-3355 Michelson Drive, in
Irvine, Orange County, California, more particularly described in EXHIBIT A
attached hereto and made a part hereof (the Land and the Improvements are
hereinafter sometimes collectively referred to as the "PROJECT").

         B. Lender is the owner and holder of the Loan Documents described on
EXHIBIT B attached hereto evidencing and/or securing a $123,000,000 loan (the
"LOAN") (such documents, and all other agreements, documents and other
instruments evidencing, securing or in any manner relating to the Loan, all as
may be renewed, consolidated, replaced, extended, substituted, amended or
otherwise modified, shall hereinafter be collectively referred to as the "LOAN
DOCUMENTS"). The Loan is secured by the Project, which Project is described in
and encumbered by the Security Instrument described on EXHIBIT B.

         C. New Borrower desires to purchase Original Borrower's interest in the
Project and to assume all of Original Borrower's obligations under the Loan
Documents.

<PAGE>

         D. A sale of Original Borrower's interest in the Project to, and the
assumption of the Loan by, a third party without the consent of the holder of
the Security Instrument is prohibited by the terms thereof.

         E. The Lender has agreed to consent to the following requested actions
(the "REQUESTED ACTIONS"): (i) Original Borrower selling its interest in the
Project to New Borrower, (ii) New Borrower assuming all of Original Borrower's
obligations under the Loan Documents and (iii) Lender recognizing New Borrower
as the Borrower under the Loan and Loan Documents.

         F. All terms not defined herein shall have the meaning set forth in the
Loan Agreement.

         In consideration of $10.00 paid by each of the parties to the other,
the mutual covenants set forth below, and other good and valuable consideration,
receipt and sufficiency of which are acknowledged, the parties agree as follows:

                                    ARTICLE 1

                 ACKNOWLEDGMENTS, WARRANTIES AND REPRESENTATIONS

         1.1 ORIGINAL BORROWER REPRESENTATIONS. As a material inducement to
Lender to enter into this Agreement and to consent to the Requested Actions,
Original Borrower acknowledges, warrants, represents and agrees to and with
Lender as follows:

                  (a) Authority of Original Borrower. Original Borrower is a
duly organized, validly existing limited liability company in good standing
under the laws of the State of Delaware and is duly authorized to transact
business in the State of California. David Z. Hirsh is a Vice President of
Original Borrower. David Z. Hirsh, acting alone, without the joinder of any
other manager, member or officer of Original Borrower or any other party has the
power and authority to execute this Agreement on behalf of and to duly bind
Original Borrower under this Agreement. The execution and delivery of, and
performance under, this Agreement by Original Borrower has been duly and
properly authorized pursuant to all requisite company action and will not (i)
violate any provision of any law, rule, regulation, order, writ, judgment,
injunction, decree, determination or award presently in effect having
applicability to Original Borrower or the certificate of formation or the
operating agreement or any other organizational document of Original Borrower
that would materially impair the Project, the status of Original Borrower or its
ability to operate its business, or (ii) result in a breach of or constitute or
cause a default under any indenture, agreement, lease or instrument to which
Original Borrower is a party or by which the Project may be bound or affected
that would materially impair the Project or Original Borrower's ability to
operate its business.

                  (b) Compliance with Laws. To Original Borrower's knowledge,
all permits, licenses or other evidences of authority to use and operate the
Project as it is presently being operated and as contemplated by the Loan
Documents are current, valid and in full force and effect. Original Borrower has
not received any written notice from any governmental entity

                                       2
<PAGE>

claiming that Original Borrower or the Project is not presently in compliance
with any laws, ordinances, rules and regulations bearing upon the use and
operation of the Project.

                  (c) Rent Roll. The Rent Roll ("RENT ROLL") attached hereto and
made a part hereof as EXHIBIT C is a true, complete and accurate summary of all
tenant leases ("LEASES") affecting the Project as of the date of this Agreement.

                  (d) Leases. The Leases are the only leases affecting the
Project and are currently in full force and effect. Original Borrower has not
been notified in writing of any uncured landlord default under any of the
Leases; there are no leasing broker's or finder's commissions of any kind due or
to become under any Lease or the Project except as may be applicable to future
lease renewals or expansions; the rents and security deposits under the Leases
shown on the Rent Roll are true and correct in all material respects; Original
Borrower has not received any rents prepaid more than one month in advance or
given any concessions for free or reduced rent under the Leases not disclosed on
the Rent Roll and will not accept any prepaid rents for more than one month in
advance. Except as specified on the Rent Roll, all tenants at the Project are
currently in possession of their leased premises and are operating businesses
from their leased premises.

                  (e) REA's. The REAs affecting the Project are currently in
full force and effect. Original Borrower is unaware of any uncured default under
any of the REAs by any party thereto and all sums payable by Original Borrower
under the REAs have been paid in full.

                  (f) Title to Project and Legal Proceedings. Original Borrower
is the current fee simple owner of the Project. There are no pending or to
Original Borrower's current actual knowledge threatened suits, judgments,
arbitration proceedings, administrative claims, executions or other legal or
equitable actions or proceedings against Original Borrower or the Project that
if decided adversely to Original Borrower would have a material adverse affect
on Original Borrower or the Project; or any pending or threatened condemnation
proceedings or annexation proceedings affecting the Project; or any agreements
to convey any portion of the Project, or any rights thereto to any person or
entity not disclosed in this Agreement, including, without limitation, any
government or governmental agency.

         1.2 ACKNOWLEDGMENTS, WARRANTIES AND REPRESENTATIONS OF NEW BORROWER. As
a material inducement to Lender to enter into this Agreement and to consent to
the Requested Actions, New Borrower acknowledges, warrants, represents and
agrees to and with Lender as follows:

                  (a) Authority of New Borrower.

                           (i) New Borrower. New Borrower is a duly organized,
validly existing limited liability company in good standing under the laws of
the State of Delaware and is duly authorized to transact business in the State
of California. MP-Park Place Senior Mezzanine, LLC, a Delaware limited liability
company ("MP SENIOR"), the sole member of New Borrower, acting alone without the
joinder of any other member or manager of New Borrower or any other party, has
the power and authority to execute this Agreement on behalf of and to duly bind
New Borrower under this Agreement and the Loan Documents. The execution and
delivery

                                       3
<PAGE>

of, and performance under, this Agreement by New Borrower has been duly and
properly authorized pursuant to all requisite company action and will not (i)
violate any provision of any law, rule, regulation, order, writ, judgment,
injunction, decree, determination or award presently in effect having
applicability to New Borrower or the certificate of formation or the operating
agreement of New Borrower or any other organizational document of New Borrower,
or (ii) result in a breach of or constitute or cause a default under any
indenture, agreement, lease or instrument to which New Borrower is a party or by
which the Project may be bound or affected.

                           (ii) MP Senior. MP Senior is a duly organized,
validly existing limited liability company in good standing under the laws of
the State of Delaware and, if required by California law, is authorized to
transact business in the State of California. MP-Park Place Junior Mezzanine,
LLC, a Delaware limited liability company ("MP JUNIOR") is the sole member of MP
Senior. MP Junior, acting alone without the joinder of any other member or
manager of MP Senior or any other party, has the power and authority to execute
this Agreement on behalf of and to duly bind MP Senior and New Borrower under
this Agreement and the Loan Documents. The execution and delivery of, and
performance under, this Agreement by MP Senior, as the sole member of New
Borrower, has been duly and properly authorized pursuant to all requisite
company action and will not (i) violate any provision of any law, rule,
regulation, order, writ, judgment, injunction, decree, determination or award
presently in effect having applicability to MP Senior or the certificate of
formation or the operating agreement of MP Senior or any other organizational
document of MP Senior, or (ii) result in a breach of or constitute or cause a
default under any indenture, agreement, lease or instrument to which MP Senior
is a party or by which the Project may be bound or affected.

                           (iii) MP Junior. MP Junior is a duly organized,
validly existing limited liability company in good standing under the laws of
the State of Delaware and, if required by California law, is authorized to
transact business in the State of California. Maguire Properties, L.P., a
Maryland limited partnership ("MAGUIRE LP") is the sole member of MP Junior.
Maguire LP, acting alone without the joinder of any other member or manager of
MP Junior or any other party, has the power and authority to execute this
Agreement on behalf of and to duly bind MP Junior under this Agreement and the
Loan Documents. The execution and delivery of, and performance under, this
Agreement by MP Junior, as the sole member of MP Senior, has been duly and
properly authorized pursuant to all requisite company action and will not (i)
violate any provision of any law, rule, regulation, order, writ, judgment,
injunction, decree, determination or award presently in effect having
applicability to MP Junior or the certificate of formation or the operating
agreement of MP Junior or any other organizational document of MP Junior, or
(ii) result in a breach of or constitute or cause a default under any indenture,
agreement, lease or instrument to which MP Junior is a party or by which the
Project may be bound or affected.

                           (iv) Maguire LP. Maguire LP is a duly organized,
validly existing limited partnership in good standing under the laws of the
State of Maryland and, if required by California law, is authorized to transact
business in the State of California. Maguire Properties, Inc., a Maryland
corporation ("MAGUIRE INC.") is the general partner of Maguire LP. Maguire Inc.,
acting alone without the joinder of any other partner of Maguire LP or any other
party, has the power and authority to execute this Agreement on behalf of and to
duly bind Maguire LP

                                       4
<PAGE>

under this Agreement and the Loan Documents. The execution and delivery of, and
performance under, this Agreement by Maguire LP, as the sole member of MP
Senior, has been duly and properly authorized pursuant to all requisite
partnership action and will not (i) violate any provision of any law, rule,
regulation, order, writ, judgment, injunction, decree, determination or award
presently in effect having applicability to Maguire LP or the certificate of
limited partnership agreement or the limited partnership of Maguire LP or any
other organizational document of Maguire LP, or (ii) result in a breach of or
constitute or cause a default under any indenture, agreement, lease or
instrument to which Maguire LP is a party or by which the Project may be bound
or affected.

                           (v) Maguire Inc. Maguire Inc. is a duly organized,
validly existing corporation in good standing under the laws of the State of
Maryland and, if required by California law, is authorized to transact business
in the State of California. The execution and delivery of, and performance under
this Agreement by Maguire Inc. has been duly and properly authorized pursuant to
all requisite corporate action and will not (i) violate any provision of any
law, rule, regulation, order, writ, judgment, injunction, decree, determination
or award presently in effect having applicability to Maguire Inc. or the
articles of incorporation or bylaws of Maguire Inc. or any other organizational
document of Maguire Inc., or (ii) result in a breach of or constitute or cause a
default under any indenture, agreement, lease or instrument to which Maguire
Inc. is a party or by which the Project may be bound or affected.

                  (b) Financial Statements. The financial statements and other
information ("FINANCIAL STATEMENTS") of Maguire LP and Maguire Inc. which have
been previously delivered to Lender are true, complete and accurate in every
material respect and accurately represent the financial condition of Maguire LP
and Maguire Inc. as of the date thereof. There has not been any material adverse
change to the financial condition of Maguire LP or Maguire Inc. between the date
of the Financial Statements and the date of this Agreement. New Borrower also
acknowledges and agrees to cause Maguire LP and Maguire Inc. to timely comply
with all financial requirements set forth in the Loan Documents, including,
without limitation, those set forth in Section 11.2 of the Loan Agreement. New
Borrower acknowledges that the Financial Statements have been provided to Lender
to induce Lender to enter into this Agreement and are being relied upon by
Lender for such purposes.

                  (c) Bankruptcy Proceedings. None of New Borrower or any of the
entities described in Section 1.2(a) (collectively, "RELATED ENTITIES"), has
been a party to any Debtor Proceeding (as hereinafter defined) within seven (7)
years prior to the date of this Agreement.

                  (d) Defaults on Other Indebtedness. None of New Borrower, MP
Junior nor MP Senior has materially defaulted under its or their respective
obligations with respect to any other material indebtedness, and, with respect
to immaterial defaults by New Borrower, MP Junior or MP Senior with respect to
any other material indebtedness, such immaterial defaults have been cured prior
to the date of this Agreement.

                  (e) Title to Project and Legal Proceedings. There are no
pending or, to the best of New Borrower's knowledge, threatened suits,
unsatisfied judgments, arbitration proceedings, administrative claims,
executions or other legal or equitable actions or proceedings against New
Borrower or the Project.

                                       5
<PAGE>

                  (f) New Borrower's Organizational Documents. New Borrower is a
Single Purpose Entity as such term is defined in the Loan Agreement. New
Borrower is not in violation and will not violate of any of the terms,
covenants, conditions or other provisions of its organizational documents or the
Single Purpose Entity requirements set forth in the Loan Agreement.

                  (g) Assets of New Borrower. The only assets of New Borrower
are the Project together with any and all rights associated therewith and Cash
or Cash Equivalents.

                  (h) Management of Project. Upon completion of the Requested
Actions, Maguire LP will manage the Project in accordance with the terms of that
certain Property Management and Leasing Agreement dated as of the Effective Date
hereof between New Borrower and Maguire LP (the "NEW MANAGEMENT Agreement"). All
references to the term "Management Agreement" and "Manager" in the Loan
Agreement and the other Loan Documents shall hereinafter mean and refer to the
New Management Agreement, and Maguire LP, respectively. New Borrower covenants
and agrees to comply with all terms and conditions of the Loan Documents
concerning the management of the Project, including without limitation the
obligation to obtain Lender's consent to the management of the Property by any
entity other than Maguire LP or a Qualified Manager.

                  (i) Bona Fide Sale. The Requested Actions represent a bona
fide sale, transfer or conveyance for cash or equivalent consideration.

                  (j) Mezzanine Loans. In connection with the Requested Actions:
(i) MP Senior will assume the Mezzanine Loan and no modifications will be made
to any of the terms of the Mezzanine Loan Documents, and (ii) MP Junior will
assume the Junior Tier Mezzanine Loan and no modifications will be made to any
of the terms of the Junior Tier Mezzanine Loan Documents.

                  (k) New Borrower Parties' Interests. Except for the assumption
of the Mezzanine Loan and the Junior Tier Mezzanine Loan, as such terms are
defined in the Loan Agreement, none of New Borrower, MP Senior, MP Junior nor
Maguire LP are obtaining a loan to finance its interest in New Borrower or the
Project or pledging its interest in New Borrower, MP Senior or MP Junior to any
party.

         1.3 ACKNOWLEDGMENTS, WARRANTIES AND REPRESENTATIONS OF BORROWER
PARTIES. As a material inducement to Lender to enter into this Agreement and to
consent to Requested Actions, each of the Borrower Parties as to itself, only,
acknowledges, warrants, represents and agrees to and with Lender as follows:

                  (a) Indebtedness. As of March 25, 2004, the outstanding
principal balance of the Loan was $ 123,000,000, outstanding late charges total
$0 and outstanding default interest totals $0 and the following escrow and
reserve balances (collectively, "ESCROW BALANCES") are being held by Lender: (i)
a Tax Reserve Account balance of $727,924.83; (ii) an Insurance Reserve Account
balance of $1,384,237.64; (iii) a Structural Reserve Escrow balance of
$425,961.04; (iv) a REA Charges Reserve Account balance of $0; (v) a Deferred
Maintenance

                                       6
<PAGE>

Reserve balance of $268,476.05; and (vi) a TI and Leasing Reserve Account
balance of $398,572.29. Further, Borrower Parties acknowledge and agree that
Lender will continue to hold the Escrow Balances for the benefit of New Borrower
in accordance with the terms of the Loan Documents. In the event of an error or
omission of the foregoing information, neither Lender nor New Borrower in any
way prejudices their respective rights and entitlements to all monies lawfully
due Lender or New Borrower as applicable. By its execution hereof, Lender
represents and warrants to New Borrower that to Lender's actual knowledge, (i)
the foregoing amounts are correct and there are no other reserve balances held
by Lender; (ii) all interest and principal payments due under the Loan Documents
through and including March 15, 2004 have been paid and the next payment of
interest and reserve is due on April 15, 2004 in the amount of $895,754.67,
(iii) Lender has not issued any written notices of default to Original Borrower
which have not been cured, and (iv) there are no existing material defaults
under the Loan Documents.

                  (b) Loan Documents. Original Borrower represents that the Loan
Documents constitute valid and legally binding obligations of Original Borrower
enforceable against Original Borrower and the Project in accordance with their
terms but subject to the terms of the release provisions contained in Section
1.4 hereof. New Borrower represents that from and after the date hereof, the
Loan Documents constitute valid and legally binding obligations of New Borrower
and the Project. Borrower Parties have no defenses, setoffs, claims,
counterclaims or causes of action of any kind or nature whatsoever against
Lender or any of Lender's predecessors in interest, and any subsidiary or
affiliate of Lender and all of the past, present and future officers, directors,
contractors, employees, agents, servicers (including, but not limited to, Lennar
Partners, Inc.), attorneys, representatives, participants, successors and
assigns of Lender and Lender's predecessors in interest (collectively, "LENDER
PARTIES") or with respect to (i) the Loan, (ii) the Loan Documents, (iii) the
"Debt" and the "Obligations" (as defined in the Loan Agreement and Security
Instrument, respectively), (iv) any other documents or instruments now or
previously evidencing, securing or in any way relating to the Loan, (v) the
administration or funding of the Loan or (vi) the development, operation or
financing of the Project. To the extent any of Borrower Parties would be deemed
to have any such defenses, setoffs, claims, counterclaims or causes of action,
any such Borrower Party knowingly waives and relinquishes them. New Borrower
acknowledges that it has received copies of all of the Loan Documents.

                  (c) Bankruptcy. Each of the Borrower Parties has no current
intent to (i) file any voluntary petition under any Chapter of the Bankruptcy
Code, Title 11, U.S.C.A. ("BANKRUPTCY CODE"), or in any manner to seek any
proceeding for relief, protection, reorganization, liquidation, dissolution or
similar relief for debtors ("DEBTOR PROCEEDING") under any local, state, federal
or other insolvency law or laws providing relief for debtors or (ii) directly or
indirectly to cause any involuntary petition under any Chapter of the Bankruptcy
Code to be filed against any of Borrower Parties, or (iii) directly or
indirectly to cause the Project or any portion or any interest of any of
Borrower Parties in the Project to become the property of any bankrupt estate or
the subject of any Debtor Proceeding.

                  (d) No Default. To Original Borrower's knowledge and to New
Borrower's actual knowledge, except as specified below, no event, fact or
circumstance has occurred or failed to occur which constitutes, or with the
lapse or passage of time, giving of notice or both,

                                       7
<PAGE>

could constitute a default or "EVENT OF DEFAULT" as such term is defined in the
Loan Agreement. Notwithstanding the foregoing, New Borrower does not make any
representations or warranties regarding the organizational documents or status
of Original Borrower or the truth or accuracy of any document or information
submitted by Original Borrower to Original Lender or Lender; however, New
Borrower does not have any actual knowledge that any document or information
submitted is materially misleading or materially inaccurate.

                  (e) Further Assurances. Each of Borrower Parties shall execute
and deliver to Lender such agreements, instruments, documents, financing
statements and other writings as may be reasonably requested from time to time
by Lender to perfect and to maintain the perfection of Lender's security
interest in and to the Project, and to consummate the transactions contemplated
by or in the Loan Documents and this Agreement.

         1.4 REAFFIRMATIONS AND RELEASE. Original Borrower reaffirms, solely for
the benefit of Lender, the truth and accuracy in all material respects of all
representations and warranties set forth the Loan Documents as if made on the
date hereof except that (i) the Rent Roll referenced in the Loan Agreement shall
mean and refer to the Rent Roll attached hereto and (ii) Schedules I, III, VI
and VIII attached hereto shall replace such corresponding Schedules in the Loan
Agreement. New Borrower, to the best of its actual knowledge, affirms and
confirms the truth and accuracy of all representations and warranties set forth
in the Loan Documents as if made on the date hereof. Original Borrower
acknowledges and agrees that nothing contained in this Agreement, nor the
Requested Actions, shall release or relieve Original Borrower from its
obligations, agreements, duties, liabilities, covenants and undertakings under
the Loan Documents arising prior to the date hereof, provided, however, by its
execution hereof, Lender on behalf of itself and all Lender Parties hereby
releases Original Borrower and its members, managers, officers, agents,
employees and contractors for any acts or events occurring or obligations
arising under the Loan Documents (with the exception of the Environmental
Indemnity, the provisions for the release of Original Borrower being set forth
in the Reaffirmation of Environmental Indemnity being executed in connection
herewith).

                                    ARTICLE 2

                          COVENANTS OF BORROWER PARTIES

         Each of the Borrower Parties as to itself only, covenants and agrees
with Lender that:

         2.1 ASSUMPTION OF LOAN. New Borrower hereby assumes the indebtedness
due under the Note and all of Original Borrower's other obligations, as grantor,
mortgagor, borrower, trustor, indemnitor, guarantor, or maker, as the case may
be, under the Loan Documents to the same extent as if New Borrower had signed
such instruments. New Borrower agrees to comply with and be bound by all the
terms, covenants and agreements, conditions and provisions set forth in the Loan
Documents.

         2.2 ASSUMPTION FEE. Simultaneously with or prior to the execution
hereof, any or both of Borrower Parties (pursuant to an agreement between them)
shall pay to or has paid Lender: (i) a transfer fee equal to $615,000, which is
0.5% of the outstanding principal balance of the Loan; (ii) an administration
fee equal to $125.00; (iii) a flood determination fee equal to

                                       8
<PAGE>

$15.00; (iv) an insurance review fee equal to $400.00; and (v) a credit review
fee equal to $100.00; each of which Borrower Parties agree are fees for new
consideration and are not interest charged in connection with the Loan.

         2.3 RELEASE AND COVENANT NOT TO SUE. Each of the Borrower Parties, on
behalf of itself and all of its respective heirs, successors and assigns, hereby
remises, releases, acquits, satisfies and forever discharges Lender Parties from
any and all manner of debts, accountings, bonds, warranties, representations,
covenants, promises, contracts, controversies, agreements, liabilities,
obligations, expenses, damages, judgments, executions, actions, inactions,
claims, demands and causes of action of any nature whatsoever, at law or in
equity, known or unknown, either now accrued or subsequently maturing, which any
of Borrower Parties now has or hereafter can, shall or may have by reason of any
matter, cause or thing, from the beginning of the world to and including the
Effective Date, including, without limitation, matters arising out of or
relating to (a) the Loan, including, but not limited to, its administration or
funding, (b) the Loan Documents, (c) the Debt and the Obligations and as
otherwise described in the Loan Documents, (d) the Indebtedness described in
Section 1.3 hereof, and (e) the Project or its development, financing and
operation. Each of the Borrower Parties, for itself and all of its respective
heirs, successors and assigns, covenants and agrees never to institute or cause
to be instituted or continue prosecution of any suit or other form of action or
proceeding of any kind or nature whatsoever against any of Lender Parties by
reason of or in connection with any of the foregoing matters, claims or causes
of action arising during the period from the beginning of the world to the
Effective Date. As further consideration for the agreements herein contained,
Borrower Parties hereby agree, represent and warrant that the matters released
in this Agreement are not limited to matters which are known or disclosed, and
Borrower Parties hereby waive any and all rights and benefits with respect to
any matters arising out of or relating to any matter, cause or thing, from the
beginning of the world to and including the Effective Date, including without
limitation matters arising out of or relating to (i) the Loan, including, but
not limited to, its administration or funding, (ii) the Loan Documents, (iii)
the "Indebtedness" and the "Obligations" described in the Loan Documents, and
(d) the Project or its development, financing and operation which Borrower
Parties now have, or in the future may have, conferred upon Borrower Parties by
virtue of the provisions of Section 1542 of the Civil Code of the State of
California which provides as follows:

      A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
      NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING
      THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
      SETTLEMENT WITH THE DEBTOR.

In this connection, Borrower Parties hereby agree, represent, and warrant that
they realize and acknowledge that factual matters now unknown to one or more of
the Borrower Parties may have given or may hereafter give rise to causes of
action, claims, demands, debts, controversies, damages, costs, losses and
expenses which are presently unknown, unanticipated and unsuspected, and
Borrower Parties further agree, represent and warrant that the release herein
contained has been negotiated and agreed upon in light of that realization and
that Borrower

                                       9
<PAGE>

Parties nevertheless hereby intend to release, discharge and acquit all parties
so released from any such unknown claims.

         2.4 SAME INDEBTEDNESS; PRIORITY OF LIENS NOT AFFECTED. This Agreement
and the execution of other documents contemplated hereby do not constitute the
creation of a new debt or the extinguishment of the debt evidenced by the Loan
Documents, nor will they in any way affect or impair the liens and security
interests created by the Loan Documents, which New Borrower acknowledges to be
valid and existing liens and security interests in the Project. New Borrower
agrees that the lien and security interests created by the Security Instrument
continue to be in full force and effect, unaffected and unimpaired by this
Agreement or by the transfer of the Project or any collateral described in
financing statements filed in connection with the Loan Documents and that said
liens and security interests shall so continue in their perfection and priority
until the debt secured by the Loan Documents is fully discharged.

         2.5 PAYMENT OF TRANSACTION COSTS AND EXPENSES. Any or both of Borrower
Parties (pursuant to an agreement between them) shall pay at the time of
execution of this Agreement by Lender: (a) the legal fees and disbursements of
Lender's counsel, Bilzin Sumberg Baena Price & Axelrod LLP, in connection with
the preparation of this Agreement and the transactions contemplated in this
Agreement; (b) all recording costs and documentary stamps, or other taxes if
any, due upon the recording of this Agreement; and (c) the costs of updating
Lender's policy of title insurance insuring the Security Instrument to a current
date and endorsing such policy to include this Agreement in the description of
the Security Instrument with no additional exceptions, or, at Lender's option,
the cost of obtaining a new Lender's policy of title acceptable to Lender
insuring the Security Instrument as affected by this Agreement.

                                    ARTICLE 3

                              ADDITIONAL PROVISIONS

         3.1 CONSENT OF LENDER. Subject to the terms of this Agreement, Lender
hereby consents to the Requested Actions. Borrower Parties agree that this
Agreement shall not be deemed an agreement by Lender to consent to any other
transfer or conveyance of the Project or assumption of the Loan, or a consent to
any secondary financing or secondary encumbrance on the Project or New Borrower
or any interests in New Borrower except the existing Junior and Senior Mezzanine
Loans.

         3.2 UCC FILINGS. Each of the Borrower Parties hereby grants and
confirms unto Lender a first lien priority interest in all the Collateral (as
such term is defined in the Security Instrument) to the maximum extent permitted
by the Uniform Commercial Code ("UCC"). Each of the Borrower Parties hereby
further consents to the filing of any financing statements or UCC forms required
to be filed in the applicable states or any other applicable filing office
(collectively "FILINGS") in order to perfect said interest and, notwithstanding
anything contained in any of the Loan Documents to the contrary, in accordance
with the UCC, as amended subsequent to the making of the Loan, said Filings may
be made by Lender without the consent or signature of either of the Borrower
Parties.

                                       10
<PAGE>

         3.3 ADDITIONAL DOCUMENTS. Contemporaneously with the execution and
delivery of this Agreement and as a material inducement to Lender to enter into
this Agreement: (a) Borrower Parties hereby authorize Lender to file and/or
record UCC Financing Statements for filing with the state of organization of New
Borrower and/or file UCC Amendments amending the existing Financing Statements
for recording in the Records and for filing with the Delaware Secretary to add
New Borrower as an additional debtor; (b) Blackstone Real Estate Partners III,
LP, Blackstone Real Estate Partners III.TE.1 LP, Blackstone Real Estate Partners
III.TE.2 LP, Blackstone Real Estate Partners III TE3, LP, Blackstone Real Estate
Holdings III LP and Blackstone Real Estate Partners III F.F., L.P., each a
Delaware limited partnership (collectively, "ORIGINAL INDEMNITOR") shall have
executed and delivered to Lender a Reaffirmation of Guaranty of Recourse
Obligations and of Consent of Indemnitors; (c) Original Borrower shall have
executed and delivered to Lender a Reaffirmation of Environmental Indemnity, (d)
New Borrower shall have executed and delivered to Lender an Environmental
Indemnity; (e) Maguire LP shall have executed and delivered to Lender a
Guaranty; (f) Maguire LP shall have executed and delivered to Lender a Manager's
Consent; and (g) Lender and New Borrower shall have entered into a Lock Box
Agreement; all in form and content reasonably acceptable to Lender.

         3.4 REFERENCES TO LOAN DOCUMENTS. All references to the term "LOAN
DOCUMENTS" in the Security Instrument, the Loan Agreement and the other Loan
Documents shall hereinafter mean and refer to: (i) all of the Loan Documents
described therein; (ii) this Agreement; and (iii) any and all other agreements,
documents and other instruments evidencing, securing or in any manner related to
the documents executed in connection with or otherwise pertaining to this
Agreement.

                                    ARTICLE 4

                            MISCELLANEOUS PROVISIONS

         4.1 NO LIMITATION OF REMEDIES. No right, power or remedy conferred upon
or reserved to or by Lender in this Agreement is intended to be exclusive of any
other right, power or remedy conferred upon or reserved to or by Lender under
this Agreement, the Loan Documents or at law, but each and every remedy shall be
cumulative and concurrent, and shall be in addition to each and every other
right, power and remedy given under this Agreement, the Loan Documents or now or
subsequently existing at law.

         4.2 NO WAIVERS. Except as otherwise expressly set forth in this
Agreement, nothing contained in this Agreement shall constitute a waiver of any
rights or remedies of Lender under the Loan Documents or at law. No delay or
failure on the part of any party hereto in the exercise of any right or remedy
under this Agreement shall operate as a waiver, and no single or partial
exercise of any right or remedy shall preclude other or further exercise thereof
or the exercise of any other right or remedy. No action or forbearance by any
party hereto contrary to the provisions of this Agreement shall be construed to
constitute a waiver of any of the express provisions. Any party hereto may in
writing expressly waive any of such party's rights under this Agreement without
invalidating this Agreement.

         4.3 SUCCESSORS OR ASSIGNS. Whenever any party is named or referred to
in this Agreement, the heirs, executors, legal representatives, successors,
successors-in-title and assigns

                                       11
<PAGE>

of such party shall be included. All covenants and agreements in this Agreement
made by a party hereto shall bind and inure to the benefit of the heirs,
executors, legal representatives, successors, successors-in-title and assigns of
such party, whether so expressed or not.

         4.4 CONSTRUCTION OF AGREEMENT. Each party hereto acknowledges that it
has participated in the negotiation of this Agreement and no provision shall be
construed against or interpreted to the disadvantage of any party hereto by any
court or other governmental or judicial authority by reason of such party having
or being deemed to have structured, dictated or drafted such provision. Each of
the Borrower Parties at all times has had access to an attorney in the
negotiation of the terms of and in the preparation and execution of this
Agreement. Each of the Borrower Parties has had the opportunity to review and
analyze this Agreement for a sufficient period of time prior to execution and
delivery. No representations or warranties have been made by or on behalf of
Lender, or relied upon by Borrower Parties, pertaining to the subject matter of
this Agreement, other than those set forth in this Agreement. All prior
statements, representations and warranties, if any, are totally superseded and
merged into this Agreement, which represent the final and sole agreement of the
parties with respect to the subject matters. All of the terms of this Agreement
were negotiated at arm's length, and this Agreement was prepared and executed
without fraud, duress, undue influence or coercion of any kind exerted by any of
the parties upon the others. The execution and delivery of this Agreement is the
free and voluntary act of each of the Borrower Parties.

         4.5 INVALID PROVISION TO AFFECT NO OTHERS. If, from any circumstances
whatsoever, fulfillment of any provision of this Agreement or any related
transaction at the time performance of such provision shall be due, shall
involve transcending the limit of validity presently prescribed by any
applicable usury statute or any other applicable law, with regard to obligations
of like character and amount, then ipso facto, the obligation to be fulfilled
shall be reduced to the limit of such validity. If any clause or provision
operates or would prospectively operate to invalidate this Agreement, in whole
or in part, then such clause or provision only shall be deemed deleted, as
though not contained, and the remainder of this Agreement shall remain operative
and in full force and effect.

         4.6 NOTICES. Except as otherwise specifically provided to the contrary,
any and all notices, elections, approvals, consents, demands, requests and
responses ("COMMUNICATIONS") permitted or required to be given under this
Agreement and the Loan Documents shall not be effective unless in writing,
signed by or on behalf of the party giving the same, and sent by certified or
registered mail, postage prepaid, return receipt requested, or by hand delivery
or overnight courier service (such as Federal Express), to the party to be
notified at the address of such party set forth below or at such other address
within the continental United States as such other party may designate by notice
specifically designated as a notice of change of address and given in accordance
with this Section. Any Communications shall be effective upon the earlier of
their receipt or three days after mailing in the manner indicated in this
Section. Receipt of Communications shall occur upon actual delivery but if
attempted delivery is refused or rejected, the date of refusal or rejection
shall be deemed the date of receipt. Any Communication, if given to Lender, must
be addressed as follows, subject to change as provided above:

                                       12
<PAGE>

                                              LaSalle Bank National Association,
                                              as trustee
                                              c/o ORIX Capital Markets, LLC
                                              1717 Main Street, 12th Floor
                                              Dallas, TX  75201
                                              Re: COMM 2002 FL-7 / Loan No.
                                              903000091

With a copy to:                               Lennar Partners, Inc.
                                              1601 Washington Avenue, Suite 700
                                              Miami Beach, Florida 33139
                                              Attn: Director of Servicing
                                              Re: COMM 2002 FL-7 / Loan No.
                                              903000091

and, if given to Original Borrower, must be addressed as follows,
notwithstanding any other address set forth in the Loan Documents to the
contrary, subject to change as provided above:

                                              BRE/Park Place L.L.C.
                                              c/o Blackstone Real Estate
                                              Advisors
                                              345 Park Avenue, 32nd Floor
                                              New York, New York 10154
                                              Attn: Frank D. Cohen
                                              Telephone: 212-583-5804
                                              Facsimile: 212-583-5419

With a copy to:                               Simpson Thacher & Bartlett
                                              425 Lexington Avenue
                                              New York, New York 10017-3954
                                              Attn: Gregory J. Ressa, Esq.
                                              Telephone: 212-455-7430
                                              Facsimile: 212-455-2502

and, if given to New Borrower, must be addressed as follows, subject to change
as provided above:

                                              Maguire Properties - Park Place,
                                              LLC
                                              333 South Grand Avenue, Suite 400
                                              Los Angeles, California 90071
                                              Attn: Robert F. Maguire III & Mark
                                              T. Lammas, Esq.
                                              Telephone: 213-626-3300
                                              Facsimile: 213-687-4758

                                       13
<PAGE>

With a copy to:                               Munger, Tolles & Olson LLP
                                              355 South Grand Avenue, Suite 3500
                                              Los Angeles, California 90071
                                              Attn: Jeffrey A. Heintz, Esq.
                                              Telephone: 213-683-9185
                                              Facsimile: 213-683-5185

         4.7 GOVERNING LAW. This Agreement shall be interpreted, construed and
enforced in accordance with the laws of the State of California.

         4.8 HEADINGS; EXHIBITS. The headings of the articles, sections and
subsections of this Agreement are for the convenience of reference only, are not
to be considered a part of this Agreement and shall not be used to construe,
limit or otherwise affect this Agreement.

         4.9 MODIFICATIONS. The terms of this Agreement may not be changed,
modified, waived, discharged or terminated orally, but only by an instrument or
instruments in writing, signed by the Party against whom the enforcement of the
change, modification, waiver, discharge or termination is asserted.

         4.10 TIME OF ESSENCE; CONSENTS. Time is of the essence of this
Agreement and the Loan Documents. Any provisions for consents or approvals in
this Agreement shall mean that such consents or approvals shall not be effective
unless in writing and executed by Lender.

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

         4.12 WAIVER OF TRIAL BY JURY. LENDER, BORROWER PARTIES AND ALL PERSONS
CLAIMING BY, THROUGH OR UNDER IT, HEREBY EXPRESSLY, KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE ANY RIGHT TO TRAIL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT, THE SECURITY INSTRUMENT, THE
NOTE OR ANY OTHER LOAN DOCUMENT, INCLUDING, WITHOUT LIMITATION, ANY PRESENT OR
FUTURE MODIFICATION THEREOF OR (II) IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO
THIS AGREEMENT, THE SECURITY INSTRUMENT, THE NOTE OR ANY OTHER LOAN DOCUMENT (AS
NOW OR HEREAFTER MODIFIED) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT
EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO
OR THERETO, IN EACH CASE WHETHER SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
IS NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT
OR OTHERWISE; AND BORROWER HERBY AGREES AND CONSENTS THAT AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION MAY BE FILED WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENT HERETO TO THE WAIVER OF ANY RIGHT TO TRIAL BY JURY.
LENDER AND BORROWER PARTIES ACKNOWLEDGE THAT THEY HAVE CONSULTED WITH

                                       14
<PAGE>

LEGAL COUNSEL REGARDING THE MEANING OF THIS WAIVER AND ACKNOWLEDGE THAT THIS
WAIVER IS AN ESSENTIAL INDUCEMENT FOR THE MAKING OF THE LOAN. THIS WAIVER SHALL
SURVIVE THE REPAYMENT OF THE LOAN.

         4.13 NO THIRD PARTY BENEFICIARIES. The representations, warranties and
covenants of the Original Borrower are solely for the benefit of Lender and
nothing contained herein or the Reaffirmation of Environmental Indemnity, or the
Reaffirmation of Guaranty of Recourse Obligations shall be deemed to confer upon
anyone other than Lender any right to rely upon, insist upon or enforce the
performance of or observance of any of the obligations contained therein.

              [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       15
<PAGE>

         The parties have executed and delivered this Agreement as of the day
and year first above written.

                                              LENDER:

                                              LASALLE BANK NATIONAL ASSOCIATION,
                                              A NATIONAL BANKING ASSOCIATION, AS
                                              TRUSTEE FOR THE HOLDER OF COMM
                                              2002-FL7 COMMERCIAL MORTGAGE
                                              PASS-THROUGH CERTIFICATES

                                              By: Lennar Partners, Inc., as
                                                  attorney-in-fact

                                              By: /s/ Randolph Wolpert
                                                  ------------------------------
                                                  Randolph J. Wolpert, Vice
                                                  President

STATE OF FLORIDA     )
                     ) SS:
COUNTY OF MIAMI-DADE )

         This instrument was acknowledged before me, a notary public this ___
day of April, 2004, by Randolph J. Wolpert, as Vice President of Lennar
Partners, Inc., a Florida corporation, on behalf of said corporation as
attorney-in-fact for LASALLE BANK NATIONAL ASSOCIATION, A NATIONAL BANKING
ASSOCIATION, AS TRUSTEE FOR THE HOLDER OF COMM 2002-FL7 COMMERCIAL MORTGAGE
PASS-THROUGH CERTIFICATES, on behalf of the trust. He ____ is personally known
to me or ____ has produced a driver's license as identification.

                                              __________________________________
                                              Notary Public
                                              My Commission Expires:____________

<PAGE>

                                              ORIGINAL BORROWER:

                                              BRE/PARK PLACE L.L.C., a Delaware
                                              limited liability company

                                              By: /s/ David Hirsh
                                                  ------------------------------
                                                  David Z. Hirsh, Vice President

STATE OF ________________)
                         )
COUNTY OF________________)

         On April _____, 2004, before me, the undersigned notary public in and
for said County and State, personally appeared David Z. Hirsh,

                  ____     personally known to me [or]
                  ____     proved to me on the basis of satisfactory evidence

to be the person(s) whose name(s) __________________ subscribed to the within
instrument and acknowledged to me that __________________ executed the same in
____________________ authorized capacity(ies) and that, by _______________
signature(s) on the instrument, the person(s) or the entity(ies) upon behalf of
which the person(s) acted executed the instrument.

WITNESS my hand and official seal.

                                              __________________________________
                                              My commission expires on
                                              __________________________________

<PAGE>

                           NEW BORROWER:

                           MAGUIRE PROPERTIES - PARK PLACE, LLC, a Delaware
                           limited liability company

                           By: MP-Park Place Senior Mezzanine, LLC, a Delaware
                               limited liability company, its sole member

                               By: MP-Park Place Junior Mezzanine, LLC, a
                                   Delaware limited liability company, its sole
                                   member

                                   By: Maguire Properties, L.P., a Maryland
                                       limited partnership, its sole member

                                       By: Maguire Properties, Inc., a Maryland
                                           corporation, its general partner

                                           By: /s/ Mark Lammas
                                               ---------------------------------
                                               Name: Mark T. Lammas
                                               Title: Secretary

STATE OF _________________)
                          )
COUNTY OF_________________)

On April _____, 2004, before me, the undersigned notary public in and for said
County and State, personally appeared ______________________________,
as _____________________________,

                  ____     personally known to me [or]
                  ____     proved to me on the basis of satisfactory evidence

to be the person(s) whose name(s) __________________ subscribed to the within
instrument and acknowledged to me that __________________ executed the same in
____________________ authorized capacity(ies) and that, by _______________
signature(s) on the instrument, the person(s) or the entity(ies) upon behalf of
which the person(s) acted executed the instrument.
WITNESS my hand and official seal.

                                              __________________________________
                                              My commission expires on
                                              __________________________________

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