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WATERFRONT MORTGAGE LP HOME
AERO FBO (updated 2/27/03) UPDATE

Partnership Formed: Waterfront Mortgage, LP 7/20/2001 (7327199) EIN 68-0505876
Loan Status: Principal paid in full
Borrower / Developer: Fort Worth Jet Center, Inc. and Casper Jet Center , LLC (Thomas Matthew, Pres)
Develop / Project Stage: None
Project Name: Aero FBO
Property Address: Tucson, Arizona; Casper, Wyoming; Austin and Ft. Worth Texas
Guarantor: Sterling REIT, Inc., 5065 Westheimer, Suite 745, Houston, TX 77092
Thomas Matthew, 201 Aviation Way, LOC 11N, Ft. Worth, TX 76106
Loan Funding Term: 12 Months
Original Loan Amount: $5,000,000 15% 8/9/200 - 18% default rate
Principal Balance: $0
Stage Funding Due: None
Title of Property: Ft. Worth Jet Center, Inc.
Lien: Second (First lien to former owner $2,000,000); First against Thomas Matthew's stock and lien on certain municipal land leases
Advances by Premiere: None
Exit Strategy: $9,000,000 loan from third -party
General Partner: Jefferson Advisors GP, LLC
Loan Maintenance by: Jefferson Advisors GP, LLC
Description of Prop: Management buyout; Fixed base operations - Austin, Texas/Ft. Worth, Texas/Casper, Wyoming/Tucson, Arizona; subject to the seller's lien, collateral includes first lien on all non-real estate assets and second lien on real estate assets including facilities at airports and runway leases; pledge of all partner interests in the entities borrowing money.

11/3 Borrower has filed a law suit against the partnership for usury. Counterclaim has been filed.

12/1 Last week, the attorney's for the partnership sent out their first set of interrogatories. The borrower has indicated their intent to settle, and they are attempting a loan to pay all or most of the balance of the loan. In the event the entire balance cannot be paid, they wish to reduce the balance substantially, and become current.

2/9 The borrower is selling the business and has offered a settlement to pay the full amount of principal on the loan ($5MM), and to pay $425,000 (approx 6%) interest retroactive on all unpaid interest, on a 2 year note @ 10% interest, with acceptable collateral to the general partner. The limited partners have approved the measure.

2/21 The parties are expected to sign a settlement agreement on 2/24 and the borrower will pay $5,362,000 to settle the entire matter.

Photo of Property, if available:

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