FUNDS

Capitalization and Investments

Shorenstein Realty Investors, L.P. (“Fund One”) was formed in 1992 with $148 million of committed capital, including $25 million committed by Shorenstein; it was invested over a 23-month period.

Fund One made equity investments in the following properties:

• The office and retail components totaling 269,929 square feet of Golden Gateway Commons, a three-building mixed-use complex located in the North Waterfront submarket of San Francisco, California.

• Millennium One and Two, a 330,033 square foot two-building office complex located in Englewood, Colorado, with an adjoining parcel that could support an additional 300,000 square foot building.

• One and Three Pacific Place, a 125,452 square foot office building located in West Omaha, Nebraska, with an adjoining parcel that could support an additional 120,000 square foot building.

• The office and retail components totaling 614,433 square feet of Hills Plaza, a two-building mixed-use complex located in the South Financial District of San Francisco, California.

• Phoenix Plaza, an 857,250 square foot three-building office and retail complex located in the Midtown submarket of Phoenix, Arizona.

• LaSalle Plaza, a 599,619 square foot office building located in downtown Minneapolis, Minnesota.

In June 2003, the Fund One investors agreed to commit an additional $12 million in order to fund certain ownership costs relating to Hills Plaza.

Realizations

• LaSalle Plaza was sold in November 1997.

• Golden Gateway Commons was sold in May 1998.

• Millennium One and Two were sold in May 1998.

• One and Three Pacific Place were sold in May 1998.

• Hills Plaza was sold in August 2004.

• Phoenix Plaza was sold in September 2004.