The Brownsville, TX property, a 115,000-sf space at the Amigoland Shopping Center, was formerly net-leased to Montgomery Ward & Co. on a 30-year term. Ward was forced to disaffirm the lease as part of its bankruptcy proceedings.

Lexington acquired the property in 1995 for $1,242,000. It was built for Ward in 1973 on a 7.6-acre site and had an annual rent of $153,000. The REIT has discontinued debt-service payments on the property's $616,000 non-recourse mortgage. Lexington has a 62% stake in the vacant Brownsville space. Its share of the property's annual net rent came to $95,000, all of which went to debt service.

The Columbia, MD property is a 60,000-sf retail space located at 6475 Dobbin Road, formerly the site of the Dobbin's Shopping Center. Built in 1983 and remodeled in 1994, Lexington acquired the 2.5-acre property in 1998 for $5,018,000. The REIT has entered into an agreement with former tenant MOR Dobbin LLC, terminating its lease and forgiving $272,000 in back rent. The lease, which would have rolled over in 2004, had five renewal options through 2029. This year's rent revenue from the property would have been $647,000.