

					Costs Capitalized Subsequent				Gross Amount at which Carried at
	Initial Cost (in thousands)				to Acquisition (in thousands)				End of Period(in thousands)^{(1) (2)}
			Building and		Improvements		Carrying				Building and
Property Name	Land		Improvements		(net)		Costs		Land		Improvements		Total
Retail Communities:
Ahwatukee Plaza	$	5,126	$	4,086	$	2	$	—	$	5,126	$	4,088	$	9,214
Bellnot Square	1,154		4,638		422				1,154		5,060		6,214
Bissonnet Beltway	415		1,947		454		—		415		2,401		2,816
Centre South	481		1,596		731		—		481		2,327		2,808
Holly Knight	320		1,293		190		—		320		1,483		1,803
Kempwood Plaza	733		1,798		1,087		—		733		2,885		3,618
Lion Square	1,546		4,289		1,732		—		1,546		6,021		7,567
Pinnacle of Scottsdale	6,648		22,466		—		—		6,648		22,466		29,114
Providence	918		3,675		821		—		918		4,496		5,414
Shaver	184		633		12		—		184		645		829
Shops at Starwood	4,093		11,487		—		—		4,093		11,487		15,580
South Richey	778		2,584		450		—		778		3,034		3,812
Spoerlein Commons	2,340		7,296		238		—		2,340		7,534		9,874
SugarPark Plaza	1,781		7,125		352		—		1,781		7,477		9,258
Sunridge	276		1,186		268		—		276		1,454		1,730
Terravita Marketplace	7,171		9,392		57		—		7,171		9,449		16,620
Torrey Square	1,981		2,971		912		—		1,981		3,883		5,864
Town Park	850		2,911		266		—		850		3,177		4,027
Webster Point	720		1,150		337		—		720		1,487		2,207
Westchase	423		1,751		2,787		—		423		4,538		4,961
Windsor Park	2,621		10,482		2,800		—		2,621		13,282		15,903
	$	40,559	$	104,756	$	13,918	$	—	$	40,559	$	118,674	$	159,233
Office/Flex Communities:
Brookhill	$	186	$	788	$	289	$	—	$	186	$	1,077	$	1,263
Corporate Park Northwest	1,534		6,306		1,093		—		1,534		7,399		8,933
Corporate Park West	2,555		10,267		937		—		2,555		11,204		13,759
Corporate Park Woodland	652		5,330		622		—		652		5,952		6,604
Dairy Ashford	226		1,211		98		—		226		1,309		1,535
Holly Hall	608		2,516		355		—		608		2,871		3,479
Interstate 10	208		3,700		453		—		208		4,153		4,361
Main Park	1,328		2,721		548		—		1,328		3,269		4,597
Plaza Park	902		3,294		1,071		—		902		4,365		5,267
West Belt Plaza	568		2,165		648		—		568		2,813		3,381
Westgate	672		2,776		445		—		672		3,221		3,893
	$	9,439	$	41,074	$	6,559	$	—	$	9,439	$	47,633	$	57,072



					Costs Capitalized Subsequent				Gross Amount at which Carried at
	Initial Cost (in thousands)				to Acquisition (in thousands)				End of Period(in thousands)^{(1) (2)}
			Building and		Improvements		Carrying				Building and
Property Name	Land		Improvements		(net)		Costs		Land		Improvements		Total
Office Communities:
9101 LBJ Freeway	$	1,597	$	6,078	$	1,302	$	—	$	1,597	$	7,380	$	8,977
Featherwood	368		2,591		482		—		368		3,073		3,441
Pima Norte	1,086		7,162		1,194		517		1,086		8,873		9,959
Royal Crest	509		1,355		189		—		509		1,544		2,053
Uptown Tower	1,621		15,551		3,073		—		1,621		18,624		20,245
Woodlake Plaza	1,107		4,426		1,058		—		1,107		5,484		6,591
Zeta Building	636		1,819		318		—		636		2,137		2,773
	$	6,924	$	38,982	$	7,616	$	517	$	6,924	$	47,115	$	54,039
Total Operating Portfolio	$	56,922	$	184,812	$	28,093	$	517	$	56,922	$	213,422	$	270,344

The Citadel	$	472	$	1,777	$	967	$	—	$	472	$	2,744	$	3,216
Desert Canyon	1,976		1,704		134		—		1,976		1,838		3,814
Gilbert Tuscany Village	1,767		3,233		10		—		1,767		3,243		5,010
The Marketplace at Central	1,305		5,324		529		—		1,305		5,853		7,158
Total - Development Portfolio	$	5,520	$	12,038	$	1,640	$	—	$	5,520	$	13,678	$	19,198

Pinnacle Phase II	$	1,000	$	—	$	—	$	—	$	1,000	$	—	$	1,000
Shops at Starwood Phase III	1,818		—		—		—		1,818		—		1,818
Total - Property Held for Development	$	2,818	$	—	$	—	$	—	$	2,818	$	—	$	2,818

Grand Totals	$	65,260	$	196,850	$	29,733	$	517	$	65,260	$	227,100	$	292,360

Accumulated Depreciation

Date of

Date

Depreciation

Property Name

Encumbrances

(in thousands)

Construction

Acquired

Life

Retail Communities:

Ahwatukee

8/16/2011

5-39 years

Bellnot Square

1,321

1/1/2002

5-39 years

Bissonnet Beltway

1,159

1/1/1999

5-39 years

Centre South

861

1/1/2000

5-39 years

Holly Knight

(3)

732

8/1/2000

5-39 years

Kempwood Plaza

(3)

1,315

2/2/1999

5-39 years

Lion Square

(3)

1,835

1/1/2000

5-39 years

Pinnacle of Scottsdale

(9)

12/22/2011

5-39 years

Providence

(3)

1,440

3/30/2001

5-39 years

Shaver

269

12/17/1999

5-39 years

Shops at Starwood

12/28/2011

5-39 years

South Richey

(3)

972

8/25/1999

5-39 years

Spoerlein Commons

587

1/16/2009

5-39 years

SugarPark Plaza

(3)

1,383

9/8/2004

5-39 years

Sunridge

(3)

458

1/1/2002

5-39 years

Terravita Marketplace

8/8/2011

5-39 years

Torrey Square

(3)

1,559

1/1/2000

5-39 years

Town Park

(3)

1,408

1/1/1999

5-39 years

Webster Point

607

1/1/2000

5-39 years

Westchase

906

1/1/2002

5-39 years

Windsor Park

(4)

2,319

12/16/2003

5-39 years

19,265

Office/Flex Communities:

Brookhill

(5)

280

1/1/2002

5-39 years

Corporate Park Northwest

2,232

1/1/2002

5-39 years

Corporate Park West

(6)

3,194

1/1/2002

5-39 years

Corporate Park Woodland

(7)

2,253

11/1/2000

5-39 years

Dairy Ashford

513

1/1/1999

5-39 years

Holly Hall

(7)

736

1/1/2002

5-39 years

Interstate 10

(7)

2,020

1/1/1999

5-39 years

Main Park

(7)

1,232

1/1/1999

5-39 years

Plaza Park

(7)

1,611

1/1/2000

5-39 years

West Belt Plaza

(7)

1,271

1/1/1999

5-39 years

Westgate

(7)

922

1/1/2002

5-39 years

16,264

Accumulated Depreciation

Date of

Date

Depreciation

Property Name

Encumbrances

(in thousands)

Construction

Acquired

Life

Office Communities:

9101 LBJ Freeway

(8)

1,579

8/10/2005

5-39 years

Featherwood

1,143

1/1/2000

5-39 years

Pima Norte

751

10/4/2007

5-39 years

Royal Crest

539

1/1/2000

5-39 years

Uptown Tower

(8)

3,544

11/22/2005

5-39 years

Woodlake Plaza

(8)

1,308

3/14/2005

5-39 years

Zeta Building

(5)

789

1/1/2000

5-39 years

9,653

Total Operating Portflio

45,182

The Citadel

9/28/2010

5-39 years

Desert Canyon

4/13/2011

5-39 years

Gilbert Tuscany Village

6/28/2011

5-39 years

The Marketplace at Central

159

11/1/2010

5-39 years

Total - Development Portfolio

290

Pinnacle Phase II

—

12/28/2011

Land - Not Depreciated

Shops at Starwood Phase III

(10)

—

12/28/2011

Land - Not Depreciated

Total - Property Held For Development

—

Grand Total

45,472


⁽¹⁾	Reconciliations of total real estate carrying value for the three years ended December 31, follows:



	( in thousands)
	2011			2010			2009
Balance at beginning of period	$	204,954		$	192,832		$	180,397
Additions during the period:
Acquisitions	82,030			8,878			9,636
Improvements	7,568			4,142			3,770
	89,598			13,020			13,406
Deductions - cost of real estate sold or retired	(2,192		)	(898		)	(971		)
Balance at close of period	$	292,360		$	204,954		$	192,832


⁽²⁾	The aggregate cost of real estate (in thousands) for federal income tax purposes is $265,509.


⁽³⁾	These properties secure a $21.4 million and a $9.9 million mortgage notes.


⁽⁴⁾	This property secures a $10.0 million mortgage note.


⁽⁵⁾	These properties secure a $1.5 million mortgage note.


⁽⁶⁾	This property secures an $11.2 million mortgage note.


⁽⁷⁾	These properties secure a $26.9 million mortgage note.


⁽⁸⁾	These properties secure a $24.5 million mortgage note.


⁽⁹⁾	This property secures a $14.1 million mortgage note.


⁽¹⁰⁾	This property secures a $1.4 million mortgage note.