THE TERMS LISTED IN BOLD ABOVE ARE DEFINED TERMS THAT ARE REFERRED TO THROUGHOUT THIS PURCHASE AGREEMENT.

ARTICLE I

AGREEMENT, PROPERTY, AND PRICE

Section 1.01. Agreement. Upon the execution of this Purchase Agreement and the payment by Buyer of the Initial Earnest Money, this Purchase Agreement (referred to as this “Contract”) will constitute a binding and effective agreement of Seller to sell the Property to Buyer and will constitute a binding and effective agreement of Buyer to purchase the Property from Seller.

Section 1.02. Inclusions in Property. Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, all of Seller's interest in the Property upon the terms and conditions of this Contract. The term "Personalty" means Seller's interest in all furnishings (except as identified in Section 1.05 below), furniture, appliances, tools, equipment, machinery, marketing materials, telephone systems, office equipment, pool and patio furniture, supplies, inventory, and other tangible personal property owned by Seller that are located on and used in connection with the operation of the Property. The term "Contract Rights" means all Approved Project Contracts (as defined in Section 4.06(d), Tenant Deposits, prepaid rents (for periods after the Closing Date), tenant leases, tenant records, tenant files, permits, certificates of occupancy, occupancy and operations licenses, and all rights, if any, to any telephone numbers used for the Property. The term "Improvements" means all buildings, improvements, fixtures, pools, parking areas, sidewalks, landscaping, and similar structures and improvements located on the Real Property. The term "Other Rights" means Seller's interest in all logos, designs, trade names, trademarks, service marks, plans and specifications, warranties, guaranties, all electronic records applicable to the Property, and all additional rights, easements, and appurtenances pertaining to the use, ownership, or operation of the Improvements, including all right, title, and interest of Seller in and to any land lying in the bed of any street, road, highway, or alley adjoining the Real Property and any strips and gores adjoining the Real Property. The term "Property" means collectively the Real Property, Improvements, Personalty, Contract Rights, and Other Rights.

Section 1.03. Definitions. Capitalized terms used in this Contract, including the terms listed on the cover page of this Contract, will have the meanings ascribed in this Contract.

Section 1.04. Contract. This Contract consists of the main text and all exhibits to this Contract. All exhibits supplement this Contract. If there is a conflict between the main text of this Contract and the exhibits, the main text controls in all instances.

Section 1.05. Excluded Assets. The Property does not include the assets listed in Exhibit “B” ("Excluded Assets") , all of which will remain the property of Seller and be removed prior to the Closing Date (as defined in Section 2.04(c)).

ARTICLE II

PRICE, ESCROW, AND PRORATIONS

Section 2.01. Purchase Price. The total purchase price (the "Price") for the Property is SIX MILLION NINE HUNDRED FOUR THOUSAND FIVE HUNDRED AND 00/100 ($6,904,500.00) DOLLARS. The Price will be paid by Buyer to Seller as follows:

(a) Concurrent with the execution of this Contract, Buyer will deposit with the Escrow Agent in Good Funds (as defined in Section 2.02) an initial earnest money deposit in the amount of ONE HUNDRED THOUSAND AND 00/100 ($100,000.00) DOLLARS ("Initial Earnest Money").

(b) By no later than the date that is 30 days after the Contract Date, and provided that this Contract has not been terminated pursuant to Section 3.01, 3.02(b), 3.02(c) or 3.03(b), Buyer will deposit with Escrow Agent in Good Funds an additional earnest money deposit of THREE HUNDRED THOUSAND AND 00/100 ($300,000.00) DOLLARS ("Additional Earnest Money").

(c) On or before the Closing Date, all additional amounts ("Closing Cash") required of Buyer to pay the Price, after credit for the Earnest Money, will be paid by Buyer to Seller in Good Funds.

Section 2.02. Earnest Money. As used in this Contract, the term "Earnest Money" means, to the extent applicable under this Contract, the Initial Earnest Money, the Additional Earnest Money, and all interest that may accrue on the Additional Earnest Money from time to time, and the term "Good Funds" means in cash, by confirmed wire transfer, by certified check drawn on any Bank, or by cashier's check issued by any Bank representing good, sufficient, and immediately available U.S. funds. The Earnest Money will be held by Escrow Agent in accordance with the terms and conditions of this Contract in a fully federally insured or federally backed investment or otherwise as approved by Buyer and Seller. At the Closing of Title (as defined in Section 2.04(c)), the Earnest Money will be applied by Escrow Agent for the benefit of Buyer to the Price and Buyer's share of any closing costs and prorations. The Initial Earnest Money is nonrefundable upon expiration of the Inspection Period or any permitted extension thereof, except upon a default by Seller or a permitted termination of this Contract by Buyer in accordance with the terms and conditions set forth in this Contract. The Additional Earnest Money is nonrefundable upon its deposit with Escrow Agent in all instances except in the case of a Seller default or a permitted termination by Buyer in accordance with the terms and conditions set forth in this Contract.

Section 2.03. Broker's Commission. Except Marcus & Millichap ("Employed Broker"), Buyer and Seller represent to each other that neither has dealt with any broker or any other person concerning the purchase and sale of the Property in a manner that would give rise to a claim for the payment of a commission. Each party agrees, on demand, to indemnify, defend, and hold harmless the other party for, from, and against any claim, damage, loss, liability, or exposure, (including attorney fees in a reasonable amount) arising out of any act or omission of the party or its representatives that forms the basis for any claim for a real estate brokerage commission. As used in this Contract, the term "broker" means any real estate broker, salesperson, agent, finder, or any other person entitled to a real estate brokerage commission. If and only if title closes in accordance with the terms of this Contract, Seller will pay to Employed Broker a brokerage commission in the amount specified in a separate brokerage agreement between Seller and Employed Broker. The brokerage indemnity described above will survive the cancellation or termination of this Contract. If the sale contemplated by this Contract is not consummated for any reason whatsoever, no commission or any portion of the Earnest Money will be paid to the Employed Broker, and the consent, approval, or joinder of the Employed Broker is not required to modify or cancel this Contract.

Section 2.04. Time Periods, Closing.

(a) This Contract constitutes an enforceable obligation of Seller to sell and Buyer to purchase the Property on the terms and conditions of this Contract when this Contract is executed by both Buyer and Seller (the “Contract Date”).

(b) The "Inspection Period" will commence on the Contract Date and will expire on the date that is thirty (30) days after the Contract Date.

(c) The completion of the purchase and sale transaction described in this Contract ("Closing of Title") will occur on or before the date that is ninety (90) days from the Contract Date ("Closing Date") on a date mutually agreed upon by Buyer and Seller at the office of Buyer’s attorney. Provided twenty(20) days advance written notice is given by Seller to Buyer, Seller may extend the “Closing Date” by not more than thirty (30) days. As used in this Contract the term "Closing Date" means the actual date established for closing under this Contract.

Section 2.05. Closing Costs and Prorations. The following items will be prorated between Seller and Buyer at Closing of Title (and Buyer and Seller agree to pay their respective portions):

(a) Real property taxes and condominium charges will be prorated between Seller and Buyer as of the Closing Date, based upon the actual amount of taxes and condominium charges that are attributable to the Property for the year in which the closing occurs (even if payable, in whole or in part, in the following year) and, if the actual amount is not available, an estimate of the taxes based upon the best available information. If any pro-rations are based upon estimates, then repro-rations will be made post-closing when tax bills and invoices from the Condominium Association for the year in which the Closing Date occurs are received. Seller will be responsible for the payment of all real property taxes and condominium charges that are attributable to the period of time on and prior to the Closing of Title, and Buyer will be responsible for the payment of all real property taxes and condominium charges that are attributable to the period of time after the Closing of Title.

(b) With respect to any special assessments, improvement district assessments, municipal assessment districts, assessments imposed by the Condominium Association and the like that are a financial obligation on the Property or an owner of the Property (referred to collectively as ''Property Assessments"), Buyer and Seller agree that the Seller will be responsible for the payment of such sums in full, regardless of whether any such assessments and charges may otherwise be payable in installments.

(c) All Tenant Deposits will be delivered to Buyer at the Closing of Title. The "Tenant Deposits" consist of all security deposits made by tenants at the Property as of the Closing Date and all security deposits made by future tenants for which there exists a signed lease for the Property but whose occupancy does not commence until after the Closing Date, whether refundable or nonrefundable and however designated (such as, for example, last month's rent, key deposit, redecorating fee, pet deposit, etc.) and all interest thereon to which any tenant is entitled. Tenant Deposits may be returned to the applicable tenants and/or applied to any lease payments in the ordinary course of business by Seller.

(d) All prepaid rents paid to Seller by tenants of the Property for periods subsequent to the Closing of Title will be paid by Seller to Buyer at the Closing of Title or, alternatively, will be credited toward the payment of the Price. All rental payments actually collected for the month in which the Closing Date occurs will be prorated as of the Closing of Title. Seller will not be entitled to any credit or payment for rents due and unpaid as of the Closing of Title, and Seller is not entitled to apply any Tenant Deposits in reduction of any unpaid rents in the 30 days prior to the Closing Date. Buyer, after the Closing of Title, will use its good faith efforts to collect past due rents and other damages that are owed to Seller from delinquent tenants as of the Closing of Title, but Buyer's good faith efforts will not require it to incur any expense to collect past due rents and other damages. If Buyer collects any money from tenants who, as of the Closing of Title, have past due rents, Seller agrees that the first money received by Buyer from these tenants will be applied to then-current rents and damages until all such amounts are fully paid, and subsequently, Buyer agrees to use good-faith efforts to promptly remit to Seller any additional amounts collected from these delinquent tenants to tenant arrearages as of the Closing of Title. Seller acknowledges that Buyer will not be required to institute any litigation or eviction proceedings or incur any cost to collect any arrearages owed to Seller.

(e) All operating expenses for the Property during the period of time prior to and including the Closing of Title will be paid by Seller. Any bills for operating expenses that apply to the period of time prior to the Closing of Title but are received by Seller or Buyer after the Closing of Title will be paid by Seller through the post-closing adjustment mechanism described below. Buyer will be responsible for all operating expenses for the Property incurred after the Closing Date. All utility deposits posted by Seller will remain the property of Seller and will not be prorated. To the extent possible, utility prorations will be handled by meter readings on the day immediately preceding the Closing Date; otherwise, they will be based on prior months' bills and re-prorated on receipt of the actual bills. To the extent not prorated on the Closing Date, all operating expenses will be prorated and paid (adjusted), if applicable, under the post-closing adjustment mechanism established below.

(f) Seller will pay all lease taxes and sales and use taxes for rents collected by Seller on and prior to the Closing of Title and past-due rents collected by Buyer after the Closing Date and remitted to Seller, and Buyer will pay all lease taxes and sales and use taxes for rents collected ands retained by Buyer subsequent to the Closing of Title.

(g) Any rental or leasing commissions attributable to leases under which the tenant first took possession (or was first required to pay rent) prior to the Closing of Title will be paid by Seller, and any rental or leasing commissions attributable to leases under which the tenant first was required to pay rent after the Closing of Title will be paid by Buyer.

(h) All prorations will be made through the Closing Date (with the Seller being deemed the owner of the Property on Closing Date).

(i) To the extent the items established above cannot be accurately prorated on the Closing Date, adjustments to the prorations will be made from time to time after the Closing of Title by Buyer and Seller directly to take account of final information as to taxes and other expenses estimated as of the Closing of Title or to adjust rents or expenses that were not included in the prorations done at the Closing of Title. Buyer or Seller, as applicable, will pay the other on demand all amounts as may be appropriate based on the post-closing adjustments, together with interest at 10% per annum on any amount due from the date of written demand if the amount remains unpaid more than 30 days after written demand. Adjustments to prorations (other than prorations for taxes) must be demanded within 90 days after the Closing of Title, and adjustments to tax prorations must be demanded within 30 days after tax bills are received by both Buyer and Seller (Buyer and Seller each agreeing to provide the other with a copy of any property tax bill received by it) after the Closing Date. Adjustments to which either party may be entitled which are not demanded within the aforesaid time periods shall be deemed waived. These post-closing adjustment provisions (and the other provisions to which it applies) will survive the Closing.

ARTICLE III

DUE DILIGENCE AND BUYER CONTINGENCIES

Section 3.01. Due Diligence Documents. During the Inspection Period, Buyer and its designated agents will be permitted reasonable access to the documents listed on Exhibit “C” (collectively, the “Due Diligence Documents”). If Buyer determines that the Property is not satisfactory, then Buyer may terminate this Contract by providing Seller with written notice of termination specifying the matters objected to prior to the expiration of the Inspection Period. Upon timely termination of this Contract in accordance with the provisions of this Section 3.01, the Earnest Money shall be refunded to Buyer by the Escrow Agent.

Section 3.02. Title and Survey. As soon as reasonably possible after the Contract Date, Buyer will obtain a commitment for an owner's policy of title insurance (the "Title Report") and copies of all non-standard exceptions to the Title Report. Buyer will obtain at its expense prior to the end of the Inspection Period current survey prepared to Buyer's specifications if required by Buyer ("Survey"). Buyer will have until the end of the Inspection Period within which to notify Seller, in writing, of Buyer's disapproval ("Title Objections") of any title exceptions or other matters that are contained in the Title Report or the Survey. Buyer's failure to make its Title Objections on a timely basis will be deemed a waiver of its title contingency under Sections 3.02(a) and (b) below.

(a) If Buyer notifies Seller of any Title Objections on or before the end of the Inspection Period, Seller may elect, by delivering written notice to Buyer, to: (i) attempt to cure all or any of the Title Objections, in which case any Title Objections cured by Seller will be considered to have been approved by Buyer; or (ii) not attempt to cure all or any of the title Objections. Seller may cure the Title Objections only by causing the removal of record of the Title Objections, modifying of record the Title Objections, obtaining a commitment from Buyer’s title insurer to eliminate the Title Objections. All such cures (other than formal removal of record) must be in a form and content reasonably acceptable to Buyer. Seller's election under subsection (i) or (ii) above must be made within 10 days after Seller's receipt of the Title Objections. Seller's failure to make a timely election under subsection (i) or (ii) above will be deemed an election not to attempt to cure under subsection (ii) above. Seller will have no obligation or duty to cure the Title Objections or to incur any expense in curing the Title Objections, except the Monetary Liens described below.

(b) If Seller has elected to attempt to cure any of the Title Objections pursuant to Section 3.02(a)(i) above and does not or cannot cure those objections within 30 days after the end of the Inspection Period (or otherwise deliver sufficient evidence within that time of Seller's ability to cure the matter at the closing), or if Seller has elected or is deemed to have elected not to attempt to cure pursuant to Section 3.02(a)(ii) above, Buyer, as its sole and exclusive remedy, may elect to: (i) waive its Title Objections and complete the purchase of the Property at the Price (without any price adjustment and without any right or claim to damages, credit, or offset for the Title Objections, except removal of the Monetary Liens, which will be paid from Seller's proceeds of sale); or (ii) cancel this Contract. Buyer's failure to make the election described in the previous sentence within 10 days after the earlier to occur of the expiration of Seller's cure period described above or Buyer's receipt (or deemed receipt) of Seller's election not to attempt to cure will be deemed a rejection of title as described in the Title Report and Survey (except for the items that Buyer’s title insurer has agreed to delete or modify) and Buyer's election of its right to cancel this Contract.

(c) If Buyer’s title agent, after the expiration of the Inspection Period, updates, adds to, or amends the Title Report (by endorsement, amendment, or otherwise) to include a new title exception resulting from any new matters or facts that became known or were revealed to Buyer’s title insurer after the Contract Date and that were not caused by Buyer's acts, Buyer will have until the earlier of two days prior to the Closing Date or five business days following Buyer’s receipt of the amended Title Report (including legible and complete copies of all new title exceptions) to notify Seller in writing of its objections (with all new objections being considered as “Additional Title Objections”). If Buyer timely objects to any new title exception, the timing and cure provisions outlined in Sections 3.02(a) and (b) will apply. Notwithstanding the preceding portions of this Section 3.02(c), the Closing Date will not be extended as a result of the application of Sections 3.02(a), (b), and (c) and all decisions of Buyer must be made on or prior to the Closing Date.

(d) Notwithstanding anything to the contrary in this Contract, Seller, at its cost on or before the Closing of Title, will discharge, defease, and release the Property from all deeds of trust, mortgages, installment land contracts, mechanic's liens, and consensual liens applicable to the Property (including the payment of any so-called prepayment, defeasance, or other fee) (called collectively the "Monetary Liens").

Section 3.03. Inspection.

(a) During the Inspection Period, Buyer and its designated agents and independent contractors may access the Property, including meeting with and interviewing the tenants and the officers and directors of the Condominium Association, during normal business hours to investigate the physical and environmental condition of the Property and its major components including heating, plumbing, air conditioning, electricity, etc. and to conduct all tests that Buyer may deem necessary. All investigations and tests must be conducted in a manner that does not unreasonably interfere with Seller's maintenance, ownership, or operation of the Property or the use and enjoyment of the Property by any tenant or tenant's guest. Written notification of the date and time of Buyer's investigations and tests must be sent to Seller at least seventy-two (72) hours before entry on the Property. All scheduling is to be coordinated among Buyer, Employed Broker and a representative of Seller (to be designated for each property).

(b) In the event that Buyer is dissatisfied with the results of its inspections or its examination of the Due Diligence Documents, Buyer may terminate this Contract by providing Seller with written notice of termination prior to the expiration of the Inspection Period. Upon termination of this Contract in accordance with the provisions of this Section 3.03(b), the Earnest Money shall be refunded to Buyer by the Escrow Agent.

(c) Buyer agrees to indemnify, defend, and hold harmless Seller for, from, and against all damages, claims, and liabilities resulting from any tests and inspections performed on the Property by Buyer or its consultants, including personal injury and property damage. Specifically, Buyer agrees to restore the Property to its condition immediately prior to any invasive testing. Buyer also agrees to name Seller as an additional insured on Buyer's commercial liability insurance (with aggregate coverages of at least $1,000,000) insuring against liability for Buyer's entry on the Property.

ARTICLE IV

DEED AND REPRESENTATIONS

Section 4.01. Deed. Seller will convey fee simple title to the Property to Buyer at Closing of Title by a Bargain and Sale Deed with Covenants Against Grantor’s Acts (''Deed'') in the form that is attached as Exhibit “D”.

Section 4.02. Seller Representations. As of the Contract Date and through and including the Closing Date, the representations and warranties made by Seller to Buyer as detailed on Exhibit “E” (collectively, the "Seller Contract Representations") shall be true and correct.

Section 4.03. Representation Breach.

(a) Buyer's obligation to purchase the Property is conditioned upon the truth and accuracy, in all material respects, of the Seller Contract Representations. If Seller obtains actual knowledge of a material error in or material breach of any of the Seller Contract Representations prior to Closing of Title, Seller promptly will give written notice to Buyer. Upon receipt of Seller's notice, Buyer will have until the later of the end of the Inspection Period or 15 days after Seller's notice of error or breach to cancel this Contract and declare Seller in breach. If Buyer declares a breach, the Initial Earnest Money shall be returned to Buyer, by the Escrow Agent as Buyer's sole remedy. If the breach, however, is caused by the intentional, willful, or grossly negligent acts or misrepresentations of Seller, Buyer will be entitled to exercise its remedies established under Section 6.03 below. Unless Buyer declares a breach, the applicable Seller Contract Representation will be deemed amended by Seller's notice, and Buyer will be deemed to have elected to accept the change and proceed to close this transaction with no modification of the Price or claim on Seller.

(b) If, after the Closing of Title, Buyer first discovers a material breach of the Seller Contract Representations, Buyer will be entitled to bring an action against Seller for the actual and direct damages incurred by Buyer as a result of the breach. Any award of damages will not include punitive damages (except to the extent of fraud of Seller) or consequential damages, whether or not foreseeable.

Section 4.04. Non-Survival. The Seller Contract Representations will not survive the Closing of Title but will merge with the delivery of the Deed and Bill of Sale.

Section 4.05. No Other Warranty. Except as expressly set forth in this Contract or any of the documents to be executed pursuant to this Contract ("Additional Documents"), Buyer acknowledges that Seller is selling the Property "AS IS" and that neither Seller nor its representatives or agents have made any warranties or representations, express or implied, oral or written, regarding any matter pertaining to the Property or its use including: (i) the physical condition, environmental condition, zoning, use, valuation, intended use, or other condition of the Property; (ii) its merchantability; (iii) its fitness for a particular purpose; or (iv) the physical condition, environmental condition, zoning, use, valuation, intended use, or other condition of any neighboring property.

Section 4.06. Property Condition; Operating Policies.

(a) Between the Contract Date and the Closing of Title, Seller will use its reasonable efforts to operate and maintain the Property in substantially the same manner, condition, and repair (subject to only ordinary wear and tear and damage by insured casualty) as Seller has operated the Property prior to this Contract Date. Notwithstanding the foregoing, Seller may, with the prior consent of the Buyer, renew expiring tenant leases and will not enter into new tenant leases for any vacancies as of the Contract Date or for any vacancies arising after the Contract Date. Seller acknowledges that Buyer is purchasing the Property in order to resell individual condominium units to third parties and, accordingly, will not rent any vacant apartment units without Buyer's consent. During the pendency of this Contract, Seller will not sell or otherwise dispose of any of the items comprising the Property or mortgage or create liens or encumbrances against the Property, except the use of regular operating inventory in the ordinary course of business and, to the extent Seller would otherwise replace any disposed of item in the normal course of its operations, Seller will replace the disposed of items.

(b) After the Contract Date and except for tenant leases, Seller agrees that it will not enter into, terminate, or amend Project Contracts (as defined in Section 4.06(d)) affecting the Property, including those for the furnishing of goods or services to or for the benefit of the Property, except for the entering into Project Contracts that are terminable without penalty upon not more than 30 days notice or unless Seller first obtains Buyer's written consent, whose consent will not be unreasonably withheld.

(c) Seller will maintain all existing property, casualty, and liability insurance on the Property until the Closing of Title. Prior to the Closing of Title, Seller will not market the Property for sale or otherwise accept, solicit or negotiate any offers for sale or refinance.

(d) On or before the expiration of the Inspection Period, Buyer may give written notice to Seller of Buyer's disapproval of any business leases and all project, service, advertising, locater service, and management contracts affecting the use or operation of the Property including laundry, telephone, signage, cable television, broadband, internet, cell towers, and antennae contracts (collectively, the "Project Contracts"). If Buyer disapproves any of the Project Contracts, Seller, without adjustment to the Price, must cause the Project Contracts to be cancelled as of the Closing Date and, notwithstanding anything to the contrary must cause all recorded memorandum, security interests, or other written and recorded instruments evidencing the Project Contracts to be fully released of record. All Project Contracts not disapproved by Buyer are called "Approved Project Contracts."

(e) In the event that governmental authorities having jurisdiction require repairs to units as a condition of issuing any permits required for transfer of title to such units, the Seller’s aggregate responsibility for such repairs shall not exceed $25,000.00. Buyer may assume responsibility for repairs in excess of $25,000.00 in the aggregate or terminate this Contract, in which latter event the Buyer shall be refunded the Earnest Money. Closing of Title shall not be delayed by reason of the foregoing and, if necessary, Seller shall deposit in escrow such amounts as necessary to effectuate repairs for which Seller is responsible hereunder, but which repairs cannot be completed prior to Closing of Title. Seller’s obligation to effect such repairs shall survive closing of title.

ARTICLE V

CLOSING DOCUMENTS

Section 5.01. Seller's Closing Documents and Items. At Closing of Title, Seller will deliver to Buyer the following documents and items (all in form reasonably acceptable to Buyer, to the extent not in agreed form as an exhibit to this Contract) as to the premises described in Exhibit “A” (as and to the extent applicable):

(a) The Deed;

(b) A Bill of Sale transferring Seller’s interest in the Personalty in the form attached as Exhibit “F”;

(c) The Assignment and Assumption of Contracts, Leases and Other Rights ("Assignment”) in the form attached as Exhibit “G”;

(d) The most current rent roll for the Property, not dated more than three days prior to Closing of Title and certified as true and complete by Seller;

(e) All keys, combinations, tenant leases, tenant histories, and the like pertaining to the Property that are in Seller's possession;

(f) Authorizations and resolutions from Seller authorizing the consummation of this sale;

(g) A Non-Foreign Affidavit;

(h) Evidence of termination of all Project Contracts required to be terminated by Seller pursuant to other provisions of this Contract;

(i) Title affidavits, undertakings and any and all other documents reasonably required by the Buyer’s Title Insurer to issue the Title Policy;

(j) A letter jointly signed by Seller and Buyer notifying the tenants that the Property has been sold to Buyer, advising the tenants to pay all rent to Buyer and containing other similar information reasonably required by Buyer;

(k) Letters to all vendors under agreements to be assigned to Buyer at Closing of Title advising them of the transfer of the Property to Buyer and containing other related information reasonably required by Buyer;

(l) Originals (or certified copies to the extent that originals are unavailable) of all warranties, guaranties, licenses, permits, leases, service contracts and other documents related to the ownership, construction, operation and leasing of the Property; and

(m) Any other documents that may be reasonably necessary or appropriate to perform and satisfy the obligations of Seller under this Contract (including the release, discharge, and/or defeasance of the Monetary Liens).

(n) The original leases, to the extent available.

(o) All Tenant files for the prior three (3) years, to the extent available.

(p) The resignation of all of Seller's representatives on the Condominium Board, as well as the resignation of any of Seller's representatives holding a Condominium elective office.

(q) Copies of all existing Certificates of Occupancy, to the extent available, and to the extent required by the Municipality of Long Branch, any Certificate(s) of Occupancy required in connection with the subject sale.

Section 5.02. Buyer's Closing Documents and Items. At Closing of Title, Buyer will deliver to Escrow Agent the following documents and items:

(a) The Closing Cash;

(b) If applicable, appropriate evidence of due authorization and proper formation of Buyer; and

(c) Any other documents that may be reasonably necessary or appropriate to perform and satisfy the obligations of Buyer under this Contract.

Section 5.03. Title Policy; Realty Transfer Fee. The cost of the Buyer’s Title Policy and recordation of any Deed will be the responsibility of Buyer. Seller shall be responsible for the New Jersey Realty Transfer Fee and the recording fees required for the discharge or cancellation of the Monetary Liens.

Section 5.04. Possession. On the Closing Date, Seller will deliver exclusive possession of the Property to Buyer, subject to those title matters approved by Buyer, the tenant leases, and the Approved Project Contracts.

ARTICLE VI

GENERAL PROVISIONS

Section 6.01. Indemnity for Entry. Buyer, on demand, must indemnify, defend, and hold harmless Seller for, from, and against any and all loss, cost, damage, claim, liability, or expense, including court costs and attorney fees in a reasonable amount, arising out of Buyer's or its agent's or its independent contractor's entry on the Property for the purposes of its inspections and tests; however, Buyer will have no liability for any punitive damages or for or with respect to pre-existing conditions. The foregoing indemnity includes any repairs necessary to restore the Property to its condition prior to the entry and to remove and release any mechanic's and materialman's liens.

Section 6.02. Default of Buyer. If Buyer breaches this Contract, Seller, as its sole remedy, will be entitled to deliver a notice of immediate cancellation to Buyer and Escrow Agent and be paid the Earnest Money, as full, liquidated, and agreed-upon damages for Buyer's breach or default. With the fluctuation in land values, the unpredictable state of the economy, the fluctuating money market for real estate loans, and other factors that affect the marketability of the Property, Buyer and Seller agree that it would be impractical and extremely difficult to estimate the actual damages that Seller may suffer in the event of a default by Buyer. This remedy provision has been agreed-upon after specific negotiation, keeping in mind the difficulties in estimating actual damages. Buyer and Seller agree that the Earnest Money represents a reasonable estimate of the total damages.

Section 6.03. Default by Seller. If Seller breaches this Contract, Buyer, as Buyer's sole and exclusive remedy, may elect to: (i) cancel this Contract and receive a refund of its Earnest Money; (ii) enforce specific performance of this Contract without any right whatsoever against Seller to any offset or credit against the Price or to any other equitable or legal remedies or monetary damages; (iii) if specific performance is not available, commence an action for actual damages; or (iv) elect to waive the breach and close the transaction. Buyer's cancellation notice under subsection (i) above will be deemed effective immediately upon delivery of written notice of the cancellation to Seller and Escrow Agent. If Buyer fails to institute suit for its remedy of specific performance within 120 days following the scheduled Closing Date, Buyer will be deemed to have waived its specific performance remedy.

Section 6.04. Attorney's Fees. If any action is brought by either Buyer or Seller regarding its rights under this Contract, the prevailing party will be entitled to attorney fees in a reasonable amount, expenses, and court costs both at trial and on appeal.

Section 6.06. Casualty and Condemnation. Seller will promptly provide notice to Buyer of any loss, damage, or taking ("Loss") prior to Closing of Title. If the Loss involves the complete taking of access, parking or other material benefits, or facilities, then, within 15 days of Buyer's receipt of Seller's notice of the Loss, Buyer may elect to either: (i) terminate this Contract, in which case Buyer will be entitled to a return of all Earnest Money; or (ii) proceed with the purchase of the Property. If Buyer fails to timely provide notice of its election or if the Loss does not involve the complete taking of access, parking, or other material benefits or facilities, then Buyer and Seller will proceed under subsection (ii). If Buyer and Seller proceed, the Price will be adjusted downward by the amount of all awards and payments actually paid to Seller by the insurer or the condemning authority plus any deductible amounts under any applicable policies of insurance and other uninsured amounts. If Seller has not actually received the entire award or payment from the insurer or the condemning authority at the Closing of Title, Seller also will assign to Buyer all of its rights to any further awards or payments (including, without limitation, all casualty and rent loss proceeds).

Section 6.07. Governing Law and Exclusive Jurisdiction. This Contract is to be governed by and construed and enforced in accordance with the laws of the State of New Jersey. Any action brought to interpret enforce, or construe any provision of this Contract must be commenced and maintained in the Superior Court of the State of New Jersey, or in the United States District Court for the District of New Jersey. All parties irrevocably consent to this jurisdiction and venue and agree not to transfer or remove any action commenced in accordance with this Contract.

Section 6.08. Construction. The terms and provisions of this Contract represent the results of negotiations between Seller and Buyer, neither of which have acted under any duress or compulsion, whether legal, economic, or otherwise. Consequently, the terms and provisions of this Contract will be interpreted and construed in accordance with their usual and customary meanings, and Seller and Buyer each waive the application of any rule of law which states that ambiguous or conflicting terms or provisions are to be interpreted or construed against the party whose attorney prepared this Contract or any earlier draft of this Contract.

Section 6.09. Entire Agreement. This Contract constitutes the entire understanding between the parties pertaining to the subject matter of this Contract and all prior agreements, representations, and understandings of the parties, whether oral or written, are superseded and merged in this Contract. No supplement, modification, or amendment of this Contract will be binding unless in writing and executed by the parties. No waiver of any of the provisions of this Contract will be deemed or will constitute a waiver of any other provisions, whether or not similar, nor will any waiver be a continuing waiver. No waiver will be binding unless executed in writing by the party making the waiver. Time is of the essence in the performance of each and every term of this Contract

Section 6.10. Miscellaneous Definitions and Standards. Whenever the terms "sole discretion", "sole and absolute discretion", or "sole option" are used, these terms will mean that the act or decision of the party may be made in the party's independent and individual choice of judgment without regard to any objective or other standard of consideration. Except for those acts or decisions that may be made in a party's "sole discretion" etc., all acts or decisions of any party to this Contract must be exercised with reasonable discretion. Whenever the phrase "to Seller's knowledge" or any variation of such phrase is used, the phrase will mean that the matter represented is made based upon the actual knowledge of Daniel C. Pryor, without any duty of investigation or verification of the matter on a current or ongoing basis and subject to all information given and disclosures made pursuant to this Contract. The term "will" denotes a mandatory obligation, and the term "may" is a permissive word denoting an option.

Section 6.11. Counterparts. This Contract and any amendments may be executed in any number of original or telecopy counterparts, each of which will be effective on delivery and all of which together will constitute one binding agreement of the parties. Any signature page of this Contract may be detached from any executed counterpart of this Contract without impairing the legal effect of any signatures and may be attached to another counterpart of this Contract that is identical in form to the document signed (but that has attached to it one or more additional signature pages).

Section 6.12. Severability. If anyone or more of the provisions of this Contract or the applicability of any provision to a specific situation is held invalid or unenforceable, the provision will be modified to the minimum extent necessary to make it or its application valid and enforceable in a manner consistent with the intent of this Contract, and the validity and enforceability of all other provisions of this Contract and all other applications of the enforceable provisions will not be affected by the invalidity or unenforceability of any provision, so long as this Contract may still be enforced in a manner consistent with the intent of Buyer and Seller.

Section 6.13. Confidentiality. Without the prior written approval of Buyer and Seller, neither Seller, Buyer, nor Escrow Agent will make, authorize, or confirm any public announcement of this transaction or discuss this transaction or otherwise disclose any portion of the Due Diligence Documents (including all operating information) or results of environmental reports and assessments performed by Buyer, except as required by law or, as for Buyer, with those persons directly involved in the transaction including attorneys, advisors, partners, investors, consultants, accountants, and prospective lenders, without the prior written or oral consent of Seller.

Section 6.14. Tax Deferred Exchange. Seller and Buyer agree to cooperate in a commercially reasonable manner with each other and any designated exchange intermediary or exchange accommodation titleholder in order to effectuate a tax deferred exchange of the Property under Section 1031 of the Internal Revenue Code. This obligation to cooperate does not include requiring the other party to take title to any other property to complete the exchange, to issue any legal opinions, to increase the potential liability of the non-exchange party, or to expand legal fees to review exchange documents in other than a de minimus (less than $1,000) amount. Seller may transfer title to the Property to a Seller-affiliated entity incident to effecting said tax deferred exchange. Such transfer of title will be subject to the written assignment to, and the assumption of this Contract by Seller’s affiliated entity.

Section 6.15. Escrow Agent. Buyer and Seller will indemnify and hold Harmless Escrow Agent from all costs, damages, attorney fees, expenses, and liabilities that Escrow Agent may incur or sustain in connection with this Contract, including any interpleader action brought by Escrow Agent, except for those matters arising out of the negligent acts or omissions, willful misconduct, breach contract, or breach of fiduciary duty of Escrow Agent.

If conflicting demands are made upon Escrow Agent concerning this Contract, Buyer and Seller agree that Escrow Agent may hold any money and documents deposited under this Contract until Escrow Agent receives mutual instructions from Buyer and Seller or until a civil action has been finally concluded in a court of competent jurisdiction determining the rights of Buyer and Seller. In the alternative and at its discretion, Escrow Agent may commence a civil action to interplead any conflicting demands in a court of competent jurisdiction. Escrow Agent’s deposit with the court of all documents and funds concerning this Escrow will relieve Escrow Agent of all further liability and responsibility under this Contract, except for those matters arising out of the negligent acts of omissions of Escrow Agent. Buyer and Seller agree that Escrow Agent may represent Seller in any litigation, mediation or arbitration between Buyer and Seller.

Section 6.16. Time for Performance. The time for performance of any obligation or for the taking of any action under this Contract will be deemed to expire at 5:00 p.m. (prevailing Eastern Time) on the last day of the applicable time period established in this Contract. In calculating any time period under this Contract that commences upon the receipt of any notice, request, demand, or document, or upon the happening of any event, the date upon which the notice, request, demand, or document is received or the date the event occurs (or is deemed to have occurred) is not included within the applicable time period, but the applicable time period will commence on the day immediately following. If the time for performance of any obligation or for taking any action under this Contract expires on a Saturday, Sunday, legal holiday, or any date Escrow Agent is not open for business, the time for performance or for taking such action will be extended to the next succeeding day which is not a Saturday, Sunday, or legal holiday and during which Escrow Agent is open for business.

Section 6.17. Notices. All notices, requests, demand, and other communications required or permitted under this Contract must be in writing and will be deemed to have been delivered, received, and effective: (i) on the date of service, if served by hand-delivery or by facsimile telecopy on the party to whom notice is to be given; or (ii) on the date that is one business day after deposit of the notice properly addressed to the party at the address shown on the cover page to this Contract, if sent by national overnight delivery; or (iii) three days after deposit of the notice properly addressed if sent by U.S. certified mail, return-receipt requested. The addresses, telephone numbers, and telecopy numbers shown on the first page of this Contract are the places and numbers for delivery of all notices. Any party may change the place or number for delivery of notice by notifying all other parties.

Section 6.18. Assignment. Buyer shall have the right to assign this Contract to any entity in which either or both Joseph A. Gioia and Richard DePetro are principals. Any assignee to whom this Contract is assigned must assume the obligations of Buyer hereunder and such assignee shall thereafter be entitled to the same rights and remedies as the original Buyer hereunder. Any such assignment shall not operate as a release of the obligations of the original Buyer hereunder.

Section 6.19. Protected Tenancies. The Seller represents that there are so-called protected tenancies pursuant to "the Senior Citizen and Disabled Protected Tenancy Act" (P.L. 1981 CH. 226) which to Seller’s knowledge are as set forth on Schedule A.

Section 6.20 Transfer of Condominium Control. At closing, Seller shall use reasonable efforts to assist Buyer in transferring control of the Condominium Association to Buyer. In furtherance thereof, Seller shall, if required by Buyer, nominate and cast its votes in accordance with the Condominium Association by-laws for a slate of officers and directors chosen by the Buyer. Seller shall also tender the written resignations of any officers and directors which were appointed by or which are under the control of Seller.

Executed as of this Contract Date.

CITADEL EQUITY GROUP, LLC, a New Jersey Limited Liability L.L.C., Company		BILTMORE CLUB APARTMENTS, a Delaware Limited Liability Company
		By:	Biltmore Club Holding, Inc., a Delaware Corporation, its Managing Member
By:
	Joseph A. Gioia, Member/Manager

By:		By:
	Richard DePetro, Member/Manager		Daniel C. Pryor President

ESCROW AGENT'S ACCEPTANCE

By its execution below, Escrow Agent accepts this Contract as its escrow instructions and acknowledges receipt of this Contract executed by Buyer and Seller.


	Wilentz, Goldman & Spitzer P.A.

	By:

EXHIBIT “A”

PURCHASE AGREEMENT

Individual Units to be Conveyed


Unit #	Unit Type	Unit SF	As of 12/31/04	Marketable Rent	Lease Ending Date

101 A-1	1BR	801	$955	$1,100	3/31/06
102 A-2	1BR	801	$955	$1,100
105 A-5	2BR	1,015	$1,229	$1,350	9/30/05
106 A-6	2BR	1,015	$1,170	$1,350	3/31/06
108 A-8	28R	1,015	$1,229	$1,350	8/31/05
109 A-9	1BR	801	$1,000	$1,100	3/31/06
110 A-10	18R	801	$955	$1.100
111 A-11	18R	801	$1,000	$1,100	3/31/06
112 A-12	18R	801	$1,100	$1,100	4/30/06
113 A-13	18R	801	$1,090	$1,100	4/30/06
114 A-14	18R	801	$1,100	$1,100	4/30/06
116 A-16	18R UPGRADED	801	$1,000	$1,250	3/31/06
118 A-18	18R	801	$1,000	$1,100	3/31/06
119 A-19	18R	801	$1,003	$1,400	7/31/05
120 A-20	1BR	801	$1,041	$1,100	4/30/06
201 B-1	1BR	801	$1,041	$1,100	7/31/05
202 B-2	1BR	801	$1,041	$1,100	7/31/05
203 B-3	1BR	801	$1,050	$1,100	8/31/05
205 B-5	18R	801	$1,041	$1,100	7/31/05
206 B-6	1BR	801	$1,041	$1,100	7/31/05
207 B-7	28R	1,015	$1,400	$1,400	3/31/06
210 B-10	28R DELUXE	1.390	$1,290	$1,500	12/31/05
301 C-1	2BR	1,015	$1,275	$1,400	7/31/05
303 C-3	2BR	1,015	$1,400	$1,400	3/31/06
307 C-7	1BR	801	$955	$1,100	3/31/06
308 C-8	1BR	801	$1,000	$1,100	3/31/06
309 C-9	1BR	801	$955	$1,100	3/31/06
310 C-10	1BR	801	$1,041	$1,100	7/31/05
311 C-11	1BR	801	$1,050	$1,100	8/31/05
315 C-15	1BR	801	$1,041	$1,100	7/31/05
316 C-16	1BR	801	$1,090	$1,100	4/30/06
402 D-2	1BR	801	$1,050	$1,100	9/30/05
403 D-3	1BR	801	$1,041	$1,100	7/31/05
404 D-4	1BR	801	$1,041	$1,100	7/31/05
406 D-6	1BR	801	$955	$1,100
407 D-7	1 BR UPGRADED	801	$955	$1,250
409 D-9	2BR	1,015	$955	$1,400
410 D-10	2BR	1,015	$955	$1,400	3/31/06
413 D-13	2BR	1,015	$1,175	$1,400	3/31/06
414 D-14	2BR	1,015	$1,275	$1,400	7/31/05
415 D-15	2BR	1,015	$1,275	$1,400	7/31/05
	SUBTOTAL	35,784	$44,215	$49,250
41	CUMULATIVE TOTAL	35,784	$44,215	$49,250

EXHIBIT “B”

PURCHASE AGREEMENT

Excluded Assets

NONE

EXHIBIT “C”

PURCHASE AGREEMENT

Due Diligence Documents

The Due Diligence Documents consist of the following:

(a)	July 2005 year-to-date and 2004 operating statements;

(b)	Current rent roll for the Property, as applicable, together with an aged receivables report and a security deposit report;

(c)	Condominium Financials (year-to-date ending 12/31/2004 and 08/31/2005);

(d)	Real estate tax assessment cards for 2004, 2004 Final / 2005 Preliminary Tax Bills, and 2005 Final / 2006 Preliminary Tax Bills;

(e)	Current Property Management Agreement, MEB;

(f)	Copies of all residential leases on file;

(g)	Copies of existing survey;

(h)	Property condition assessment (Property Solutions, Inc dated 01/07/03);

(i)	Phase 1 environmental report (Property Solutions Inc. dated 01/24/03);

(j)	Lead report (Property Solutions Inc. dated 01/27/03);

(k)	Asbestos report (Property Solutions Inc, dated 01/27/03);

(l)	Current, 09/08/2001, NJ State DCA Green Card and Certificate of Registration;

(m)	Copy of Owner’s Title Insurance Policy for applicable Condominium units;

(n)	Copy of the Condominium Public Offering Statement; Organization papers received from New Vistas Condominium Management on 12/11/02;

(o)	Blanket deed (please note that some units have been previously sold - see Exhibit “A-1” for list of Wilshire-owned units);

(p)	Individual Certificates of Occupancy for leased units; and

(q)	Wilshire-held mortgage and note against condo association- owned unit D1. Dated May 1, 2005. Payments on time.

(r)	Copies of any Notice to Quit given to existing tenants, if any.

EXHIBIT “D”

PURCHASE AGREEMENT

(Deed)

DEED - BARGAIN AND SALE (Covenant as to Grantor's Acts)

CORP. TO IND. OR CORP - Plain Language

below signature)

Prepared by:(Print signer's name

DEED By:

This Deed is made on

BETWEEN _______________________________________., a corporation of the State of New Jersey, having its principal office at _______________________________ referred to as the Grantor,

AND ___________________________________________ , whose address is _____________________________________ referred to as the Grantee.

The words "Grantor" and "Grantee" shall mean all Grantors and all Grantees listed above.

Transfer of Ownership. The Grantor AND NO/100---

($___________________) DOLLARS. The Grantor acknowledges receipt of this money.

Tax Map Reference. (N.J.S.A. 46:15-2.1) Municipality of ________________________________________

Block No. ________________ Lot No. ___________________ Account No. ______________________

o No lot and block or account number is available on the date of this deed. (Check box if applicable).

Property. The property consists of the land and all the buildings and structures on the land in the _____________________, County of

and State of New Jersey. The legal description is:

PLEASE SEE ATTACHED LEGAL DESCRIPTION ANNEXED HERETO AND MADE A PART HEREOF.

Being the same premises conveyed to the

Subject to easements, restrictions, rights of way, if any, and such state of facts as an accurate survey may reveal.

The street address of the Property is:

Promises by Grantor. The Grantor promises that the Grantor has done no act to encumber the property. This promise is called a "covenant as to grantor's acts" (N.J.S.A. 46:4-6). This promise means that the Grantor has not allowed anyone else to obtain any legal rights which affect the property (such as by making a mortgage or allowing a judgment to be entered against the Grantor).

Signatures. This Deed is signed and attested to by the Grantor’s proper corporate officers as of the date at the top of the first page. (Print name below each signature).

Witness:

_______________________ By:___________________________

STATE OF NEW JERSEY, COUNTY OF SS:

I CERTIFY that on , 2005, , personally came before me and stated to my satisfaction that this person (or if more than one, each person):

(a) was the maker of the attached Deed;

(b) was authorized to and did execute this Deed as_________________ of _____________________ , the entity named in this Deed;

(c) make this Deed for $ as the full and actual consideration paid or to be paid for the transfer of title. (Such consideration is defined in N.J.S.A. 46:15-5); and,

(d) executed this Deed as the act of the entity.

________________________________

EXHIBIT “E”

PURCHASE AGREEMENT

Seller’s Contract Representations

E-1 -- As to those matters related to the power and authority of Seller to sell the Property to Buyer under this Contract (collectively called the "Seller Authority Representations"), Seller represents and warrants to Buyer as follows:

(a) Seller is not prohibited from consummating the transaction contemplated by any law, regulation, agreement, order, or judgment.

(b) Seller is legally capable and properly authorized to perform all of its obligations as described in this Contract. No additional shareholder, director, member, or partner approvals are required to make this Contract a binding agreement of Seller once Seller has signed this Contract and Buyer has deposited the Initial Earnest Money with the Escrow Agent.

(c) Seller is not party to any other current contracts for the sale, exchange, or transfer of all or any portion of the Property.

(d) The person signing this Contract on behalf of Seller is legally and properly authorized and empowered to sign this Contract and bind Seller to its terms and conditions.

(e) Any existing monetary liens on the Property can be defeased, and Seller will undertake, at its sole cost, all actions necessary to cause the defeasance to occur.

E-2 -- As to those matters with respect to the condition of the Property disclosed or referred to in third party notices (collectively called the "Notice Representations"), Seller represents and warrants to Buyer as follows:

(a) Seller has no knowledge of any pending or threatened condemnation or similar proceedings affecting the Property or any portion.

(b) Seller has no knowledge and has received no notifications from any Governmental Authorities having jurisdiction over the Property: (i) requiring any work to be done on the Property; or (ii) alleging any violation of an applicable ordinance, rule, regulation, or law with respect to the Property.

(c) Seller has received no notices by from any tenant claiming that Seller is in material default of its obligations as landlord.

(d) Seller has received no notice and has no knowledge of any actual or threatened claim, demand, damage, action, cause of action, litigation or other proceedings affecting the Property other than for rent collection or eviction related matters that have been disclosed to Buyer in writing.

(e) A state inspection certification from the New Jersey Department of Community Affairs has been duly issued. A copy of the so-called green card is attached hereto as Schedule ______________.

E-3 -- As to those matters related to the legal or physical condition of the Property (collectively called the "Physical Condition Representations"), Seller represents and warrants to Buyer as follows:

(a) Seller has no knowledge of the existence of any past or present environmental condition (including, without limitation, mold, PCBs and other hazardous or toxic waste or substance) or hazardous substance on the Property.

(b) Seller owns marketable fee simple title to the Property subject only to: (i) easements and restrictions of record, (ii) monetary liens to be defeased, and (iii) those matters disclosed by any Existing Survey.

(c) To the best of Seller's knowledge, information and belief, there are no buried fuel storage tanks located at the Property. To the extent that there were fuel storage tanks, located at the Property, all such tanks have been removed in compliance with applicable laws and regulations.

E-4 -- As to those matters related to the financial or operational status or condition of the Property (collectively called the "Operational Representations"), Seller represents and warrants to Buyer as follows:

(a) Attached hereto as Schedule ________and made a part hereof is a Rent Schedule for the Property designating: (i) each apartment unit with the room count thereof and specifying the two separate retail spaces; (ii) the name of the tenant occupying any designated space; (iii) the date of any lease therefore, including the date of any amendment or modification thereof; (iv) the rent and other charges payable therefore; and (v) the amount and designation of any deposit or escrow, with accrued interest attributable thereto, separately identified, paid by each such tenant. No tenant has entered into any Contract or other arrangements with Seller, except as indicated by Schedule . To the best of Seller's knowledge, information and belief, except as noted in Schedule ________, all leases in full force and effect in accordance with their terms, unmodified, free from default, and there are no claims credits or offsets in favor of any tenant, except for security deposits in the amount noted in Schedule ________, if any. No action or proceeding against Seller by any tenant of the Property is presently pending. All work required to be performed for tenants has been performed, as required, paid for in full and accepted by tenant for whom it was performed.

(b) To Seller's knowledge, all Due Diligence Documents provided by Seller to Buyer are true and complete copies in all material respects of the Due Diligence Documents in Seller's possession.

(c) Other than tenants in possession as disclosed in the rent roll delivered to Buyer or as otherwise disclosed in the Title Report, no one other than Seller is in possession of the Property.

(d) There are no property agreements or contracts affecting the Property or its use or operation or to which Seller is a party other than as disclosed in the Due Diligence Documents. To Seller's knowledge, there are no material defaults in existence with respect to any Project Contracts. There are no locator agreements, leasing brokerage agreements or other similar agreements affecting the Property or to which Seller is a party that will be binding on Buyer after Closing of Title.

EXHIBIT “F”

PURCHASE AGREEMENT

(Bill of Sale)

BILL OF SALE

________________________, a(n) _____________________ ("Seller"), for and in consideration of the payment of a portion of the amounts described in the Purchase Agreement dated _________________, 2005 (as amended, the "Contract"), sells and delivers to _____________________ a(n) _____________ ("Buyer"), and its successors and assigns, all equipment, furnishings, appliances, and items of personal property that are located on or used in connection with the improved real property known as ''________________________," including, without limitation, those items described on Appendix One ("Personal Property").

Seller represents and warrants to Buyer that: (i) Seller is the sole owner of all of the Personal Property; (ii) Seller has all requisite power and authority to transfer and convey the Personal Property to Buyer; (iii) to the extent necessary, Seller has obtained all consents and approvals required to transfer the Personal Property to Buyer; and (iv) the Personal Property is free and clear from all pledges, liens, claims, and encumbrances of any type or nature. Seller, at its sole cost and expense, agrees to defend title to the Personal Property against all claims and demands of any type or nature.

Seller transfers and assigns to Buyer any and all representations or warranties (express or implied) and other rights, claims, and causes of action of Seller relating to the Personal Property that may be enforceable against manufacturers, distributors, suppliers, vendors, or servicers of the Personal Property (collectively, the "Warranties").

Seller, at its sole cost and expense, agrees to perform, execute, and/or deliver (or to cause to be performed, executed, and/or delivered) any additional documents and/or assurances that Buyer may reasonably request to insure, secure, or perfect Buyer's interest in any item transferred to Buyer by this Bill of Sale or to otherwise fully and effectively carry out the intent and purpose of this Bill of Sale or this Contract.

EXCEPT FOR THOSE WARRANTIES AND REPRESENTATIONS, IF ANY, MADE BY SELLER IN THIS BILL OF SALE OR UNDER THIS CONTRACT, SELLER: (I) HAS SOLD AND DELIVERED THE PERSONAL PROPERTY TO BUYER IN AN "AS-IS" AND "WHERE-IS" CONDITION, SUBJECT TO ALL FAULTS AND DEFECTS, AND WITHOUT ANY IMPLIED WARRANTIES OF ANY NATURE INCLUDING ANY IMPLIED WARRANTIES OF FITNESS OR MERCHANTABILITY; (II) HAS MADE NO WARRANTIES OR REPRESENTATIONS THAT EXTEND BEYOND THE DESCRIPTION IN THIS BILL OF SALE OR THIS CONTRACT; AND (III) HAS MADE NO REPRESENTATION OR WARRANTY REGARDING THE PHYSICAL OR OPERATING CONDITION OF THE PERSONAL PROPERTY.

This Bill of Sale will be effective as to the transfer of all of the above-described Personal Property as of _______________, 20_____.

a(n)

By: ___________________________

Its: ___________________________

EXHIBIT “G”

PURCHASE AGREEMENT

(Assignment of Leases, Contracts, and Other Rights)

ASSIGNMENT OF LEASES, CONTRACTS, AND RIGHTS

This Assignment of Leases, Contracts, and Rights, ("Assignment") is executed and delivered as of [insert Closing Date], 20___ ("Effective Date") by ____________________, a _________________________ ("Seller") to ____________________ ("Buyer").

BACKGROUND

A. Seller, by Bargain and Sale Deed with Covenants Against Grantor’s Acts ("Deed") executed concurrently with this Assignment, has sold and conveyed to Buyer the ____________________ complex ("Project") commonly known as "_______________________________," located at ______________, in the City of ___________, County of ____________, State of New Jersey, as more particularly described in the Deed.

B. The terms and provisions of this Contracts and agreements in effect between Seller and Buyer relating to the sale/purchase of the Project (collectively, the "Purchase Contract") require, among other things, that Seller execute this Assignment transferring and assigning to Buyer Seller's rights in this Contract Rights (including all tenant leases) and Other Rights (collectively, the "Assigned Items").

C. Capitalized terms that are used in this Assignment but are not defined specifically in this Assignment will be ascribed the meanings contained in the Purchase Contract.

TRANSFER AND ASSIGNMENT

In consideration of the closing of the purchase of the Project by Buyer and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Seller makes the following assignments to Buyer:

1. Assignment of Rents, Tenant Leases, and Contracts.

(a) Seller transfers, assigns, and conveys to Buyer, and its successors and assigns, all of the right, title, interest, powers, and privileges of Seller in and under all tenant leases applicable to the Project ("Tenant Leases"), all of which are referred to in the Rent Roll attached as Appendix One ("Rent Roll"). This assignment of Tenant Leases includes the right of Buyer to collect all rents due or payable under the Tenant Leases for periods commencing on or following the Effective Date of this Assignment

(b) Seller certifies that the information shown on the Rent Roll is true and correct as of the date of this Assignment, and there is no rent or other concessions given to any occupant of an apartment unit in the Project, except as accurately reflected in the Rent Roll.

(c) Seller further represents and warrants to Buyer that: (i) Seller is the lawful owner of all of the Tenant Leases; (ii) all Tenant Leases are in full force and effect and, after the date of this Assignment, will be enforceable by Buyer in accordance with their terms; (iii) except as otherwise disclosed to Buyer in writing, there are no defaults by Seller (or its agents or representatives) or any tenant under the Tenant Leases; and (iv) all future rights and obligations assumed by Buyer under the Tenant Leases are accurately established in the Tenant Leases, true, correct, and complete copies of which were previously furnished by Seller to Buyer.

2. Assignment of Security Deposits. Seller transfers and assigns to Buyer all Tenant Deposits. [Seller represents and warrants to Buyer that the aggregate sum of the Tenant Deposits is $_.]

3. Assignment of Project Contracts.

(a) Seller transfers and assigns to Buyer, and its successors and assigns, all of the right, title, interest, powers, and privileges of Seller under only the Project Contracts listed on Appendix Two to this Assignment. No other Project Contracts are transferred or assigned to Buyer.

(b) Seller represents and warrants to Buyer that: (i) all right, title, interest, powers, and privileges being assigned to and assumed by Buyer and all rights and options of third parties relating to the Approved Project Contracts are accurately established in their entirety in the Approved Project Contracts attached as Appendix Two; and (ii) no contracts or agreements relating to management, maintenance, ownership, or operation of the Project, other than those listed on Appendix Two, have been entered by Seller which will remain in effect or become effective after the Effective Date of this Assignment.

4. Assignment of Miscellaneous Items. Without limitation of Section I above, Seller transfers, assigns, and conveys to Buyer, its successors and assigns, all Contract Rights and Other Rights owned by Seller and located on the Project that have not otherwise been conveyed by a concurrently executed Bill of Sale from Seller to Buyer.

5. Assignment of Warranties, Claims and Causes of Action. Seller transfers and assigns to Buyer, and its successors and assigns, all of Seller's right, title, and interest in all representations or warranties (express or implied) and all other rights, causes of action, or all claims of any kind (collectively, the "Warranties") arising out of the Assigned Items. Without intending to limit the generality of the foregoing, Seller assign to Buyer all rights, claims, and causes of action which Seller may have against any contractor, materialman, supplier, distributor, or vendor relating to any work, materials, or equipment furnished for the Project prior to the date of this Assignment.

6. Miscellaneous.

(a) Seller agrees, at its sole cost and expense, to perform, execute, and/or deliver (or to cause to be performed, executed, and/or delivered) any additional documents and/or assurances as Buyer may reasonably request to insure, secure, or perfect Buyer's interest in any of the items assigned to Buyer by this Assignment or to otherwise fully and effectively carry out the intent and purpose of this Assignment or this Contract.

(b) Seller warrants and represents to Buyer that the rights and interests of Seller intended to be assigned under this Assignment are not subject to any prior assignment, pledge, or encumbrance.

(c) Seller and Buyer warrant and represent to each other that they have the requisite power and authority to enter this Assignment and have performed all acts and secured all approvals necessary to make this Assignment effective and legally binding on such party in accordance with its terms. Each person executing this instrument on behalf of either party, as agent or otherwise, personally warrants that he or she is duly authorized and empowered to do so and that all signatures and approvals of persons with an ownership interest in such party have been obtained so as to make this Assignment legally enforceable and effective against such party.

(d) This Assignment is binding upon the successors and assigns of Seller and will inure to the benefit of the successors and assigns of Buyer, and all warranties and representations of Seller contained in this Assignment shall survive the Effective Date of this Assignment, the recordation of the Deed, and the delivery of this Assignment.

(e) This Assignment shall be governed by and interpreted under the laws of the State of New Jersey.

(f) Seller, on demand, agrees to indemnify and hold harmless Buyer for, from, and against any and all loss, cost, damage, claim, liability, or expense (including court costs and attorney fees in a reasonable amount) arising out of the acts or omissions of Seller or its agents prior to the Effective Date with respect to the Assigned Items. Buyer, on demand, agrees to indemnify and hold harmless Seller for, from, and against any and all loss, cost, damage, claim, liability, or expense (including court costs and attorney fees in a reasonable amount) arising out of the acts or omissions of Seller or its agents after the Effective Date with respect to the Assigned Items. The foregoing indemnities include loss, cost, damage, claim, liability, or expense from any injury or damage of any kind whatsoever (including death) to persons or property. The indemnity described in this Assignment is intended to be separate and distinct from any obligations of the Seller or the Buyer under the terms of the Purchase Contract

This Assignment has been executed and delivered as of the Effective Date.

"Seller"

_______________________________

a______________________________

By: ____________________________

Name:__________________________

Title:___________________________

"Buyer"

_______________________________

a______________________________

By: ____________________________

Name:__________________________

Title:___________________________

APPENDIX ONE

ASSIGNMENT OF LEASES, CONTRACTS, AND RIGHTS

(Rent Roll)

[TO BE PROVIDED ON THE CLOSING DATE]

APPENDIX TWO

ASSIGNMENT OF LEASES, CONTRACTS, AND RIGHTS

(list and copies of approved Business Leases and Project Contracts)

[TO BE PROVIDED ON THE CLOSING DATE]

SCHEDULE “A”

PROTECTED TENANCIES

Delaware		84-0513668
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

1 Gateway Center Newark, New Jersey		07102
(Address of principal executive offices)		(Zip Code)

Title of each class		Name of each exchange on which registered
Common Stock, $1 par value		American Stock Exchange

		Page No.

Part I

Item 1.	Business	3
Item 1A.	Risk Factors	7
Item 1B.	Unresolved Staff Comments	9
Item 2.	Properties	9
Item 3.	Legal Proceedings	11
Item 4.	Submission of Matters to a Vote of Security Holders	11
Item 4A.	Executive Officers of the Registrant	12

Part II

Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	13
Item 6.	Selected Financial Data	14
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	16
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 8.	Financial Statements and Supplementary Data	34
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	67
Item 9A.	Controls and Procedures	67
Item 9B.	Other Information	68

Part III

Item 10.	Directors of the Registrant	69
Item 11.	Executive Compensation	69
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	69
Item 13.	Certain Relationships and Related Transactions	69
Item 14.	Principal Accountant Fees and Services	69

Part IV

Item 15.	Exhibits, Financial Statement Schedules	70
	Signatures	75

Name	City	State	Asset Class	Size

Sunrise Ridge	Tucson	AZ	Apartments	340 units
Van Buren	Tucson	AZ	Apartments	70 units
Royal Mall Plaza	Mesa	AZ	Office & retail	66,552 SF
Tempe Corporate	Tempe	AZ	Office	50,700 SF
Tamarac Office Plaza	Tamarac	FL	Office	26,990 SF
Twelve Oaks	Atlanta	GA	Apartments	72 units
Alpine Village	Sussex	NJ	Apartments	132 units
Galsworthy Arms (a)	Long Branch	NJ	Condominiums	42 units
Jefferson Gardens	Jefferson	NJ	Condominiums	18 units
Amboy Tower	Perth Amboy	NJ	Office & Retail	75,000 SF
Wilshire Grand Hotel & Banquet Facility (b)	West Orange	NJ	Hotel & Catering facility	89 rooms; 50,000 SF
Rutherford Bank (c)	Rutherford	NJ	Triple Net Lease	4,000 SF
Alpine Village (d)	Sussex	NJ	Land	0.51 acres
Alpine Village (d)	Wantage	NJ	Land	17.32 acres
Lake Hopatcong	Lake Hopatcong	NJ	Land	1.8 acres
West Orange	West Orange	NJ	Land	0.6 acres
Summercreek	San Antonio	TX	Apartments	180 units
Wellington Estates	San Antonio	TX	Apartments	228 units

Name (State) (asset class)	Date Sold		Selling Price		Net Book Value		Mortgage Value		Taxes Payable on Sale		Net Proceeds (a)

Biltmore Club Apartments (AZ)		12/23/05	$	20,956,000	$	4,975,000	$	8,979,000	$	5,852,000	$	4,775,000
Galsworthy Arms (NJ) (2-bedroom condominium)		1/26/05	$	270,000	$	57,000	$	34,000	$	77,000	$	140,000
Galsworthy Arms (NJ) (1-bedroom condominium)		5/5/05	$	240,000	$	78,000	$	29,000	$	58,000	$	136,000
Galsworthy Arms (NJ) (1-bedroom condominium)		9/28/05	$	249,000	$	76,000	$	25,000	$	61,000	$	144,000
Jefferson Gardens (NJ) (1-bedroom condominium)		8/3/05	$	150,000	$	34,000	$	19,000	$	41,000	$	77,000
Jefferson Gardens (NJ) (2-bedroom condominium)		8/31/05	$	186,000	$	50,000	$	40,000	$	47,000	$	81,000

(a) Net proceeds is defined as selling price less mortgage value and transaction costs such as commissions, legal fees, taxes and other expenses.

					Apartment Unit Type
Name (State)	Date Acquired		No. of Units		Studio / Efficiencies		1 BR		2 BR		3 BR		Acreage		Rentable Sq. Ft.
Apartments:

Alpine Village (NJ) (a)		10/29/95		132		—		48		84		—		13.73	101,724
Biltmore Club (AZ) (a)(b)		10/23/97		378		192		186		—		—		8.08	193,716
Summercreek (TX) (a)		3/29/01		180		—		84		96		—		8.17	142,452
Sunrise Ridge (AZ)		10/24/97		340		—		144		196		—		17.73	291,674
Twelve Oaks (GA) (a)		4/10/96		72		—		—		42		30		10.04	91,404
Van Buren (AZ)		6/11/98		70		—		42		28		—		1.41	81,404
Wellington (TX) (a)		7/30/98		228		24		60		116		28		8.69	214,744
Condominiums:
Galsworthy Arms (a)(c)(e)		3/31/94		42		—		29		13		—		—	36,210
Jefferson Gardens (a)(d)		3/31/94		18		—		15		3		—		—	14,056

Name (State)	Date Acquired		Rentable Sq. Ft.		Acreage

Office & Retail:
Amboy Tower (NJ) (a)		3/31/98		75,000
Royal Mall Plaza (AZ)		3/31/94		66,552
Tamarac Office Plaza (FL)		12/31/92		26,990
Tempe Corporate (AZ)		12/31/92		50,700
Triple Net Lease:
Rutherford Bank (NJ) (a)(b)		3/31/94		4,000
Wilshire Grand Hotel & Banquet Facility (NJ) (a)(c)		12/31/97		89 hotel rooms; 50,000 SF banquet facility		12.29
Land:
Alpine Village, Sussex (NJ) (a)		10/28/98		—		0.51
Alpine Village, Wantage (NJ) (a)		2/16/01		—		17.32
Lake Hopatcong (NJ) (a)		3/31/94		—		1.81
West Orange (NJ) (a)		3/31/94		—		0.60

(a) Classified by the Company as Discontinued Operations. See Note 2 to the Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K.
(b) Rutherford was sold in January 2006 for $1.6 million.
(c) The sale of the Wilshire Grand Hotel & Banquet Facility is expected to close in April 2006 for $12.8 million. The Company expects to receive net proceeds of $5.7 million and record a gain on sale of approximately $460,000 upon consummation of this sale.

	As of 12/31/05				For the Year 2005
Name (State)	Net Book Value		Mortgage Principal		Net Operating Income		Interest Expense		Capital Expenditures

Apartments:
Sunrise Ridge (AZ)		5,562,000		10,320,000		1,157,000		616,000		294,000
Van Buren (AZ)		1,775,000		2,025,000		198,000		128,000		102,000
Office & Retail:
Royal Mall Plaza (AZ)		1,327,000		—		382,000		—		59,000
Tamarac Office Plaza (FL)		747,000		596,000		111,000		39,000		14,000
Tempe Corporate (AZ)		2,478,000		3,806,000		332,000		293,000		173,000

Total:	$	11,889,000	$	16,747,000	$	2,180,000	$	1,076,000	$	642,000

Name and Age	Executive Officer of The Company Since	Position with the Company and Business Experience

S. Wilzig Izak, Age 47	1987	Chairman of the Board of the Company since September 20, 1990; Chief Executive Officer since May 1991; Executive Vice President (1987-1990); prior thereto, Senior Vice President

Daniel C. Pryor, Age 45	June, 2004	President and Chief Operating Officer of the Company since June 2004; Investment Banker from 1993 - 2004 including at D&T Corporate Finance (2001 - 2004), Lehman Brothers (1999 - 2001), and Salomon Smith Barney (Citigroup) (1993 - 1999); developer, property manager and investor in the real estate industry (1985 - 1991)

Seth H. Ugelow, Age 53	June, 2004	Chief Financial Officer of the Company since June 2004; Senior Vice President and Controller of The Trust Company of New Jersey (January 2003 - June 2004); Consultant (June 2002 - January 2003); Vice President and Head of Accounting at The Bank of Tokyo-Mitsubishi (New York Office) (June 2001 - June 2002); Vice President and Controller of Credit Agricole Indosuez (New York Office ) (April 1995 - June 2001)

	Quarter 1						Quarter 2						Quarter 3						Quarter 4
	High		—		Low		High		—		Low		High		—		Low		High		—		Low

2005	$	9.70		—		6.00	$	8.05		—		7.10	$	9.00		—		7.21	$	8.35		—		7.40
2004		6.80		—		5.25		5.86		—		4.61		5.30		—		4.90		7.60		—		5.00

Plan Category	(a) Number of Securities To Be Issued Upon Exercise Of Outstanding Options, Warrants and Rights		(b) Weighted Average Exercise Price Of Outstanding Options, Warrants and Rights	(c) Number of Securities Remaining Available For Future Issuance Under Equity Compensation Plans (Excluding) Securities Reflected In Column (a))

Equity compensation plans approved by security holders	160,450	$	4.97	625,424

Equity compensation plans not approved by security holders	—		—	—

Total	160,450	$	4.97	625,424

	As of December 31
	2005			2004 (Restated)		2003		2002		2001
	(In thousands)
Balance Sheet Data at Year-End:
Total assets	$	88,915		$	86,916	$	98,997	$	107,920	$	107,903
Long-term debt		33,352			46,855		58,494		65,706		67,948
Stockholders’ equity		41,852	(1)		28,474		24,527		24,239		23,693
Weighted average shares outstanding:
Basic		7,864			7,796		7,810		7,832		7,914
Diluted		7,966			7,955		7,810		7,832		7,914

	For the Year Ended December 31,
	2005			2004 (Restated)			2003			2002			2001
	(In thousands of dollars except per share amounts)
Income Statement Data:
Revenues	$	4,624		$	4,628		$	4,494		$	4,630		$	4,525
Costs and expenses:
Operating expenses		2,444			2,341			2,287			2,432			2,313
Depreciation		957			873			995			874			818
General and administrative		3,493			2,143			2,349			2,131			1,690
Total costs and expenses		6,894			5,357			5,631			5,437			4,821
Dividend and interest income		700			685			743			877			867
Sale of marketable securities		134			—			2,621			711			(1,684	)
Sale of real estate related assets		675			—			—			—			—
Life insurance proceeds		—			—			1,000			—			—
Other income		32			—			232			540			87
Interest expense including amortization of deferred financing costs		(1,090	)		(1,083	)		(1,305	)		(1,123	)		(1,047	)
Income (loss) before provision for taxes		(1,819	)		(1,127	)		2,154			198			(2,073	)
Income tax expense (benefit)		(1,104	)		(409	)		343			76			(798	)
Income (loss) from continuing operations		(715	)		(718	)		1,811			122			(1,275	)
Discontinued operations - real estate		8,711			4,067			(6	)		(54	)		(114	)
Discontinued operations - oil & gas		(1,105	)		(1,322	)		(3,178	)		1,008			1,841
Net income (loss)	$	6,891		$	2,027		$	(1,373	)	$	1,076		$	452

Basic earnings (loss) per share:
Continuing operations	$	(0.09	)	$	(0.09	)	$	0.23		$	0.02		$	(0.16	)
Discontinued operations		0.97			0.35			(0.41	)		0.12			0.22
Net income (loss) per share	$	0.88		$	0.26		$	(0.18	)	$	0.14		$	0.06

Diluted earnings (loss) per share:
Continuing operations	$	(0.09	)	$	(0.09	)	$	0.23		$	0.02		$	(0.16	)
Discontinued operations		0.96			0.34			(0.41	)		0.12			0.22
Net income (loss) per share	$	0.87		$	0.25		$	(0.18	)	$	0.14		$	0.06

	Increase (Decrease) in Consolidated Statements of Income Categories for the periods:
	2005 v. 2004						2004 v. 2003
	Amount ($)			%			Amount ($)			%

Revenues	$	(4,000	)		(0.1	)%	$	134,000			3.0	%
Costs and Expenses
Operating expenses		103,000			4.4			54,000			2.4
Depreciation expense		84,000			9.6			(122,000	)		(12.3	)
General and administrative		1,350,000			63.0			(206,000	)		(8.8	)
Total costs and expenses		1,537,000			28.7			(274,000	)		(4.9	)
Income (Loss) from Operations		(1,541,000	)		(211.4	)		408,000			35.9
Other Income
Dividend and interest income		15,000			2.2			(58,000	)		(7.8	)
Gain on sale of marketable securities		134,000			100.0			(2,621,000	)		(100.0	)
Gain on sale of real estate related assets		675,000			100.0			—			—
Insurance proceeds		—			—			(1,000,000	)		(100.0	)
Other income		32,000			100.0			(232,000	)		(100.0	)
Interest Expense		(7,000	)		(0.6	)		222,000			17.0
Income (loss) before provision for income taxes		(692,000	)		(61.4	)		(3,281,000	)		(152.3	)
Income Tax Expense (Benefit)		(695,000	)		(169.9	)		(752,000	)		(219.2	)
Income (Loss) from Continuing Operations		3,000			(0.4	)		(2,529,000	)		(139.6	)
Discontinued Operations - Real Estate, Net of Taxes
Loss from operations		(507,000	)		(874.1	)		1,029,000			94.7
Gain from sales		5,151,000			124.9			3,044,000			281.6
Discontinued Operations - Oil & Gas, Net of Taxes
Income (loss) from operations		784,000			41.5			1,289,000			40.6
Gain from sales		(567,000	)		(100.0	)		567,000			100.0
Net Income (Loss)	$	4,864,000			240.0		$	3,400,000			247.6
Basic earnings (loss) per share:
Income (loss) from continuing operations	$	—			—		$	(0.32	)		(139.1	)
Income (loss) from discontinued operations		0.62			177.1			0.76			185.4
Net income (loss) applicable to common stockholders	$	0.62			238.5		$	0.44			244.4
Diluted earnings (loss) per share:
Income (loss) from continuing operations	$	—			—		$	(0.32	)		(139.1	)
Income from discontinued operations		0.62			182.4			0.75			182.9
Net income (loss) applicable to common stockholders	$	0.62			248.0		$	0.43			238.9

	Residential Real Estate										Commercial Real Estate										Total
	Year ended December 31				Increase (Decrease)						Year ended December 31				Increase (Decrease)						Year ended December 31						Increase (Decrease)
	2005		2004		$			%			2005		2004		$			%			2005			2004			$			%
	(In 000s of $)										(In 000s of $)										(In 000s of $)
Rental income	$	2,782	$	2,754	$	28			1.0		$	1,456	$	1,447	$	9			0.6		$	4,238		$	4,201		$	37			0.9
Vending income		5		18		(13	)		(72.2	)		—		—		—			—			5			18			(13	)		(72.2	)
Other		231		204		27			13.2			150		205		(55	)		(26.8	)		381			409			(28	)		(6.8	)
Total revenues		3,018		2,976		42			1.4			1,606		1,652		(46	)		(2.8	)		4,624			4,628			(4	)		(0.1	)
Operating expenses		1,664		1,607		57			3.5			780		734		46			6.3			2,444			2,341			103			4.4
Net operating income	$	1,354	$	1,369	$	(15	)		(1.1	)	$	826	$	918	$	(92	)		(10.0	)	$	2,180		$	2,287		$	(107	)		(4.7	)

Reconciliation to consolidated income (loss) from continuing operations:
Net operating income																					$	2,180		$	2,287
Depreciation expense																						(957	)		(873	)
General and administrative expenses																						(3,493	)		(2,143	)
Other income																						1,541			685
Interest expense																						(1,090	)		(1,083	)
Income tax benefit																						1,104			409

Loss from continuing operations																					$	(715	)	$	(718	)

	Years Ended December 31,
	2005		2004		Increase (Decrease)

Sunrise Ridge, Arizona	$	2,434,000	$	2,388,000	$	46,000
Van Buren Apartments, Arizona		584,000		588,000		(4,000	)
Sub-total - Residential Properties		3,018,000		2,976,000		42,000

Royal Mall Plaza, Arizona		606,000		655,000		(49,000	)
Tamarac, Florida		327,000		313,000		14,000
Tempe Corporate Center, Arizona		673,000		684,000		(11,000	)
Sub-total - Commercial Properties		1,606,000		1,652,000		(46,000	)

Total Revenues	$	4,624,000	$	4,628,000	$	(4,000	)

	Years Ended December 31,
	2005		2004		Increase (Decrease)

Sunrise Ridge, Arizona	$	1,277,000	$	1,249,000	$	28,000
Van Buren Apartments, Arizona		387,000		358,000		29,000
Sub-total - Residential Properties		1,664,000		1,607,000		57,000

Royal Mall Plaza, Arizona		224,000		212,000		12,000
Tamarac, Florida		215,000		176,000		39,000
Tempe Corporate Center, Arizona		341,000		346,000		(5,000	)
Sub-total - Commercial Properties		780,000		734,000		46,000

Total Operating Expenses	$	2,444,000	$	2,341,000	$	103,000

	Years Ended December 31,
	2004		2003		Increase (Decrease)

Sunrise Ridge, Arizona	$	2,388,000	$	2,341,000		47,000
Van Buren Apartments, Arizona		588,000		561,000		27,000
Sub-total - Residential Properties		2,976,000		2,902,000		74,000

Royal Mall Plaza, Arizona		655,000		619,000		36,000
Tamarac, Florida		313,000		281,000		32,000
Tempe Corporate Center, Arizona		684,000		692,000		(8,000	)
Sub-total - Commercial Properties		1,652,000		1,592,000		60,000

Total Rental Revenues	$	4,628,000	$	4,494,000	$	134,000

	Years Ended December 31,
Name of property		2005		2004		2003

Residential continuing operations:
Sunrise Ridge	$	294,000	$	258,000	$	204,000
Van Buren		102,000		126,000		107,000

Commercial continuing operations:
Royal Mall Plaza	59,000	50,000	22,000
Tamarac Office Plaza	14,000	4,000	4,000
Tempe Corporate (a)	173,000	278,000	97,000

Discontinued operations - residential:
Alpine Village		67,000		85,000		177,000
Biltmore Club (b)		132,000		195,000		55,000
Galsworthy Arms (c)		35,000		424,000		87,000
Jefferson Gardens		14,000		13,000		18,000
Summercreek		54,000		207,000		88,000
Twelve Oaks		92,000		56,000		90,000
Wellington		156,000		257,000		575,000

Discontinued operations - commercial:
Amboy Towers		140,000		298,000		55,000
Rutherford Bank		—		—		—
Wilshire Grand Hotel & Banquet Facility (d)		5,486,000		—		316,000

Total capital expenditures	$	6,818,000	$	2,251,000	$	1,895,000

(a) 2005 includes commissions paid to leasing agents related to multiple year leases.
(b) Biltmore Club Apartments was sold on December 23, 2005.
(c) The Galsworthy Arms condominiums were sold in the first quarter of 2006.
(d) Reflects assets acquired upon the foreclosure of the Wilshire Grand Hotel & Banquet Facility on June 2, 2005 in a cashless transaction and improvements made by WO Grand Hotel, L.L.C. , the owner of the Hotel that is 50% owned by the Company, since that date. The owner has agreed to sell the Wilshire Grand Hotel & Banquet Facility pursuant to a transaction which is expected to close in April 2006.

	2005		2004
Mortgage notes payable	$	32,952,000	$	46,855,000
Note payable		400,000		-
Total debt		33,352,000		46,855,000
Less-current portion (1)		1,862,000		729,000
Long term portion (2)	$	31,490,000	$	46,126,000

Year	Amount
2006	$	1,862,000
2007		596,000
2008		631,000
2009		4,503,000
2010		863,000
Thereafter		24,897,000
	$	33,352,000

Assets	2005			2004 (Restated)

Current assets:
Cash and cash equivalents	$	6,081,000		$	19,963,000
Restricted cash		175,000			178,000
Marketable debt securities, available for sale, at fair value		22,006,000			11,147,000
Marketable equity securities, available for sale, at fair value		1,801,000			2,754,000
Accounts receivable, net		297,000			189,000
Income taxes receivable		1,359,000			3,752,000
Prepaid expenses and other current assets		2,342,000			1,827,000
Total current assets		34,061,000			39,810,000
Noncurrent assets:
Restricted cash		10,559,000			3,904,000
Mortgage notes and loans receivable		123,000			957,000
Other assets		—			208,000
Property and equipment:
Real estate properties		20,910,000			20,113,000
Real estate properties - Held for sale		37,944,000			38,824,000
		58,854,000			58,937,000
Less:
Accumulated depreciation and amortization		8,860,000			7,903,000
Accumulated depreciation, depletion and amortization - Property held for sale		5,822,000			8,997,000
		44,172,000			42,037,000
Total Assets	$	88,915,000		$	86,916,000


Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt	$	281,000		$	267,000
Accounts payable		779,000			792,000
Income taxes payable		2,695,000			3,623,000
Deferred income taxes		99,000			2,465,000
Accrued liabilities		703,000			606,000
Deferred income		56,000			350,000
Current liabilities associated with discontinued operations		2,644,000			1,682,000
Total current liabilities		7,257,000			9,785,000
Noncurrent liabilities:
Long-term debt, less current portion		16,466,000			16,745,000
Deferred income taxes		7,466,000			1,855,000
Deferred income		95,000			556,000
Noncurrent liabilities associated with discontinued operations		15,779,000			29.501,000
Total liabilities		47,063,000			58,442,000

Commitments and Contingencies

Stockholders’ equity:
Non-controlling interest of joint venture partner		6,680,000			—
Preferred stock, $1 par value, 1,000,000 shares authorized; none issued and outstanding in 2005 and 2004		—			—
Common stock, $1 par value, 15,000,000 shares authorized; issued 10,013,544 shares in 2005 and 2004		10,014,000			10,014,000
Capital in excess of par value		9,029,000			9,524,000
Retained earnings		26,185,000			19,294,000
Unearned compensation		(133,000	)		(431,000	)
Treasury stock, 2,159,030 and 2,234,732 shares at 2005 and 2004, respectively, at cost		(10,067,000	)		(10,491,000	)
Accumulated other comprehensive income		144,000			564,000
Total stockholders’ equity		41,852,000			28,474,000
Total Liabilities and Stockholders’ Equity	$	88,915,000		$	86,916,000

	2005			2004 (Restated)			2003

Revenues	$	4,624,000		$	4,628,000		$	4,494,000

Costs and Expenses
Operating expenses		2,444,000			2,341,000			2,287,000
Depreciation expense		957,000			873,000			995,000
General and administrative		3,493,000			2,143,000			2,349,000
Total costs and expenses		6,894,000			5,357,000			5,631,000

Loss from Operations		(2,270,000	)		(729,000	)		(1,137,000	)

Other Income
Dividend and interest income		700,000			685,000			743,000
Gain on sale of marketable securities		134,000			—			2,621,000
Gain on sale of real estate related assets		675,000			—			—
Insurance proceeds		—			—			1,000,000
Other income		32,000			—			232,000

Interest Expense		(1,090,000	)		(1,083,000	)		(1,305,000	)

Income (loss) before provision for income taxes		(1,819,000	)		(1,127,000	)		2,154,000

Income Tax Expense (Benefit)		(1,104,000	)		(409,000	)		343,000

Income (Loss) from Continuing Operations		(715,000	)		(718,000	)		1,811,000

Discontinued Operations - Real Estate, Net of Taxes of $5,698,000, $2,262,000 and $(89,000)
Loss from operations		(565,000	)		(58,000	)		(1,087,000	)
Gain from sales		9,276,000			4,125,000			1,081,000

Discontinued Operations - Oil & Gas, Net of Taxes of $584,000, $674,000, and $(1,811,000)
Income (loss) from operations		(1,105,000	)		(1,889,000	)		(3,178,000	)
Gain from sales		—			567,000			—

Net income (loss)	$	6,891,000		$	2,027,000		$	(1,373,000	)

Basic earnings (loss) per share:
Income (loss) from continuing operations	$	(0.09	)	$	(0.09	)	$	0.23
Income (loss) from discontinued operations -
Real estate - loss from operations		(0.07	)		(0.01	)		(0.14	)
Real estate - gain on sales		1.18			0.53			0.14
Oil and gas - loss from operations		(0.14	)		(0.24	)		(0.41	)
Oil and gas - gain on sale		—			0.07			—
Net income (loss) applicable to common stockholders	$	0.88		$	0.26		$	(0.18	)

Diluted earnings (loss) per share:
Income (loss) from continuing operations	$	(0.09	)	$	(0.09	)	$	0.23
Income (loss) from discontinued operations -
Real estate - loss from operations		(0.07	)		(0.01	)		(0.14	)
Real estate - gain on sales		1.17			0.52			0.14
Oil and gas - loss from operations		(0.14	)		(0.24	)		(0.41	)
Oil and gas - gain on sale		—			0.07			—
Net income (loss) applicable to common stockholders	$	0.87		$	0.25		$	(0.18	)

	Non-Controlling Interest in Joint Venture		Preferred Stock				Common Stock				Capital in Excess of		Unearned			Retained			Treasury			Accumulated Other Comprehensive			Comprehensive			Total Stockholders’
	Partner		Shares		Amount		Shares		Amount		Par Value		Compensation			Earnings			Stock			Income (Loss)			Income (Loss)			Equity
Balance, December 31, 2002	$	—		—	$	—		10,013,544	$	10,014,000	$	9,029,000	$	—		$	18,640,000		$	(10,355,000	)	$	(3,089,000	)				$	24,239,000
Net income																	(1,373,000	)							$	(1,373,000	)		(1,373,000	)
Foreign currency translation adjustment																							2,206,000			2,206,000			2,206,000
Change in unrealized loss on marketable securities, net of income tax benefit of $98,000																							(545,000	)		(545,000	)		(545,000	)
Comprehensive income																									$	288,000

Balance, December 31, 2003		—		—		—		10,013,544		10,014,000		9,029,000		—			17,267,000			(10,355,000	)		(1,428,000	)					24,527,000
Net income																	2,027,000								$	2,027,000			2,027,000
Foreign currency translation adjustment																							1,536,000			1,536,000			1,536,000
Change in unrealized loss on marketable securities, net of income tax benefit of $301,000																							456,000			456,000			456,000
Comprehensive income																									$	4,019,000
Issuance of shares of common stock for services														(24,000	)					28,000									4,000
Compensation associated with stock options												495,000		(495,000	)														—
Amortization of compensation associated with stock and stock option awards														88,000															88,000

Exercise of stock options																		34,000									34,000
Purchase of treasury stock																		(198,000	)								(198,000	)

Balance, December 31, 2004		—	—		—	10,013,544		10,014,000		9,524,000			(431,000	)		19,294,000		(10,491,000	)		564,000						28,474,000
Net income																6,891,000							$	6,891,000			6,891,000
Reclassification adjustment for gains on marketable securities sold, net of tax of $(53,000)																					(76,000	)		(76,000	)		(76,000	)
Change in unrealized loss on marketable securities, net of income tax benefit of $141,000																					(344,000	)		(344,000	)		(344,000	)
Comprehensive income																							$	6,471,000
Issuance of shares of common stock for services, net of forfeitures													(302,000	)				741,000									439,000
Compensation associated with stock options										(495,000	)		495,000														—
Amortization of compensation associated with stock and stock option awards													105,000														105,000
Exercise of stock options																		40,000									40,000
Purchase of treasury stock																		(357,000	)								(357,000	)
Acquisition of interest in joint venture		6,680,000																									6,680,000

Balance, December 31, 2005	$	6,680,000	—	$	—	10,013,544	$	10,014,000	$	9,029,000		$	(133,000	)	$	26,185,000	$	(10,067,000	)	$	144,000					$	41,852,000

	2005			2004 (Restated)			2003

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	6,891,000		$	2,027,000		$	(1,373,000	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities -
Depreciation, depletion and amortization		1,289,000			1,687,000			6,244,000
Write-off of foreign currency translation adjustment		—			1,615,000			—
Amortization of compensation expense		258,000			88,000			—
Impairment loss on oil and gas assets		—			—			7,000,000
Deferred income tax (benefit) provision		5,612,000			(7,328,000	)		(594,000	)
Increase (decrease) in deferred income		(27,000	)		146,000			(445,000	)
Gain on sales of real estate assets		(16,018,000	)		(7,039,000	)		(1,693,000	)
Gain on sale of oil and gas properties		—			(768,000	)		—
Gain on sale of marketable securities		(134,000	)		—			(2,621,000	)
Other expense - non-controlling interest of joint venture partner		185,000			—			—
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable		(108,000	)		1,613,000			(897,000	)
Decrease (increase) in income taxes receivable		2,393,000			(3,208,000	)		83,000
Decrease (increase) in prepaid expenses and other current assets		(515,000	)		154,000			539,000
Increase (decrease) in accounts payable, accrued liabilities, taxes payable and other liabilities		(2,448,000	)		2,535,000			1,177,000
Net cash provided by (used in) operating activities		(2,622,000	)		(8,478,000	)		7,420,000

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures - real estate		(2,201,000	)		(2,295,000	)		(2,415,000	)
Capital expenditures - oil & gas		—			—			(8,705,000	)
Proceeds from sale of oil and gas properties		—			28,131,000			—
Proceeds from sale of real estate properties		20,615,000			19,874,000			3,107,000
Purchase of mortgage notes and loans receivable		(123,000	)		—			—
Proceeds from mortgage notes receivable		1,113,000			1,673,000			531,000
Proceeds from sales and redemptions of marketable securities		374,000			—			9,494,000
(Increase) decrease in marketable debt securities		(10,859,000	)		(11,147,000	)		—
(Increase) decrease in restricted cash		(6,652,000	)		(3,755,000	)		78,000
Net cash provided by investing activities		2,267,000			32,481,000			2,090,000

CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments of long-term debt		(13,903,000	)		(11,639,000	)		(47,868,000	)
Loan payable to stockholder		—			—			(500,000	)
Proceeds from issuance of debt		400,000			—			40,656,000
Issuance of unrestricted stock		293,000			—			—
Purchase of treasury stock		(357,000	)		(185,000	)		—
Proceeds from exercise of stock options		40,000			21,000			—
Net cash used in financing activities		(13,527,000	)		(11,803,000	)		(7,712,000	)

EFFECT OF EXCHANGE RATE CHANGES ON CASH		—			—			2,206,000

Net increase (decrease) in cash and cash equivalents		(13,882,000	)		12,200,000			4,004,000

CASH AND CASH EQUIVALENTS, beginning of year		19,963,000			7,763,000			3,759,000
CASH AND CASH EQUIVALENTS, end of year	$	6,081,000		$	19,963,000		$	7,763,000

SUPPLEMENTAL DISCLOSURES TO THE STATEMENTS OF CASH FLOWS:
Cash paid during the year for -
Interest	$	2,903,000		$	3,025,000		$	4,716,000
Income taxes, net	$	(2,702,000	)	$	7,567,000		$	543,000
Noncash transaction:

	December 31,
	2005			2004

Real estate and other properties:
Land	$	1,675,000		$	1,719,000
Building		13,560,000			13,223,000
Furniture, fixtures and equipment		5,675,000			5,171,000

Accumulated depreciation		(8,860,000	)		(7,903,000	)

Net real estate and other properties		12,050,000			12,210,000

Real estate held for sale:
Land		7,485,000			8,124,000
Building		26,059,000			25,752,000
Furniture, fixtures and equipment		4,400,000			4,948,000

Accumulated depreciation		(5,822,000	)		(8,997,000	)

Net real estate held for sale		32,122,000			29,827,000

Net real estate and other properties	$	44,172,000		$	42,037,000

	2005		2004
Numerator-
Net income (loss) - Basic and Diluted	$	6,891,000	$	2,027,000

Denominator-
Weighted average common
shares outstanding - Basic		7,863,886		7,795,843
Incremental shares from assumed
conversions of stock options		102,512		159,242
Weighted average common shares
outstanding - Diluted		7,966,398		7,955,085

Basic earnings (loss) per share:	$	0.88	$	0.26

Diluted earnings (loss) per share:	$	0.87	$	0.25

	Unrealized Gains			Cumulative			Accumulated
	(Losses) on			Foreign Currency			Other
	Available-for-Sale			Translation			Comprehensive
	Securities			Adjustment			Income (Loss)

BALANCE, December 31, 2002	$	653,000		$	(3,742,000	)	$	(3,089,000	)
Change for the year 2003		(545,000	)		2,206,000			1,661,000
BALANCE, December 31, 2003		108,000			(1,536,000	)		(1,428,000	)
Change for the year 2004		456,000			1,536,000			1,992,000
BALANCE, December 31, 2004		564,000			—			564,000
Change for the year 2005		(420,000	)		—			(420,000	)

BALANCE, December 31, 2005	$	144,000		$	—		$	144,000

	Restated Balance Sheet as of December 31, 2004
	As Previously Reported			Restatement Adjustments			As Restated
Assets
Current assets:
Income taxes receivable	$	4,389,000		$	(637,000	)	$	3,752,000
All other assets		83,164,000			—			83,164,000
Total Assets	$	87,553,000		$	(637,000	)	$	86,916,000

Liabilities and Stockholders’ Equity
Current liabilities	$	9,785,000		$	—		$	9,785,000
Noncurrent liabilities		48,657,000			—			48,657,000
Total liabilities		58,442,000			—			58,442,000

Stockholders’ equity:
Preferred stock		0			—			0
Common stock		10,014,000			—			10,014,000
Capital in excess of par value		9,524,000			—			9,524,000
Retained earnings		19,905,000			(611,000	)		19,294,000
Unearned compensation		(431,000	)		—			(431,000	)
Treasury stock		(10,491,000	)		—			(10,491,000	)
Accumulated other comprehensive income		590,000			(26,000	)		564,000
Total stockholders’ equity		29,111,000			(637,000	)		28,474,000
Total Liabilities and Stockholders’ Equity	$	87,553,000		$	(637,000	)	$	86,916,000

	Restated Statement of Operations for the year ended December 31, 2004
	As Previously Reported			Restatement Adjustments			As Restated

Revenues	$	4,628,000		$	—		$	4,628,000
Costs and expenses		5,357,000			—			5,357,000
Loss from operations		(729,000	)		—			(729,000	)
Other income		685,000			—			685,000
Interest expense		(1,083,000	)		—			(1,083,000	)
Loss before provision for income taxes		(1,127,000	)		—			(1,127,000	)
Income tax benefit		(409,000	)		—			(409,000	)
Loss from continuing operations		(718,000	)		—			(718,000	)
Discontinued operations - Real estate		4,067,000			—			4,067,000
Discontinued operations - Oil and gas		(711,000	)		(611,000	)		(1,322,000	)
Net income	$	2,638,000		$	(611,000	)	$	2,027,000


	2005		2004

Mortgage notes payable (a)	$	7,474,000	$	11,935,000
Mortgage notes payable (b)		21,410,000		30,802,000
Mortgage notes payable (c)		4,068,000		4,118,000
Unsecured note payable (d)		400,000		—

Total		33,352,000		46,855,000
Less current portion		1,862,000		729,000

Long term portion	$	31,490,000	$	46,126,000

Long-term debt applicable to discontinued operations:
Included in current liabilities	$	1,581,000	$	462,000
Included in noncurrent liabilities		15,024,000		29,381,000

Total	$	16,605,000	$	29,843,000

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$3.32		50,000		6.54 years	$	3.32		30,000	$	3.32
$3.97		5,000		3.42 years		3.97		5,000		3.97
$4.55		5,000		7.46 years		4.55		2,000		4.55
$5.15		50,000		8.46 years		5.15		12,500		5.15
$5.48		5,000		8.38 years		5.48		1,000		5.48
$6.00		5,000		2.42 years		6.00		5,000		6.00
$6.13		15,450		0.50 years		6.13		15,450		6.13
$7.20		25,000		9.46 years		7.20		—		7.20
		160,450		6.87 years		4.97		70,950		4.55

	2005			2004

Tax over book depreciation, depletion and amortization -
Oil and gas and real estate properties - U.S.	$	1,672,000		$	1,485,000
Deferred gains on sales of real estate properties - U.S.		5,794,000			370,000
U.S. tax on liquidating dividend from Canada		—			2,075,000
Unrealized gain on marketable securities		99,000			390,000

Net deferred tax liability		7,565,000			4,320,000
Deferred tax liability included in current		(99,000	)		(2,465,000	)

Noncurrent deferred tax liability	$	7,466,000		$	1,855,000

	Restated Statement of Operations for the quarter ended March 31, 2004
	As Previously Reported			Restatement Adjustment			As Restated

Revenues	$	1,161,000		$	—		$	1,161,000
Costs and expenses		1,114,000			—			1,114,000
Income from operations		47,000			—			47,000
Other income		194,000			—			194,000
Interest expense		(263,000	)		—			(263,000	)
Loss before provision for income taxes		(22,000	)		—			(22,000	)
Income tax benefit		(29,000	)		—			(29,000	)
Income from continuing operations		7,000			—			7,000
Discontinued operations - Real estate		2,849,000			—			2,849,000
Discontinued operations - Oil and gas		(257,000	)		(2,657,000	)		(2,914,000	)
Net income (loss)	$	2,599,000		$	(2,657,000	)	$	(58,000	)

Basic earnings (loss) per share:
Income from continuing operations	$	—		$	—		$	—
Income (loss) from discontinued operations -
Discontinued operations - Real estate		0.36			—			0.36
Discontinued operations - Oil and gas		(0.03	)		(0.34	)		(0.37	)
Net income (loss) applicable to common stockholders	$	0.33		$	(0.34	)	$	(0.01	)

Diluted earnings (loss) per share:
Income from continuing operations	$	—		$	—		$	—
Income (loss) from discontinued operations -
Discontinued operations - Real estate		0.36			—			0.36
Discontinued operations - Oil and gas		(0.03	)		(0.34	)		(0.37	)
Net income (loss) applicable to common stockholders	$	0.33		$	(0.34	)	$	(0.01	)