FUNDS

Capitalization and Investments

Shorenstein Realty Investors Three, L.P. (“Fund Three”) was formed in 1996 with $113.5 million of committed capital, including $15 million committed by Shorenstein.  Fund Three was invested over a five-month period.

Fund Three made equity investments in the following properties:

• Oakland City Center, a 1,070,813 square foot, four-building office and retail complex located in Downtown Oakland, California, with options to acquire from the City of Oakland (i) a 1,587-stall parking garage located under Oakland City Center, and (ii) four neighboring parcels that could support development of an additional 2,000,000 square feet of office space.

• First Union Financial Center, a 1,144,623 square foot office building located in Downtown Miami, Florida.  Fund Three acquired this property in partnership with another Shorenstein-sponsored fund, Shorenstein Realty Investors Two, L.P., with each fund owning a 50% interest in the property.

Fund Three sold a 50% interest in Oakland City Center in November 1998 through a joint venture structure.  In 1999, the Oakland City Center joint venture exercised an option to acquire from the City of Oakland the 1,587-stall parking garage located under Oakland City Center.  In May 2000, Shorenstein completed the entitlement process and the design work for a 485,039 square foot office building and a 221-stall parking garage on one of the development sites.  The option to acquire the parcel was exercised and the building was developed by the joint venture and was completed in April 2002.

Realizations

• A 50% interest in Oakland City Center was sold in November 1998.

• First Union Financial Center was sold in August 2002.

• Fund Three sold its options to acquire two parcels neighboring Oakland City Center in June 2007.

• The remaining 50% interest in Oakland City Center was sold in June 2010.