Related Party Transactions and Investments in Non-Consolidated Entities (Tables)

6 Months Ended

Jun. 30, 2011

Related Party Transactions and Investments in Non-Consolidated Entities

Schedule of equity in earnings of investments in non-consolidated REITs

	Six Months Ended
	June 30,
(in thousands)	2011		2010
Equity in earnings of Sponsored REITs	$	948	$	162
Equity in earnings (loss) of Phoenix Tower	(11)		(9)
Equity in earnings of East Wacker	1,186		367
Equity in earnings of Grand Boulevard	11		113
	$	2,134	$	633

Summary of financial information of sponsored REITs

	June 30,			December 31,
(in thousands)	2011			2010
Balance Sheet Data (unaudited):
Real estate, net	$	763,264		$	767,938
Other assets	99,666			105,218
Total liabilities	(253,077		)	(256,612		)
Shareholders’ equity	$	609,853		$	616,544
	For the Six Months Ended
	June 30,
(in thousands)	2011			2010
Operating Data (unaudited):
Rental revenues	$	54,495		$	46,001
Other revenues	33			98
Operating and maintenance expenses	(26,935		)	(25,797		)
Selling, general and administrative	(789		)	-
Depreciation and amortization	(16,426		)	(12,749		)
Interest expense	(9,234		)	(4,576		)
Net income	$	1,144		$	2,977

Summary of the Sponsored REIT Loans outstanding

(dollars in 000’s)		Maximum			Amount				Interest
	Maturity	Amount			Drawn at		Interest	Draw	Rate at
Sponsored REIT	Date	of Loan			30-Jun-11		Rate (1)	Fee (2)	30-Jun-11
Revolving lines of credit
FSP Highland Place I Corp. (3)	31-Dec-12	$	5,500		$	1,125	L+4.4%	0.5%	4.59%
FSP Satellite Place Corp. (4)	31-Mar-13	5,500			5,500		L+4.4%	0.5%	4.59%
FSP 1441 Main Street Corp.(4) (a)	31-Mar-13	10,800			7,300		L+4.4%	0.5%	4.59%
FSP 505 Waterford Corp. (4)	30-Nov-12	7,000			1,150		L+4.4%	0.5%	4.59%
FSP Phoenix Tower Corp. (4) (b)	30-Nov-12	15,000			9,300		L+4.4%	0.5%	4.59%
Construction loan
FSP 385 Interlocken
Development Corp. (4) (c) (d)	30-Apr-13	42,000			37,541		L+4.4%	n/a	4.59%
		$		85,800	$	61,916

(1) The interest rate is 30-Day LIBOR rate plus the additional rate indicated.

(2) The draw fee is a percentage of each new advance, and is paid at the time of each new draw.

(3) Effective January 1, 2011 and February 1, 2011, the interest rate was 30-day LIBOR plus 3% and effective March 1, 2011 became LIBOR plus 4.4% until maturity.  Effective January 31, 2011, any future draws will require a draw fee in an amount equal to 0.5%.

(4) Effective January 1, 2011 through March 30, 2011, the interest rate was 30-day LIBOR plus 3%.

(a) The Borrower is FSP 1441 Main Street LLC, a wholly-owned subsidiary.

(b) The Borrower is FSP Phoenix Tower Limited Partnership, a wholly-owned subsidiary.

(c) The Borrower is FSP 385 Interlocken LLC, a wholly-owned subsidiary.

(d) The Borrower paid a commitment fee of $210,000 at loan origination in March 2009.