FUNDS

Capitalization and Investments

Shorenstein Realty Investors Seven, L.P. (“Fund Seven”) was formed in 2003 with $775 million of committed capital, including $75 million committed by Shorenstein.  Fund Seven was invested over a 37-month period.

Fund Seven made equity investments in the following properties:

• Cisco Tower, a 283,135 square foot office building located in Santa Clara, California.

• 1155 Perimeter Center West, a 376,693 square foot complex located in the Central Perimeter submarket of Atlanta, Georgia that includes an office building, a 66,499 square foot trading facility and data center, and an 8-level garage.

• The Starrett Lehigh Building, a 2.3 million square foot office building located in the Chelsea submarket of New York City.

• 409 and 499 Illinois Street, a 3.8-acre development site entitled for up to 450,000 square feet of commercial and/or laboratory space located in the Mission Bay submarket of San Francisco, California.

• 1201 Third Avenue, a 1.1 million square foot office building located in the Central Business District of Seattle, Washington.

• 5000 & 7000 Marina Boulevard, a 147,669 square foot, two-building office complex located in the Sierra Point submarket of Brisbane, California.

• Blanchard Plaza, a 244,529 square foot office building located in the Denny Triangle/Belltown submarket of Seattle, Washington.

• 1625 K Street, NW, a 108,081 square foot office building located in the Central Business District of Washington, D.C.

• Fair Lakes, a 1.25 million square foot portfolio of nine office buildings and developable land, which has been entitled for an additional 480,000 square feet, located in Fairfax, Virginia.

• 311 South Wacker Drive, a 1.3 million square foot office building located in the West Loop submarket of Chicago, Illinois.

• Seattle Trade & Technology Center, a 339,595 square foot office building located in the Denny Triangle/Belltown submarket of Seattle, Washington, with a 592-stall parking garage located across the street and connected to the office building by a skybridge.

• Media Studios North, a media and entertainment campus comprising 932,190 square feet in five existing office buildings located in Burbank, California, with options to acquire three neighboring parcels that could support development of an additional 426,000 square feet of office space.  Simultaneously with Fund Seven’s acquisition of its interest in Media Studios North, another Shorenstein-sponsored fund, Shorenstein Realty Investors Eight, L.P., also acquired an interest in the property, with each fund owning a 45% interest.

• Palisades Office Park, a 635,383 square foot, four-building office complex located in the Central Perimeter submarket of Atlanta, Georgia, which includes additional development sites that are entitled for 524,000 square feet of office space, 200 multi-family units, a 200-room hotel, 50,000 square feet of retail space, and 10 live/work office condominiums.

In September 2006, Fund Seven entered into a long-term lease with a privately owned biotechnology company for 100% of a building to be constructed at 409 Illinois Street and the option to lease up to 100% of a second building to be constructed at 499 Illinois Street.  In November 2006, Fund Seven commenced construction on the two buildings totaling 452,659 square feet, the buildings were completed in November 2008, and the tenant took occupancy of 409 Illinois Street in December 2008.

In March 2010, the Media Studios North joint venture exercised its option to acquire one of the three neighboring parcels.  This parcel is entitled to build a three-story 96,000 square foot office building.  The project is being marketed to potential tenants.

Realization

• In July 2007, 1155 Perimeter Center West was sold and proceeds from this sale were used to acquire Palisades Office Park in August 2007 through a Section 1031 tax-deferred exchange.

• 409 and 499 Illinois Street were sold in April 2011.

• The Starrett Lehigh Building was sold in July 2011.