Document:

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                                                                   Exhibit 10.16

                          PROPERTY MANAGEMENT AGREEMENT
                                       FOR
                          SPICEWOOD SPRINGS APARTMENTS
                              JACKSONVILLE, FLORIDA

                                       (i)
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                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                             PAGE
                                                                             ----
<S>                                                                            <C>
ARTICLE 1. RETENTION OF MANAGER; GENERAL DEFINITIONS                            7
        1.1 Retention of Manager                                                7
        1.2 General Definitions                                                 7

ARTICLE 2. MANAGER'S RESPONSIBILITIES                                           9
        2.1 General Responsibilities                                            9
        2.2 Manager's Personnel; Independent Contractor.                        9
        2.3 Executive Personnel; Building Manager                              10
        2.4 Schedule of Employees                                              10
        2.5 Compliance with Laws, Licenses, Mortgages, Etc.                    11
        2.6 Security                                                           12
        2.7 Energy Management                                                  12
        2.8 Annual Business Plan.                                              12
        2.9 Service Contracts.                                                 13
        2.10 Collection of Rents and Other Income                              13
        2.11 Competitive Bidding                                               13
        2.12 Repairs                                                           14
        2.13 Leases.                                                           14
        2.14 Notices to Owner                                                  15

ARTICLE 3. INSURANCE AND CLAIMS                                                16
        3.1 Owner's Insurance and Rights                                       16
        3.2 Manager's Insurance                                                16
        3.3 Indemnification.                                                   17
        3.4 Contractors' and Subcontractors' Insurance                         18
        3.5 Waiver of Subrogation                                              19
        3.6 Service Contracts                                                  19
        3.7 Claims                                                             19

ARTICLE 4. FINANCIAL REPORTING AND RECORD KEEPING                              19
        4.1 Financial Controls                                                 19
        4.2 Financial Reports:  General Requirements                           19
        4.3 Monthly Statements                                                 20
        4.4 Supporting Documentation                                           20
        4.5 Annual Financial Reports                                           21
        4.6 Transfer of Funds                                                  21
        4.7 Owner's Property                                                   21
        4.8 Books and Records                                                  21
</Table>

                                      (ii)
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<Table>
<S>                                                                            <C>
ARTICLE 5. OWNER'S RIGHT TO AUDIT                                              22
        5.1 Right to Audit                                                     22

ARTICLE 6. BANK ACCOUNTS                                                       22
        6.1 Operating Account                                                  22
        6.2 Security Deposit Account                                           23
        6.3 Change of Banks                                                    23
        6.4 Access to Account                                                  23

ARTICLE 7. PAYMENT OF EXPENSES                                                 23
        7.1 Costs Eligible for Payment from Operating Account                  23
        7.2 Non-Reimbursable Costs                                             24

ARTICLE 8. INSUFFICIENT GROSS INCOME                                           25
        8.1 Priorities                                                         25
        8.2 Statement of Unpaid Items                                          26
        8.3 Segregation of Accounts                                            26
        8.4 Cash Flow Forecasting                                              26
        8.5 Manager Not Obligated to Fund                                      26

ARTICLE 9. SALE OR FINANCING OF PROPERTY                                       27
        9.1 Cooperation with Broker                                            27
        9.2 No Sales/Brokerage Commissions                                     27

ARTICLE 10. COOPERATION                                                        27
        10.1 Cooperation                                                       27

ARTICLE 11. COMPENSATION                                                       27
        11.1 Compensation                                                      27

ARTICLE 12. TERMINATION                                                        29
        12.1 Termination                                                       29
        12.2 Termination Without Notice.                                       29
        12.3 Final Accounting                                                  30
        12.4 Obligation to Vacate:  Orderly Transition                         30

ARTICLE 13. SUBSIDIARIES AND AFFILIATES                                        30
        13.1 Subsidiaries and Affiliates                                       30

ARTICLE 14. NOTICES                                                            31
        14.1 Notices.                                                          31

ARTICLE 15. CERTAIN REPRESENTATIONS AND COVENANTS                              31
        15.1 Manager Representations                                           31
        15.2 Non-Competition                                                   32
</Table>

                                      (iii)
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<Table>
<S>                                                                            <C>
ARTICLE 16. MISCELLANEOUS                                                      32
        16.1 Word Meanings                                                     32
        16.2 Assignment                                                        32
        16.3 Binding Provisions                                                32
        16.4 Applicable Law                                                    32
        16.5 Separability of Provisions                                        32
        16.6 Section Titles                                                    33
        16.7 Further Assurances                                                33
        16.8 Entire Agreement                                                  33
        16.9 Waiver                                                            33
        16.10 Agreement in Counterparts                                        33
        16.11 Attorneys' Fees                                                  33
        16.12 Time Periods                                                     34
        16.13 Modification of Agreement                                        34
        16.14 Time of the Essence                                              34
        16.15 Construction of Agreement                                        34
        16.16 Consent and Approvals                                            34
        16.17 Use of Owner's Name Prohibited                                   34
        16.18 Exculpation                                                      34
        16.19 Confidentiality                                                  34
        16.20 No Joint Venture                                                 34
</Table>

Exhibits

        A    Reporting Package (Section  1.2)
        B    Executive Personnel and Building Manager (Section  2.3)
        C    Reimbursable Employee Expense Schedule (Section  2.4)
        D    Annual Business Plan (Section  2.8)
        E    List of Service Contracts (Section  2.9)
        F    Affiliates of Manager (Section  13.1)
        G    Competing Property In Which Manager has an Interest (Sections 4.4,
             15.1, 15.2, Part III, PARA5)
        G-1  Manager's Other Properties (Section  15.1)
        H    Monthly Statements (Section  4.3)

                                      (iv)
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                          PROPERTY MANAGEMENT AGREEMENT

     This Property Management Agreement is made and entered into as of this 29th
day of May, 2003, by and between BC-BAINBRIDGE SPICEWOOD LLC, a Delaware limited
liability company (the "OWNER") and BAINBRIDGE MANAGEMENT JACKSONVILLE LLC, a
Florida limited liability company (the "MANAGER").

                                   BACKGROUND

     A.   Owner owns the Property (defined below).

     B.   Manager is skilled and experienced in the management, operation,
leasing and supervision in properties similar to the Property in the geographic
area where the Property is located.

     C.   Owner desires to engage Manager as an independent contractor on the
terms and conditions set forth below and Manager desires to accept such
engagement.

     NOW, THEREFORE, in consideration of the mutual covenants set forth herein,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Owner and Manager agree as follows:

           THE BALANCE OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.

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                               PART I - BASIC DATA

     The following defined terms shall have the meaning set forth below:

     "COMMENCEMENT DATE" - May 29, 2003.

     "MANAGEMENT FEE PERCENTAGE" - 3.5%

     "MANAGER'S NOTICE ADDRESS" -

          Bainbridge Management Jacksonville LLC
          c/o The Bainbridge Companies
          12765 West Forest Hill Boulevard, Suite 1307
          Wellington, FL  33414
          Attn: Mr. Richard A. Schechter

     "OWNER'S NOTICE ADDRESS"

          BC-Bainbridge Spicewood LLC
          c/o The Bainbridge Companies
          12765 West Forest Hill Boulevard, Suite 1307
          Wellington, FL  33414
          Attn: Mr. Richard A. Schechter

          with copies to:

          BC-Bainbridge LLC
          c/o Boston Capital  Corporation
          One Boston Place - Suite 2100
          Boston, Massachusetts  02108
          Attn:  Mark W. Dunne

          and

          Goodwin Procter LLP
          Exchange Place
          Boston, Massachusetts  02109-2881
          Attn:  Andrew C. Sucoff, P.C.

     "PROPERTY" - that certain property consisting of the multi-family apartment
complex known as Spicewood Springs Apartments located in the City of
Jacksonville, County of Duval, State of Florida, together with all personal
property of Owner attached thereto, located thereon or used in connection
therewith.

     THE BALANCE OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.

                                        6
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                            PART II - STANDARD TERMS

              ARTICLE 1. RETENTION OF MANAGER; GENERAL DEFINITIONS

     1.1     RETENTION OF MANAGER. Owner hereby retains Manager to perform the
services described below in accordance with the terms and conditions of this
Agreement, utilizing trained, experienced personnel and employing professional
real estate management practices and techniques. Manager accepts the
relationship of trust and confidence established between it and Owner by this
Agreement and covenants to use its best skill and prudent business judgment in
furthering the interests of Owner. Manager will act in a fiduciary capacity for
the benefit of Owner with respect to the proper protection of and accounting for
the Property. Manager's duties and responsibilities will commence on the
Commencement Date and shall continue until the expiration or earlier termination
of this Agreement in accordance with Article 12.

     1.2     GENERAL DEFINITIONS. As used in this Agreement, the following terms
shall have the following respective meanings:

     "AFFILIATE OF MANAGER" shall mean any person or entity which (i) is a
director, officer, partner, member or trustee of Manager, or in which Manager or
any Manager Owner is a director, officer, partner, member or trustee, (ii) has
any direct or indirect legal or beneficial interest in Manager, or in which
Manager or any Manager Owner has any direct or indirect legal or beneficial
interest, or (iii) directly or indirectly controls, is controlled by or is under
common control with Manager.

     "AGREEMENT" shall mean this Property Management Agreement, which consists
of Part I and Part II and such other Parts as may be attached hereto and
executed by Owner and Manager, including all Schedules and Exhibits hereto, all
as amended from time to time in accordance with the terms hereof.

     "ANNUAL BUSINESS PLAN" shall mean the annual business plan to be prepared
by Manager and approved by Owner in accordance with SECTION 2.9.

     "APPROVED ANNUAL BUSINESS PLAN" shall mean, at any time, the Annual
Business Plan as then approved by Owner in accordance with SECTION 2.9.

     "BOOKS AND RECORDS" shall have the meaning set forth in SECTION 4.8.

     "BUILDING MANAGER" shall have the meaning set forth in SECTION 2.3.

     "BUSINESS DAY" shall mean every day that is not a Saturday, Sunday or day
on which banks in Massachusetts or the state in which the Property is located
are required by law or executive action to be closed for the transaction of
normal banking business.

     "CHART OF ACCOUNTS" shall mean the form of chart of accounts approved by
Owner, a copy of which is included in the Reporting Package, as the same may be
modified or replaced as required by Owner from time to time.

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     "COMPETING PROPERTY" shall have the meaning set forth in SECTION 15.1.

     "CONSTRUCTION BUDGET" shall have the meaning set forth in SECTION
2.8(b)(v).

     "DAMAGES" shall mean all claims, actions, suits, proceedings, judgments,
damages, fines, penalties, losses and expenses, including reasonable attorneys'
fees, consultants' and expert witness fees and court costs, including any such
costs incurred in any bankruptcy or other legal or administrative proceeding.

     "EXECUTIVE PERSONNEL" shall have the meaning set forth in SECTION 2.3.

     "FINAL ACCOUNTING" shall have the meaning set forth in SECTION 12.3.

     "GAAP" shall mean generally accepted accounting principles consistently
applied.

     "INSURANCE REQUIREMENTS" shall mean all requirements of any insurance
policy covering the Property or the use thereof, all requirements of the issuer
of any such policy, and all requirements, orders, rules or regulations of the
National Board of Fire Underwriters (or similar agencies) applicable to the
Property.

     "INVESTOR" shall have the meaning set forth in that certain Limited
Liability Company Agreement of Owner dated as of May ___, 2003.

     "LEGAL REQUIREMENTS" shall mean all federal, state and municipal laws,
rules or regulations applicable to the Property or the operation, occupancy,
leasing, maintenance and repair thereof.

     "LICENSES" shall mean all permits, certificates, licenses, approvals,
consents and other entitlements required for the operation, occupancy, leasing,
maintenance and repair of the Property.

     "MANAGER" shall have the meaning set forth in the introductory paragraph.

     "MANAGEMENT FEE" shall mean the product of (x) the Management Fee
Percentage times (y) all Rents actually collected for each month during the term
of this Agreement.

     "MANAGEMENT FEE PERCENTAGE" shall have the meaning set forth in Part I.

     "MANAGER OWNER" shall mean any person or entity that owns, directly or
indirectly, 25% or more of the legal or beneficial ownership interests in
Manager.

     "MONTHLY STATEMENT" shall have the meaning set forth in SECTION 4.3.

     "OPERATING ACCOUNT" shall have the meaning set forth in SECTION 6.1.

     "OPERATING BUDGET" shall have the meaning set forth in SECTION 2.9(b).

                                        8
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     "OWNER" shall have the meaning set forth in the introductory paragraph.

     "OWNER RELATED ENTITIES" shall mean Owner, its direct and indirect legal
and beneficial owners, and all officers, directors, trustees, employees,
advisors and agents of Owner and all of Owner's direct and indirect legal and
beneficial owners.

     "PROJECT" shall have the meaning set forth in SECTION 2.8(a).

     "REIMBURSABLE EMPLOYEE EXPENSE SCHEDULE" shall have the meaning set forth
in SECTION 2.4.

     "RENTS" shall have the meaning set forth in SECTION 11.1.

     "REPORTING PACKAGE" shall mean the sample reports prepared by Manager and
attached hereto as EXHIBIT A, as modified or supplemented as required by Owner
from time to time in accordance with SECTION 4.2(e).

     "SERVICE CONTRACTS" shall have the meaning set forth in SECTION 2.10.

                      ARTICLE 2. MANAGER'S RESPONSIBILITIES

     2.1     GENERAL RESPONSIBILITIES. Subject to the provisions of this
Agreement, Manager shall manage, operate and maintain the Property in a
first-class manner and in accordance with the Approved Annual Business Plan.
Manager shall perform its duties hereunder: (a) in accordance with the terms of
this Agreement; (b) in compliance with all applicable laws, rules and
regulations, including the Legal Requirements; and (c) in accordance with the
standards and practices of prudent and qualified managers that manage properties
similar to the Property on behalf of institutional owners or investors.

     2.2     MANAGER'S PERSONNEL; INDEPENDENT CONTRACTOR.

             (a) Manager shall have in its employ at all times a sufficient
     number of capable employees to enable it to properly, adequately, safely
     and economically manage, operate, maintain and account for the Property and
     otherwise perform its obligations hereunder in accordance with the terms of
     this Agreement and Approved Annual Business Plan. Owner acknowledges that
     Manager may employ personnel either directly or through its affiliate,
     Bainbridge Communities Management, Inc. ("Manager's Affiliate"), but
     Manager shall be directly responsible for all employees for all purposes of
     this Agreement.

             (b) All matters relating to the employment, supervision,
     compensation, promotion and discharge of such employees are the
     responsibility of Manager (with respect to which Manager shall exercise
     reasonable care); Manager (or Manager's Affiliate, as applicable) is in all
     respects the employer of such employees. Manager (or Manager's Affiliate,
     as applicable) shall negotiate with any union lawfully entitled to
     represent such employees and may execute in its own name, and not as agent
     for Owner,

                                        9
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     collective bargaining agreements or labor contracts resulting therefrom.
     Manager and represents that it and Manager's Affiliate are and will
     continue to be equal opportunity employers and that they will advertise as
     such. This Agreement is not one of agency by Manager for Owner, but one
     with Manager engaged independently in the business of managing properties
     as an independent contractor. All employment arrangements are therefore
     solely Manager's responsibility and Owner shall not have any liability with
     respect thereto. Except as set forth in SECTION 2.4 below, nothing
     contained herein shall be deemed to permit Manager to charge Owner, or to
     use the income of the Property to pay, for the services of Manager's
     employees.

             (c) Manager and Manager's Affiliate shall fully comply with all
     applicable laws, rules, regulations and orders relating to worker's
     compensation, social security, unemployment insurance, wages, hours,
     working conditions and other matters pertaining to their respective
     personnel. Manager shall indemnify, defend and hold harmless the Owner
     Related Entities from and against all Damages arising out of or relating to
     Manager's failure to comply with this SECTION 2.2. Manager's
     indemnification obligations under this SECTION 2.2(c) shall survive the
     termination or expiration of this Agreement.

             (d) Manager shall be solely responsible for its personnel in the
     event of the termination of this Agreement.

     2.3     EXECUTIVE PERSONNEL; BUILDING MANAGER. EXHIBIT B sets forth the
name of: (a) the senior executive personnel of Manager and/or Manager's
Affiliate who will be responsible for the performance of Manager's duties under
this Agreement (the "EXECUTIVE PERSONNEL"); and (b) the on-site building manager
employed by Manager or Manager's Affiliate (the "BUILDING MANAGER"). Any change
in the Executive Personnel or Building Manager shall be subject to Owner's prior
approval.

     2.4     SCHEDULE OF EMPLOYEES. Attached hereto as EXHIBIT C is a schedule
(the "REIMBURSABLE EMPLOYEE EXPENSE SCHEDULE") that sets forth: (a) a list of
Manager's or Manager's Affiliate's employees (including the Building Manager)
who shall be employed on-site in the direct management and operation of the
Property; (b) the respective titles and salary of each such employee; (c) the
length of time that each such employee has been employed by Manager or Manager's
Affiliate; (d) whether each such employee works full or part-time (and if they
work part-time, the number of hours they work per week); (e) the cost of salary
and wages that may be charged to the Property for each such employee; and (f)
whether each such employee is bonded or covered under Manager's or Manager's
Affiliate's comprehensive crime insurance policy. The Reimbursable Employee
Expense Schedule shall also identify any employees of Manager or Manager's
Affiliate who are not located at the Property but whose salaries may be charged
to the Property pro rata based upon services actually rendered by such employees
directly to the Property (in which event the Reimbursable Employee Expense
Schedule shall set forth the salaries of such offsite employees and the maximum
percentage thereof that may be charged to the Property). In no event shall
Manager be entitled to charge to the Property any employee-related expenses: (i)
that relate to general or supervising management personnel,

                                       10
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accountants or auditors; (ii) for which a separate fee is charged by Manager
pursuant to this Agreement or otherwise; or (iii) that are not specifically set
forth on the approved Reimbursable Employee Expense Schedule. The expenses
chargeable to the Property pursuant to the Reimbursable Employee Expense
Schedule may be modified from time to time only as part of the Approved Annual
Business Plan or as otherwise agreed upon by Owner and Manager in writing.

     2.5     COMPLIANCE WITH LAWS, LICENSES, MORTGAGES, ETC.

             (a) Manager will be responsible (at Owner's expense) for compliance
     with the Legal Requirements and Insurance Requirements. Manager, with the
     prior approval of Owner (and at Owner's expense), will promptly remedy any
     violation of any such requirements, provided that in the case of emergency,
     or imminent threat to the health, safety or welfare of tenants or any other
     person, or if so ordered by a governmental authority, Manager shall
     promptly remedy such violation, provided sufficient funds are available,
     and notify Owner as soon as practical, and in any event no later than the
     end of the next Business Day. Manager shall notify Owner and recommend any
     repairs or changes to the Property or operation thereof which will be
     required under proposed changes in laws, ordinances and regulations.
     Notwithstanding the foregoing, Manager shall obtain Owner's prior written
     approval before engaging any legal counsel or commencing or appearing in
     any legal proceeding on behalf of Owner.

             (b) Manager shall, at Owner's expense, obtain and maintain all
     Licenses. Manager shall provide Owner with copies of all completed initial
     or renewal License applications for Owner's prior approval and signature,
     if necessary, not less than thirty (30) days prior to the date such
     applications are due. All Licenses shall be obtained in Owner's name.

             (c) Except as otherwise specifically directed by Owner, Manager
     will be responsible (at Owner's expense) for compliance with all contracts
     and agreements relating to the Property, including any ground lease, space
     lease, covenant, condition and restriction, reciprocal easement agreement,
     and mortgage, deed of trust or other security instruments affecting the
     Property, provided that Manager has copies of such agreements.

             (d) Manager shall, at Manager's individual, non-reimbursable
     expense, maintain its legal existence and good standing and obtain and
     maintain in effect all licenses and permits necessary or desirable to carry
     out its duties hereunder.

             (e) Manager shall, at Owner's expense, make commercially reasonable
     efforts to ensure that all employees and/or contractors who perform work at
     or for the Property have all required Licenses and comply with all Legal
     Requirements.

             (f) The Manager shall, at Owner's expense, implement and maintain
     an ongoing environmental auditing program reasonably satisfactory to Owner
     and any lender to Owner pursuant to which it shall conduct periodic
     investigations regarding the compliance of activities at the Property with
     applicable environmental laws, and the

                                       11
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     existence of and potential for contamination. The results of such
     environmental audit shall be provided to the Owner. Without limiting the
     foregoing, Manager shall be responsible for maintaining and ensuring
     compliance with all operations and maintenance manuals, programs and
     procedures with respect to all customary environmental issues, including
     but not limited to, mold, lead paint and asbestos, if any.

     2.6     SECURITY. Subject to the Approved Annual Business Plan, Manager
shall, at Owner's expense, maintain or cause to be maintained a security program
adequate for the needs of the Property. Manager shall promptly notify Owner of
any incidents or conditions which reflect on or affect the adequacy of the
security provisions for the Property, and shall make recommendations to Owner
with respect to security matters.

     2.7     ENERGY MANAGEMENT. Subject to the Approved Annual Business Plan,
Manager shall exercise best efforts to provide appropriate energy management and
shall utilize utility conservation techniques.

     2.8     [Intentionally Omitted.]

     2.9     ANNUAL BUSINESS PLAN.

             (a) On or before November 15th of each year during the term of this
     Agreement, Manager shall prepare and submit to Owner for Owner's prior
     approval an annual business and leasing plan in accordance with the
     requirements of EXHIBIT D hereto (as such EXHIBIT D may be modified by
     Owner from time to time) (the "ANNUAL BUSINESS PLAN"). The Annual Business
     Plan shall be a comprehensive plan for the management, operation, leasing,
     repair, maintenance and promotion of the Property and for the other matters
     set forth on EXHIBIT D. Manager shall consult the Owner concerning the
     proposed Annual Business Plan and shall promptly incorporate therein such
     changes as Owner may direct. The Annual Business Plan, and all budgets
     contained therein, shall be in a form consistent with the Reporting
     Package.

             (b) Manager shall: (i) perform its duties hereunder in accordance
     with the Approved Annual Business Plan; and (ii) use all reasonable efforts
     to ensure that the actual costs of maintaining and operating the Property
     do not exceed the operating budget (the "OPERATING BUDGET") which is a part
     of the Approved Annual Business Plan either in total or in any one
     accounting category. All actual expenses must be charged to the proper
     account on a basis consistent with the Operating Budget classifications and
     Reporting Package. Except in case of emergencies which could reasonably
     pose a threat of injury to persons or property, in which event Manager
     shall inform Owner of such emergency within two (2) business days, no
     expense may be reclassified except as needed to correct an inadvertent
     error. Manager will secure Owner's prior approval for any expenditure that
     will result in a variance of the greater of $5,000 or 5% of the annual
     budgeted amount in any one accounting line item of the Operating Budget. In
     addition, Manager shall obtain Owner's prior approval for any expenditure
     in excess of $5,000, regardless of whether such expenditure is set forth in
     the Approved Annual Business Plan.

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             (c) Owner shall have the right to require changes in the Approved
     Annual Business Plan from time to time; provided, however, that Owner shall
     provide Manager with at least fifteen (15) days' notice of such changes.

     2.10    SERVICE CONTRACTS.

             (a) To the extent permitted by the Approved Annual Business Plan
     (so that, among other things, the expense thereof does not exceed the
     corresponding amount set forth in the Operating Budget), and subject to
     SECTION 2.12, Manager (without the prior consent of Owner, provided that
     the form of the contract has been approved by Owner) shall negotiate and
     enter into bona fide contracts with parties that are not Affiliates of
     Manager for terms no longer than one (1) year for electricity, gas, fuel,
     water, telephone, window cleaning, ash or rubbish hauling, vermin
     extermination, janitorial services, landscape maintenance and such other
     maintenance services for the Property as Manager shall reasonably determine
     to be advisable ("SERVICE CONTRACTS"). All Service Contracts: (i) shall be
     in the name of Owner, (ii) shall be freely assignable, at Owner's option,
     to Owner's nominee and (iii) shall be terminable by Owner, at Owner's
     election, upon no more than thirty (30) days' notice without penalty or
     premium. Each Service Contract shall provide that the service provider
     thereunder must obtain the insurance described in SECTION 3.4 hereof and
     must provide satisfactory evidence of such insurance to Manager. Unless
     Owner specifically waives such requirement, all Service Contracts shall be
     subject to bid every three (3) years or more frequently if deemed necessary
     by Owner. Notwithstanding the foregoing, Manager shall not, without the
     prior written consent of Owner, enter into any Service Contract unless
     provided for in the Approved Annual Business Plan.

             (b) EXHIBIT E lists all Service Contracts in existence as of the
     date of this Agreement and, for each such contract, accurately sets forth
     the contract date, the name of the service provider, the nature of the
     service and the length and economic terms of the contract. Manager shall
     promptly update EXHIBIT E so that it at all times contains an accurate and
     complete description of Service Contracts affecting the Property.

     2.11    COLLECTION OF RENTS AND OTHER INCOME. Subject to SECTION 2.13(b),
Manager will use diligent efforts to collect all rents and other charges which
may become due at any time from any tenant or from others in connection with or
for the use of the Property and will use its best efforts to ensure tenants'
compliance with their respective leases. Manager will collect and identify any
income from miscellaneous services provided to tenants or the public from
parking income, furniture rental, cleaning services, tenant storage and
coin-operated machines of all types. All rents and other monies collected will
be deposited in the Operating Account. Manager will not write off any income
items without Owner's prior approval.

     2.12    COMPETITIVE BIDDING. All contracts for repairs, capital
improvements, goods and services will be awarded at no higher than prevailing
market rates and, as to amounts exceeding $5,000, will (unless otherwise
required or permitted by Owner) be awarded on the basis of competitive bidding
conducted in a manner satisfactory to Owner and in accordance with the

                                       13
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Approved Annual Business Plan.

     2.13    REPAIRS. Manager shall, at Owner's expense, make all ordinary and
extraordinary repairs, decorations and alterations of the Property, subject to
the limits of the Approved Annual Business Plan. Manager shall not make
expenditures for capital improvements unless the same are specifically set forth
in the Approved Annual Business Plan or are otherwise approved by Owner. Manager
may not make expenditures for any repair which exceed $5,000 unless approved by
Owner or specifically set forth in the Approved Annual Business Plan; provided,
however, Manager may make expenditures for repairs without Owner's prior
approval if it is necessary to prevent imminent damage to the Property or the
health or safety of any person on or about the Property or if Owner is
threatened with immediate criminal or civil liability. Owner must be informed of
any such expenditures as quickly as possible, and in any event not later than
the end of the next Business Day.

     2.14    LEASES.

             (a) Manager shall use all reasonable efforts to cause the Property
     to be fully leased to desirable tenants in accordance with the Approved
     Annual Business Plan and, in connection, therewith, shall:

                 (i)    consult with Owner with respect to the rental rates and
             renewal rates of units at the Property in preparation of the
             Approved Annual Business Plan;

                 (ii)   use all reasonable efforts to obtain and keep desirable
             tenants for the Property in accordance with the Approved Annual
             Business Plan;

                 (iii)  assist and cooperate with any leasing agent engaged by
             Owner and with other licensed real estate brokers that may have
             clients interested in leasing units at the Property;

                 (iv)   provide the full range of pro-active tenant services
             customarily provided to tenants of first class buildings similar to
             the Property, including: (1) regularly scheduled meetings with
             tenants using designated tenant representatives as deemed
             necessary; (2) prompt responses to all tenant complaints, inquiries
             and requests; (3) periodic inspections of the Property; and (4)
             maintenance of a tenant log that sets forth tenant complaints and
             concerns and tracks the manner in which such complaints and
             concerns are resolved;

                 (v)    subject to SECTION 2.13(b) below, use all reasonable
             efforts to duly and punctually observe and perform on Owner's
             behalf and, subject to the Approved Annual Business Plan, at
             Owner's expense, all of Owner's obligations under all leases, and
             to preserve and keep unimpaired the rights of Owner and the
             obligations of tenants under such leases; and

                 (vi)   subject to SECTION 2.13(b) below, promptly enforce the
             obligations

                                       14
<Page>

             of tenants under leases and the obligations of contractors,
             suppliers and similar third parties providing services or goods to
             the Property.

             (b) Without the consent of Owner, Manager: (i) shall not receive or
     collect any rents for more than one month in advance; (ii) shall not waive,
     excuse, condone, discount, set-off, compromise or in any manner release or
     discharge any tenant (or any guarantor under any guaranty of any lease)
     from its obligations under its lease (or such guaranty); (iii) shall not
     cancel, terminate or consent to the surrender of any lease; (iv) shall not
     commence any action, suit or proceedings for the collection of rent, for
     ejectment or for the dispossession of any tenant or exercise any right of
     recapture provided in any lease; (v) shall not modify or in any way alter
     the provisions of any lease; (vi) shall not relocate any tenant within the
     Property; (vii) shall not consent to any modification of the express
     purposes for which any tenant's premises have been leased; (viii) shall not
     consent to any subletting of any part of the Property, to any assignment of
     any lease by any tenant thereunder, or to any assignment or further
     subletting of any sublease; (ix) shall not permit any person to occupy
     space at the Property without a lease entered into in accordance with the
     terms of this Agreement; and (x) shall not retain any legal counsel or
     collection agency to act on behalf of Owner or Manager in connection with
     any lease of space at the Property. Notwithstanding the foregoing, if the
     Property consists of residential apartments, Manager may, without Owner's
     prior consent, enter into, modify, terminate and enforce residential
     leases, provided that all such actions shall be consistent with the
     Approved Annual Business Plan.

             (c) Unless otherwise approved by Owner, all leases shall be: (i) on
     a standard form of lease approved by Owner; (ii) prepared in accordance
     with leasing guidelines approved by Owner; and (iii) executed by Manager,
     as agent for Owner.

             (d) Intentionally omitted.

     2.15    NOTICES TO OWNER. Manager shall promptly notify Owner in writing if
Manager becomes aware of any of the following:

             (a) (intentionally omitted);

             (b) any default or alleged default by Owner under any lease;

             (c) any litigation or potential litigation affecting the Property
     or Owner, or any litigation affecting Manager that could reasonably be
     expected to have a material and adverse effect on Manager;

             (d) any casualty, loss, injury, claim or other event relating to
     the Property that might result in a claim under any applicable insurance
     policies;

             (e) any actual or threatened condemnation of the Property or any
     portion thereof;

                                       15
<Page>

             (f) any violation of any Legal Requirements or Insurance
     Requirements, or any violation of same which is alleged in writing or
     orally by the authority with jurisdiction thereover;

             (g) any involuntary lien filed against the Property; and

             (h) any material increases or decreases in costs, expenses or
     income not reflected in the Approved Annual Business Plan.

     2.16    PROPERTY TAX APPEALS. At the direction of, with the prior approval
of, and at the expense of the Owner, Manager shall engage a tax appeal
professional to annually review the tax assessment for the Property in order to
determine whether to appeal such assessment and request an abatement.

     2.17    NO OTHER FEES. Notwithstanding anything to the contrary contained
in this Agreement, Manager shall not be entitled to any leasing commission,
construction management fee or other form of compensation, other than the
Management Fee, by reason of the leasing, supervisory or other services
performed by Manager under this Agreement.

                         ARTICLE 3. INSURANCE AND CLAIMS

     3.1     OWNER'S INSURANCE AND RIGHTS. Manager, as an operating expense of
the Property payable from the Operating Account, will obtain and keep in force
adequate property and commercial liability insurance covering Owner as primary
insured and, with respect to liability insurance, Manager as additional insured,
and otherwise in accordance with any loan documents related to any financing to
which Owner or the Property is subject. Manager shall provide Owner with copies
of policies or certificates of insurance relating to the Property. Such
insurance may be blanketed with other insurance carried by Manager or any
Affiliate of Manager, in which case a pro rata share of the premiums will be
chargeable to the Property as an operating expense. Manager or Manager's insurer
will have the exclusive right (chargeable, at Owner's option, as an operating
expense of the Property) to conduct the defense of any claim, demand or suit
arising out of the ownership, operation or management of the Property. Nothing
herein will be construed as indemnifying Manager or its employees, contractors
or agents against any act or omission for which insurance protection is not
available or is not required hereunder to be carried by Owner and procured by
Manager; neither is the foregoing intended to affect the general requirement of
this Agreement that the Property will be managed, operated and maintained in a
safe condition and in a proper and careful manner. Owner will furnish whatever
information is reasonably requested by Manager for the purpose of placement of
insurance coverages and will aid and cooperate in every reasonable way with
respect to such insurance and any claim or loss thereunder. Owner will cooperate
with Manager and Manager's insurance carrier on loss control inspections,
responding to recommendations and other safety issues.

     3.2     MANAGER'S INSURANCE. Manager will maintain (as an operating expense
of the Property with respect to on-site employees only) Workers' Compensation
and similar insurance as required by law. Manager may maintain, at Manager's
expense, Commercial General Liability Insurance. Manager will maintain the
following insurance at its own expense (not

                                       16
<Page>

chargeable to the Property):

             (a) Employer's Liability - $500,000 each accident; $500,000 disease
     - policy limit; $500,000 disease - each employee.

             (b) Automobile Liability - As to any vehicle owned, non-owned or
     hired by Manager, $1,000,000 covering losses due to the insurer's liability
     for bodily injury or property damage.

             (c) Medical Expenses - $5,000 per person per accident.

             (d) Uninsured/Underinsured Motorists' Coverage for any owned car -
     $1,000,000.

             (e) Comprehensive crime (including Employee Dishonesty) insurance
     with limits and terms acceptable to Owner or a fidelity bond acceptable to
     Owner.

             (f) Excess Liability Coverage - $5,000,000.

     The minimum A.M. Best's rating of each insurer is A-IX. Manager will
furnish Owner with certificates of insurance simultaneously with the execution
of this Agreement and whenever coverage is renewed or replaced, evidencing the
aforesaid coverages, which will include provisions to the effect that Owner will
be given at least 30 days' prior written notice of cancellation or non-renewal
of or any material change in any of the aforesaid policies. Owner, and any
lender of Owner, if applicable, will be named as an additional insured with
respect to all insurance policies required under (b) and (d) above and as loss
payee as respects (c) above. All liability policies shall contain endorsements
that (i) delete any employee exclusion on personal injury coverage, (ii) include
employees as additional insureds and (iii) contain cross-liability, waiver of
subrogation and such other provisions as Owner may reasonably require. Such
insurance shall also include broad form contractual liability insurance insuring
all of Manager's indemnification obligations under this Agreement.

     3.3     INDEMNIFICATION.

             (a) Manager shall indemnify, hold harmless, protect and defend
     (with counsel approved by Owner) the Owner Related Entities from and
     against all Damages in any manner related to, arising out of or resulting
     from:

                 (i)    any failure of Manager or Manager's agents, servants or
             employees to perform their obligations under this Agreement;

                 (ii)   any acts of Manager or Manager's agents, servants or
             employees which such person does not reasonably believe is within
             the scope of its authority under this Agreement; or

                 (iii)  any negligence, willful misconduct or other wrongful
             acts or

                                       17
<Page>

             omissions of Manager or Manager's agents, servants or employees.

     If the circumstances or events described in clauses (i) through (iii) are
covered by Owner's commercial general liability insurance, then Manager's
obligations under this SECTION 3.3 shall apply only to the extent Owner's
Damages are not fully paid by Owner's commercial general liability insurance.
Notwithstanding any other provisions of this Agreement to the contrary,
Manager's obligations under this SECTION 3.3 shall survive the expiration,
termination or cancellation of this Agreement.

             (b) Subject to SECTION 16.18, Owner shall protect, defend,
     indemnify and hold harmless Manager from and against any and all Damages
     arising out of the performance by Manager of its obligations and duties
     hereunder in accordance with the terms hereof with respect to the Property;
     provided, however, that Owner does not hereby agree, and shall not be
     obligated, to so indemnify Manager from any Damages arising out of any act
     or omission of Manager or any of its agents, officers, employees or
     representatives, which act or omission constitutes negligence, willful
     misconduct, is in breach of this Agreement or is outside the scope of
     Manager's authority as provided herein or any Damages for which Manager is
     covered by insurance, or for which Manager would be covered by insurance if
     it maintained the insurance required by this Agreement.

     3.4     CONTRACTORS' AND SUBCONTRACTORS' INSURANCE. Manager will require
that all parties performing work on or with respect to the Property, including,
contractors, subcontractors and service vendors, maintain insurance coverage at
such parties' expense, in the following minimum amounts:

             (a) Workers' Compensation - Statutory amount.

             (b) Employer's Liability - $500,000 each accident; $500,000
     disease-policy limit; $500,000 disease - each employee.

             (c) Automobile Liability - $1,000,000 covering losses due to the
     insurer's liability for bodily injury or property damage.

             (d) Medical Expenses - $5,000 per person per accident.

             (e) Uninsured/Underinsured Motorists' Coverage- $1,000,000.

             (f) Commercial General Liability: Bodily injury and property damage
     - $1,000,000 combined single limit with Contractual Liability coverage.

             (g) Excess Liability Coverage - $5,000,000 or such greater amount
     as is needed for the specific job.

             (h) Transit Coverage - As needed for the specific job.

     The minimum A.M. Best's rating of each insurer is A-IX. Manager must obtain

                                       18
<Page>

Owner's written permission to waive any of the above requirements. Higher
amounts may be required by Owner if the work to be performed is deemed by Owner
to be hazardous. Manager will obtain and keep on file a certificate of insurance
which shows that each such party is so insured. Owner, and any lender of Owner,
if applicable, will be named as an additional insured with respect to
Contractors' and Subcontractors' Auto Liability, Commercial General Liability
and Excess Liability policies. Manager must obtain indemnification and hold
harmless provisions in favor of Owner and Manager.

     3.5     WAIVER OF SUBROGATION. Insofar as, and to the extent that, the
following provision may be effective without invalidating or making it
impossible to obtain insurance, Manager and Owner agree that with respect to any
hazard, liability, casualty or other loss or claim which is covered by insurance
then being carried by either Owner or Manager: (a) the party carrying such
insurance and suffering such loss releases the other party of and from any and
all claims with respect to such loss to the extent of the insurance proceeds
paid with respect thereto and specifically excepting from such release any
deductible required to be paid therewith; and (b) their respective insurance
companies shall have no right of subrogation against the other or their
respective agents, contractors, employees, licensees or invitees on account
thereof.

     3.6     SERVICE CONTRACTS. Manager shall use all reasonable efforts to
include in all Service Contracts provisions requiring the service provider to
indemnify, defend (with counsel approved by Owner), protect and hold harmless
the Owner Related Entities from all Damages in any manner arising from or
related to the acts or omissions of such service provider or its employees,
agents or contractors.

     3.7     CLAIMS. Manager shall promptly investigate and make a full and
timely report to Owner of any casualty, accident, injury or other similar matter
affecting the Property. Manager shall also file such reports in a timely manner
to the applicable insurance carriers in accordance with the terms and conditions
of the relevant policies. Manager shall cooperate with and assist Owner and the
applicable insurance carrier in connection with the investigation and processing
of insurance claims affecting the Property.

                ARTICLE 4. FINANCIAL REPORTING AND RECORD KEEPING

     4.1     FINANCIAL CONTROLS. Manager will ensure such control over
accounting and financial transactions as is reasonably required to protect
Owner's assets from theft, negligence or fraudulent activity on the part of
Manager's employees or other agents. Uninsured losses arising from theft,
negligence or fraud of Manager, its employees or agents are to be borne by
Manager in its individual capacity and not as an operating expense of the
Property.

     4.2     FINANCIAL REPORTS: GENERAL REQUIREMENTS. All financial reports
provided by Manager shall be subject to the following requirements:

             (a) All such reports shall comply with the terms of this Agreement,
     the Reporting Package and the Approved Annual Business Plan and shall be in
     such medium (e.g., computer disks or hard copy) as Owner may require;

                                       19
<Page>

             (b) Manager will maintain, on a system and in a manner approved by
     Owner, current data on rent rolls and financial and operating information
     in order to enable Owner to maintain its financial systems and database;

             (c) Unless Owner otherwise agrees, all reports shall be prepared in
     accordance with GAAP;

             (d) All such reports shall be certified by Manager's chief
     financial officer or controller; and

             (e) In the event of any conflict between the reporting requirements
     set forth in this Agreement and those required by the Reporting Package or
     the Approved Annual Business Plan, the Reporting Package or Approved Annual
     Business Plan, as applicable, shall control. Owner may, upon not less than
     sixty (60) days' notice to Manager, make changes in or additions to the
     Reporting Package.

     4.3     MONTHLY STATEMENTS. On or before the fifteenth (15th) day of each
month, Manager shall provide Owner with a monthly statement setting forth the
information required by EXHIBIT H (as well as any additional information that
may be required by the Reporting Package or the Approved Annual Business Plan)
(the "MONTHLY STATEMENT").

     4.4     SUPPORTING DOCUMENTATION. As additional support to the Monthly
Statements, Manager will, at Owner's request, provide copies of the following:

             (a) A current leasing summary and detailed leasing activity report;

             (b) An occupancy/leasing recap, including occupancy by unit type,
     actual versus budget occupancy, and economic occupancy;

             (c) Detailed cash receipts and disbursements journals;

             (d) General ledgers;

             (e) Invoices for capital expenditures and nonrecurring items;

             (f) Journal entries;

             (g) Paid bills;

             (h) Detailed trial balance (if available);

             (i) Supporting documentation for payroll, payroll taxes and
     employee benefits;

             (j) Supporting schedules for balance sheet accounts;

             (k) A review and analysis of all recovery income accruals;

                                       20
<Page>

             (l) All bank statements and reconciliations;

             (m) An aged accounts receivable listing and detailed allowance for
     doubtful accounts, with an explanation of all significant delinquencies and
     status of collection efforts and recommendations for write-off or reserves
     where appropriate;

             (n) An accounts payable listing;

             (o) A rent roll; and

             (p) A summary of any comparable projects within the competitive
     market in which the Property is located for which Manager or any Affiliate
     of Manager provides leasing or management services or in which Manager or
     any Affiliate of Manager has a direct or indirect legal, economic or
     beneficial interest, except for those projects (if any) set forth on
     EXHIBIT G.

     4.5     ANNUAL FINANCIAL REPORTS. Manager shall cooperate with Owner's
accountants in the preparation of financial statements and any related
management letters or similar reporting or regulatory requirements applicable to
Owner. Such financial statements and management letters are to be issued within
sixty (60) days after the end of each calendar year or on such other schedule as
Owner may reasonably require. At Owner's request and expense, Manager will
engage an independent third party firm to audit the annual records and prepare
partnership tax returns.

     4.6     TRANSFER OF FUNDS. On or before the fifth (5th) day of every month,
Manager will remit to Owner all cash balances derived from the rents or
otherwise arising from the ownership, use or operation of the Property or the
provision of services at the Property, after deducting (a) an amount agreed to
by Owner for the Property's working capital, and (b) known expenditures that
will be paid between that date and the fifteenth (15th) day of the same month,
provided that the same are consistent with the approved Operating Budget. The
amount so remitted will be delivered to Owner, independent of required financial
reports, in the most expeditious manner possible as directed by Owner. The
schedule for the transfer of funds and the balance permitted to remain in the
Operating Account may be changed from time to time by written instructions from
Owner. At Owner's option, the final monthly remittance will be net of the
Management Fee.

     4.7     OWNER'S PROPERTY. All books, records, computer disks containing
Property information, invoices and other documents received and/or maintained by
Manager pursuant to this Agreement are and will remain the property of Owner,
and shall be made available to Owner at any time with reasonable notice. Manager
may retain a copy of such information but it shall be kept confidential.

     4.8     BOOKS AND RECORDS. Manager shall maintain separate and accurate
books, records, files and accounts for the Property (collectively, the "BOOKS
AND RECORDS") in a good and orderly fashion. The Books and Records shall be the
exclusive property of Owner, shall be kept at the Property or at Manager's
Notice Address (or such other location as Owner may

                                       21
<Page>

approve) and shall include the following:

             (a) Tenant files, including executed leases, lease abstracts, lease
     amendments, original insurance certificates, correspondence, and current
     rent rolls;

             (b) Maintenance and repair files;

             (c) Accounting books and records and supporting documentation;

             (d) Construction files, competitive bid records, including site
     plans, as-built drawings, tenant space plans, construction specifications,
     and capital improvements schedules and information;

             (e) Operation files, including HVAC maintenance schedules,
     warranties, and operation manuals;

             (f) Service contracts, including cleaning, maintenance,
     landscaping, snow removal, trash removal, etc.;

             (g) Permits and licenses ( including certificates of occupancy for
     all tenant spaces);

             (h) Copies of insurance policies or certificates; and

             (i) Such other information relating to the Property as Owner
     requests from time to time.

                        ARTICLE 5. OWNER'S RIGHT TO AUDIT

     5.1     RIGHT TO AUDIT. Owner will at all times and without notification
have the right to conduct audits and examinations of, and to make copies of, the
Books and Records, no matter where such Books and Records are located. Such
right may be exercised through any agent or employee of Owner, or any certified
public accountant designated by Owner. Owner will also have the right to perform
any and all additional audit tests relating to Manager's activities either at
the Property or at any office of the Manager. Should Owner discover either
weaknesses in internal control or errors in record keeping, Manager will correct
such discrepancies promptly upon Owner's request and will inform Owner, in
writing, of the action taken to correct such audit discrepancies. All audits
conducted by Owner will be at the sole expense of Owner.

                            ARTICLE 6. BANK ACCOUNTS

     6.1     OPERATING ACCOUNT. Manager will deposit all rents and other funds
collected from the operation of the Property in an interest-bearing account
established for the Property (the "OPERATING ACCOUNT") in a financial
institution approved by Owner. Any such rents and other funds received by
Manager on or before 2:00 p.m. on a Business Day shall be deposited on that same
day. Any such rents or other funds received after 2:00 p.m. or on a day that is
not a

                                       22
<Page>

Business Day shall be deposited on the next Business Day. Such account shall be
in the name of the Owner and shall have such withdrawal restrictions as Owner's
may require. Owner will be given written notice of the account number and
location of the Operating Account. In accordance with ARTICLE 7, Manager will
pay out of the Operating Account the operating expenses of the Property and any
other payments relating to the Property required or permitted by the terms of
this Agreement or set forth in the Approved Annual Business Plan. If more than
one account is required to operate the Property, each account will have a
distinct name.

     6.2     SECURITY DEPOSIT ACCOUNT. If required by Owner or law, tenant
security deposits will be deposited by Manager in a separate interest-bearing
account established in the name of Owner and at a financial institution approved
by Owner. Except to the extent prohibited by law or tenants' leases, all
interest earned on this account will be distributed to Owner on a monthly basis
as specified by SECTION 4.6. Manager agrees to handle all tenant security
deposits in accordance with all applicable laws and regulations and in
compliance with the leases of the Property.

     6.3     CHANGE OF BANKS. Owner may direct Manager to change any depository
bank or depository arrangement. Except with the prior written approval of Owner,
Manager shall not change any depository bank or arrangement or other banking
relationship or procedure.

     6.4     ACCESS TO ACCOUNT. Owner will have access to any and all funds in
the accounts described in SECTIONS 6.1 and 6.2. Manager's authority to draw
against such accounts may be terminated at any time by Owner without notice to
Manager. No borrowing authority shall be permitted on any accounts established
on behalf of Owner. All funds in such accounts shall be the exclusive property
of Owner. Only such personnel specifically designated by Manager and approved by
Owner shall have access to such accounts. All of Manager's personnel who have
access to such accounts shall be bonded and insured to the benefit of Owner
against theft or fraud. No accounts maintained pursuant to this Agreement shall
contain funds from any source other than the Property, and no such accounts
shall be commingled with the funds of Manager or any other person.

                         ARTICLE 7. PAYMENT OF EXPENSES

     7.1     COSTS ELIGIBLE FOR PAYMENT FROM OPERATING ACCOUNT. Subject to the
limitations of ARTICLE 2 (including SECTIONS 2.9 (b) AND 2.13), SECTION 7.2 and
the Approved Annual Business Plan, and except as otherwise directed by Owner,
the following expenses, to the extent incurred in accordance with this Agreement
and the Approved Annual Business Plan, shall be paid by Manager directly from
the Operating Account:

             (a) Third-party debt service, payments due under any ground lease,
     real estate taxes, personal property taxes, betterment assessments and
     similar governmental charges properly due with respect to the Property;

             (b) Costs of insurance maintained in accordance with SECTION 3.1;

             (c) Costs to correct any violation of any Legal Requirements or
     Insurance

                                       23
<Page>

     Requirements;

             (d) Actual costs of making all repairs, decorations and alterations
     and performing all maintenance and preventive maintenance with respect to
     the Property;

             (e) Cost of collection of delinquent rentals collected through a
     collection agency which has been approved by Owner;

             (f) Reasonable legal fees and expenses of attorneys incurred in the
     ordinary course of business in collecting delinquent receivables;

             (g) Cost of capital expenditures;

             (h) Leasing commissions and consultant fees payable to third
     parties approved by Owner;

             (i) Amounts due under Service Contracts and cost of utilities
     (other than costs for which any tenant is directly responsible to the
     utility company);

             (j) Cost of advertising approved by Owner;

             (k) Cost of printed forms and supplies required for use at the
     Property;

             (l) Cost of printed checks for each account required by Owner;

             (m) Cost of salary and wages (but not bonus payments, incentive
     compensation or other additional payments unless approved by Owner),
     payroll taxes, insurance, worker's compensation and other benefits, all
     only as specifically set forth on the approved Reimbursable Employee
     Expense Schedule, but only to the extent that such costs relate to the
     period of such employees' employment in connection with the Property;

             (n) The Management Fee; and

             (o) Any other expenses included in the Approved Annual Business
     Plan.

     7.2     NON-REIMBURSABLE COSTS. Notwithstanding anything to the contrary in
this Agreement, the following expenses or costs incurred by or on behalf of
Manager in connection with the Property will be at the sole cost and expense of
Manager and will not be reimbursed by Owner from the Operating Account or
otherwise, and Manager will indemnify and hold harmless the Owner Related
Entities from all liability for the same:

             (a) Cost of salary and wages, payroll taxes, insurance, worker's
     compensation and other benefits of Manager's management, accounting and
     office personnel not reimbursable under SECTION 7.1(m);

             (b) General accounting and reporting services which are within the
     scope of

                                       24
<Page>

     Manager's responsibilities to Owner under this Agreement;

             (c) Cost of forms, papers, ledgers and other supplies, equipment,
     copying and telephone of any kind used in Manager's office at any location
     other than the Property;

             (d) Cost of electronic data processing equipment, or any pro rata
     charge therefor, whether or not located at the Property, or for data
     processing provided by computer service companies;

             (e) Political or charitable contributions;

             (f) Cost of advances made to employees and cost of travel by
     Manager's employees or agents to and from the Property;

             (g) Costs attributable to negligence, misconduct or fraud on the
     part of Manager, Manager's associates or Manager's employees or agents, or
     arising from Manager's breach under this Agreement, including theft of
     assets by Manager's employees, contractors or other agents; penalties or
     loss of discount due to delay in payment of bills or invoices; overpayment
     or duplicate payment of invoices arising from either fraud or error;
     overpayment of labor costs arising from either fraud or error; a sum equal
     to the value of any form of payment from purveyors of goods or services to
     any of Manager's employees, contractors or agents arising from the purchase
     of goods or services relating to the Property; and unauthorized use of
     facilities by Manager's employees, contractors or agents;

             (h) Cost of comprehensive crime insurance or fidelity bonds
     purchased by Manager for its own account;

             (i) Training expenses except for on-site employees;

             (j) Employment and employment agency fees except for on-site
     employees;

             (k) Advertising expenses of Manager not directly related to the
     Property; and

             (l) Dues of Manager or any of its employees in professional
     organizations or the cost of any of Manager's employees participating in
     industry conventions, meetings or other functions.

                      ARTICLE 8. INSUFFICIENT GROSS INCOME

     8.1     PRIORITIES. Manager shall promptly notify Owner if at any time the
gross income from the Property is or is expected to be insufficient to pay the
bills, charges and liabilities which may be incurred with respect to the
Property. In such event, unless Owner otherwise notifies Manager in writing,
expenses will be paid out of the Operating Account in the following order of
priority:

                                       25
<Page>

             (a) FIRST: third-party debt service payments, ground lease
     payments, real estate taxes, personal property taxes, betterment
     assessments and any other charges and liabilities which could become a lien
     against or result in a forfeiture of the Property;

             (b) SECOND: cost of salary and wages, payroll taxes, insurance,
     worker's compensation and other benefits of Manager's management,
     accounting and office personnel reimbursable under SECTION 7.1(m) as
     specifically set forth on the approved Reimbursable Employee Expense
     Schedule;

             (c) THIRD: insurance premiums due in connection with insurance
     maintained in accordance with SECTION 3.1;

             (d) FOURTH: bills and charges for utilities;

             (e) FIFTH: other bills and charges of third parties, and any and
     all claims and demands of third parties and liabilities to third parties
     relating to the Property or the operation thereof which Owner in its
     discretion determines to pay from the Operating Account;

             (f) SIXTH: bills and charges, if any, incurred by Manager for
     Manager's services provided to Owner exclusive of the Management Fee and
     any other fees due to Manager hereunder (if any); and

             (g) SEVENTH: the Management Fee and other fees due Manager
     hereunder (if any).

     8.2     STATEMENT OF UNPAID ITEMS. Each month, after Manager has paid, to
the extent of available gross income, all bills and charges based upon the
ordered priorities set forth in SECTION 8.1, Manager will submit to Owner an
accounts payable listing that sets forth all remaining unpaid bills and their
due dates.

     8.3     SEGREGATION OF ACCOUNTS. If, pursuant to this Agreement, Manager
will manage more than one property, Manager will segregate the income and
expenses of each property so that, unless Owner directs Manager otherwise in
writing, gross income from each property will be applied only to the bills and
charges from such property.

     8.4     CASH FLOW FORECASTING. Manager will prepare a detailed cash flow
analysis sufficient to provide Owner with a forecast of account deficits. Such
forecasts will be updated monthly, or more frequently as dictated by field
conditions or as directed by Owner.

     8.5     MANAGER NOT OBLIGATED TO FUND. In no event shall Manager have any
obligation to advance any of its own funds in connection with the performance of
its obligations hereunder unless expressly so provided herein. Unless Owner
otherwise agrees in writing, Owner shall not be responsible for any interest on
funds advanced by Manager on Owner's behalf.

                                       26
<Page>

                    ARTICLE 9. SALE OR FINANCING OF PROPERTY

     9.1     COOPERATION WITH BROKER. If Owner executes a listing agreement or
other brokerage agreement with a broker (other than Manager) or an agreement
directly with a principal for the sale or financing of the Property, or any
other agreement relating to the transfer of ownership of the Property, Manager
will cooperate with such broker or principal to the end that the respective
activities of Manager and such broker or principal will be carried on without
friction and without interference with tenants and occupants. In connection with
any such sale, financing, or other transfer, Manager will:

             (a) (intentionally omitted);

             (b) use all reasonable efforts to research and confirm the accuracy
     of any representations and warranties regarding the Property that are made
     by Owner;

             (c) execute such consents, assignments, manager estoppels, and
     other documents as Owner may reasonably request;

             (d) provide such other services as Owner may reasonably require;
     and

             (e) permit the broker to show the Property (and any principal to
     view same) during reasonable business hours.

     9.2     NO SALES/BROKERAGE COMMISSIONS. Manager hereby acknowledges and
agrees that, unless it has been engaged by Owner pursuant to a separate written
agreement signed by Owner, Manager has not been engaged hereunder to represent
Owner in connection with any current or future sale, financing or other transfer
of the Property and has no authority to represent Owner in connection therewith
or right to any fee, commission or other form of compensation in connection with
sales, financings, or other transfers, provided Manager, as part of its services
hereunder, agrees to cooperate with Owner in consummating such activities as set
forth in SECTION 9.1.

                             ARTICLE 10. COOPERATION

     10.1    COOPERATION. Should any claims, demands, suits or other legal
proceedings be made or instituted by any person against or affecting Owner which
arise out of any of the matters relating to this Agreement or otherwise, Manager
shall notify Owner promptly and in no event more than five (5) business days
after becoming aware of same and Manager shall give Owner all pertinent
information possessed by Manager and reasonable assistance in the defense or
other disposition thereof.

                            ARTICLE 11. COMPENSATION

     11.1    COMPENSATION. Owner shall pay Manager, and Manager shall accept as
full compensation for Manager's service in managing the Property in accordance
with this Agreement, the Management Fee. Manager will have no right to receive a
Management Fee

                                       27
<Page>

after the expiration or earlier termination of this Agreement except for fees
earned through the termination date based on Rents received by or on behalf of
Owner before such expiration or earlier termination. Final payment to Manager
shall not be due until a Final Accounting as set forth in SECTION 12.3 is
delivered in a form reasonably acceptable to Owner and Manager's obligations
under SECTION 12.4 are satisfied. The Management Fee for any partial month shall
be prorated based upon the number of days in such month.

     "RENTS" for the purpose of the Management Fee computation will consist of
all amounts actually received in cash for the benefit of Owner from rental of
space in the Property or provision of services to tenants of the Property,
including vending machine collections and other forms of miscellaneous income
relating to the leasing of the Property, except that Rents shall NOT include:

     (1)     Security deposits (unless such deposits have been applied as rental
             income upon termination of a lease), utility deposits or other
             refundable sums;

     (2)     Funds received from tenants as reimbursement for utility expenses
             paid by Owner;

     (3)     Rents paid in advance (including additional rent payments such as
             real estate taxes and common area maintenance charges) until the
             month in which such payments are applied as rental;

     (4)     Any interest or investment income;

     (5)     Any proceeds from a financing, refinancing, sale, exchange or
             condemnation of all or any portion of the Property or any other
             real or personal property associated therewith;

     (6)     The proceeds of any insurance, including rental loss or business
             interruption insurance, and any other amounts paid to Owner on
             account of fire or other casualty;

     (7)     Capital contributions or loans made to Owner;

     (8)     Any trade discounts and/or rebates received in connection with the
             operation and maintenance of the Property or purchase of personal
             property associated therewith; and

     (9)     Any amounts received by or on behalf of Owner before the
             Commencement Date.

     Rents shall be adjusted from time to time to reflect any amounts received
as income from tenants which are subsequently reimbursed or credited to tenants
due to adjustments, and the Management Fee collected on account of such amounts
shall be adjusted accordingly. Subject to SECTION 8.1, Manager will pay the
Management Fee monthly from the Operating Account. The

                                       28
<Page>

Management Fee for each month will be paid no earlier than the fifteenth (15th)
day of such month. If sufficient funds are not available in the Operating
Account with thirty (30) days of when the monthly Management Fee is due, Manager
shall invoice Owner for payment.

                             ARTICLE 12. TERMINATION

     12.1    TERMINATION. The term of this Agreement will be for a period of one
(1) year and will be renewed automatically for successive periods of one (1)
year each, unless written notice of non-renewal is given by Owner to Manager at
least thirty (30) days prior to the end of the then-existing term, or by Manager
to Owner at least sixty (60) days prior to the end of the then-existing term.
Notwithstanding the foregoing, and in addition to the provisions of SECTION
12.2, Owner may terminate this Agreement: (a) for cause, immediately upon notice
at any time, or (b) after the first year of the term of this Agreement, without
cause, by giving Manager at least thirty (30) days' prior notice in writing;
provided, however, that if Owner terminates pursuant to this SECTION 12.1(b) and
Owner enters into a property management agreement for the Property with an
entity owned and/or controlled by an affiliate of Investor within ninety (90)
days of such termination, then Owner shall at such time pay a termination fee to
Manager in the amount of $275,000. Manager shall have the right to terminate
this Agreement: (i) upon thirty (30) days written notice to Owner in the event
that an affiliate of Owner terminates its property management agreement with
Manager for Oaks at Timuquana Apartments or Bay Pointe Apartments in
Jacksonville, Florida; or (ii) after the first year of the term of this
Agreement, without cause, by giving Owner at least ninety (90) days' prior
notice in writing.

     12.2    TERMINATION WITHOUT NOTICE.

             (a) Without limitation of Owner's rights under SECTION 12.1, upon
     the occurrence of any one or more of the following events, at the sole
     election of Owner and without further notice to Manager, this Agreement
     will be deemed terminated: (i) dissolution or termination of the legal
     existence of Manager, whether by merger, consolidation or otherwise; (ii)
     termination or suspension of Manager's real estate brokerage license, if
     such license is required as a condition to the performance of Manager's
     duties hereunder; (iii) death or incapacity of Manager, if an individual;
     (iv) death or incapacity of any individual general partner of Manager, if a
     partnership; (v) cessation on Manager's part to do business; (vi) failure
     of Manager to deal properly with and account for Owner's funds; or (vii)
     the filing of proceedings by or against Manager or any general partner or
     parent corporation of Manager for bankruptcy, insolvency, reorganization or
     other relief of debtors, or any assignment for the benefit of the creditors
     of Manager, unless such proceedings are involuntary and are dismissed or
     discharged within sixty (60) days.

             (b) Without limiting Owner's rights under SECTION 12.1 or
     SUBSECTION (a) above, at Owner's sole election and without further notice
     to Manager, this Agreement shall terminate upon the occurrence of the
     following events with respect to the Property: (i) the sale or conveyance
     of the Property, whether by foreclosure, sale by deed-in-lieu of

                                       29
<Page>

     foreclosure, the assignment of Owner's ownership interest to any purchaser,
     lender or its designee, or otherwise; (ii) condemnation of the Property or
     such substantial portion of the Property that Owner determines that the
     remainder cannot be operated in a commercially reasonable manner; or (iii)
     the destruction of all of the improvements comprising such Property or such
     a substantial portion thereof that Owner determines that the remainder
     thereof cannot continue to be operated in a commercially reasonable manner,
     and Owner determines in its sole discretion not to rebuild the Property.

     12.3    FINAL ACCOUNTING. Upon termination of this Agreement, Manager will
deliver to Owner the following with respect to the Property ("Final
Accounting"):

             (a) A final accounting, reflecting the balance of income and
     expenses of the Property as of the date of termination or withdrawal, to be
     delivered within thirty (30) days after such termination;

             (b) Any balance of any monies of Owner, prepaid rent or tenant
     security deposits, or both, held by Manager with respect to the Property,
     to be delivered immediately upon such termination; and

             (c) The Books and Records and all other records, contracts, leases,
     tenant correspondence, files, receipts for deposits, unpaid bills and other
     papers, documents or computer disks or information which pertain in any way
     to the Property, to be delivered immediately upon such termination.

     12.4    OBLIGATION TO VACATE: ORDERLY TRANSITION. Upon termination of this
Agreement, Manager promptly will vacate any office space provided by Owner for
the location of Manager's personnel, and will restore any such office space to
the same condition that it was in at the time such space was first provided to
Manager, or to such better condition as may have existed at any time during the
term of this Agreement, reasonable wear and tear excepted. Upon termination of
this Agreement, Manager will cooperate in all respects in order to effect an
orderly transition of the management functions to a new manager. Manager's
obligations under SECTION 12.3 and this SECTION 12.4 will survive termination of
this Agreement.

                     ARTICLE 13. SUBSIDIARIES AND AFFILIATES

     13.1    SUBSIDIARIES AND AFFILIATES. Manager has set forth on EXHIBIT F
hereto all Affiliates of Manager which may compete in the state in which the
Property is located as at the date of this Agreement. Manager will promptly
notify Owner of any changes or additions to the information set forth on EXHIBIT
F. Any contract or lease of any kind whatsoever between Manager and any
Affiliate of Manager with respect to the Property will be subject to the prior
written approval of Owner, which approval may be withheld at Owner's sole
discretion.

                                       30
<Page>

                               ARTICLE 14. NOTICES

     14.1    NOTICES.

             (a) All notices given hereunder shall be in writing and shall be
     delivered by hand, by nationally recognized overnight express delivery
     service (all charges prepaid) for next day delivery or by U.S. registered
     or certified mail, return receipt requested (all postage prepaid),
     addressed to Owner or Manager at Owner's Notice Address or Manager's Notice
     Address, respectively.

             (b) Any notice or other communication sent or provided above shall
     be deemed given (i) on the date of delivery, if by hand or (ii) on the date
     mailed, if sent by overnight express delivery service or U.S. registered or
     certified mail. Such notice shall be deemed received on the date of receipt
     by the addressee or the date receipt would have been effectuated if
     delivery were not refused. Each party hereto may designate a new Notice
     Address by written notice to the other parties in accordance with this
     SECTION 14.1. The inability to deliver a notice because of a change of
     address of which proper notice was not given shall be deemed a refusal of
     such notice.

                ARTICLE 15. CERTAIN REPRESENTATIONS AND COVENANTS

     15.1    MANAGER REPRESENTATIONS. Manager hereby represents and warrants to
Owner as follows:

             (a) Manager has all licenses, permits, authorizations and approvals
     necessary to allow it to enter into this Agreement and perform its duties
     hereunder;

             (b) Neither Manager nor, to the best of Manager's knowledge, after
     reasonable inquiry, any of its employees, has been convicted of robbery,
     extortion, embezzlement, fraud, grand larceny, burglary, arson, a felony
     drug offense, murder, rape, kidnapping, perjury, assault with intent to
     kill, a violation of the Employee Retirement Income Security Act of 1974 or
     any other felonies; and

             (c) Except as disclosed on EXHIBIT G, neither Manager nor any
     Affiliate of Manager is engaged in connection with or has an interest in,
     directly or indirectly, whether as an owner, ground lessee, ground lessor,
     manager, leasing agent, partner, shareholder, beneficiary, trustee, option
     holder, lender or otherwise, any property that is: (i) multi-family
     residential apartments; and (ii) located within a one-quarter (1/4) mile
     radius of the Property (a "COMPETING PROPERTY"). EXHIBIT G accurately sets
     forth the nature of the interest of Manager or any Affiliate of Manager in
     any Competing Property. Notwithstanding the foregoing, Manager shall
     provide Owner with a list, which list shall be updated by Manager from time
     to time in the event of any changes, of any property which Manager or any
     Affiliate of Manager is engaged in connection with or has an interest in,
     directly or indirectly, whether as an owner, ground lessee, ground lessor,
     manager, leasing agent, partner, shareholder, beneficiary, trustee, option
     holder, lender or otherwise, that is: (i) multi-family residential
     apartments; and (ii) located within a five

                                       31
<Page>

     mile radius of the Property ("MANAGER'S OTHER PROPERTIES"). Attached as
     EXHIBIT G-1 is a list of Manager's Other Properties as of the date hereof.

     15.2    NON-COMPETITION. Except for those properties (if any) set forth on
EXHIBIT G, Manager agrees that, during the term of this Agreement, neither
Manager nor any Affiliate of Manager shall be engaged or interested, directly or
indirectly, whether as an owner, ground lessee, ground lessor, manager, leasing
agent, partner, shareholder, beneficiary, trustee, option holder, lender or
otherwise, in any Competing Property. Manager acknowledges and agrees that the
foregoing covenant: (a) is a necessary and reasonable protection of Owner's
interest in the Property; (b) will not prevent Manager from earning a
livelihood; and (c) may be enforced by injunction.

                            ARTICLE 16. MISCELLANEOUS

     16.1    WORD MEANINGS. Words such as "herein," "hereinafter," "hereof" and
"hereunder" when used in reference to this Agreement, refer to this Agreement as
a whole and not merely to a subdivision in which such words appear, unless the
context otherwise requires. The singular shall include the plural and the
masculine gender shall include the feminine and neuter, and vice versa, unless
the context otherwise requires. The word "including" shall not be restrictive
and shall be interpreted as if followed by the words "without limitation."

     16.2    ASSIGNMENT. Without Owner's prior consent, which Owner may withhold
in its absolute discretion, Manager shall not transfer, assign, subcontract or
delegate its duties under this Agreement, and any attempted transfer,
assignment, subcontract or delegation without such consent shall be of no force
or effect. The services of Manager hereunder are personal in nature.

     16.3    BINDING PROVISIONS. Subject to SECTION 16.2, the covenants and
agreements contained herein shall be binding upon, and inure to the benefit of,
the heirs, legal representatives, successors and assigns of the respective
parties hereto.

     16.4    APPLICABLE LAW. The interpretation, construction and enforceability
of this Agreement shall be governed in all respects by the laws of the state in
which the Property is located without regard to any choice of law principles.
Any legal proceedings arising out of any of the transactions or obligations
contemplated by this Agreement may be brought in the state courts of The
Commonwealth of Massachusetts or the United States District Court for the
District of Massachusetts. The parties hereto irrevocably and unconditionally:
(a) submit to the jurisdiction of such courts and agree to take any and all
future action necessary to submit to such jurisdiction; (b) waive any objection
which they may now or hereafter have to the venue of any suit, action or
proceeding brought in such courts; and (c) waive any claim that any such suit,
action or proceeding brought in such court has been brought in an inconvenient
forum.

     16.5    SEPARABILITY OF PROVISIONS. The parties hereto intend and believe
that each provision in this Agreement comports with all applicable local, state
and federal laws and judicial decisions. If any provision in this Agreement is,
however, found by a court of law to be in violation of any applicable local,
state, or federal law, statute, ordinance, administrative or judicial decision,
or public policy, or if in any other respect such a court declares any such

                                       32
<Page>

provision to be illegal, invalid, unlawful, void or unenforceable as written,
then it is the intent of all parties hereto that, consistent with and with a
view towards preserving the economic and legal arrangements among the parties
hereto as expressed in this Agreement, such provision shall be given force and
effect to the fullest possible extent, and that the remainder of this Agreement
shall be construed as if such illegal, invalid, unlawful, void, or unenforceable
provision were not contained herein, and that the rights, obligations, and
interests of the parties under the remainder of this Agreement shall continue in
full force and effect. Each provision of this Agreement shall be considered
separable and if for any reason any provision or provisions herein are
determined to be invalid, unenforceable or illegal under any existing or future
law, such invalidity, unenforceability or illegality shall not impair the
operation of or affect those portions of this Agreement which are valid,
enforceable and legal.

     16.6    SECTION TITLES. Section titles are for descriptive purposes only
and shall not control or alter the meaning of this Agreement as set forth in the
text.

     16.7    FURTHER ASSURANCES. Manager and Owner shall execute and deliver
such further instruments and do such further acts and things as may reasonably
be required to carry out the intent and purposes of this Agreement.

     16.8    ENTIRE AGREEMENT. This Agreement and the Schedules and Exhibits
attached hereto constitute the entire agreement between the parties hereto with
respect to the transactions contemplated herein, and supersede all prior
understandings or agreements between the parties. All Exhibits and Schedules are
incorporated herein by reference and constitute a part of this Agreement.

     16.9    WAIVER. The failure by any party hereto to insist upon or to
enforce any of its rights shall not constitute a waiver thereof, and nothing
shall constitute a waiver of such party's right to insist upon strict compliance
with the provisions hereof. No delay in exercising any right, power or remedy
created hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, power or remedy by any such party preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy. No waiver by any party hereto to any breach of or default in any term or
condition of this Agreement shall constitute a waiver of or assent to any
succeeding breach of or default in the same or any other term or condition
hereof. Each party hereto may waive the benefit of any provision or condition
for its benefit contained in this Agreement, but only if such waiver is
evidenced by a writing signed by such party.

     16.10   AGREEMENT IN COUNTERPARTS. This Agreement may be executed in
multiple counterparts, each of which shall be considered an original and all
shall constitute one and the same Agreement, binding upon all of the parties
hereto, notwithstanding that all of the parties may not be signatories to the
same counterpart.

     16.11   ATTORNEYS' FEES. In the event of a judicial or administrative
proceeding or action by one party against the other party with respect to the
interpretation or enforcement of this Agreement, the prevailing party shall be
entitled to recover reasonable costs and expenses including, without limitation,
reasonable attorneys' fees and expenses, whether at the

                                       33
<Page>

investigative, pretrial, trial or appellate level, and whether in any
arbitration or bankruptcy proceeding. The prevailing party shall be determined
based upon an assessment of which party's major arguments or positions
prevailed.

     16.12   TIME PERIODS. In the event the time for performance of any
obligation hereunder expires on a day other than a Business Day, the time for
performance shall be extended to the next day which is a Business Day.

     16.13   MODIFICATION OF AGREEMENT. No modification of this Agreement shall
be deemed effective unless in writing and signed by all of the parties hereto.

     16.14   TIME OF THE ESSENCE. Time is of the essence of this Agreement.

     16.15   CONSTRUCTION OF AGREEMENT. This Agreement shall not be construed
more strictly against one party than against the other merely by virtue of the
fact that it may have been prepared primarily by counsel for one of the parties.
No provision of this Agreement shall run to the benefit of or be enforceable by
any party other than the parties hereto and their permitted successors or
assigns.

     16.16   CONSENT AND APPROVALS. Owner's consents or approvals may be given
only in writing and only by representatives of Owner from time to time
designated in writing by Owner.

     16.17   USE OF OWNER'S NAME PROHIBITED. Without Owner's prior approval,
which Owner may withhold in its absolute discretion, Manager will not use the
name of Owner or any Owner Related Entity, or any derivation thereof, in any
manner whatsoever.

     16.18   EXCULPATION. Manager, and all persons claiming by, through or under
Manager, shall look solely to Owner's interest in the Property for the
satisfaction of any claim now existing or hereafter arising or accruing against
the Owner, and in no event shall (a) Owner be liable for any deficiency or (b)
any other Owner Related Entity ever have any liability hereunder.

     16.19   CONFIDENTIALITY. Manager and its employees and agents agree to keep
all information related to the Property and Owner confidential, except to the
extent necessary to carry out Manager's obligations under this Agreement or as
may be required by law.

     16.20   NO JOINT VENTURE. Nothing in this Agreement or in the performance
of any obligations hereunder shall be deemed to create any partnership, joint
venture or similar relationship between Owner and Manager.

                     [Remainder of page intentionally blank]

                                       34
<Page>

     Executed as an instrument under seal as of the day and year first written
above.

                              OWNER:

                              BC-BAINBRIDGE SPICEWOOD LLC, a Delaware
                              limited liability company

                              By:   BC-Bainbridge LLC, a Delaware limited
                                    liability company, its Manager

                                    By:  Bainbridge Jacksonville LLC, a Florida
                                         limited liability company, its Manager

                                         By:  /s/ Richard A. Schechter
                                              -------------------------------
                                              Richard A. Schechter, its Manager

                              MANAGER:

                              BAINBRIDGE MANAGEMENT JACKSONVILLE LLC,
                              a Florida limited liability company

                              By:   /s/ Richard A. Schechter
                                    ---------------------------------
                                    Richard A. Schechter, its Manager

                                       35
<Page>

                       PART III - MANAGER AS LEASING AGENT

     Owner and Manager further agree as follows, with the terms of this PART III
being deemed to supersede any inconsistent terms contained in PART II:

     1. Owner hereby retains Manager as Owner's exclusive leasing agent in
connection with the Property. Manager represents and warrants to Owner that
Manager has all licenses and similar qualifications necessary to the performance
of its leasing services hereunder.

     2. The names of the individuals who shall have primary responsibility for
Manager's leasing services hereunder are set forth on the schedule hereto
entitled "LEASING AGENT" (the "LEASING AGENTS").

     3. In addition to its duties under PART II of this Agreement, Manager shall
use its best efforts to lease space at the Property to desirable tenants at the
highest possible net effective rents and otherwise in accordance with the
Approved Annual Business Plan. Manager shall perform its leasing
responsibilities hereunder in accordance with the standards and practices of
prudent and qualified leasing agents that act as leasing agents for properties
similar to the Property on behalf of institutional owners or investors. Without
limiting the generality of the foregoing, Manager's responsibilities as leasing
agent shall include the following: (a) subject to the provisions of the Approved
Annual Business Plan or as otherwise approved by Owner, Manager shall, at
Owner's expense, conduct such advertising, marketing and promotion of the
Property as is necessary for the successful leasing of the Property; (b) Manager
shall diligently investigate and pursue all prospective tenants and shall
conduct such canvassing and other solicitations as are necessary in connection
with the leasing of the Property; (c) Manager shall participate, at the
direction of Owner, in lease negotiations; and (d) Manager shall investigate the
creditworthiness and desirability of all proposed tenants and shall prepare a
lease and tenant credit analysis for each proposed lease.

     4. Manager shall always give priority to the leasing of space at the
Property that is at least equal to the priority given by Manager to any property
listed on EXHIBIT G or any other Competing Property. Manager shall under no
circumstances induce tenants of the Property to move to space at any property
listed on EXHIBIT G or any other Competing Property.

     5. Notwithstanding anything to the contrary in this Agreement, unless
otherwise approved by Owner: (a) Manager shall not negotiate with any
prospective tenant for the lease of space at the Property at a net effective
rent below that provided for in the Approved Annual Business Plan; (b) all
leases of space at the Property shall be on a standard form of lease approved by
Owner; and (d) all leases shall be consistent with the Approved Annual Business
Plan.

     6. Other than the Management Fee, Manager shall not receive any
compensation for its leasing services.

     7. If Owner is contacted directly by any prospective tenant of the
Property, Owner shall refer such tenant to Manager.

                                       36
<Page>

                              OWNER:

                              BC-BAINBRIDGE SPICEWOOD LLC, a Delaware
                              limited liability company

                              By:   BC-Bainbridge LLC, a Delaware limited
                                    liability company, its Manager

                                    By:  Bainbridge Jacksonville LLC, a Florida
                                         limited liability company, its Manager

                                         By:  /s/ Richard A. Schechter
                                              --------------------------------
                                              Richard A. Schechter, its Manager

                              MANAGER:

                              BAINBRIDGE MANAGEMENT JACKSONVILLE LLC,
                              a Florida limited liability company

                              By:   /s/ Richard A. Schechter
                                    ---------------------------------
                                    Richard A. Schechter, its Manager

                                       37
<Page>

                                    EXHIBIT A

                                REPORTING PACKAGE

                                        A
<Page>

                                    EXHIBIT B

                    EXECUTIVE PERSONNEL AND BUILDING MANAGER

                                        B
<Page>

                                    EXHIBIT C

                     REIMBURSABLE EMPLOYEE EXPENSE SCHEDULE

                                        C
<Page>

                                    EXHIBIT D

                              ANNUAL BUSINESS PLAN

                                        D
<Page>

                                    EXHIBIT E

                            LIST OF SERVICE CONTRACTS

                                        E
<Page>

                                    EXHIBIT F

                              AFFILIATES OF MANAGER

                                        F
<Page>

                                    EXHIBIT G

               COMPETING PROPERTY IN WHICH MANAGER HAS AN INTEREST

                                        G
<Page>

                                   EXHIBIT G-1

                           MANAGER'S OTHER PROPERTIES

                                       G-1
<Page>

                                    EXHIBIT H

                               MONTHLY STATEMENTS

The following documentation will be furnished to the Owner within ten (10) days
after the end of the calendar month in a format acceptable to Owner:

Transmittal letter which highlights key operational, leasing and financial
matters including comments on the financial and physical condition of the
Property. Included in the letter should be a brief discussion of any income or
expense line item with a negative variance for the month of greater than 5%.

Balance sheet prepared on an accrual basis reflecting the operating results of
the Property.

Income and expense statements prepared on an accrual basis reflecting the
operating results of the Property. Statement should contain actual and budget
current month and cumulative year-to-date figures along with a variance column.

Current rent roll for the Property. Rent roll should include tenant name,
suite/apartment number, vacant suites, security deposits, prepaid rent, lease
expiration and other information specified by Owner.

A status report on capital improvements, tenant improvements and lease
commissions including an analysis of expenditures to date, costs to complete and
expected completion date.

A calculation of the Property Management Fee.

A cash flow statement reconciling from net income to net cash flow on a monthly
and year-to-date basis and a statement showing the calculation of the monthly
transfer of funds to the Owner pursuant to Section 4.6 of the Property
Management Agreement.

If the Property has commercial or retail tenants, include a calculation of lease
commissions paid during the month.

If the Property includes retail users, include a report of tenant sales and
percentage rent with a comparison against last year.

                                        H<Page>

                                                                   Exhibit 10.17

                          PROPERTY MANAGEMENT AGREEMENT

                           SETTLER'S POINT APARTMENTS

     THIS AGREEMENT is made and entered into this 29th day of May, 2003, by and
between BC-GFS Settler's Point LLC (hereinafter referred to as the "OWNER") and
American Management Services West, LLC, dba Pinnacle (hereinafter referred to as
"PINNACLE").

                                    SECTION 1

                          APPOINTMENT OF MANAGING AGENT

     1.1    APPOINTMENT AND ACCEPTANCE: Owner hereby engages PINNACLE as its
sole and exclusive property manager to lease and manage the property described
in Section 1.2 upon the terms and conditions provided herein. PINNACLE accepts
the engagement and agrees to furnish the services of its organization in
accordance with the terms and provisions contained herein.

     1.2    DESCRIPTION OF PROJECT: The property to be managed by PINNACLE under
this Agreement (the "Project") is known as Settler's Point, and is located at
4770 Simmental Way, Taylorsville, Utah, 84123, consisting of the land, buildings
and other improvements constituting a 416-unit apartment complex.

     1.3    TERM: The initial term of this Agreement shall be for a period of
one year (the "Initial Term") commencing at Closing, anticipated to be the 30th
day of May, 2003 to the 29th day of May, 2004. This Agreement shall be
automatically renewed for periods of one (1) month, unless this Agreement is
terminated as provided in Section 18 herein. The closing date shall be the date
the Owner takes title to the Project.

     1.4    MANAGEMENT OFFICE: Owner shall provide adequate space on the Project
for a management office, exclusively for the use of PINNACLE to conduct the
business of the management of the Project. Owner shall pay all reasonable
expenses related to such office as provided in the Plan (defined below),
including, but not limited to, furnishings, equipment, postage, office supplies,
electricity, other utilities, and telephone services.

     1.5    APARTMENT FOR ON-SITE STAFF: Owner shall provide suitable apartment
unit(s) within the Project for the use of the resident manager and such
assistant managers or maintenance personnel as PINNACLE and Owner may deem
reasonable under the circumstances and as provided in the Plan. PINNACLE, with
the approval of Owner, shall be entitled to provide such on-site staff
(employees) with such rental and utility concessions (reductions in rent or
utility charges) as PINNACLE and the Owner may deem necessary and appropriate
under the circumstances.

     1.6    BUDGET AND BUSINESS PLAN: Owner and PINNACLE have established a
budget and business plan for operation and management of the Project (the
"Plan"). The Plan shall act as a general guide for the management of the Project
by PINNACLE, and shall be updated and revised annually to reflect changes in
conditions and actual Project operation and submitted to Owner for Owner's
approval. Any expenditure in excess of $5,000.00 not specifically set forth in
the Plan shall require Owner's advance approval, except as provided in

                                        1
<Page>

Section 4.2 hereof. Owner agrees that the Plan is a budgeting tool only and does
not constitute a guarantee of actual operating performance. The preliminary
annual budget will be provided to Owner by October 1st and will be attached
hereto as Exhibit A, with the final budget due to Owner by November 1st. The
Plan shall include, at a minimum, the following:

     A.        MINIMUM LEASING GUIDELINES established jointly by Owner and
            PINNACLE, setting forth target rental rates and premiums for each
            unit type and amenity package, together with maximum leasing
            incentive allowances for promotional purposes. In no event will
            PINNACLE execute any lease (or any renewal or extension thereof) on
            terms which vary from the minimum leasing guidelines without
            notification to Owner.

     B.        CAPITAL IMPROVEMENT PLAN: Owner and PINNACLE have set forth a
            plan for implementing initial capital improvements to upgrade the
            rental units and correct maintenance items addressed during Owner
            and PINNACLE's pre-acquisition inspection of the property (if
            applicable). Should the capital plan fall within industry standards
            for normal property management duties, PINNACLE shall be responsible
            for obtaining bids, coordinating and scheduling the work at the
            property. A minimum of three (3) complete bids will be obtained for
            each Improvement Plan line item of more than $10,000.

                                    SECTION 2

                                  BANK ACCOUNTS

     2.1    BANK ACCOUNTS:

     (a)    Operating Account. PINNACLE will deposit all rents and other funds
     collected from the operation of the Project in an interest-bearing account
     established for the Project (the "Operating Account") in a financial
     institution approved by Owner. Any such rents and other funds received by
     PINNACLE on or before 2:00 p.m. on a Business Day shall be deposited on
     that same day. Any such rents or other funds received after 2:00 p.m. or on
     a day that is not a Business Day shall be deposited on the next Business
     Day. Such account shall be in the name of the Owner and shall have such
     withdrawal restrictions as Owner's may require. Owner will be given written
     notice of the account number and location of the Operating Account. In
     accordance with Article 7, PINNACLE will pay out of the Operating Account
     the operating expenses of the Project and any other payments relating to
     the Project required by the terms of this Agreement or set forth in the
     Approved Annual Business Plan. If more than one account is required to
     operate the Project, each account will have a distinct name.

     (b)    Security Deposit Account. If required by Owner or law, tenant
     security deposits will be deposited by PINNACLE in a separate
     interest-bearing account established in the name of Owner and at a
     financial institution approved by Owner. Except to the extent prohibited by
     law or tenants' leases, all interest earned on this account will be
     distributed to Owner on a monthly basis. PINNACLE agrees to handle all
     tenant security deposits in accordance with all applicable laws and
     regulations and in compliance with the leases of the Project.

                                        2
<Page>

     (c)    Change of Banks. Owner may direct PINNACLE to change any depository
     bank or depository arrangement. Except with the prior written approval of
     Owner, PINNACLE shall not change any depository bank or arrangement or
     other banking relationship or procedure.

     (d)    Access to Account. Owner will have access to any and all funds in
     the accounts described in Sections 2.1(a) and 2.1(b). PINNACLE's authority
     to draw against such accounts may be terminated at any time by Owner
     without notice to PINNACLE. No borrowing authority shall be permitted on
     any accounts established on behalf of Owner. All funds in such accounts
     shall be the exclusive Project of Owner. Only such personnel specifically
     designated by PINNACLE and approved by Owner shall have access to such
     accounts. All of PINNACLE's personnel who have access to such accounts
     shall be bonded and insured to the benefit of Owner against theft or fraud.
     No accounts maintained pursuant to this Agreement shall contain funds from
     any source other than the Project.

     2.2    INITIAL DEPOSIT TO SECURITY DEPOSIT ACCOUNTS: Immediately upon
commencement of this Agreement, Owner shall remit to PINNACLE such amounts as
may be necessary in order to fully fund all required tenant trust accounts.

     2.3    INITIAL DEPOSIT FOR RESERVES: Immediately upon commencement of this
Agreement, Owner shall remit to PINNACLE a sum to be deposited in the Operating
Account as an initial deposit representing the estimated disbursements to be
made in the first month following the commencement of this Agreement, plus an
adequate contingency reserve. The initial deposit may be funded from the first
month's rental receipts, at the option of Owner. Owner agrees to maintain such
contingency reserve at all times in the operating account so as to enable
PINNACLE to pay the obligations of Owner under this Agreement as they become
due. Owner and PINNACLE shall review the amount of the contingency reserve from
time to time and shall agree in writing upon a new contingency reserve when such
is required.

     2.4    PINNACLE'S OBLIGATION TO ADVANCE PAYMENTS: All purchases and other
obligations incurred in connection with the operation of the Project shall be
the sole cost and expense of Owner. All such purchases shall be made by PINNACLE
solely on behalf of Owner and not as a principal. PINNACLE shall be under no
duty to utilize or apply PINNACLE's own funds for the payment of any such debt
or obligation. In the event that there are insufficient funds in the operating
account, PINNACLE may, after notifying Owner and receiving prior written consent
from Owner, advance its own funds for such purpose, in which event Owner shall
promptly repay to PINNACLE all such sums expended, together with interest
calculated from the date of PINNACLE's advancement of funds to the date of
repayment from Owner.

     2.5    INTEREST ON OPERATING AND SECURITY DEPOSIT ACCOUNTS: PINNACLE shall
deposit Project funds into interest-bearing accounts. All interest earned on
such funds shall belong to Owner, except where state law requires interest
earned on security deposits to be paid to a tenant and shall not be considered
part of "gross receipts" of the property as hereinafter defined.

                                        3
<Page>

                                    SECTION 3

                     COLLECTION OF RENTS AND OTHER RECEIPTS

     3.1    AUTHORITY OF PINNACLE: PINNACLE shall collect (and give receipts
for, if necessary) all rents, charges and other amounts received in connection
with the management and operation of the Project. All security deposits
(excluding non-reimbursable cleaning fees and the like) shall be deposited into
the trust account described in Section 2.1 above. All other receipts shall be
deposited into the operating account. PINNACLE shall not accept rent or other
deposits in the form of cash. Under no circumstances shall PINNACLE be liable to
Owner for any uncollected rents, other income or bad debt resulting from
operations, except those matters covered by section 11.5 herein.

     3.2    SPECIAL CHARGES: PINNACLE shall deposit into the operating account
charges paid by tenants for the late payment of rent, returned or non-negotiable
checks, and payments for credit report fees.

                                    SECTION 4

                      DISBURSEMENT FROM OPERATING ACCOUNTS

     4.1    OPERATING EXPENSES: From the operating account, PINNACLE is
authorized to pay or to reimburse PINNACLE for all expenses and costs of
operating the Project set forth in the Plan and for all other sums due PINNACLE
under this Agreement, including PINNACLE's compensation which is described and
set forth in Section 15 hereof, in accordance with the Plan. Owner has sole
responsibility for the timely payment of all authorized expenses of the Project.
Upon 30 days notice by PINNACLE to Owner that PINNACLE has used its own funds to
pay authorized Project expenses, Owner shall reimburse PINNACLE.

     4.2    EXTRAORDINARY EXPENSES: Unless specifically provided for in the
Plan, no single expenditure made for general maintenance or one-time contract
service in excess of $5,000.00 shall be allowable without prior written approval
of Owner. PINNACLE is required to submit a minimum of three (3) written bids for
all expenditures over $10,000.00. However, in the event of an emergency, owner
authorizes PINNACLE to authorize any reasonable expenditure which is necessary
or required because of danger to life or property, or which is immediately
necessary for the preservation and safety of the Project or the safety of the
tenants and occupants thereof, or if required to avoid the suspension of any
necessary service to the Project, or to comply with any applicable federal,
state, or local laws, regulations, or ordinances. PINNACLE shall, however,
before the end of the next business day, notify Owner in detail, concerning such
expenditures.

     4.3    SPECIFIC EXPENSES TO BE PAID BY PINNACLE ON OWNER'S BEHALF: PINNACLE
shall pay from the Project operating account, in accordance with the business
plan or as otherwise directed by Owner, all utility and maintenance charges; all
real property taxes and assessments; all premiums for liability and casualty
insurance; all monthly payments upon underlying secured real property debt;
PINNACLE's fees; all other operating and rental expenses set forth herein;
postage, copying, long distance charges and other expenses directly associated
with the property; the costs and expense of uniforms for employees (where
applicable) and the costs and expenses directly associated with the training of
Project employees.

                                        4
<Page>

     4.4    EXPENSES TO BE PAID DIRECTLY BY OWNER: In addition to income taxes
and gross receipt taxes (if any) incurred as a result of the operation of the
Project, Owner shall pay directly the following: N/A

     4.5    FEES FOR LEGAL ADVICE: Owner shall pay reasonable expenses incurred
by PINNACLE in obtaining legal advice regarding compliance with any law
affecting the Project or activities related to the operation of the Project
within the budget established in the business plan. PINNACLE shall obtain the
prior consent of Owner for legal services expended in excess of the amounts set
forth in the business plan. If any expenditure for legal services also benefits
others for whom PINNACLE acts as a property manager, Owner's obligation shall be
limited to Owner's pro rata portion of such expense for legal services.

     4.6    NET PROCEEDS: To the extent that funds are available, and after
maintaining a cash contingency reserve amount as specified in Section 2.3,
PINNACLE shall transmit net cash proceeds to Owner at least monthly at a time
specified by Owner. Such periodic cash payments shall be remitted to the
following address:

            BC-GFS Settler's Point LLC
            c/o Goodman Financial Services
            2801 Alaskan Way, Suite 200
            Seattle, WA 98121

     4.7    PRIORITY OF PAYMENT: Should collected funds (excluding security
deposits deposited into trust accounts) be insufficient to satisfy the current
debts and obligations of the Project, such debts and obligations shall be paid
in the following order: First: third-party debt service payments, ground lease
payments, real estate taxes, personal property taxes, betterment assessments and
any other charges and liabilities which could become a lien against or result in
a forfeiture of the Property; Second: Project payroll, including state and
federal payroll taxes; Third: insurance premiums due in connection with
insurance maintained in accordance with Section 12; Fourth: charges by utility
companies (including, but not limited to, gas electric, water, sewer, garbage
and cable television); Fifth: bills and charges, if any, incurred by Manager for
Manager's services provided to Owner exclusive of the Management Fee and any
other fees due to Manager hereunder (if any); Sixth: the Management Fee;
Seventh: other bills and charges of third parties, and any and all claims and
demands of third parties and liabilities to third parties relating to the
Property or the operation thereof which Owner in its discretion determines to
pay from the Operating Account. Where the terms of any loan security agreement
with Owner conflict with the terms of this section, the terms of such loan
security agreement shall control, provide, the Owner has notified Agent of the
existence of any such condition.

                                    SECTION 5

                           FINANCIAL AND OTHER REPORTS

     5.1    REPORTS: By the 10th business day of each month, PINNACLE shall
furnish to Owner a statement of receipts and disbursements from the operation of
the Project during the prior calendar or fiscal month. In addition, PINNACLE
shall, on a mutually acceptable schedule and at Owner's request, prepare and
submit to Owner such other reports as Owner shall specify

                                        5
<Page>

and as may be required pursuant to the terms of any of Owner's lenders,
including, but not limited to the following:

            a.) Weekly occupancy, leasing status and traffic reports.

            b.) Monthly market comparable rent survey.

            c.) Monthly bank reconciliation's.

            d.) Monthly financial operating reports to include balance sheet,
                aged payables, aged receivables, check register and rent roll.

     5.2    OWNER'S RIGHT TO AUDIT: Owner shall have the right to request
periodic audits of all applicable accounts managed by PINNACLE and the cost of
such audits shall be paid by Owner, as an expense of the Project. Such audits
may be made during normal business hours posted at the property with advance
notice by Owner. Per Owner request, Agent will engage an independent third party
firm to audit the annual records, as well as prepare partnership tax returns at
the expense of the property. PINNACLE cannot be held liable for the work product
performed by the auditor.

                                    SECTION 6

                                   ADVERTISING

     6.1    ADVERTISING: PINNACLE is authorized to advertise the Project and
vacant units within the Project for rent and employment, using periodicals,
signs, plans, brochures or displays, or such other means as PINNACLE may deem
proper and advisable. PINNACLE is authorized to place signs on the Project
advertising that units are available for rent, provided such signs comply with
applicable laws. The cost of such advertising shall be paid out of the operating
account, in accordance with the advertising budget or as approved by Owner. All
advertising shall make clear that PINNACLE is the manager and is not the Owner
of the Project. PINNACLE shall have the right to publish advertisements that
share space with other properties managed by PINNACLE. Provided, that the costs
of such advertising shall be prorated among the various projects.

                                    SECTION 7

                               LEASING AND RENTING

     7.1    PINNACLE'S AUTHORITY TO LEASE PROJECT: PINNACLE shall use its best
efforts to keep the Project rented by procuring tenants for the Project.
PINNACLE is authorized to negotiate, prepare and execute all rental agreements,
including all renewals and extensions of rental agreements, and to cancel and
modify existing rental agreements subject to the Plan. PINNACLE shall execute
all rental agreements as agent for the Owner. All costs of leasing shall be paid
out of the operating account, in accordance with the leasing budget or as
approved by Owner. No rental agreement shall be for a period in excess of one
(1) year without the written approval of Owner. The form of the rental agreement
shall be agreed upon by Owner and PINNACLE, and be acceptable to the lender for
the Project.

     7.2    NO OTHER RENTAL AGENT: During the term of this Agreement, Owner
shall not authorize any other person, firm or corporation to negotiate or act as
leasing or rental

                                        6
<Page>

agent with respect to any leases for commercial or residential space in the
Project. Owner agrees to promptly forward all inquiries about leases or rental
agreements to PINNACLE.

     7.3    RENTAL RATES: In accordance with the provisions of the Plan or as
otherwise directed by Owner, PINNACLE may establish and set or revise all rents,
fees or other deposits, and all other charges chargeable with respect to the
Project. PINNACLE shall be authorized to promote the occupancy of the Project by
granting rental concessions and other promotional bonuses to prospective and
current tenants, after first consulting with Owner as to the nature, quantity
and duration of such rental concessions and promotional bonuses.

     7.4    ENFORCEMENT OF RENTAL AGREEMENTS: PINNACLE is authorized to
institute, in Owner's name or in the name of PINNACLE, all legal actions or
proceedings for the enforcement of any rental term, for the collection of rent
or other income due to the Project, or for the eviction or dispossession of
tenants or other persons from the Project. PINNACLE is authorized to sign and
serve such notices as PINNACLE and Owner deem necessary for the enforcement of
rental agreements, including the collection of rent and other income. PINNACLE
may settle, compromise and release such legal actions or suits or to reinstate
such tenancies without the prior consent of Owner, if such settlement,
compromise, or release shall involve an amount in controversy of One Thousand
Dollars ($1,000), or less. Where the amount in controversy is in excess of One
Thousand Dollars ($1,000), PINNACLE shall first obtain the authorization of
Owner (written or oral) before entering into any compromise, settlement, or
release of such legal action. Any moneys for such settlements paid out by
PINNACLE shall be an operating expense of the Project. Reasonable attorney's
fees, filing fees, court costs and other necessary expenditures incurred in the
connection with such action shall be paid out of the Project operating account
or shall be reimbursed directly to PINNACLE by Owner. All funds recovered by
tenants shall be deposited into the Project operating account. Unless otherwise
directed by Owner, PINNACLE may select the attorney or attorneys to handle any
and all such litigation.

                                    SECTION 8

                                PROJECT EMPLOYEES

     8.1    PINNACLE'S AUTHORITY TO HIRE: PINNACLE is authorized to hire,
supervise, discharge and pay all servants, employees, contractors or other
personnel necessary to be employed in the management, maintenance and operation
of the Project so long as all payroll and related expenditures for such
personnel are within the Plan guidelines. All employees performing services
directly for the Project (excluding off-site property manager) shall be deemed
to be employees of PINNACLE. When requested by Owner, PINNACLE shall consult
with Owner in decisions relating to the hiring, promotion and termination of
Project employees.

                 8.2 OWNER TO REIMBURSE EMPLOYEE EXPENSES: All wages, fringe
            benefits, and all other forms of compensation payable to, or for the
            benefit of, employees of the Project (but not to property managers
            not employed directly by the Project) and all local, state and
            federal taxes and assessments (including, but not limited to,
            payments to and administration of fringe benefits, Worker's
            Compensation, Social Security taxes and Unemployment Insurance)
            incident to the employment of all such personnel, shall be treated
            as an operating expense of the Project and shall be paid by PINNACLE
            from Owner's funds,

                                        7
<Page>

            from the Project operating account subject to the Plan. Such
            payments shall also include all awards of back pay and overtime
            compensation which may be awarded to any project employee in any
            legal proceeding, or in settlement of any action or claim which has
            been asserted by any such employee. Exhibit B sets forth the name
            of: (a) the senior executive personnel of PINNACLE who will be
            responsible for the performance of PINNACLE's duties under this
            Agreement (the "Executive Personnel"); and (b) PINNACLE's on-site
            building manager (the "Building Manager"). Any change in the
            Executive Personnel or Building Manager shall be subject to Owner's
            approval. Attached hereto as Exhibit C is a schedule (the
            "Reimbursable Employee Expense Schedule") that sets forth: (a) a
            list of PINNACLE's employees (including the Building Manager) who
            shall be employed on-site in the direct management and operation of
            the Project; (b) the respective titles and salary of each such
            employee; (c) the length of time that each such employee has been
            employed by PINNACLE; (d) whether each such employee works full or
            part-time (and if they work part-time, the number of hours they work
            per week); (e) the cost of salary and wages that may be charged to
            the Project for each such employee; and (f) whether each such
            employee is bonded or covered under PINNACLE's comprehensive crime
            insurance policy. The Reimbursable Employee Expense Schedule shall
            also identify any employees of PINNACLE who are not located at the
            Project but whose salaries may be charged to the Project pro rata
            based upon services actually rendered by such employees directly to
            the Project (in which event the Reimbursable Employee Expense
            Schedule shall set forth the salaries of such offsite employees and
            the maximum percentage thereof that may be charged to the Project).
            In no event shall PINNACLE be entitled to charge to the Project any
            employee-related expenses: (i) that relate to general or supervising
            management personnel, accountants or auditors; (ii) for which a
            separate fee is charged by PINNACLE pursuant to this Agreement or
            otherwise; or (iii) that are not specifically set forth on the
            approved Reimbursable Employee Expense Schedule. The expenses
            chargeable to the Project pursuant to the Reimbursable Employee
            Expense Schedule may be modified from time to time only as part of
            the a Plan or as otherwise agreed upon by Owner and PINNACLE in
            writing.

     8.3    PINNACLE'S AUTHORITY TO FILE RETURNS: PINNACLE shall do and perform
all acts required of an employer with respect to the Project and shall execute
and file all tax and other returns required under the applicable federal, state
and local laws, regulations and/or ordinances governing employment, and all
other statements and reports pertaining to labor employed in connection with the
Project and under any similar federal or state law now or hereafter in force. In
connection with such filings, Owner shall, upon request, promptly execute and
deliver to PINNACLE all necessary powers of attorney, notices of appointment and
the like. Owner shall be responsible for all amounts required to be paid under
the foregoing laws, and PINNACLE shall pay the same from the operating account.

     8.4    WORKER'S COMPENSATION INSURANCE/TAXES: PINNACLE shall, at Owner's
expense, maintain and administer a Worker's Compensation Insurance program
covering all liability of PINNACLE and the Project under established worker's
compensation laws and all other Federal and State labor laws, whether such laws
provide that such insurance shall be obtained from a third party carrier or from
a state fund and whether such payments shall be denominated as insurance
premiums or taxes.

                                        8
<Page>

                                    SECTION 9

                       OPERATIONS, MAINTENANCE AND REPAIR

     9.1    PERFORMANCE OF REPAIRS: PINNACLE is authorized to make or cause to
be made, through Project employees, PINNACLE's employees, or through contracted
services, all ordinary repairs and replacements reasonably necessary to preserve
the Project in its present condition and for the operating efficiency of the
Project, and all alterations required to comply with rental agreement
requirements, government regulations or insurance requirements. In accordance
with the operating budget (the Plan) or as otherwise directed by Owner, PINNACLE
is also authorized to decorate the Project and the individual apartment units
and to purchase or rent, on Owner's behalf, all equipment, tools, appliances,
materials, supplies, uniforms and other items necessary for the management,
maintenance or operation of the Project. Such maintenance and decorating
expenses shall be paid out of the operating accounts.

     9.2    FEES FOR WORK PERFORMED BY PINNACLE'S EMPLOYEES: With Owner's prior
approval, PINNACLE may cause repairs and replacement work to be performed by
employees for PINNACLE. Owner shall pay to PINNACLE a reasonable fee for such
services based upon the then current hourly charges made and assessed by
PINNACLE for the performance of such services. Such charges shall be
approximately equal to PINNACLE's direct and indirect expenses associated with
the employment of such person. Such charges shall be reasonable and shall not be
more than charges made by qualified independent contractors performing similar
work, under similar circumstances, in the same geographical area as the Project.

     9.3    CONTRACTS, UTILITIES AND SERVICES: PINNACLE is authorized to
negotiate contracts for non-recurring items of expense, not to exceed $5,000.00.
PINNACLE shall enter into agreements for all necessary repairs, maintenance,
minor alterations, and utility services, and make contracts on Owner's behalf
for electricity, gas, telephone, fuel, water and such other services required
for the operation of the Project, in accordance with the Plan. All utility
deposits shall be the Owner's responsibility, except that PINNACLE may pay the
same from the operating accounts if directed to do so.

     9.4    LIMITATIONS ON CONTRACTS: Each such contract or agreement shall: (a)
be in the name of the Project, (b) not be more than twelve months without
Owner's prior written consent, (c) shall not contain any automatic renewal
provisions for periods of more than thirty (30) days, (d) be assignable, at
Owner's option, to Owner or Owner's nominee, (e) include a provision of
cancellation thereof by Owner or PINNACLE upon not more than thirty (30) days
written notice (if available), and (f) shall require that all contractors
provide evidence of sufficient insurance. If this agreement is terminated
pursuant to Section 18, PINNACLE shall, at Owner's option, assign to Owner or
Owner's nominee all contracts and agreements pertaining to the Project. PINNACLE
shall then notify Owner if any such contracting entity is either a subsidiary,
affiliate, or has any other relationship whatsoever to PINNACLE.

     9.5    PROPERTY TAX APPEALS: At the direction of, and with the approval of,
the Owner, PINNACLE shall engage a tax appeal professional to annually review
the tax assessment for possible abatement.

                                        9
<Page>

                                   SECTION 10

                        RELATIONSHIP OF PINNACLE TO OWNER

     PINNACLE is engaged independently in the business of property management
and acts hereunder as an independent contractor. PINNACLE shall act in a
fiduciary capacity with respect to the protection of and accounting for the
Owner's assets and shall serve the Owner's assets and shall serve the Owner's
interests at all time. Nothing contained in this Agreement shall be construed as
creating a partnership, joint venture, or any other relationship between the
parties to this Agreement, or as requiring PINNACLE to bear any portion of
losses arising out of or connected with the ownership or operation of the
Project. PINNACLE shall not, at any time during the term of this Agreement, be
considered to be a direct or indirect employee of Owner. Except as provided
herein, neither party shall have the power to bind or obligate the other party.
Except as specifically set forth in this Agreement, PINNACLE shall not act as
the agent of Owner; and, except as provided in this Agreement, Owner shall not
act as the principal of PINNACLE.

                                   SECTION 11

                           INDEMNIFICATION AND BONDING

     11.1   PINNACLE shall indemnify, hold harmless, protect and defend (with
counsel approved by Owner) the Owner from and against all loss, costs, expenses
and damages ("Damages") in any manner related to, arising out of or resulting
from:

     (a)    any acts of PINNACLE or PINNACLE's agents, servants or employees
     beyond the scope of its authority under this Agreement; or

     (b)    any negligence, willful misconduct of PINNACLE or PINNACLE's agents,
     servants or employees.

     If the circumstances or events described above are covered by Owner's
commercial general liability insurance, then PINNACLE's obligations under this
Section 11.1 shall apply only to the extent Owner's Damages are not fully paid
by Owner's commercial general liability insurance. Notwithstanding any other
provisions of this Agreement to the contrary, PINNACLE's obligations under this
Section 11.1 shall survive the expiration, termination or cancellation of this
Agreement.

     11.2   Subject to Section 26.4, Owner shall protect, defend, indemnify and
hold harmless PINNACLE from and against any and all Damages arising out of the
performance by PINNACLE of its obligations and duties hereunder in accordance
with the terms hereof with respect to the Project; provided, however, that Owner
does not hereby agree, and shall not be obligated, to so indemnify PINNACLE from
any Damages arising out of any act or omission of PINNACLE or any of its agents,
officers, employees or representatives, which act or omission constitutes
negligence, willful misconduct, or is outside the scope of PINNACLE's authority
as provided herein

     11.3   INDEMNIFICATION FOR VIOLATION OF LAW. Owner shall indemnify, defend
and save PINNACLE harmless from any and all claims, proceedings or liabilities
as well as all costs and expenses thereof, (including, but not limited to, fines
penalties, and reasonable attorneys fees)

                                       10
<Page>

involving an alleged or actual violation by Owner of any statute, rule or
regulation pertaining to the premises, property, the management or the operation
of the Project, except to the extent that such claim, proceeding or liability
resulted from the negligence or willful misconduct of PINNACLE.

                                   SECTION 12

                                    INSURANCE

     12.1   OWNER'S INSURANCE AND RIGHTS. Manager, as an operating expense of
the Property payable from the Operating Account, will obtain and keep in force,
in the name of the Owner, adequate property and commercial liability insurance
covering Owner as primary insured and, with respect to liability insurance,
Manager as additional insured. Manager shall provide Owner with copies of
policies or certificates of insurance relating to the Property. Such insurance
may be blanketed with other insurance carried by Manager or any affiliate of
Manager, in which case a pro rata share of the premiums will be chargeable to
the Property as an operating expense. The Parties intend that Owner's general
liability insurance shall be primary in responding to all premises liability
claims. Nothing herein will be construed as indemnifying Manager or its
employees, contractors or agents against any act or omission for which insurance
protection is not available or is not required hereunder to be carried by Owner
and procured by Manager; neither is the foregoing intended to affect the general
requirement of this Agreement that the Property will be managed, operated and
maintained in a safe condition and in a proper and careful manner. Owner will
furnish whatever information is reasonably requested by Manager for the purpose
of placement of insurance coverages and will aid and cooperate in every
reasonable way with respect to such insurance and any claim or loss thereunder.
Owner will cooperate with Manager and Owner's insurance carrier on loss control
inspections, responding to recommendations and other safety issues.

     12.2   MANAGER'S INSURANCE. Manager will maintain (as an operating expense
of the Property with respect to on-site employees only) Workers' Compensation
and similar insurance as required by law. Manager may maintain, at Manager's
expense, Commercial General Liability Insurance. Manager will maintain the
following insurance at its own expense (not chargeable to the Property):

                  i.    Automobile Liability - As to any vehicle owned,
                        non-owned or hired by Manager, used in connection with
                        the Project, $1,000,000 covering losses due to the
                        insurer's liability for bodily injury or property
                        damage.

                  ii.   Medical Expenses - $5,000 per person per accident.

                  iii.  Uninsured/Underinsured Motorists' Coverage for any owned
                        car - $1,000,000.

                  iv.   Comprehensive crime (including Employee Dishonesty)
                        insurance with limits and terms acceptable to Owner or a
                        fidelity bond acceptable to Owner.

                  v.    Excess Liability Coverage - $5,000,000.

                                       11
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The minimum A.M. Best's rating of each insurer is A-IX. Manager will furnish
Owner with certificates of insurance simultaneously with the execution of this
Agreement and whenever coverage is renewed or replaced, evidencing the aforesaid
coverage, which will include provisions to the effect that Owner will be given
at least 30 days' prior written notice of cancellation or non-renewal of or any
material change in any of the aforesaid policies. Owner will be named as an
additional insured with respect to all insurance policies required under (b) and
(d) above and as loss payee as respects (c) above. All liability policies shall
contain endorsements that (i) delete any employee exclusion on personal injury
coverage, (ii) include employees as additional insureds and (iii) contain
cross-liability, waiver of subrogation and such other provisions as Owner may
reasonably require.

12.3 CONTRACTORS' AND SUBCONTRACTORS' INSURANCE. PINNACLE will require that all
parties performing work on or with respect to the Project, including,
contractors, subcontractors and service vendors, provide evidence of insurance
coverage at such parties' expense, in the following minimum amounts:

            (a)   Workers' Compensation - Statutory amount.

            (b)   Employer's Liability - $500,000 each accident; $500,000
            disease-policy limit; $500,000 disease - each employee.

            (c)   Automobile Liability - $1,000,000 covering losses due to the
            insurer's liability for bodily injury or Project damage.

            (d)   Medical Expenses - $5,000 per person per accident.

            (e)   Uninsured/Underinsured Motorists' Coverage- $1,000,000.

            (f)   Commercial General Liability:  Bodily injury and Project
            damage - $1,000,000 combined single limit with Contractual Liability
            coverage.

            (g)   Excess Liability Coverage - $5,000,000 or such greater amount
            as is needed for the specific job.

            (h)   Transit Coverage - As needed for the specific job.

The minimum A.M. Best's rating of each insurer is A-IX. PINNACLE must obtain
Owner's written permission to waive any of the above requirements. Higher
amounts may be required by Owner if the work to be performed is deemed by Owner
to be hazardous. PINNACLE will obtain and keep on file a certificate of
insurance which shows that each such party is so insured. Owner will be named as
an additional insured with respect to Contractors' and Subcontractors' Auto
Liability, Commercial General Liability and Excess Liability policies. PINNACLE
will receive from vendors evidence of indemnification and hold harmless
provisions in favor of Owner and PINNACLE.

12.4   WAIVER OF SUBROGATION. Insofar as, and to the extent that, the following
provision may be effective without invalidating or making it impossible to
obtain insurance, PINNACLE and Owner agree that with respect to any hazard,
liability, casualty or other loss or claim which is covered by insurance then
being carried by either Owner or PINNACLE: (a) the party carrying such insurance
and suffering such loss releases the other party of and from any and all claims

                                       12
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with respect to such loss to the extent of the insurance proceeds paid with
respect thereto and specifically excepting from such release any deductible
required to be paid therewith; and (b) their respective insurance companies
shall have no right of subrogation against the other or their respective agents,
contractors, employees, licensees or invitees on account thereof.

                                   SECTION 13

                          PINNACLE ASSUMES NO LIABILITY

PINNACLE assumes no liability whatsoever for any acts or omissions of Owner or
any previous owners of the Project, or any previous property managers or other
agents of either Owner or PINNACLE. PINNACLE assumes no liability for any
failure of or default by any tenant in the payment of any rent or other charges
due Owner or in the performance of any obligations owed by any tenant to Owner
pursuant to any rental agreement or otherwise unless solely caused by willful
misconduct of PINNACLE. Nor does PINNACLE assume any liability for previously
unknown violations of environmental or other regulations which may become known
during the period this Agreement is in effect. Any such environmental violations
or hazards discovered by PINNACLE shall be brought to the attention of Owner in
writing and Owner shall be responsible for such violations or hazards. PINNACLE
also assumes no liability for any failure of computer hardware, software of
miscellaneous computer systems to accurately process data (including, but not
limited to, calculating, comparing, and sequencing).

                                   SECTION 14

                      ASSIGNMENT OF RIGHTS AND OBLIGATIONS

     14.1   ASSIGNMENT: PINNACLE may, from time to time, assign its rights and
obligations under the terms and provision of this Agreement to a subsidiary of
PINNACLE, which shall be duly licensed and otherwise capable of performing the
services of PINNACLE under the terms and provisions of this Agreement with the
prior written consent of Owner.

     14.2   NOVATION: In the event of such assignment, notice shall be given to
Owner, and upon Owner's receipt of such notice, Owner shall look solely to the
assignee for the performance of all obligations of PINNACLE under the terms and
provisions of this Agreement.

                                   SECTION 15

                      PINNACLE'S COMPENSATION AND EXPENSES

     15.1   COMPENSATION: As compensation for the services provided by PINNACLE
under this Agreement (and exclusive of reimbursement of expense to which
PINNACLE is entitled hereunder), Owner shall pay PINNACLE the following
compensation:

     15.2   FOR MANAGEMENT SERVICES: Three and One-Half percent (3.5%) of the
total monthly gross receipts from the Project. Such compensation shall be
payable by the first day of the next succeeding month for the monthly gross
receipts for the current month. Payments due PINNACLE for periods of less than a
calendar month shall be prorated over the number of days for which compensation
is due.

                                       13
<Page>

     A.         The term "gross receipts" shall be deemed to include all rents
                and other income and charges from the normal operation of the
                Project, including, but not limited to, rents, parking fees, net
                laundry income, forfeited security deposits, pet deposits, other
                fees, and other miscellaneous income. Gross receipts shall not
                be deemed to include interest on reserve accounts, interest on
                other depository accounts and income arising out of the sale of
                real property or the settlement of fire or other casualty losses
                and items of a similar nature.

     15.3   ACTS OF GOD: In the event of a casualty loss due to Acts of God
and/or other insurance claims such as, without limitation, hurricanes,
tornadoes, earthquakes, fires or floods, where the Project lender allows
restoration of damage to the Project, if Owner engages PINNACLE to oversee such
restoration work under a separate written agreement, Owner agrees to pay
PINNACLE five percent (5%) of the total cost of the reconstruction project for
overseeing the project to completion provided that said fee is reimbursed in its
entirety under the provisions of Owner's insurance policy.

     15.4   CONSTRUCTION MANAGEMENT SERVICES: If Owner engages PINNACLE to
oversee Project Improvements, over and above routine maintenance, such
improvements shall be performed under a separate written agreement. Owner agrees
to pay PINNACLE five percent (5%) of the total cost of the improvements for
overseeing the improvement project to completion.

     15.5   FOR OTHER ITEMS OF MUTUAL AGREEMENT: Should Owner wish PINNACLE to
perform services which are not otherwise governed by the terms and provisions of
this Agreement, the parties shall meet to discuss and to agree upon the
additional compensation to be paid by Owner to PINNACLE for such additional
services.

     15.6   INTEREST ON UNPAID SUMS: Any sums due PINNACLE under any provision
of this Agreement, and not paid within thirty (30) days after such sums have
become due, shall bear interest at the rate of twelve percent (12%) per annum.

                                   SECTION 16

                               STRUCTURAL CHANGES

     Owner expressly withholds from PINNACLE any power or authority to make any
structural changes in any building, or to make any other major alterations or
additions in or to any such building or to any equipment in any such building,
or to incur any expense chargeable to Owner other than expenses related to
exercising the express powers vested in PINNACLE through this Agreement, without
the prior written consent of Owner. However, such emergency repairs as may be
required because of danger to life or property, or which are immediately
necessary for the preservation and safety of the Project or the safety of the
tenants and occupants thereof, or required to avoid the suspension of any
necessary service to the Project, or to comply with any applicable federal state
or local laws, regulations or ordinances, shall be authorized pursuant to
section 4.2 of this Agreement, and PINNACLE shall notify Owner appropriately.

                                   SECTION 17

                                       14
<Page>

                               BUILDING COMPLIANCE

     PINNACLE does not assume and is given no responsibility for compliance of
the Project or any building thereon or any equipment therein with the
requirements of any building codes or with any statute, ordinance, law or
regulation of any governmental body or of any public authority or official
thereof having jurisdiction, except to notify Owner promptly or forward to Owner
promptly any complaints, warnings, notices or summons received by PINNACLE
relating to such matters. Owner authorizes PINNACLE to disclose the Ownership of
the Project(s) to any such officials and agrees to indemnify and hold PINNACLE
its representative, servants, and employees harmless of and from all loss, cost,
expense and liability whatsoever which may be imposed by reason of any present
or future violation or alleged violation of such laws, ordinances, statutes or
regulations; provided, indemnity shall not be applicable if PINNACLE has actual
knowledge of any such violation or alleged violation but fails to give notice to
Owner, as provided under the terms and provisions of this Agreement.

                                   SECTION 18

                                   TERMINATION

     18.1   TERMINATION BY EITHER PARTY: This Agreement may be terminated by
either Owner or PINNACLE, with or without cause, anytime during or after the end
of the initial term by giving not less than thirty (30) days advanced written
notice to the other party.

     18.2   TERMINATION FOR CAUSE: Notwithstanding the foregoing, this Agreement
shall terminate in any event, and all obligations of the parties hereunder shall
cease (except as to liabilities or obligations which have accrued or arisen
prior to such termination, or which accrue pursuant to Section 18.3 as a result
of such termination, and obligations to insure and indemnify), upon the
occurrence of any of the following events:

            A.    BREACH OF AGREEMENT: Ten (10) days after the receipt of notice
     by either party to the other specifying in detail a material breach of this
     Agreement, if such breach has not been cured within said ten (10) day
     period; or if such breach is of a nature that it cannot be cured within
     said ten (10) day period but can be cured within a reasonable time
     thereafter, if efforts to cure such breach has not commenced and/or such
     efforts are not proceeding and being continued diligently both during and
     after such ten (10) day period prior to the breach being cured. However,
     the breach of any obligation of either party hereunder to pay any moneys to
     the other party under the terms of this Agreement shall be deemed to be
     curable within ten (10) days. Termination of this Agreement shall be
     Owner's sole remedy for claims of breach of contract.

            B.    EXCESSIVE DAMAGE:  Upon the destruction of or substantial
     damage to the Project by any cause, or the taking of all or a substantial
     portion of the Project by eminent domain, in either case making it
     impossible or impracticable to continue operation of the Project.

            C.    SALE OF PROJECT:  In the event of the sale of the Project,
     this Agreement shall terminate upon the giving of not less than thirty (30)
     days written notice by Owner to PINNACLE.

                                       15
<Page>

            D.    DEFAULT: Immediately upon the occurrence of any of the
     following events shall constitute an event of default by the party in
     respect of which such even occurs:

                  1.  the failure of either party to pay any amounts required to
            be paid by it hereunder or to perform any of its obligations
            hereunder for a period of ten (10) days after the date on which
            notice of the failure has been given to the defaulting party by the
            other party;

                  2.  the filing of a voluntary petition in bankruptcy or
            insolvency or a petition for reorganization under any bankruptcy or
            similar creditor relief law;

                  3.  the consent to an involuntary petition in bankruptcy or
            the failure by such party to vacate, within sixty (60) days from the
            date of entry thereof, any order approving an involuntary petition;

                  4.  the entering of an order, judgment or decree by any court
            of competent jurisdiction, on the application of a creditor,
            adjudicating such party as bankrupt or involvement or approving a
            petition seeking reorganization or appointing a receiver, trustee,
            conservator or liquidator of all or a substantial part of such
            party's assets, if such order, judgment or decree shall continue
            unstayed and in effect for a period of one hundred twenty (120)
            consecutive days;

                  5.  the failure to fulfill any of the other covenants,
            undertakings, obligations or conditions set forth in this Agreement
            and the continuance of any such default for a period of ten (10)
            days after written notice of said failure; and

                  6.  theft, fraud, or other knowing or intentional misconduct
            by PINNACLE or its employees or agents.

     18.3   TERMINATION COMPENSATION: Any amounts accruing to PINNACLE prior to
such termination shall be due and payable when a final accounting, as set forth
in Section 18.6, is delivered in a form reasonably satisfactory to Owner. To the
extent that funds are available, and in any event prior to the disbursement of
payments (other than underlying mortgage obligations) to Owner, such sums shall
be payable from the operating accounts. Any amounts due in excess of the funds
available from the operating account shall be paid by Owner to PINNACLE upon
demand.

     18.4   OWNER RESPONSIBLE FOR PAYMENTS: Upon termination of or withdrawal
from this Agreement, Owner shall assume the obligations of any contract or
outstanding bill executed by PINNACLE under this Agreement for and on behalf of
Owner, if such bill was incurred by PINNACLE in accordance with the Plan or as
otherwise approved by Owner. In addition, Owner shall indemnify PINNACLE against
any obligations or liabilities which PINNACLE may have properly incurred on
Owner's behalf under this Agreement.

     18.5   ACCOUNTS: UNPAID BILLS: PINNACLE shall deliver to Owner, within
thirty (30) days (or sooner if required by law) after this Agreement is
terminated, any balance of moneys due Owner and tenant security deposits which
were held by PINNACLE with respect to

                                       16
<Page>

the Project, as well as a final accounting reflecting the balance of income and
expenses with respect to the Project, as of the date of termination or
withdrawal, and all records, contracts, leases, receipts for deposits, and other
papers or documents which pertain to the Project. Bills previously incurred but
not yet invoiced shall be the responsibility of and sent directly to Owner.

     18.6   FINAL ACCOUNTING: Since all records, contracts, leases, rental
agreements, receipts for deposits, unpaid bills, and other papers and documents
which pertain to the Project are deemed to be the property of the Owner, they
are to be delivered to Owner, upon the effective date of such termination,
PINNACLE may retain temporary possession of such records as may be necessary in
order to comply with the provisions of Section 18.5 and/or law.

     18.7   NON-INTERFERENCE WITH PINNACLE'S BUSINESS: Owner agrees that for a
period of six (6) months after termination of this Agreement, Owner will under
no circumstances hire any of PINNACLE's employees of special talent, or privy to
PINNACLE's confidential business information, or who have contributed notably to
the good will of PINNACLE's business or any broker, salesman or leasing agent to
perform any services which are in the scope of PINNACLE's business. In the event
of an actual or threatened breach of this covenant by Owner, PINNACLE shall be
entitled to an injunction restraining Owner from committing, or continuing to
commit, any such breach. Nothing herein stated shall be construed as prohibiting
PINNACLE from pursuing any other remedies available to PINNACLE for such breach
and threatened breach, including recovery of damages from Owner. On-site
employees are exempt from the provisions of this paragraph.

                                   SECTION 19

                                 REPRESENTATIONS

     19.1   OWNER'S REPRESENTATIONS AND WARRANTIES: Owner represents and
warrants as follows: (a) Owner has the full power and authority to enter into
this Agreement, and the person executing this Agreement is authorized to do so;
(b) there are no written or oral agreements affecting the Project other than the
tenant leases or rental agreements, copies of which have been furnished to
PINNACLE; (c) all permits for the operation of the Project has been secured and
are current; and (d) Owner is not aware of any violation of any building or
construction statute, ordinance, or regulation that will affect the operation of
the Project.

     19.2   PINNACLE'S REPRESENTATIONS AND WARRANTIES: PINNACLE represents and
warrants as follows: (a) the officers of PINNACLE have the full power and
authority to enter into this Agreement; (b) there are not written or oral
agreements by PINNACLE that will be breached by, or agreements in conflict with,
PINNACLE's performance under this Agreement; and (c) where necessary, PINNACLE
will be duly licensed and able to perform all of the duties under this Agreement
at the effective date of this Agreement and shall comply with and abide by all
laws, rules, regulations, and ordinances pertaining thereto.

                                   SECTION 20

                                    HEADINGS

                                       17
<Page>

     All headings and subheadings employed within this Agreement are inserted
only for convenience and ease of reference and are not to be considered in the
construction or interpretation of any provision of this Agreement.

                                       18
<Page>

                                   SECTION 21

                                  FORCE MAJEURE

     Any delays in the performance of any obligation of PINNACLE under this
Agreement shall be excused to the extent that such delays are caused by wars,
national emergencies, natural disasters, strikes, labor disputes, utility
failures, governmental regulations, riots, adverse weather, and other similar
causes not within the control of PINNACLE, and any time periods required for
performance shall be extended accordingly.

                                   SECTION 22

                               COMPLETE AGREEMENT

     This Agreement, including any specified attachments, constitutes the entire
agreement between Owner and PINNACLE with respect to the management and
operation of the Project and supersedes and replaces any and all previous
management agreements entered into and/or negotiated between Owner and PINNACLE
relating to the Project covered by this Agreement. No change to this Agreement
shall be valid unless made by supplemental written agreement executed and
approved by Owner and PINNACLE. Except as otherwise provided herein, any and all
amendments, additions or deletions to this Agreement shall be null and void
unless approved by Owner and PINNACLE in writing. Each party to this Agreement
hereby acknowledges and agrees that the other party has made no warranties,
representations, covenants or agreements, express or implied, to such party,
other than those expressly set forth herein, and that each party, entering into
and executing this Agreement has relied upon no warranties, representations,
covenants or agreements, express or implied, to such party, other than those
expressly set forth herein, or as set forth in an exhibit or appendix to this
Agreement.

                                   SECTION 23

                          RIGHTS CUMULATIVE: NO WAIVER

     No right or remedy herein conferred upon or reserved to either of the
parties to this Agreement is intended to be exclusive of any other right or
remedy, and each and every right and remedy shall be cumulative and in addition
to any other right or remedy given under this Agreement or now or hereafter
legally existing upon the occurrence of an event of default under this
Agreement. The failure of either party to this Agreement to insist at any time
upon the strict observance or performance of any of the provisions of this
Agreement, or to exercise any right or remedy as provided in this Agreement,
shall not impair any such right or remedy or be construed as a waiver or
relinquishment of such right or remedy with respect to subsequent defaults.
Every right and remedy given by this Agreement to the parties to it may be
exercised from time to time and as often as may be deemed expedient by those
parties.

                                   SECTION 24

                          APPLICABLE LAW AND LITIGATION

     24.1   INTERPRETATION: The execution, interpretation and performance of
this Agreement shall in all respects be controlled and governed by the laws of
the State of the

                                       19
<Page>

location of the Project. If any part of this Agreement shall be declared invalid
or unenforceable, PINNACLE or Owner shall have the option to terminate this
Agreement by giving written notice to the other party.

     24.2   LITIGATION: In the event that either party shall bring an action to
enforce or to interpret the terms and provisions of this Agreement, the
substantially prevailing party in such action shall be entitled to receive court
costs and the reasonable fees and expenses of attorneys and certified public
accountants.

                                   SECTION 25

                                     NOTICES

     Any notices, demands, consents and reports necessary or provided for under
this Agreement shall be in writing and shall be delivered by hand, by nationally
recognized overnight express delivery service (all charges prepaid) for next day
delivery or by U.S. registered or certified mail, return receipt requested (all
postage prepaid) and shall be addressed as follows, or at such other address as
Owner and PINNACLE individually may specify hereafter in writing:

     PINNACLE:        AMERICAN MANAGEMENT SERVICES WEST, LLC, dba PINNACLE
                      2801 Alaskan Way, Suite 200
                      Seattle, Washington  98121

     OWNER:           BC-GFS SETTLER'S POINT LLC
                      c/o Goodman Financial Services, Inc.
                      2801 Alaskan Way, Suite 200
                      Seattle, Washington 98121

     With copies to:  BC-GFS II LLC
                      c/o Boston Capital Corporation
                      One Boston Place, 21st Floor
                      Boston, MA 02108-4406
                      Attention:  Mark W. Dunne

Any notice or other communication sent or provided above shall be deemed given
(i) on the date of delivery, if by hand or (ii) on the date mailed, if sent by
overnight express delivery service or U.S. registered or certified mail notice
shall be deemed received on the date of receipt by the addressee or the date
receipt would have been effectuated if delivery were not refused. Each party
hereto may designate a new Notice Address by written notice to the other parties
in accordance with this Section 25. The inability to deliver a notice because of
a change of address of which proper notice was not given shall be deemed a
refusal of such notice.

                                   SECTION 26

     26.1   AGREEMENT BINDING UPON SUCCESSORS AND ASSIGNS. This Agreement shall
be binding upon the parties hereto and their respective personal
representatives, heirs, administrators, executors, successors and assigns.

                                       20
<Page>

     26.2   AGREEMENT IN COUNTERPARTS. This Agreement may be executed in
multiple counterparts, each of which shall be considered an original and all
shall constitute one and the same Agreement, binding upon all of the parties
hereto, notwithstanding that all of the parties may not be signatories to the
same counterpart.

     26.3   TIME PERIODS. In the event the time for performance of any
obligation hereunder expires on a day other than a Business Day, the time for
performance shall be extended to the next day that is a Business Day.

     26.4   EXCULPATION. PINNACLE, and all persons claiming by, through or under
PINNACLE, shall look solely to Owner's interest in the Project for the
satisfaction of any claim now existing or hereafter arising or accruing against
the Owner, and in no event shall Owner be liable for any deficiency.

     26.5   CONFIDENTIALITY. PINNACLE and its employees and agents agree to keep
all information related to the Property and Owner confidential, except to the
extent necessary to carry out PINNACLE's obligations under this Agreement or as
may be required by law.

     26.5   PINNACLE'S AGREEMENT TO NOT COMPETE. During the term of this
Agreement, PINNACLE shall notify Owner, in writing, of the existence of any
property management services it provides to other clients within a three (3)
mile radius of the Project. Such notice to be given within a reasonable period
of time and to include the name of the Project and the effective date of
management. PINNACLE further agrees to not utilize the services of the same
Investment Manager for the Project on any other client of PINNACLE's properties
within a one-quarter mile radius of the Project.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                       21
<Page>

     IN WITNESS WHEREOF, the parties hereto have affixed and caused to be
affixed their respective signatures as of the day and year first written above.

OWNER:                                        AMERICAN MANAGEMENT SERVICES
                                              WEST, LLC, DBA PINNACLE

BC-GFS SETTLER'S POINT LLC
a Delaware Limited Liability Company          By:   /s/ Stan Harrelson
                                                    ------------------
                                                    Stan Harrelson
By:   BC-GFS II LLC                           Its:  President
      a Delaware Limited Liability Company
Its:  Sole Member and Manager

By:   GFS EQUITY MANAGEMENT LLC
      a Washington Limited Liability Company
Its:  Manager

By:   /s/ John A. Goodman
      -------------------
      John A. Goodman
Its:  Manager

                                       22
<Page>

                                    EXHIBIT A

The following fees and charges may be paid from the Project's Operating Account.

<Page>

                                    EXHIBIT B

                               EXECUTIVE PERSONNEL

NORTHWEST REGION PRESIDENT:                   Scott Mencaccy

INVESTMENT MANAGERS OF RECORD:                Matt Andrews

NORTHWEST (GFS)ACCOUNTING MANAGER:            Tom Eyler

<Page>

                                    EXHIBIT C

REIMBURSABLE EMPLOYEE EXPENSE SCHEDULE

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