Subsequent Events

9 Months Ended

Sep. 30, 2011

16.

Subsequent Events

Loan Origination

Hotel Wales — In October 2011, the Trust originated a $20,000,000 first mortgage loan collateralized by the Hotel Wales located in Manhattan, New York which loan bears interest at LIBOR plus 4%, with a 3% LIBOR floor (i.e. a minimum 7% rate on the loan), and matures in October 2013, with a one-year extension right. Subsequent to originating the loan, the Trust sold a $14,000,000 senior participation which bears interest at LIBOR plus 1.25% with a 3% LIBOR floor, with the Trust retaining a $6,000,000 junior participation which provides for interest payments equal to the interest payable on the loan less the amount payable on the senior participation.

127 West 25th Street — On October 25, 2011, the Trust committed to make a $9,000,000 subordinate mortgage loan collateralized by the commercial property located at 127 West 25th Street, Manhattan, New York. The loan is subject to the satisfaction by the borrower of certain conditions on or prior to January 24, 2012. If funded, the loan will mature on October 1, 2014, bear interest at a rate equal to the greater of 14% per annum or LIBOR plus 10%, and require payment of interest only. In connection with the entering into of the loan agreement, the Trust received an origination fee of $90,000 and a commitment fee of $105,000 per month that the commitment is outstanding prior to funding. The loan is subordinate to a $32,680,000 first mortgage loan. The property is net leased to the Bowery Residents’ Committee, Inc., a New York not-for-profit corporation, which obtains funding from the City of New York.

Southern California Office Portfolio Note — On November 4, 2011, a joint venture in which we own a 73% interest acquired for a purchase price of $96,700,000 a $117,900,000 C note in the $798,000,000 first mortgage encumbering a 4,500,000 square foot, 31 property portfolio of office properties situated throughout southern California. The C Note, which is the controlling holder of the mortgage loan, bears interest at a rate per annum of LIBOR plus 310 basis points, requires payments of interest only and matures on August 9, 2012. We contributed approximately $71,000,000 to the venture and own an approximately 73% interest in the joint venture. Pursuant to the terms of the joint venture agreement, we are permitted to reduce our investment in the C Note by transferring up to 49% of our equity interest in the joint venture to a third party.

Financing-Newbury/550/650 Corporetum/701 Arboretum

On October 18, 2011, the Trust obtained a $21,000,000 mortgage loan secured by its Newbury Apartments, 550/650 Corporetum and 701 Arboretum properties. The loan bears interest at LIBOR plus 2.5%, matures October 2014, subject to two, one-year extension terms, and requires payments of interest only through the initial term and payments of principal and interest based on a 25 year amortization schedule during the extended terms. In connection with the financing, the Trust purchased an interest rate cap which caps Libor at 1.0% through October 18, 2014. The proceeds from the loan, together with approximately $3,160,000 of reserves, were used to satisfy the existing approximately $23,875,000 loan encumbering Newbury Apartments which bore interest at 5.83%.

450 West 14th

In October 2011, the joint venture that owns the property located at 450 West 14th Street, Manhattan, New York obtained its temporary certificate of occupancy from the New York City Buildings Department. As a result, the Trust exercised its right to become the managing member of the entity. As a result of the change in control, the Trust anticipates that the property and its operations will be consolidated effective with the fourth quarter of 2011.

Moffett Towers

On October 25, 2011, the Trust received payment of $23,034,000 plus accrued interest in full satisfaction of its B-Note collateralized by Moffett Towers. This B-Note was originally purchased by the Trust in October 2010 for a purchase price of $21,558,000 and additional advances of $1,476,000 were made under the terms of the note.

LW-SOFI

On October 31, 2011, the venture received $71,530,000 plus accrued interest in full satisfaction of the mezzanine loan, the proceeds of which were utilized to satisfy the repurchase obligation encumbering the loan receivable resulting in net proceeds of $15,876,000. The Trust received a $7,937,000 distribution from LW-SOFI on November 2, 2011.