Exhibit K

EXHIBIT K

EXAMPLE OF SECTION 9.3 CALCULATION

(Copy attached)

Exhibit K

I-West JV Cash Flows
Sample Waterfall				Feb-07	Feb-07	Mar-07	Apr-07	May-07	Jun-07	Jul-07	Aug-07
			Total	Year 0	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7
JV Structure:
MSRE Equity	80.00%
Inland Equity	20.00%
Hurdle	Promote	MSRE % of CF	Inland % of CF
Return of Capital	-	80.0%	20.0%
Hurdle I – 11.00%	-	80.0%	20.0%
Thereafter	20.0%	64.0%	36.0%
Waterfall:
Representative Project Levered Cash Flows				(225,000,000)	19,200,000	19,200,000	19,200,000	19,200,000	19,200,000	327,600,000	-
JV Capital Account – ROC:
BOP				-	225,000,000	205,800,000	186,000,000	167,600,000	148,200,000	129,000,000	-
Capital Invested			225,000,000	225,000,000	-	-	-	-	-	-	-
Return of Capital			(225,000,000)	-	(19,200,000)	(19,200,000)	(19,200,000)	(19,200,000)	(19,200,000)	(129,000,000)	-
EOP				225,000,000	205,800,000	186,600,000	167,400,000	148,200,000	129,000,000	-	-
CF AFTER ROC			198,600,000	-	-	-	-	-	-	198,600,000	-
MSRE distributions to Hurdle I (11.0%)
BOP				-	180,000,000	184,440,400	189,368,400	194,838,924	200,911,206	207,651,438	-
Capital Invested			180,000,000	180,000,000	-	-	-	-	-	-	-
Return of Capital			(180,000,000)	-	(15,360,000)	(15,360,000)	(15,360,000)	(15,360,000)	(15,360,000)	(103,200,000)	-
Accruals			127,293,096	-	19,800,000	20,288,400	20,830,524	21,432,282	22,100,233	22,841,658	-
Distribution to Hurdle I			(127,293,096)	-	-	-	-	-	-	(127,293,096)	-
EOP				180,000,000	184,440,000	189,368,400	194,838,924	200,911,206	207,651,438	-	-
MSRE Distribution under Hurdle I			127,293,096	-	-	-	-	-	-	127,293,096	-
Inland Distribution			31,823,274	-	-	-	-	-	-	31,823,274	-
MSRE CF to Hurdle I			127,293,096	(180,000,000)	15,360,000	15,360,000	15,360,000	15,360,000	15,360,000	230,493,096	-
Partner CF to Hurdle I			31,823,274	(45,000,000)	3,840,000	3,840,000	3,840,000	3,840,000	3,840,000	57,623,274	-
Cash Flow Thereafter			39,483,629	-	-	-	-	-	-	39,483,629	-
MSRE Share (64.0%)			25,269,523	-	-	-	-	-	-	25,269,523	-
Partner Share (36.0%)			14,214,107	-	-	-	-	-	-	14,214,107	-

I-West JV Cash Flows
Sample Waterfall		Feb-07	Feb-07	Mar-07	Apr-07	May-07	Jun-07	Jul-07	Aug-07
	Total	Year 0	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7
Total Joint Venture Cash Flows:
MSRE Cash Flows:
Capital Invested	(180,000,000)	(180,000,000)	-	-	-	-	-	-	-
Distributions – ROC	180,000,000	-	15,360,000	15,360,000	15,360,000	15,360,000	15,360,000	103,200,000	-
Distributions – Hurdle I	127,293,096	-	-	-	-	-	-	127,293,096	-
Distributions - Thereafter	25,269,523	-	-	-	-	-	-	25,269,523	-
Total MSRE Cash Flows	152,562,619	(180,000,000)	15,360,000	15,360,000	15,360,000	15,360,000	15,360,000	255,762,619	-
Cumulative MSRE Cash Flows		(180,000,000)	(164,640,000)	(149,280,000)	(133,920,000)	(118,560,000)	(103,200,000)	152,562,619	152,562,619
MSRE Unlevered IRR	12.61%
MSRE Unlevered CFx	1.85x
Nominal Profit	152,562,619
Peak Equity	180,000,000
Inland Cash Flows:
Capital Invested	(45,000,000)	(45,000,000)	-	-	-	-	-	-	-
Distributions – ROC	45,000,000	-	3,840,000	3,840,000	3,840,000	3,840,000	3,840,000	25,800,000	-
Distributions – Hurdle I	31,853,274	-	-	-	-	-	-	31,853,274	-
Distributions - Thereafter	14,214,107	-	-	-	-	-	-	14,214,107	-
Total Inland Cash Flows	46,037,381	(45,000,000)	3,840,000	3,840,000	3,840,000	3,840,000	3,840,000	71,837,381	-
Cumulative Inland Cash Flows		(45,000,000)	(41,160,000)	(37,320,000)	(33,480,000)	(29,640,000)	(25,800,000)	46,037,381	46,037,381
Inland Unlevered IRR	14.45%
Inland Unlevered CFx	2.02x
Nominal Profit	46,037,381
Peak Equity	45,000,000