Document:

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                     AMENDED, RESTATED AND CONSOLIDATED NOTE

New York, New York
$400,000,000                                                   February 13, 2004

         AMENDED, RESTATED AND CONSOLIDATED NOTE, dated as of February 13, 2004
(this NOTE), by 731 OFFICE ONE LLC, a Delaware limited liability company
(BORROWER), having an address for notice purposes c/o Alexander's Inc., 888
Seventh Avenue, New York, New York 10019, in favor of GERMAN AMERICAN CAPITAL
CORPORATION, a Maryland corporation (together with its successors and assigns,
LENDER), having an office at 60 Wall Street, New York, New York 10005.

         WHEREAS, Lender is the present owner and holder of that certain
promissory note described on EXHIBIT A attached hereto and incorporated herein
(collectively, the EXISTING NOTE), which Existing Note evidences an indebtedness
of Borrower to Lender in the current outstanding principal amount of
$400,000,000 (the EXISTING DEBT);

         WHEREAS, on the date hereof and pursuant to the terms of this Note and
the Loan Agreement (as defined below), Lender has agreed to make a loan (the
LOAN) to Borrower in the maximum principal amount of $400,000,000, such Loan to
be comprised of the Existing Debt so that the principal balance of on the date
hereof is $400,000,000;

         WHEREAS, in connection with the foregoing, Borrower and Lender have
agreed in the manner hereinafter set forth to (i) combine and consolidate the
Existing Note and the indebtedness evidenced thereby with the New Loan and (ii)
amend, modify and restate in their entirety the terms and provisions of the
Existing Note on the terms and conditions hereinafter set forth; and

         WHEREAS, Lender and Borrower intend these Recitals to be a material
part of this Note.

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

         I.       The Existing Debt is combined and consolidated together with
the New Loan so that together they shall constitute in law but one indebtedness
in the maximum principal amount of $400,000,000, (such amount, or so much
thereof as may be outstanding from time to time under this Note, the PRINCIPAL
AMOUNT), together with interest thereon as hereinafter provided. The terms,
covenants, conditions and provisions of the Existing Note are hereby modified,
amended, restated and consolidated in their entirety so that henceforth the
terms, covenants, conditions and provisions of the Existing Note shall read and
be as set forth in this Note and Borrower agrees to comply with and be subject
to all of the terms, covenants and conditions of this Note.

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         II.      The parties hereto certify that this Note evidences the
Existing Debt evidenced by the Existing Note, as increased by the New Loan, and
evidences no further or other principal indebtedness. Neither this Note nor
anything contained herein shall be construed as a novation of Borrower's
indebtedness to Lender evidenced by the Existing Note or of the Existing Note,
which shall remain in full force and effect as hereby confirmed, modified,
amended, restated and consolidated.

         III.     This Note is an extension and continuation of the Existing
Debt evidenced by the Existing Note, as increased by the New Loan, and, as to
the Existing Debt, is issued in replacement of and substitution for the Existing
Note.

         IV.      The Existing Note, as modified and restated in its entirety
pursuant to this Note, and the obligations of Borrower thereunder, as increased
by the New Loan, is hereby ratified and confirmed, and shall remain in full
force and effect until the full performance and satisfaction of all obligations
of Borrower under this Note.

         NOW, THEREFORE, FOR VALUE RECEIVED, Borrower promises to pay to the
order of Lender the Principal Amount, 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 (as defined below), 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:

         ADDITIONAL INTEREST STRIP shall mean, with respect to each Interest
         Period from and after the Anticipated Repayment Date, the excess of
         interest accrued at the Revised Interest Rate over interest accrued at
         the Stated Interest Rate (but shall not include the Post ARD Default
         Interest Strip).

         ANTICIPATED REPAYMENT DATE shall mean March 1, 2014.

         APPLICABLE INTEREST RATE shall mean (i) from the date hereof through
         and including the Anticipated Repayment Date, the Stated Interest Rate,
         and (ii) from the day after the Anticipated Repayment Date through and
         including the Maturity Date, the Revised Interest Rate.

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

         DEFAULT RATE shall mean, a rate per annum equal to the lesser of (a)
         the Maximum Legal Rate and (b) five percent (5%) above the Applicable
         Interest Rate.

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<PAGE>

         DEFEASANCE LOCKOUT PERIOD shall mean the period commencing on the date
         hereof and expiring on the earlier to occur of (i) two years after the
         "startup day," within the meaning of Section 860G(a)(9) of the Internal
         Revenue Code of 1986, as amended from time to time or any successor
         statute (the "Code"), of a "real estate mortgage investment conduit,"
         ("REMIC") within the meaning of Section 860D of the Code, with respect
         to the last portion of the debt evidenced by this Note and the Security
         Instrument and (ii) four (4) years from the date hereof.

         DEFERRED INTEREST shall mean the Additional Interest Strip and the Post
         ARD Default Interest Strip, collectively.

         EXISTING DEBT shall have the meaning set forth in the Recitals.

         EXISTING NOTE shall have the meaning set forth in the Recitals.

         INTEREST PERIOD shall have the meaning provided in Section 2.

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

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

         LOAN shall have the meaning provided in the Recitals to this Note.

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

         MATURITY DATE shall mean March 1, 2029, 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(e).

         MONTHLY AMOUNT shall have the meaning provided in Section 3(a).

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

         PAYMENT DATE shall be the first (1st) calendar day of each calendar
         month, whether or not such day is a Business Day, commencing on April
         1, 2004 and continuing to and including the Maturity Date.

         POST ARD DEFAULT INTEREST STRIP shall mean, with respect to each
         Interest Period from and after the Anticipated Repayment Date, default
         interest accrued at a rate equal to the lesser of (x) 5.0% and (y) the
         amount by which the Maximum Legal Rate exceeds the Applicable Interest
         Rate.

         PREPAYMENT DATE shall have the meaning provided in Section 4(a)(i).

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         PREPAYMENT LOCKOUT PERIOD shall mean the period commencing on the date
         hereof and expiring on December 1, 2013.

         PREPAYMENT NOTICE shall have the meaning provided in Section 4(a)(i).

         PRINCIPAL AMOUNT shall have the meaning set forth in the Recitals.

         REVISED INTEREST RATE shall mean, with respect to each Interest Period,
         a rate per annum equal to two percent (2%) above the Stated Interest
         Rate applicable to such Interest Period.

         STATED INTEREST RATE shall mean, with respect to each Interest Period,
         the rate of interest set forth on SCHEDULE A hereto for such Interest
         Period.

         TREASURY RATE shall mean, as of any Payment Date, the yield, calculated
         by linear interpolation (rounded to the nearest one-thousandth of one
         percent) of the yields of noncallable United States Treasury
         obligations with terms (one longer and one shorter) most nearly
         approximating the period from such Payment Date to the Anticipated
         Repayment Date (and converted to a monthly equivalent yield), as
         determined by Lender on the basis of Federal Reserve Statistical
         Release H.15 Selected Interest Rates under the heading U.S.
         Governmental Security/Treasury Constant Maturities or, if such
         publication is unavailable, such other recognized source of financial
         market information as shall be selected by Lender for the week prior to
         such Payment Date.

         YIELD MAINTENANCE PREMIUM shall mean an amount equal to the product of:
         (a) the positive difference (expressed as a percentage of the
         outstanding Principal Amount before any prepayment), if any, as of the
         date of determination between (i) the present value of all future
         scheduled payments of interest and principal, including the principal
         amount due on the Anticipated Repayment Date, to be made on this Note
         before the prepayment in question, discounted at an interest rate per
         annum equal to the Treasury Rate, and (ii) the outstanding Principal
         Amount immediately before such prepayment; and (b) the Principal Amount
         being prepaid.

2.       INTEREST.

         a.       Prior to the Anticipated Repayment Date, interest shall accrue
                  on the Principal Amount at the Stated Interest Rate. In the
                  event that Borrower does not repay the Principal Amount in
                  full on or before the Anticipated Repayment Date, then, from
                  and after the Anticipated Repayment Date, interest shall
                  accrue on the Principal Amount at the Revised Interest Rate.
                  From and after the occurrence and during the continuance of
                  any Event of Default, interest shall accrue at the Default
                  Rate.

         b.       Interest on the principal sum of this Note shall be calculated
                  based on the Applicable Interest Rate on the basis of a
                  fraction, the denominator of which shall be 360 and the
                  numerator of which shall be the actual number

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<PAGE>

                  of days in the relevant Interest Period, except that interest
                  due and payable for a period less than a full month shall be
                  calculated by multiplying the actual number of days elapsed in
                  such period by a daily rate based on said 360 day year.
                  Interest shall accrue from, and including, the first (1st) day
                  of the prior month and ending on the last day of the prior
                  month (an INTEREST PERIOD); in each case without adjustment
                  for any Business Day convention; provided that the first
                  accrual period shall commence on March 1, 2004.

         c.       Except as expressly set forth in the Loan Agreement to the
                  contrary, interest shall accrue on all amounts advanced by
                  Lender pursuant to the Loan Documents (other than the
                  Principal Amount, which shall accrue interest in accordance
                  with clauses a. and b. above) at the Default Rate.

         d.       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 OF PRINCIPAL AND INTEREST.

         a.       Interest and principal under this Note shall be payable as
                  follows:

                  i.       interest accruing from the date hereof to and
                           including February 29, 2004 shall be paid on the date
                           hereof; and

                  ii.      commencing on April 1, 2004 and on each and every
                           Payment Date thereafter until the Maturity Date,
                           monthly installments of interest payable on this
                           Note, in arrears, and scheduled principal
                           amortization in the amounts (the MONTHLY AMOUNTS) set
                           forth on SCHEDULE A hereto (subject to adjustment as
                           provided in Section 4(f)).

         b.       From and after the Anticipated Repayment Date, unless the
                  Indebtedness has been repaid in full, Borrower shall continue
                  to make payments of accrued interest and Monthly Amounts on
                  each Payment Date. From and after the Anticipated Repayment
                  Date, unless the Indebtedness has been repaid in full, all
                  Excess Cash Flow shall be applied to repayment of the Loan on
                  each Payment Date as a partial prepayment of the outstanding
                  principal Indebtedness. Deferred Interest shall be payable
                  after all principal and other amounts due hereunder have been
                  paid in full.

         c.       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 or such later time as Lender or its servicer shall
                  apply amounts on deposit in the Holding Account in accordance
                  the terms of the Loan Documents. Any payments received after
                  such time shall be credited to the next following Business
                  Day.

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<PAGE>

         d.       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 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.

         e.       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 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.

         f.       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.

         g.       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.

         h.       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. Except as permitted in Sections 4(a), 4(b), 4(c) and 4(d)
         hereof, the outstanding Principal Amount may not be prepaid in whole or
         in part. Any Principal Amount prepaid pursuant to this Section 4 may
         not be reborrowed hereunder.

         a.       VOLUNTARY PREPAYMENTS. Borrower shall not have the right to
                  prepay, in whole or in part, the Principal Amount due
                  hereunder prior to the Anticipated Repayment Date (other than
                  with respect to the application of Proceeds pursuant to
                  Section 6.2 of the Loan Agreement); provided, however,
                  Borrower shall be entitled to make a prepayment of all of the
                  Principal Amount on any Business Day occurring after the
                  expiration of

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<PAGE>

                  the Prepayment Lockout Period, without any premium or penalty
                  upon satisfaction of the following conditions:

                  i.       Borrower shall provide prior irrevocable written
                           notice (the PREPAYMENT NOTICE) to Lender specifying
                           the proposed Business Day on which the prepayment is
                           to be made, which Business Day shall be no earlier
                           than thirty (30) days after the date of such
                           Prepayment Notice and no later than ninety (90) 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); and

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

                  iii.     In connection with any voluntary prepayment, other
                           than payments from Excess Cash Flow as set forth in
                           Section 3(b), Borrower shall concurrently repay all
                           of the other Indebtedness in full.

                  iv.      Borrower agrees that all Excess Cash Flow shall be
                           applied in accordance with the terms of the Loan
                           Agreement, including, without limitation, Article III
                           and Section 16.5 of the Loan Agreement and the
                           provisions of Section 3(b) hereof.

         b.       DEFEASANCE. From and after expiration of the Defeasance
                  Lockout Period and prior to the Anticipated Repayment Date,
                  Borrower shall have the right to defease the Loan pursuant to
                  the provisions of Article IX of the Loan Agreement. In no
                  event shall a prepayment of this Note in accordance with
                  Sections 4(a) or 4(c) trigger or result in any defeasance
                  liability under this Note or the other Loan Documents.

         c.       MANDATORY PREPAYMENTS.

                  i.       On the next occurring Payment Date following the date
                           on which Borrower actually receives any Proceeds, if
                           Lender is not obligated pursuant to the terms of the
                           Loan Agreement to make such Proceeds available to
                           Borrower for the restoration of the Property,
                           Borrower shall use such Proceeds to prepay the
                           outstanding principal balance of this Note as set
                           forth in Section 6.2.3 of the Loan Agreement; and

                  ii.      Borrower shall comply with the provisions set forth
                           in Section 4(d) and Section 4(e) of this Note
                           (provided, however, that the Liquidated Damages
                           Amount and the Yield Maintenance Premium shall not
                           apply to prepayments made from the receipt of
                           Proceeds).

         d.       PAYMENTS IN CONNECTION WITH A PREPAYMENT.

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                  i.       On the date on which a prepayment, voluntary,
                           involuntary or mandatory, is made under this Note or
                           as required under the Loan Agreement, Borrower shall,
                           unless such prepayment is made on a Payment Date, pay
                           to Lender all unpaid interest on the Principal Amount
                           prepaid through the end of the Interest Period during
                           which such prepayment is made.

                  ii.      On the Business Day on which a prepayment is made,
                           Borrower shall pay to Lender all other sums (not
                           including scheduled interest and principal payments)
                           then due and payable under this Note, the Loan
                           Agreement, the Security Instrument, and the other
                           Loan Documents;

                  iii.     Borrower shall pay (without duplication) all
                           reasonable costs and expenses of Lender incurred in
                           connection with the prepayment (including without
                           limitation, any reasonable costs and expenses
                           associated with a release or assignment 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); and

                  iv.      In the event of a prepayment made after an
                           acceleration of the Loan, Borrower shall also pay to
                           Lender the Yield Maintenance Premium to the extent
                           such prepayment is made prior to expiration of the
                           Prepayment Lockout Period.

         e.       LIQUIDATED DAMAGES AMOUNT. IF NOTWITHSTANDING THE PROHIBITIONS
                  OF THIS SECTION 4, THE LOAN IS VOLUNTARILY OR INVOLUNTARILY
                  REPAID DURING THE PREPAYMENT LOCKOUT PERIOD (EXCLUDING
                  PREPAYMENTS MADE (I) IN ACCORDANCE WITH SECTION 4(C) OF THIS
                  NOTE AND (II) FROM A DEFEASANCE OF THE LOAN IN ACCORDANCE WITH
                  THE TERMS OF THE LOAN DOCUMENTS AFTER EXPIRATION OF THE
                  DEFEASANCE LOCKOUT PERIOD), INCLUDING, BUT NOT LIMITED TO, 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 THE GREATER OF (A) FIVE PERCENT (5%) OF THE
                  PRINCIPAL AMOUNT BEING REPAID HEREUNDER AND (B) THE YIELD
                  MAINTENANCE PREMIUM (THE LIQUIDATED DAMAGES AMOUNT).
                  NOTWITHSTANDING THE FOREGOING, THE LIQUIDATED DAMAGES AMOUNT
                  SHALL NOT BE APPLIED TOWARD ANY PREPAYMENTS FROM PROCEEDS.

         f.       MODIFICATION OF MONTHLY AMOUNTS.

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                  i.       In the event that any partial prepayment of principal
                           occurs before the Anticipated Repayment Date (other
                           than in connection with an acceleration of the Loan),
                           the Payment Dates shall remain the same and Lender
                           shall recalculate the amount of subsequent Monthly
                           Amounts to reflect the same proportionate
                           amortization as in effect prior to such recalculation
                           for each remaining Payment Date, taking into account
                           the reduction in the Principal Amount.

                  ii.      In the event that any partial prepayment of principal
                           occurs after the Anticipated Repayment Date (other
                           than in connection with an acceleration of the Loan)
                           or Excess Cash Flow is applied to the prepayment of
                           principal after the Anticipated Repayment Date, the
                           Payment Dates shall remain the same and Lender shall
                           recalculate the amount of subsequent Monthly Amounts
                           to reflect the reduction of the Principal Amount.
                           Deferred Interest accrued pursuant to Section 3(b) of
                           this Note shall not result in any increase in the
                           Monthly Amounts or the Stated Interest Rate.

5.       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 consents 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 agrees
                  that additional makers may become parties hereto without
                  notice to them or affecting their liability under this Note.

         b.       NON-RECOURSE. Recourse with respect to any claims arising
                  under or in connection with this Note shall be limited to the
                  extent provided in Article XVIII of the Loan Agreement and the
                  terms, covenants and conditions of Article XVIII 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.

         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

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                  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 thereof 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.       COUNTERPARTS. This Note may be executed in counterparts, each
                  of which shall be an original and all of which, when taken
                  together, shall constitute one binding Note.

         j.       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.

         k.       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,
                  WITHOUT REGARD TO CHOICE OF LAW RULES. BORROWER AGREES THAT
                  ANY SUIT FOR THE ENFORCEMENT OF THIS NOTE OR ANY OTHER LOAN
                  DOCUMENT SHALL BE BROUGHT IN THE COURTS OF THE

                                       10
<PAGE>

                  STATE OF NEW YORK OR ANY FEDERAL COURT SITTING THEREIN AND
                  CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND
                  THE SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON
                  BORROWER IN 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.

         l.       JURY TRIAL WAIVER. BORROWER, LENDER AND ALL PERSONS CLAIMING
                  BY, THROUGH OR UNDER BORROWER OR LENDER, HEREBY EXPRESSLY,
                  KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE 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 AND LENDER HEREBY
                  AGREE AND CONSENT 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. EACH OF BORROWER AND LENDER 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.

         m.       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 mandatory or compulsory 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.

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<PAGE>

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>

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

                                       BORROWER:

                                       731 OFFICE ONE LLC, a Delaware limited
                                       liability company

                                       By: 731 OFFICE ONE HOLDING LLC, a
                                       Delaware limited liability company, its
                                       sole member

                                           By: ALEXANDER'S INC., a Delaware
                                           corporation, its sole member

                                           By: /s/ Brian Kurtz
                                               ---------------------------------
                                               Name:  Brian Kurtz
                                               Title: Assistant Secretary

<PAGE>

                                    EXHIBIT A
                                 EXISTING NOTES

1. Consolidated, Amended and Restated Supplemental Loan Note (No. 3) in the
original principal amount of $22,940,962, dated January 28, 2004, by 731
Commercial LLC and 731 Residential LLC in favor of Hypo Real Estate Capital
Corporation.

2. Consolidated, Amended and Restated Project Loan Note (No. 3) in the original
principal amount of $15,587,546, dated January 28, 2004, by 731 Commercial LLC
and 731 Residential LLC in favor of Hypo Real Estate Capital Corporation.

3. Substitute Subordinate Building Loan Note in the original principal amount of
$125,000,000, dated February 13, 2004, by 731 Commercial LLC and 731 Residential
LLC in favor of Hypo Real Estate Capital Corporation.

4. Substitute Mortgage Note C (No. 3) in the original principal amount of
$236,471,492, dated January 28, 2004, by 731 Commercial LLC and 731 Residential
LLC in favor of Hypo Real Estate Capital Corporation.

<PAGE>

                                   SCHEDULE A
                                CONSOLIDATED NOTE

<TABLE>
<CAPTION>
Interest Period Commencing  Stated Interest Rate  Payment Date  Scheduled Principal Amortization  Ending Balance
<S>                         <C>                   <C>           <C>                               <C>
         2/13/2004                5.3300%
          3/1/2004                5.3300%             3/1/04                                      400,000,000.00
          4/1/2004                5.3300%             4/1/04                          -           400,000,000.00
          5/1/2004                5.3300%             5/1/04                          -           400,000,000.00
          6/1/2004                5.3300%             6/1/04                          -           400,000,000.00
          7/1/2004                5.3300%             7/1/04                          -           400,000,000.00
          8/1/2004                5.3300%             8/1/04                          -           400,000,000.00
          9/1/2004                5.3300%             9/1/04                          -           400,000,000.00
         10/1/2004                5.3300%            10/1/04                          -           400,000,000.00
         11/1/2004                5.3300%            11/1/04                          -           400,000,000.00
         12/1/2004                5.3300%            12/1/04                          -           400,000,000.00
          1/1/2005                5.3300%             1/1/05                          -           400,000,000.00
          2/1/2005                5.3300%             2/1/05                          -           400,000,000.00
          3/1/2005                5.3300%             3/1/05                          -           400,000,000.00
          4/1/2005                5.3300%             4/1/05                          -           400,000,000.00
          5/1/2005                5.3300%             5/1/05                          -           400,000,000.00
          6/1/2005                5.3300%             6/1/05                          -           400,000,000.00
          7/1/2005                5.3300%             7/1/05                          -           400,000,000.00
          8/1/2005                5.3300%             8/1/05                          -           400,000,000.00
          9/1/2005                5.3300%             9/1/05                          -           400,000,000.00
         10/1/2005                5.3300%            10/1/05                          -           400,000,000.00
         11/1/2005                5.3300%            11/1/05                          -           400,000,000.00
         12/1/2005                5.3300%            12/1/05                          -           400,000,000.00
          1/1/2006                5.3300%             1/1/06                          -           400,000,000.00
          2/1/2006                5.3300%             2/1/06                          -           400,000,000.00
          3/1/2006                5.3300%             3/1/06                          -           400,000,000.00
          4/1/2006                5.3300%             4/1/06                 712,217.29           399,287,782.71
          5/1/2006                5.3300%             5/1/06                 774,602.94           398,513,179.77
          6/1/2006                5.3300%             6/1/06                 719,041.38           397,794,138.39
          7/1/2006                5.3300%             7/1/06                 781,237.21           397,012,901.18
          8/1/2006                5.3300%             8/1/06                 725,927.24           396,286,973.94
          9/1/2006                5.3300%             9/1/06                 729,259.05           395,557,714.89
         10/1/2006                5.3300%            10/1/06                 791,170.66           394,766,544.23
</TABLE>

                                        2
<PAGE>

<TABLE>
<S>                      <C>                <C>                   <C>                    <C>
11/1/2006                5.3300%            11/1/06                 736,237.40           394,030,306.84
12/1/2006                5.3300%            12/1/06                 797,954.90           393,232,351.94
 1/1/2007                5.3300%             1/1/07                 743,278.91           392,489,073.03
 2/1/2007                5.3300%             2/1/07                 746,690.36           391,742,382.67
 3/1/2007                5.3300%             3/1/07                 924,116.37           390,818,266.31
 4/1/2007                5.3300%             4/1/07                 754,358.89           390,063,907.41
 5/1/2007                5.3300%             5/1/07                 815,572.32           389,248,335.09
 6/1/2007                5.3300%             6/1/07                 761,564.44           388,486,770.65
 7/1/2007                5.3300%             7/1/07                 822,577.44           387,664,193.21
 8/1/2007                5.3300%             8/1/07                 768,835.21           386,895,358.00
 9/1/2007                5.3300%             9/1/07                 772,363.95           386,122,994.05
10/1/2007                5.3300%            10/1/07                 833,076.54           385,289,917.50
11/1/2007                5.3300%            11/1/07                 779,732.48           384,510,185.02
12/1/2007                5.3300%            12/1/07                 840,240.10           383,669,944.92
 1/1/2008                5.3300%             1/1/08                 787,167.70           382,882,777.21
 2/1/2008                5.3300%             2/1/08                 790,780.59           382,091,996.63
 3/1/2008                5.3300%             3/1/08                 907,551.73           381,184,444.89
 4/1/2008                5.3300%             4/1/08                 798,575.46           380,385,869.44
 5/1/2008                5.3300%             5/1/08                 858,558.94           379,527,310.50
 6/1/2008                5.3300%             6/1/08                 806,181.25           378,721,129.25
 7/1/2008                5.3300%             7/1/08                 865,953.16           377,855,176.09
 8/1/2008                5.3300%             8/1/08                 813,855.88           377,041,320.21
 9/1/2008                5.3300%             9/1/08                 817,591.25           376,223,728.96
10/1/2008                5.3300%            10/1/08                 877,045.78           375,346,683.18
11/1/2008                5.3300%            11/1/08                 825,369.16           374,521,314.02
12/1/2008                5.3300%            12/1/08                 884,607.34           373,636,706.68
 1/1/2009                5.3300%             1/1/09                 833,217.48           372,803,489.20
 2/1/2009                5.3300%             2/1/09                 837,041.72           371,966,447.48
 3/1/2009                5.3300%             3/1/09               1,006,098.60           370,960,348.88
 4/1/2009                5.3300%             4/1/09                 845,501.22           370,114,847.66
 5/1/2009                5.3300%             5/1/09                 904,179.39           369,210,668.26
 6/1/2009                5.3300%             6/1/09                 853,531.77           368,357,136.50
 7/1/2009                5.3300%             7/1/09                 911,986.56           367,445,149.93
 8/1/2009                5.3300%             8/1/09                 861,635.01           366,583,514.93
 9/1/2009                5.3300%             9/1/09                 865,589.67           365,717,925.26
10/1/2009                5.3300%            10/1/09                 923,709.06           364,794,216.20
11/1/2009                5.3300%            11/1/09                 873,802.06           363,920,414.14
12/1/2009                5.3300%            12/1/09                 931,693.00           362,988,721.14
 1/1/2010                5.3300%             1/1/10                 882,088.78           362,106,632.36
 2/1/2010                5.3300%             2/1/10                 886,137.32           361,220,495.04
 3/1/2010                5.3300%             3/1/10               1,050,646.55           360,169,848.50
 4/1/2010                5.3300%             4/1/10                 895,026.62           359,274,821.88
 5/1/2010                5.3300%             5/1/10                 952,327.18           358,322,494.70
 6/1/2010                5.3300%             6/1/10                 903,505.46           357,418,989.24
 7/1/2010                5.3300%             7/1/10                 960,570.17           356,458,419.08
 8/1/2010                5.3300%             8/1/10                 912,061.05           355,546,358.03
 9/1/2010                5.3300%             9/1/10                 916,247.16           354,630,110.87
10/1/2010                5.3300%            10/1/10                 972,957.43           353,657,153.44
11/1/2010                5.3300%            11/1/10                 924,918.08           352,732,235.36
12/1/2010                5.3300%            12/1/10                 981,387.16           351,750,848.19
 1/1/2011                5.3300%             1/1/11                 933,667.49           350,817,180.70
 2/1/2011                5.3300%             2/1/11                 937,952.77           349,879,227.94
</TABLE>

                                        3
<PAGE>

<TABLE>
<S>                      <C>                <C>                   <C>                    <C>
 3/1/2011                5.3300%             3/1/11               1,097,662.40           348,781,565.54
 4/1/2011                5.3300%             4/1/11                 947,295.67           347,834,269.86
 5/1/2011                5.3300%             5/1/11               1,003,142.29           346,831,127.57
 6/1/2011                5.3300%             6/1/11                 956,247.64           345,874,879.93
 7/1/2011                5.3300%             7/1/11               1,011,845.25           344,863,034.67
 8/1/2011                5.3300%             8/1/11                 965,280.64           343,897,754.03
 9/1/2011                5.3300%             9/1/11                 969,711.01           342,928,043.02
10/1/2011                5.3300%            10/1/11               1,024,934.12           341,903,108.90
11/1/2011                5.3300%            11/1/11                 978,865.88           340,924,243.02
12/1/2011                5.3300%            12/1/11               1,033,834.33           339,890,408.69
 1/1/2012                5.3300%             1/1/12                 988,103.61           338,902,305.08
 2/1/2012                5.3300%             2/1/12                 992,638.74           337,909,666.34
 3/1/2012                5.3300%             3/1/12               1,097,253.48           336,812,412.86
 4/1/2012                5.3300%             4/1/12               1,002,230.76           335,810,182.10
 5/1/2012                5.3300%             5/1/12               1,056,549.28           334,753,632.82
 6/1/2012                5.3300%             6/1/12               1,011,679.99           333,741,952.83
 7/1/2012                5.3300%             7/1/12               1,065,735.67           332,676,217.16
 8/1/2012                5.3300%             8/1/12               1,021,214.75           331,655,002.41
 9/1/2012                5.3300%             9/1/12               1,025,901.84           330,629,100.57
10/1/2012                5.3300%            10/1/12               1,079,561.92           329,549,538.65
11/1/2012                5.3300%            11/1/12               1,035,565.34           328,513,973.31
12/1/2012                5.3300%            12/1/12               1,088,956.61           327,425,016.70
 1/1/2013                5.3300%             1/1/13               1,045,316.30           326,379,700.40
 2/1/2013                5.3300%             2/1/13               1,050,114.01           325,329,586.39
 3/1/2013                5.3300%             3/1/13               1,199,434.30           324,130,152.09
 4/1/2013                5.3300%             4/1/13               1,060,438.81           323,069,713.27
 5/1/2013                5.3300%             5/1/13               1,113,138.20           321,956,575.07
 6/1/2013                5.3300%             6/1/13               1,070,414.93           320,886,160.14
 7/1/2013                5.3300%             7/1/13               1,122,836.81           319,763,323.33
 8/1/2013                5.3300%             8/1/13               1,080,481.35           318,682,841.98
 9/1/2013                5.3300%             9/1/13               1,085,440.45           317,597,401.53
10/1/2013                5.3300%            10/1/13               1,137,444.38           316,459,957.14
11/1/2013                5.3300%            11/1/13               1,095,642.88           315,364,314.27
12/1/2013                5.3300%            12/1/13               1,147,363.01           314,216,951.25
 1/1/2014                5.3300%             1/1/14               1,105,937.65           313,111,013.60
 2/1/2014                5.3300%             2/1/14               1,111,013.60           312,000,000.00
 3/1/2014                5.3300%             3/1/14               1,254,692.84           310,745,307.16
 4/1/2014                5.3300%             4/1/14               1,121,871.53           309,623,435.62
 5/1/2014                5.3300%             5/1/14               1,172,862.08           308,450,573.54
 6/1/2014                5.3300%             6/1/14               1,132,403.72           307,318,169.81
 7/1/2014                5.3300%             7/1/14               1,183,101.31           306,135,068.51
 8/1/2014                5.3300%             8/1/14               1,143,031.25           304,992,037.26
 9/1/2014                5.3300%             9/1/14               1,148,277.45           303,843,759.81
10/1/2014                5.3300%            10/1/14               1,198,533.48           302,645,226.34
11/1/2014                5.3300%            11/1/14               1,159,048.66           301,486,177.68
12/1/2014                5.3300%            12/1/14               1,209,005.07           300,277,172.61
 1/1/2015                5.3300%             1/1/15               1,169,917.36           299,107,255.25
 2/1/2015                5.3300%             2/1/15               1,175,286.96           297,931,968.29
 3/1/2015                5.3300%             3/1/15               1,313,012.65           296,618,955.64
 4/1/2015                5.3300%             4/1/15               1,186,707.56           295,432,248.07
 5/1/2015                5.3300%             5/1/15               1,235,894.61           294,196,353.47
 6/1/2015                5.3300%             6/1/15               1,197,826.64           292,998,526.83
</TABLE>

                                        4
<PAGE>

<TABLE>
<S>                      <C>                <C>                   <C>                    <C>
 7/1/2015                5.3300%             7/1/15               1,246,704.39           291,751,822.45
 8/1/2015                5.3300%             8/1/15               1,209,046.35           290,542,776.09
 9/1/2015                5.3300%             9/1/15               1,214,595.54           289,328,180.55
10/1/2015                5.3300%            10/1/15               1,263,006.84           288,065,173.71
11/1/2015                5.3300%            11/1/15               1,225,967.05           286,839,206.66
12/1/2015                5.3300%            12/1/15               1,274,062.03           285,565,144.63
 1/1/2016                5.3300%             1/1/16               1,237,441.49           284,327,703.14
 2/1/2016                5.3300%             2/1/16               1,243,121.00           283,084,582.15
 3/1/2016                5.3300%             3/1/16               1,332,651.07           281,751,931.08
 4/1/2016                5.3300%             4/1/16               1,254,943.08           280,496,988.00
 5/1/2016                5.3300%             5/1/16               1,302,232.05           279,194,755.94
 6/1/2016                5.3300%             6/1/16               1,266,679.80           277,928,076.14
 7/1/2016                5.3300%             7/1/16               1,313,642.30           276,614,433.84
 8/1/2016                5.3300%             8/1/16               1,278,522.76           275,335,911.08
 9/1/2016                5.3300%             9/1/16               1,284,390.83           274,051,520.25
10/1/2016                5.3300%            10/1/16               1,330,860.67           272,720,659.58
11/1/2016                5.3300%            11/1/16               1,296,394.10           271,424,265.47
12/1/2016                5.3300%            12/1/16               1,342,530.06           270,081,735.41
 1/1/2017                5.3300%             1/1/17               1,308,506.03           268,773,229.37
 2/1/2017                5.3300%             2/1/17               1,314,511.71           267,458,717.66
 3/1/2017                5.3300%             3/1/17               1,439,341.20           266,019,376.46
 4/1/2017                5.3300%             4/1/17               1,327,151.13           264,692,225.33
 5/1/2017                5.3300%             5/1/17               1,372,431.54           263,319,793.78
 6/1/2017                5.3300%             6/1/17               1,339,541.47           261,980,252.32
 7/1/2017                5.3300%             7/1/17               1,384,477.22           260,595,775.09
 8/1/2017                5.3300%             8/1/17               1,352,043.96           259,243,731.14
 9/1/2017                5.3300%             9/1/17               1,358,249.46           257,885,481.68
10/1/2017                5.3300%            10/1/17               1,402,664.83           256,482,816.85
11/1/2017                5.3300%            11/1/17               1,370,921.29           255,111,895.56
12/1/2017                5.3300%            12/1/17               1,414,984.17           253,696,911.38
 1/1/2018                5.3300%             1/1/18               1,383,707.82           252,313,203.56
 2/1/2018                5.3300%             2/1/18               1,390,058.66           250,923,144.90
 3/1/2018                5.3300%             3/1/18               1,507,890.34           249,415,254.56
 4/1/2018                5.3300%             4/1/18               1,403,359.44           248,011,895.12
 5/1/2018                5.3300%             5/1/18               1,446,520.01           246,565,375.11
 6/1/2018                5.3300%             6/1/18               1,416,439.59           245,148,935.52
 7/1/2018                5.3300%             7/1/18               1,459,236.32           243,689,699.19
 8/1/2018                5.3300%             8/1/18               1,429,638.15           242,260,061.05
 9/1/2018                5.3300%             9/1/18               1,436,199.79           240,823,861.26
10/1/2018                5.3300%            10/1/18               1,478,446.86           239,345,414.40
11/1/2018                5.3300%            11/1/18               1,449,577.21           237,895,837.19
12/1/2018                5.3300%            12/1/18               1,491,452.17           236,404,385.02
 1/1/2019                5.3300%             1/1/19               1,463,075.72           234,941,309.30
 2/1/2019                5.3300%             2/1/19               1,469,790.83           233,471,518.48
 3/1/2019                5.3300%             3/1/19               1,580,237.03           231,891,281.45
 4/1/2019                5.3300%             4/1/19               1,483,789.61           230,407,491.84
 5/1/2019                5.3300%             5/1/19               1,524,712.90           228,882,778.94
 6/1/2019                5.3300%             6/1/19               1,497,597.80           227,385,181.14
 7/1/2019                5.3300%             7/1/19               1,538,137.00           225,847,044.15
 8/1/2019                5.3300%             8/1/19               1,511,530.98           224,335,513.17
 9/1/2019                5.3300%             9/1/19               1,518,468.49           222,817,044.68
10/1/2019                5.3300%            10/1/19               1,558,427.14           221,258,617.54
</TABLE>

                                        5
<PAGE>

<TABLE>
<S>                      <C>                <C>                   <C>                    <C>
11/1/2019                5.3300%            11/1/19               1,532,590.58           219,726,026.96
12/1/2019                5.3300%            12/1/19               1,572,156.41           218,153,870.56
 1/1/2020                5.3300%             1/1/20               1,546,840.51           216,607,030.05
 2/1/2020                5.3300%             2/1/20               1,553,940.08           215,053,089.97
 3/1/2020                5.3300%             3/1/20               1,624,751.84           213,428,338.13
 4/1/2020                5.3300%             4/1/20               1,568,529.39           211,859,808.74
 5/1/2020                5.3300%             5/1/20               1,607,095.53           210,252,713.21
 6/1/2020                5.3300%             6/1/20               1,583,104.63           208,669,608.59
 7/1/2020                5.3300%             7/1/20               1,621,265.33           207,048,343.26
 8/1/2020                5.3300%             8/1/20               1,597,811.79           205,450,531.46
 9/1/2020                5.3300%             9/1/20               1,605,145.31           203,845,386.16
10/1/2020                5.3300%            10/1/20               1,642,692.92           202,202,693.24
11/1/2020                5.3300%            11/1/20               1,620,051.98           200,582,641.25
12/1/2020                5.3300%            12/1/20               1,657,184.94           198,925,456.31
 1/1/2021                5.3300%             1/1/21               1,635,093.59           197,290,362.72
 2/1/2021                5.3300%             2/1/21               1,642,598.21           195,647,764.51
 3/1/2021                5.3300%             3/1/21               1,737,037.50           193,910,727.01
 4/1/2021                5.3300%             4/1/21               1,658,109.80           192,252,617.20
 5/1/2021                5.3300%             5/1/21               1,694,184.13           190,558,433.07
 6/1/2021                5.3300%             6/1/21               1,673,495.90           188,884,937.17
 7/1/2021                5.3300%             7/1/21               1,709,142.25           187,175,794.92
 8/1/2021                5.3300%             8/1/21               1,689,021.27           185,486,773.65
 9/1/2021                5.3300%             9/1/21               1,696,773.41           183,790,000.24
10/1/2021                5.3300%            10/1/21               1,731,772.26           182,058,227.98
11/1/2021                5.3300%            11/1/21               1,712,509.48           180,345,718.50
12/1/2021                5.3300%            12/1/21               1,747,070.61           178,598,647.89
 1/1/2022                5.3300%             1/1/22               1,728,387.99           176,870,259.90
 2/1/2022                5.3300%             2/1/22               1,736,320.81           175,133,939.08
 3/1/2022                5.3300%             3/1/22               1,822,078.70           173,311,860.38
 4/1/2022                5.3300%             4/1/22               1,752,652.88           171,559,207.50
 5/1/2022                5.3300%             5/1/22               1,786,097.36           169,773,110.14
 6/1/2022                5.3300%             6/1/22               1,768,894.76           168,004,215.38
 7/1/2022                5.3300%             7/1/22               1,801,887.45           166,202,327.93
 8/1/2022                5.3300%             8/1/22               1,785,283.66           164,417,044.27
 9/1/2022                5.3300%             9/1/22               1,793,477.61           162,623,566.65
10/1/2022                5.3300%            10/1/22               1,825,786.50           160,797,780.15
11/1/2022                5.3300%            11/1/22               1,810,089.03           158,987,691.12
12/1/2022                5.3300%            12/1/22               1,841,935.85           157,145,755.27
 1/1/2023                5.3300%             1/1/23               1,826,850.81           155,318,904.46
 2/1/2023                5.3300%             2/1/23               1,835,235.55           153,483,668.91
 3/1/2023                5.3300%             3/1/23               1,911,831.10           151,571,837.81
 4/1/2023                5.3300%             4/1/23               1,852,433.54           149,719,404.27
 5/1/2023                5.3300%             5/1/23               1,883,102.49           147,836,301.78
 6/1/2023                5.3300%             6/1/23               1,869,578.62           145,966,723.16
 7/1/2023                5.3300%             7/1/23               1,899,770.65           144,066,952.52
 8/1/2023                5.3300%             8/1/23               1,886,878.88           142,180,073.63
 9/1/2023                5.3300%             9/1/23               1,895,539.13           140,284,534.50
10/1/2023                5.3300%            10/1/23               1,925,009.04           138,359,525.46
11/1/2023                5.3300%            11/1/23               1,913,074.39           136,446,451.08
12/1/2023                5.3300%            12/1/23               1,942,056.52           134,504,394.55
 1/1/2024                5.3300%             1/1/24               1,930,768.37           132,573,626.19
 2/1/2024                5.3300%             2/1/24               1,939,630.06           130,633,996.13
</TABLE>

                                        6
<PAGE>

<TABLE>
<S>                      <C>                <C>                   <C>                    <C>
 3/1/2024                5.3300%             3/1/24               1,987,214.60           128,646,781.53
 4/1/2024                5.3300%             4/1/24               1,957,653.18           126,689,128.35
 5/1/2024                5.3300%             5/1/24               1,985,395.30           124,703,733.05
 6/1/2024                5.3300%             6/1/24               1,975,750.68           122,727,982.37
 7/1/2024                5.3300%             7/1/24               2,002,989.39           120,724,992.98
 8/1/2024                5.3300%             8/1/24               1,994,011.99           118,730,980.98
 9/1/2024                5.3300%             9/1/24               2,003,163.95           116,727,817.03
10/1/2024                5.3300%            10/1/24               2,029,640.12           114,698,176.91
11/1/2024                5.3300%            11/1/24               2,021,673.40           112,676,503.50
12/1/2024                5.3300%            12/1/24               2,047,634.71           110,628,868.80
 1/1/2025                5.3300%             1/1/25               2,040,350.40           108,588,518.40
 2/1/2025                5.3300%             2/1/25               2,049,715.04           106,538,803.36
 3/1/2025                5.3300%             3/1/25               2,106,443.65           104,432,359.71
 4/1/2025                5.3300%             4/1/25               2,068,790.65           102,363,569.06
 5/1/2025                5.3300%             5/1/25               2,093,441.32           100,270,127.73
 6/1/2025                5.3300%             6/1/25               2,087,894.14            98,182,233.59
 7/1/2025                5.3300%             7/1/25               2,112,013.42            96,070,220.17
 8/1/2025                5.3300%             8/1/25               2,107,170.55            93,963,049.61
 9/1/2025                5.3300%             9/1/25               2,116,841.88            91,846,207.74
10/1/2025                5.3300%            10/1/25               2,140,155.94            89,706,051.80
11/1/2025                5.3300%            11/1/25               2,136,380.32            87,569,671.48
12/1/2025                5.3300%            12/1/25               2,159,150.89            85,410,520.60
 1/1/2026                5.3300%             1/1/26               2,156,095.61            83,254,424.98
 2/1/2026                5.3300%             2/1/26               2,165,991.49            81,088,433.49
 3/1/2026                5.3300%             3/1/26               2,211,949.57            78,876,483.92
 4/1/2026                5.3300%             4/1/26               2,186,085.03            76,690,398.90
 5/1/2026                5.3300%             5/1/26               2,207,472.99            74,482,925.91
 6/1/2026                5.3300%             6/1/26               2,206,250.24            72,276,675.67
 7/1/2026                5.3300%             7/1/26               2,227,077.28            70,049,598.40
 8/1/2026                5.3300%             8/1/26               2,226,597.98            67,823,000.42
 9/1/2026                5.3300%             9/1/26               2,236,817.44            65,586,182.98
10/1/2026                5.3300%            10/1/26               2,256,794.21            63,329,388.76
11/1/2026                5.3300%            11/1/26               2,257,441.87            61,071,946.89
12/1/2026                5.3300%            12/1/26               2,276,844.95            58,795,101.94
 1/1/2027                5.3300%             1/1/27               2,278,252.99            56,516,848.95
 2/1/2027                5.3300%             2/1/27               2,288,709.54            54,228,139.41
 3/1/2027                5.3300%             3/1/27               2,323,300.41            51,904,839.00
 4/1/2027                5.3300%             4/1/27               2,309,877.38            49,594,961.62
 5/1/2027                5.3300%             5/1/27               2,327,821.89            47,267,139.73
 6/1/2027                5.3300%             6/1/27               2,331,163.13            44,935,976.60
 7/1/2027                5.3300%             7/1/27               2,348,515.55            42,587,461.05
 8/1/2027                5.3300%             8/1/27               2,352,641.56            40,234,819.49
 9/1/2027                5.3300%             9/1/27               2,363,439.53            37,871,379.96
10/1/2027                5.3300%            10/1/27               2,379,894.13            35,491,485.83
11/1/2027                5.3300%            11/1/27               2,385,210.12            33,106,275.71
12/1/2027                5.3300%            12/1/27               2,401,059.13            30,705,216.58
 1/1/2028                5.3300%             1/1/28               2,407,177.76            28,298,038.82
 2/1/2028                5.3300%             2/1/28               2,418,226.04            25,879,812.78
 3/1/2028                5.3300%             3/1/28               2,436,988.32            23,442,824.45
 4/1/2028                5.3300%             4/1/28               2,440,510.12            21,002,314.33
 5/1/2028                5.3300%             5/1/28               2,454,820.90            18,547,493.43
 6/1/2028                5.3300%             6/1/28               2,462,978.33            16,084,515.10
</TABLE>

                                        7
<PAGE>

<TABLE>
<S>                      <C>                <C>                   <C>                     <C>
 7/1/2028                5.3300%             7/1/28               2,476,664.12            13,607,850.98
 8/1/2028                5.3300%             8/1/28               2,485,649.92            11,122,201.06
 9/1/2028                5.3300%             9/1/28               2,497,058.36             8,625,142.69
10/1/2028                5.3300%            10/1/28               2,509,796.17             6,115,346.53
11/1/2028                5.3300%            11/1/28               2,520,038.43             3,595,308.09
12/1/2028                5.3300%            12/1/28               2,532,137.02             1,063,171.08
 1/1/2029                5.3300%             1/1/29               1,063,171.08
 2/1/2029                5.3300%             2/1/29                          -
</TABLE>

                                        8<PAGE>
                                                                   Exhibit 10.23

                              ASSIGNMENT OF LEASES,
                           RENTS AND SECURITY DEPOSITS

                                      from

                               731 OFFICE ONE LLC

                                       to

                      GERMAN AMERICAN CAPITAL CORPORATION,

                          Dated as of February 13, 2004

                 Street Address:      731 Lexington Avenue
                                      New York, New York

                         County:      New York
                        Section:

                          Block:      1313
                            Lot:      1002 and 1003

                              Record and Return to:
                    Skadden, Arps, Slate, Meagher & Flom LLP
                                Four Times Square
                            New York, New York 10036
                         Attention: Harvey R. Uris, Esq.
<PAGE>
                              ASSIGNMENT OF LEASES,
                           RENTS AND SECURITY DEPOSITS

         This ASSIGNMENT OF LEASES, RENTS AND SECURITY DEPOSITS, dated as of
February 13, 2004 (this ASSIGNMENT), from 731 OFFICE ONE LLC, a Delaware limited
liability company, (Borrower), having an address for notice purposes c/o
Alexander's Inc., 888 Seventh Avenue, New York, New York 10019, to GERMAN
AMERICAN CAPITAL CORPORATION, a Maryland corporation (together with its
successors and assigns, LENDER), having an address at 60 Wall Street, New York,
New York 10005.

                              W I T N E S S E T H :

         WHEREAS, Borrower is the owner of a fee simple interest in the real
property commonly known as Office Unit 1 and Office Unit 2 of the Beacon Court
Condominium located at 731 Lexington Avenue, New York, New York, and more
particularly described on Exhibit A attached hereto and incorporated herein (the
PROPERTY);

         WHEREAS, on the date hereof, in accordance with the terms of a Loan and
Security Agreement, dated as of the date hereof (as the same may be amended and
supplemented from time to time, the LOAN AGREEMENT), between Lender, as lender,
and Borrower, as borrower, Lender is making a loan to Borrower in the principal
amount of $400,000,000 (the LOAN), which Loan is evidenced by that certain
Amended, Restated and Consolidated Note, dated as of the date hereof (as the
same may be amended, substitued, replaced, exchanged and supplemented from time
to time, the NOTE), made by and between Borrower and Lender and secured by that
certain Amended, Restated and Consolidated Mortgage, Security Agreement,
Financing Statement and Assignment of Leases, Rents and Security Deposits, dated
as of the date hereof (as the same may be amended and supplemented from time to
time, the SECURITY INSTRUMENT), by and between Borrower and Lender and the other
Loan Documents (as defined in the Loan Agreement);

         WHEREAS, as a condition to making the Loan, Lender has required that
Borrower deliver this Assignment for the benefit of Lender;

         WHEREAS, the forgoing recitals are intended to form an integral part of
this Assignment.

         NOW, THEREFORE, Borrower, in consideration of the Loan, foregoing
premises, Ten Dollars ($10.00) paid in hand, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
Borrower agrees as follows:

         Section 1. Definitions

                (a) The following terms shall have the meaning ascribed thereto:

ASSIGNMENT: Shall have the meaning provided in the first paragraph.

                                       2
<PAGE>
BORROWER: Shall have the meaning provided in the first paragraph.

LENDER: Shall have the meaning provided in the first paragraph.

LOAN AGREEMENT: Shall have the meaning provided in the Recitals.

NOTE: Shall have the meaning provided in the Recitals.

SECURITY INSTRUMENT: Shall have the meaning provided in the Recitals.

                (b) 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 Agreement, unless otherwise indicated.

         Section 2. Assignment.

                (a) Borrower hereby assigns, transfers and sets over unto
Lender, subject to the terms hereof, all of the right, title and interest of
Borrower in and to all Leases, Rents and Security Deposits, it being understood
that, as of the date hereof, the only Lease is the Bloomberg Lease, the only
Rents are the Rents under the Bloomberg Lease and there are no Security
Deposits.

                (b) This Assignment is an absolute, present and irrevocable
assignment made for the purpose of securing (i) the payment and performance by
Borrower of all Obligations; (ii) the payment of all sums with interest thereon
becoming due and payable to Lender under this Assignment; and (iii) the
performance and discharge of each and every obligation, covenant,
representation, warranty, indemnity and agreement of Borrower under this
Assignment.

         Section 3. License to Collect Rent.

                (a) Prior to the occurrence of an Event of Default and subject
to the provisions of the Section 3.1 of the Loan Agreement, Lender has granted
Borrower a license to cause the Rents to be collected and deposited in the
Collection Account in accordance with the terms of Section 3.1 of the Loan
Agreement. The foregoing license granted to Borrower shall terminate upon the
occurrence and during the continuance of an Event of Default.

                (b) Any time after the occurrence and during the continuance of
an Event of Default, Lender, without in any way waiving such Event of Default,
at its option and without regard to the adequacy of the security for Obligations
and the other obligations secured hereby and by any Loan Document, either in
person or by agent or by a receiver appointed by a court, may enter upon and
take possession of the Property and have, hold, manage, lease and operate the
same on such terms and for such period of time as Lender may deem proper,
subject to the Bloomberg Lease. At any time after the occurrence and during the
continuance of an Event of Default, Lender, with or without taking possession of
the Property, may, to the extent not prohibited by applicable Legal

                                       3
<PAGE>
Requirements, and, subject to the Bloomberg Lease, demand, sue for or otherwise
collect and receive all Rents, and Security Deposits, including any Rent past
due and unpaid, and to apply such Rents to the payment of: (i) all reasonable
expenses of managing the Property, including, without limitation, the reasonable
salaries, fees and wages of any manager or managing agent and such other
employees as Lender may deem necessary in Lender's sole and absolute discretion
and all expenses of operating and maintaining the Property, including, without
limitation, all rents, taxes, charges, claims, assessments, water rents, sewer
rents and any other liens, and premiums for all insurance which are due and
payable and the cost of all alterations, renovations, repairs or replacements
for the Property, the fees and expenses provided for under the Management
Agreement, provided such fees and expenses shall be subject and subordinate to
the Loan, and all expenses incident to taking and retaining possession and
managing the Property, including, without limitation, attorneys fees and
disbursements; and (ii) the Obligations. The terms of this Section 3 are in all
respects subject to the terms of Section 10(p) and Section 15(a) of the Security
Instrument.

                (c) The exercise by Lender of the right to collect the Rents and
the application thereof as herein provided shall not be considered a waiver of
any Event of Default under the this Assignment or any other Loan Document.
Borrower agrees that the exercise by Lender of one or more of its rights and
remedies hereunder shall in no way be deemed or construed to make Lender a
mortgagee-in-possession unless and until such time as Lender takes actual
possession of the Property.

         Section 4. No Other Assignment.

                (a) Borrower represents and warrants that (i) Borrower has not
executed any, and there is no existing, assignment of the Leases, Rents or
Security Deposits, except for the Security Instrument and (ii) Borrower has not
performed any act or executed any instrument, assignment or agreement, and there
is no existing instrument, assignment or agreement, which might prevent Lender
from exercising its rights under any of the terms and conditions of this
Assignment or which would limit Lender in such exercise in any material way.

                (b) Borrower shall not (i) execute any assignment of the Leases,
Rents or Security Deposits to any person other than Lender and (ii) perform any
act or execute any instrument, assignment or agreement which might prevent
Lender from exercising its rights under any of the terms and conditions of this
Assignment or which would limit Lender in such exercise in any material way. Any
of the foregoing acts done without the prior written consent of Lender shall be
null and void.

         Section 5. Covenants.

                (a) Borrower will duly perform, observe and comply with all of
the affirmative and negative covenants, agreements and obligations to be
performed, observed and complied with by Borrower, and all of the other terms
and conditions applicable to Borrower, under the terms of Section 8.8 of the
Loan Agreement and

                                       4
<PAGE>
Section 5 of the Security Instrument as if each such covenant, agreement,
obligation, term and condition were expressly set forth herein in full.

                (b) Borrower shall from time to time, at the request of Lender,
deliver to Lender certified copies of each and every Lease then affecting all or
any part of the Property not previously delivered to Lender or unobtainable from
Bloomberg, together with assignments of any such Lease to which Borrower is a
party to the extent not previously assigned hereunder. Such assignments shall be
on forms reasonably approved by Borrower and Lender or its designee, and
Borrower agrees to pay all reasonable costs reasonably incurred in connection
with the execution and recording of such assignments or any other related
reasonably documents, including, without limitation, Lender's reasonable
attorneys fees and expenses.

         Section 6. No Liability. Subject to the terms of the Bloomberg Lease,
Lender shall not be liable for any loss sustained by Borrower resulting from
Lender's failure to let Property or any portion thereof or any other act or
omission of Lender either in collecting the Rents or, if Lender shall have taken
possession of the premises described in the Leases and/or the Security
Instrument, in managing such premises after any such Event of Default, unless
such loss is caused by the gross negligence or willful misconduct of Lender, its
employees, officers, agents or representatives. Lender shall not be obligated to
perform or discharge, nor does Lender hereby undertake to perform or discharge,
any obligation, duty or liability under any Lease prior to the time that Lender
or any Affiliate, nominee or designee of Lender becomes a
mortgagee-in-possession or owner of the Property or otherwise takes possession
of the Property and Borrower shall, and does hereby agree to, indemnify Lender
for, and to hold Lender harmless from any and all liability, loss or damage
which Lender may incur as a result of or related to the exercise of its remedies
hereunder and under the other Loan Documents and from any and all claims and
demands whatsoever which may be asserted against Lender by reason of any alleged
obligations or undertakings on its part to perform or discharge any of the
terms, covenants or agreements contained in said Leases prior to the time that
Lender or any Affiliate, nominee or designee of Lender becomes a
mortgagee-in-possession or owner of the Property or otherwise takes possession
of the Property. Should Lender incur any such liability under said Leases or in
defense of any such claims or demands, the amount thereof, including reasonable
costs and expenses and reasonable attorneys' fees and expenses actually
incurred, shall be secured hereby, and Borrower shall reimburse Lender therefor
immediately upon demand, and upon the failure of Borrower to do so Lender may,
at its option, exercise Lender's remedies under the Security Instrument as the
same relates to the Property. It is further understood that unless and until
Lender or its Affiliate, nominee or designee shall become a
mortgagee-in-possession or the owner of the Property, or any portion thereof, or
otherwise takes possession or control of the Property, or any portion thereof,
this Assignment shall not operate to place responsibility for the control, care,
management or repair of said premises upon Lender, nor for the carrying out of
any of the terms and conditions of any Lease; nor shall it operate to make
Lender responsible or liable for any waste committed on the Property by the
tenants or any other parties, or for any dangerous or defective condition of
such premises, or for any negligence in the management, upkeep, repair or
control of said premises resulting in loss or injury or death to any tenant,
licensee, employee or stranger

                                       5
<PAGE>
other than any of the foregoing arising from the gross negligence or willful
misconduct of Lender, its employees, officers, agents or representatives.

         Section 7. Tenant Notices. Borrower hereby authorizes and directs all
current and future Tenants, upon receipt from Lender of written notice to the
effect that Lender is then the holder of the Security Instrument and that an
Event of Default exists thereunder or under any other Loan Document, to pay over
to Lender, to the extent not prohibited by applicable Legal Requirements, all
Rents and Security Deposits and to continue so to do until otherwise notified by
Lender. Lender agrees, at Borrower's sole cost and expense, to promptly notify
all Tenants that they are no longer obligated to make such payments to Lender
upon the curing of any Event of Default.

         Section 8. Miscellaneous.

                (a) Assignments by Lender. No consent by Borrower shall be
required for any assignment or reassignment of the rights of Lender under this
Assignment to any purchaser of the Loan or any interest in or portion of the
Loan.

                (b) No Release. Lender may take or release other security for
the payment of said principal sum, interest and indebtedness, may release any
party primarily or secondarily liable therefor and may apply any other security
held by it to the satisfaction of such principal sum, interest or indebtedness
without prejudice to any of its rights under this Assignment.

                (c) Conflicts. In the event that any terms or provisions of this
Assignment and the Loan Agreement conflict, the terms and provisions of the Loan
Agreement shall control.

                (d) Expenses. Borrower shall pay to Lender and/or Lender's
counsel, on demand, from time to time, all reasonable costs and expenses,
including, without limitation, reasonable attorneys' fees and disbursements, of,
or incidental to, this Assignment or in any way relating to the enforcement,
protection or preservation of the rights or remedies of Lender under this
Assignment or any other Loan Document.

                (e) Further Assurances. Borrower shall execute and acknowledge
(or cause to be executed and acknowledged) and deliver to Lender all documents,
and take all actions, reasonably required by Lender from time to time to confirm
the rights created or now or hereafter intended to be created under this
Assignment and the other Loan Documents and any security interest created or
purported to be created thereunder, to protect and further the validity,
priority and enforceability of this Assignment and the other Loan Documents, to
subject to the Loan Documents any property of Borrower intended by the terms of
any one or more of the Loan Documents to be encumbered by the Loan Documents, or
otherwise carry out the purposes of the Loan Documents and the transactions
contemplated thereunder.

                (f) Notices. Any notice, election, request or demand which by
any provision of this Assignment is required or permitted to be given or served
hereunder

                                       6
<PAGE>
shall be in the manner required for the delivery of notices pursuant to Section
19.6 of the Loan Agreement.

                (g) Entire Agreement. This Assignment and the Loan Documents
constitute 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.

                (h) No Waiver. No waiver of any term or condition of this
Assignment, 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. A waiver
of one event shall not be construed as continuing or as a bar to or waiver of
any right or remedy to a subsequent event. Nothing contained in this Assignment
and no act done or omitted by Lender pursuant to the powers and rights granted
it hereunder shall be deemed to be a waiver by Lender of any of Lender's rights
and remedies under any other Loan Document. This Assignment is made and accepted
without prejudice to any of such rights and remedies possessed by Lender to
collect the Obligations or any amounts secured hereby and to enforce any other
security therefor held by it, and said rights and remedies may be exercised by
Lender either prior to, simultaneously with, or subsequent to any action taken
by it hereunder.

                (i) Successors and Assigns. This Assignment shall be binding
upon and inure to the benefit of Borrower and Lender and their respective
successors and permitted assigns.

                (j) 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 Assignment.

                (k) Severability. The provisions of this Assignment 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 Assignment.

                (l) 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, WITHOUT REGARD TO CHOICE OF LAW RULES.
BORROWER AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS NOTE OR ANY OTHER LOAN
DOCUMENT SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL
COURT SITTING THEREIN AND CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH
COURT AND THE SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON BORROWER IN
THE MANNER AND AT THE ADDRESS SPECIFIED FOR NOTICES IN THE LOAN AGREEMENT.
BORROWER

                                       7
<PAGE>
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.

                (m) JURY TRIAL WAIVER; VENUE. BORROWER AND LENDER AND ALL
PERSONS CLAIMING BY, THROUGH OR UNDER BORROWER AND LENDER, HEREBY EXPRESSLY,
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (I) ARISING UNDER THIS ASSIGNMENT,
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 ASSIGNMENT (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 AND LENDER HEREBY AGREE AND CONSENT 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. EACH
OF BORROWER AND LENDER 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. ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR
BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE INSTITUTED IN ANY
FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO
SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND BORROWER AND LENDER
WAIVE ANY OBJECTIONS WHICH THEY MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR
FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND LENDER AND
BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY
SUIT, ACTION OR PROCEEDING.

                                       8
<PAGE>
                (n) Counterclaims and other Actions. Borrower hereby expressly
and unconditionally waives, in connection with any suit, action or proceeding
brought by Lender on this Assignment, 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 Assignment
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.

                (o) Non-Recourse. Recourse with respect to any claims arising
under or in connection with this Assignment shall be limited to the extent
provided in Article XVIII of the Loan Agreement and the terms, covenants and
conditions of Article XVIII of the Loan Agreement are hereby incorporated by
reference as if fully set forth in this Assignment.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]
<PAGE>
IN WITNESS WHEREOF, Borrower has duly executed this Assignment of Leases, Rents
and Security Deposits as of the date first hereinabove written.

                              BORROWER:

                              731 OFFICE ONE LLC, a Delaware limited
                              liability company

                              By:  731 OFFICE ONE HOLDING LLC, a
                                   Delaware limited liability company,
                                   its sole member

                                       By:  ALEXANDER'S INC., a Delaware
                                            corporation, its sole member

                                       By:  /s/         Brian Kurtz
                                            -------------------------------
                                                Name:   Brian Kurtz
                                                Title:  Assistant Secretary
<PAGE>
STATE OF NEW YORK          )
                           ) ss:
COUNTY OF NEW YORK         )

         On February 13, 2004 before me, the undersigned, a notary public in and
for said state, personally appeared Brian Kurt, personally known to me or proved
to me on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their capacity, and that by his/her/their signature
on the instrument, the individual, or the person upon behalf of which the
individual acted, executed the instrument.

                                        /s/ Michael Eden
                                        -------------------------------------
                                        Notary Public

[Notary Seal]                           My commission expires: March 19, 2007
<PAGE>
                                    EXHIBIT A

                                 (Office Unit 1)

The Condominium Unit (the "Unit") in the premises known as Beacon Court
Condominium and by the street number by the street number 151 East 58th Street,
Borough of Manhattan, City, County and State of New York, said Unit being
designated and described as "Office Unit 1" in the declaration (the
"Declaration") establishing a plan for condominium ownership of said premises
under Article 9-B of the Real Property Law of the State of New York (the
"Condominium Act"), dated December 4, 2003, and recorded in the New York County
office of the Register of The City of New York (the "City Register's Office") on
February 3, 2004, in CRFN No. 2004000064392, and also designated as Tax Lot 1002
in Block 1313 of Section 5 of the Borough of Manhattan on the Tax Map of the
Real Property Assessment Department of the City of New York and on the Floor
Plans of said building, certified by Peter Claman, Registered Architect, on
January 29, 2004, and filed in the Real Property Assessment Department of the
City of New York on January 30, 2004 as Condominium Plan No. 1350 also filed in
the City Register's Office on February 3, 2004 in CRFN No. 2004000064393. All
capitalized terms herein which are not separately defined herein will have the
meanings given to those terms in the Declaration or in the by-laws of Beacon
Court Condominium. (Said by-laws, as the same may be amended from time to time,
are hereinafter referred to as the "By-Laws.")

         TOGETHER with an undivided 49.0559% percentage interest in the General
Common Elements (as such term is defined in the Declaration);

         TOGETHER with the appurtenances and all the estate and rights in and to
the Unit;

         TOGETHER with, and subject to, the rights, obligations, easements,
restrictions and other provisions set forth in the Declaration and the By-Laws,
all of which constitute covenants running with the Land and will bind any person
having at any time any interest or estate in (any of) the Unit, as though
recited and stipulated at length herein;

The premises within which the Unit is located is more particularly described as:

ALL that certain plot, piece or parcel of land, situate, lying and being in the
borough of Manhattan, County, City and State of New York, bounded and described
as follows:

BEGINNING at the corner formed by the intersection of the southerly side of East
59th Street and the westerly side of Third Avenue;

RUNNING THENCE southerly, along the westerly side of Third Avenue, 200'-10" to
the northerly side of East 58th Street;

THENCE westerly, along the northerly side of East 58th Street 420' to the
easterly side of Lexington Avenue;

THENCE northerly along the easterly side of Lexington Avenue, 200'-10" to the
southerly side of East 59th Street;

THENCE easterly, along the southerly side of East 59th Street, 420' to the point
or place of BEGINNING.

TOGETHER with the benefits and SUBJECT to the burdens of the easements set forth
in the deed made by Seven Thirty One Limited Partnership to 59th Street
Corporation dated as of 8/1/2001 and recorded 8/8/2001 in Reel 3339 Page 1100.
<PAGE>
                                 (Office Unit 2)

The Condominium Unit (the "Unit") in the premises known as Beacon Court
Condominium and by the street number by the street number 151 East 58th Street,
Borough of Manhattan, City, County and State of New York, said Unit being
designated and described as "Office Unit 2" in the declaration (the
"Declaration") establishing a plan for condominium ownership of said premises
under Article 9-B of the Real Property Law of the State of New York (the
"Condominium Act"), dated December 4, 2003, and recorded in the New York County
office of the Register of The City of New York (the "City Register's Office") on
February 3, 2004, in CRFN No. 2004000064392, and also designated as Tax Lot 1003
in Block 1313 of Section 5 of the Borough of Manhattan on the Tax Map of the
Real Property Assessment Department of the City of New York and on the Floor
Plans of said building, certified by Peter Claman, Registered Architect, on
January 29, 2004, and filed in the Real Property Assessment Department of the
City of New York on January 30, 2004 as Condominium Plan No. 1350 also filed in
the City Register's Office on February 3, 2004 in CRFN No. 2004000064393. All
capitalized terms herein which are not separately defined herein will have the
meanings given to those terms in the Declaration or in the by-laws of Beacon
Court Condominium. (Said by-laws, as the same may be amended from time to time,
are hereinafter referred to as the "By-Laws.")

TOGETHER with an undivided 14.0095% percentage interest in the General Common
Elements (as such term is defined in the Declaration);

TOGETHER with the appurtenances and all the estate and rights in and to the
Unit;

TOGETHER with, and subject to, the rights, obligations, easements, restrictions
and other provisions set forth in the Declaration and the By-Laws, all of which
constitute covenants running with the Land and will bind any person having at
any time any interest or estate in (any of) the Unit, as though recited and
stipulated at length herein;

The premises within which the Unit is located is more particularly described as:

ALL that certain plot, piece or parcel of land, situate, lying and being in the
borough of Manhattan, County, City and State of New York, bounded and described
as follows:

BEGINNING at the corner formed by the intersection of the southerly side of East
59th Street and the westerly side of Third Avenue;

RUNNING THENCE southerly, along the westerly side of Third Avenue, 200'-10" to
the northerly side of East 58th Street;

THENCE westerly, along the northerly side of East 58th Street 420' to the
easterly side of Lexington Avenue;

THENCE northerly along the easterly side of Lexington Avenue, 200'-10" to the
southerly side of East 59th Street;

THENCE easterly, along the southerly side of East 59th Street, 420' to the point
or place of BEGINNING.

TOGETHER with the benefits and SUBJECT to the burdens of the easements set forth
in the deed made by Seven Thirty One Limited Partnership to 59th Street
Corporation dated as of 8/1/2001 and recorded 8/8/2001 in Reel 3339 Page 1100.

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