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<SEC-DOCUMENT>0001362310-09-005168.txt : 20091005
<SEC-HEADER>0001362310-09-005168.hdr.sgml : 20091005
<ACCEPTANCE-DATETIME>20090410131510
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001362310-09-005168
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20090410

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NETREIT
		CENTRAL INDEX KEY:			0001080657
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				330841255
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1282 PACIFIC OAKS PLACE
		CITY:			ESCONDIDO
		STATE:			CA
		ZIP:			92029-2900
		BUSINESS PHONE:		760-471-8536

	MAIL ADDRESS:	
		STREET 1:		1282 PACIFIC OAKS PLACE
		CITY:			ESCONDIDO
		STATE:			CA
		ZIP:			92029-2900
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>Correspondence</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
</TR>

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<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><BR>BRUCE J. RUSHALL <BR>
EILEEN L. McGEEVER <BR>
LUCI M. MONTGOMERY
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>RUSHALL &#038; McGEEVER<BR>
A PROFESSIONAL LAW CORPORATION<BR>
6100 INNOVATION WAY<BR>
CARLSBAD, CALIFORNIA 92009
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><BR>TELEPHONE: (760)&nbsp;438-6855<BR>
FACSIMILE: (760)&nbsp;438-3026<BR>
E-MAIL: rm@rushallmcgeever.com</TD>
</TR>
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</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">April&nbsp;10, 2009
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">United States Securities and Exchange Commission<BR>
450 Fifth Street NW<BR>
Mail Stop 4561<BR>
Washington, D.C. 20549

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">Attn:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Ms.&nbsp;Cicely Lomothe, Accounting Branch Chief<br>
Ms.&nbsp;Jaime John, Staff Accountant<br>
Ms.&nbsp;Kristina Aberg, Attorney-Advisor</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Re:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NetREIT<br>
Form&nbsp;10<br>
Filed May&nbsp;6, 2008<br>
File No.&nbsp;001-39049</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Ladies and Gentlemen:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">NetREIT
(&#147;Registrant&#148;, the &#147;Company&#148;, or &#147;we&#148;) requests the Accounting Staff&#146;s comments and guidance regarding Registrant&#146;s responses
below to the comments in the Staff&#146;s letter of March&nbsp;31, 2009 regarding the above-referenced Form
10 filing. Registrant&#146;s responses below are presented in the same numbers as the Staff&#146;s comments
in that letter.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Once we receive the Staff&#146;s comments in response to this letter, Registrant will file an initial
Form&nbsp;10 as a 10-12G submission (the &#147;Form&nbsp;10&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U><B>General</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>RESPONSE TO COMMENT 1</U>:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Following the clearance of accounting related issues in Comment 7 and 10 below, the Registrant will
file amended Quarterly Reports on Form 10-Q for the quarters ended March&nbsp;31, 2008 and June&nbsp;30,
2008, which will include the correct certifications.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>RESPONSE TO COMMENT 2</U>:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Form&nbsp;10 will include Registrant&#146;s updated Financial Statements and Management&#146;s Discussion and
Analysis of Financial Condition and Results of Operations for the years ended December&nbsp;31, 2008 and
2007.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>RESPONSE TO COMMENT 3</U>:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Registrant will file the financial information required by Rule&nbsp;8-06 of Regulation&nbsp;S-X as set forth
below for the properties included in the 8-K Reports Registrant has filed since it filed its
initial Form&nbsp;10 on May&nbsp;6, 2008. The following table sets forth for each property investment
Registrant has made after January&nbsp;1, 2007; (i)&nbsp;the status of the required Rule&nbsp;8-06 financial
information filing or (ii)&nbsp;the basis on which Registrant asserts Rule&nbsp;8-06 financial information is
not required for the investment.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">RUSHALL &#038; McGEEVER<BR>
A PROFESSIONAL LAW CORPORATION
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">United States Securities and Exchange Commission</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Attn:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ms. Cicely Lomothe, Accounting Branch Chief<br>
Ms.&nbsp;Jaime John, Staff Accountant<br>
Ms.&nbsp;Kristina Aberg, Attorney-Advisor</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left">April&nbsp;10, 2009<BR>
Page 2</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Percent of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Cost of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Date</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Total</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Date</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Acquisition</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">8-K</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Assets at</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Status of</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Property</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Acquired</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">(In millions)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Filed</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">12-31-07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Audit</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Office Park</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">7-9-08</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">7-16-08</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Completing audit, 1</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Waterman Plaza</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">8-12-08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">8-18-08</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">New property, 2</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pacific Oaks Plaza</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">9-3-08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">9-5-08</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>Owner occupied property, 3</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Morena Office Center</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">1-8-09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">1-8-09</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Completing audit, 4</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Fontana Medical Plaza LLC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">2-25-09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">2-25-09</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">None - not significant</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rangewood Medical Center</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">3-23-09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">3-27-09</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">None - not significant</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">1.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">The Company has substantially completed its amendment to Form 8-K, including audited statements
of Statements of Revenues Over Certain Operating Expenses for the year ended December&nbsp;31, 2007. The
Company has suspended further activity towards completing this filing until accounting issues,
which may affect the pro forma financial statements, with the Commission have been resolved.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">2.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Waterman Plaza was a newly constructed building with no operating history.
Therefore, there is no requirement for pro forma
financial statements and an audited historical Statements of Revenues Over Certain Operating
Expenses.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">3.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Up to the time of the sale, the seller had used the property as their office space and post
acquisition the Company has utilized all but 3,900 square feet of a 16,000 square foot building as
its headquarters. Therefore, there is no requirement for pro forma financial statements and an
audited historical Statements of Revenues Over Certain Operating Expenses.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">4.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">The Company has obtained some of the documentation from the seller and has done planning for an
upcoming audit. The Company has suspended further activity towards completing this filing until
accounting issues, which may affect the pro forma financial statements, with the Commission have
been resolved.</DIV></TD>
</TR>

</TABLE>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>RESPONSE TO COMMENT 4</U>:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Registrant notes the Staff&#146;s comments regarding completion of its review of Registrant&#146;s restated
financial statements.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
 <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">RUSHALL &#038; McGEEVER<BR>
A PROFESSIONAL LAW CORPORATION
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">United States Securities and Exchange Commission</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Attn:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ms. Cicely Lomothe, Accounting Branch Chief<br>
Ms.&nbsp;Jaime John, Staff Accountant<br>
Ms.&nbsp;Kristina Aberg, Attorney-Advisor</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left">April&nbsp;10, 2009<BR>
Page 3</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>RESPONSE TO COMMENT 5</U>:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Registrant has expanded its disclosures relative to accounting for joint ventures. Please see
the revised Note to the proposed Financial Statements regarding Registrant&#146;s consideration of EITF
04-5 in determining the appropriate accounting for Registrant&#146;s joint ventures. The expanded
disclosure of the first paragraph to the significant accounting policies &#147;Investment in Real Estate
Ventures&#148; note will read as follows:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company analyzes its investments in joint ventures to determine whether the joint venture
should be accounted for under the equity method of accounting or consolidated into the financial
statements based on standards set forth under SFAS Interpretation No.&nbsp;46(R), &#147;Consolidation of
Variable Interest Entities&#148;, Statement of Position 78-9, &#147;Accounting for Investments in Real Estate
Ventures&#148; and Emerging Issues Task Force (&#147;EITF&#148;) Statement No.&nbsp;04-5, &#147;Determining Whether a General
Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When
the Limited Partners Have Certain Rights. Based on the guidance set forth in SFAS Interpretation
No.&nbsp;46(R)&#148;. The Company has determined that the partners and/or tenants in common in its real
estate ventures have certain protective rights that limit the Company&#146;s control of the investment.
Therefore, the Company&#146;s share of its investment in real estate ventures have been accounted for
under the equity method of accounting in the accompanying financial statements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>RESPONSE TO COMMENT 6</U>:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Registrant has expanded its disclosures relative to accounting for partial sales of real estate.
Please see the revised note to the proposed Financial Statements for Registrant&#146;s consideration of
paragraph 33 of SFAS 66 in its accounting policy with respect to disclosure of gain recognition of
sales of undivided interests in properties. The new note in the significant accounting policies
will read as follows:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B><I>Sales of Undivided Interests in Properties.</I></B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company accounts for profit recognition on sales of real estate in accordance with SFAS&nbsp;No.
66: &#147;Accounting for Sales of Real Estate&#148; (&#147;SFAS 66&#148;). Pursuant to SFAS 66, profits from sales will
not be recognized under the full accrual method by the Company until certain criteria are met. A
sale is a partial sale if the seller retains an equity interest in the property or has an equity
interest in the buyer. Profit (the difference between the sales value and the proportionate cost of
the partial interest sold) shall be recognized at the date of sale if a sale has been consummated
and the following:
</DIV>
<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The buyer is independent of the seller.</DIV></TD>
</TR>
</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Collection of the sales price is reasonably assured.</DIV></TD>
</TR>
</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The seller will not be required to support the operations of the property or its related
obligations to an extent greater than its proportionate interest.</DIV></TD>
</TR>
</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Gains relating to transactions which do not meet the criteria for full accrual method of accounting
are deferred and recognized when the full accrual method of accounting criteria are met or by using
the installment or deposit methods of profit recognition, as appropriate in the circumstances.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
 <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">RUSHALL &#038; McGEEVER<BR>
A PROFESSIONAL LAW CORPORATION
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">United States Securities and Exchange Commission</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Attn:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ms. Cicely Lomothe, Accounting Branch Chief<br>
Ms.&nbsp;Jaime John, Staff Accountant<br>
Ms.&nbsp;Kristina Aberg, Attorney-Advisor</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left">April&nbsp;10, 2009<BR>
Page 4</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>RESPONSE TO COMMENT 7</U>:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company allocates its purchase price between land and buildings based on several indications
of value, including recent comparable land sales, property tax assessments and, in some instances,
independent appraisals. We will reword the second paragraph in our disclosure of
significant accounting policies &#147;Property Acquisitions&#148; note to read as follows:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 0%">The Company allocates the purchase price to tangible assets of an acquired
property (which includes land, building and tenant improvements) based on the
estimated fair values of those tangible assets, assuming the building was
vacant. Estimates of fair value for land, building and building improvements are
based on many factors including, but not limited to, comparisons to other
properties sold in the same geographic area, independent third party valuations
and, in some states, recent property tax assessments. The Company also considers
information obtained about each property as a result of its pre-acquisition due
diligence, marketing and leasing activities in estimating the fair values of the
tangible and intangible assets and liabilities acquired.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>RESPONSE TO COMMENT 8</U>:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Registrant has filed its Item&nbsp;4.02 8-K Report.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>RESPONSE TO COMMENT 9</U>:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Registrant
notes the Staff&#146;s comment. Registrant will file its request with the Division of
Corporate Finance&#146;s Office of Chief Accountant for a waiver from the Rule&nbsp;8-08 financial
information filing requirements for the properties purchased before the initial filing of the Registrant&#146;s Form&nbsp;10.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>RESPONSE TO COMMENT 10</U>:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>World Plaza</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Background</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In September&nbsp;2007, the Company acquired an assignment to a 99&nbsp;year ground lease that commenced in
1963, the existing buildings, and building improvements to the land with rights to mortgage same and
an assignment of the existing tenant&#146;s lease agreements. The Company paid $7.7&nbsp;million.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">At acquisition, the property consisted of the master ground lease and a lease fee interest with
respect to 3 one story class &#147;C&#148; buildings with approximately 55,096 square feet of retail
center in San Bernardino, California. The land lease, including an option to purchase the land, was
assigned to the Company without modification from its original inception executed in 1963. The
option to purchase the land calls for the lessee to pay a fixed purchase price of $181,710. The
only time this option can be exercised is at the end of the lease term in 2062, and the option must be
exercised within 90&nbsp;days of the end of the lease term or any rights to
exercise the purchase option will be lost.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The purchase price for the land remains fixed for the entire 99&nbsp;year lease term at $181,710 while
the value of the land has appreciated significantly since 1963. The Company attributed a value of
$1.4&nbsp;million, net of the present value of the option cost, to the land purchase option. The land
value was based upon other comparable property sales near the date of purchase and a copy of a
recent appraisal prepared for the benefit of the existing lender from whom we assumed the loan.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">RUSHALL &#038; McGEEVER<BR>
A PROFESSIONAL LAW CORPORATION
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">United States Securities and Exchange Commission</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Attn:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ms. Cicely Lomothe, Accounting Branch Chief<br>
Ms.&nbsp;Jaime John, Staff Accountant<br>
Ms.&nbsp;Kristina Aberg, Attorney-Advisor</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left">April&nbsp;10, 2009<BR>
Page 5</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Accounting References on point to this issue</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Paragraph&nbsp;15 of FIN 21 states the following:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In a business combination, the acquiring enterprise shall retain the previous classification in
accordance with FASB Statement No.&nbsp;13 for the leases of an acquired enterprise unless the
provisions of the lease are modified as indicated in paragraph 13 above.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Paragraph&nbsp;7 of SFAS 13 states the following:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The criteria for classifying leases set forth in this paragraph and in paragraph 8 derive from
the concept set forth in paragraph 60. If at its inception (as defined in paragraph 5(b)) a lease
meets one or more of the following four criteria, the lease shall be classified as a capital lease
by the lessee. Otherwise, it shall be classified as an operating lease.
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"> The lease transfers ownership of the property to the lessee by the end of the lease term
(as defined in paragraph 5(f)). This criterion is met in situations in which the lease
agreement provides for the transfer of title at or shortly after the end of the lease term
in exchange for the payment of a nominal fee, for example, the minimum required by statutory
regulation to transfer title.</DIV></TD>
</TR>
</TABLE>
</DIV>
<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The lease contains a bargain purchase option (as defined in paragraph 5(d)).</DIV></TD>
</TR>
</TABLE>
</DIV>
<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The lease term (as defined in paragraph 5(f)) is equal to 75&nbsp;percent or more of the
estimated economic life of the leased property (as defined in paragraph 5(g)). However, if
the beginning of the lease term falls within the last 25&nbsp;percent of the total estimated
economic life of the leased property, including earlier years of use, this criterion shall
not be used for purposes of classifying the lease.</DIV></TD>
</TR>
</TABLE>
</DIV>
<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"> The present value at the beginning of the lease term of the minimum lease payments (as
defined in paragraph 5(j)), excluding that portion of the payments representing executory
costs such as insurance, maintenance, and taxes to be paid by the lessor, including any
profit thereon, equals or exceeds 90&nbsp;percent of the excess of the fair value of the leased
property (as defined in paragraph 5(c)) to the lessor at the inception of the lease over any
related investment tax credit retained by the lessor and expected to be realized by him.
However, if the beginning of the lease term falls within the last 25&nbsp;percent of the total
estimated economic life of the leased property, including earlier years of use, this
criterion shall not be used for purposes of classifying the lease. A lessor shall compute
the present value of the minimum lease payments using the interest rate implicit in the
lease (as defined in paragraph 5(k)). A lessee shall compute the present value of the
minimum lease payments using his incremental borrowing rate (as defined in paragraph 5(1)),
unless (i)&nbsp;it is practicable for him to learn the implicit rate computed by the lessor and
(ii)&nbsp;the implicit rate computed by the lessor is less than the lessee&#146;s incremental
borrowing rate. If both of those conditions are met, the lessee shall use the implicit rate.
</DIV></TD>
</TR>
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
 <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">RUSHALL &#038; McGEEVER<BR>
A PROFESSIONAL LAW CORPORATION
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">United States Securities and Exchange Commission</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Attn:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ms. Cicely Lomothe, Accounting Branch Chief<br>
Ms.&nbsp;Jaime John, Staff Accountant<br>
Ms.&nbsp;Kristina Aberg, Attorney-Advisor</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left">April&nbsp;10, 2009<BR>
Page 6</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">FAS 142 Paragraph&nbsp;11 states the following:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The accounting for a recognized intangible asset is based on its useful life to the reporting
entity. An intangible asset with a finite useful life is amortized; an intangible asset with an
indefinite useful life is not amortized. The useful life of an intangible asset to an entity is the
period over which the asset is expected to contribute directly or indirectly to the future cash
flows of that entity.<SUP style="font-size: 85%; vertical-align: text-top">9</SUP> The estimate of the useful life of an intangible asset to an
entity shall be based on an analysis of all pertinent factors, in particular, the following factors
with no one factor being more presumptive than the other:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The expected use of the asset by the entity.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The expected useful life of another asset or a group of assets to which the
useful life of the intangible asset may relate.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">FAS 142 Paragraph&nbsp;13 states the following:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The amount of an intangible asset to be amortized shall be the amount initially assigned to that
asset less any residual value. The residual value of an intangible asset shall be assumed to be
zero unless at the end of its useful life to the reporting entity the asset is expected to continue
to have a useful life to another entity and (a)&nbsp;the reporting entity has a commitment from a third
party to purchase the asset at the end of its useful life or (b)&nbsp;the residual value can be
determined by reference to an exchange transaction in an existing market for that asset and that
market is expected to exist at the end of the asset&#146;s useful life.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">FAS 142 Paragraph&nbsp;B58 states the following:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Board reasoned that an intangible asset that is separable or is subject to contractual or
legal-based rights will have an observable market or will have identifiable cash flows associated
with it. The Board noted that Concepts Statement 7 (issued after issuance of the 1999 Exposure
Draft) provides guidance for using cash flows to determine the fair value of an asset in the
absence of an observable market. Because there are different ways to determine fair value, the
Board concluded that it was not necessary that there be an observable market for an intangible
asset in order for that asset not to be amortized. Therefore, any intangible asset that is
determined to have an indefinite useful life should not be amortized until that life is determined
to be no longer indefinite.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Facts</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>With respect to classification of the lease:</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">It is the Company&#146;s position that the unmodified land lease from 1963 would have been classified as
an operating lease as the lease does not meet any of the criteria under paragraph 7 of SFAS 13.
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">To effect the transfer of ownership, the purchase price to buy the land is $181,710
which the Company&#146;s believes was far greater than a nominal fee for the land at lease
inception in 1963.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The lease does not contain a bargain purchase price.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The lease relates to land. Therefore, the 75% of economic useful life and the present
value of the lease payment provisions of these paragraphs do not apply.</DIV></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">RUSHALL &#038; McGEEVER<BR>
A PROFESSIONAL LAW CORPORATION
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">United States Securities and Exchange Commission</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Attn:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ms. Cicely Lomothe, Accounting Branch Chief<br>
Ms.&nbsp;Jaime John, Staff Accountant<br>
Ms.&nbsp;Kristina Aberg, Attorney-Advisor</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left">April&nbsp;10, 2009<BR>
Page 7</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>With respect to application of SFAS 142:</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company believes that this land purchase option value is separable from the components of the
contract as stated under paragraph B58 of SFAS 142. We also believe that the useful life of this
asset under SFAS 142, paragraph 11 is indefinite as it relates to the acquisition of the land and
that under paragraph 13 its residual value is at least equal to its market value. In addition, the
likelihood of exercising this land purchase option by the Company or subsequent assignees is
probable. Further, should the Company decide to sell its property rights to World Plaza, the value
of the land purchase option would be a material and separate consideration to the selling price
just as it was to our acquisition price considerations.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Conclusion</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In conclusion, the Company believes that it has properly treated the accounting for the land
purchase option as an indefinite lived intangible asset separate and distinct from any other
components of the lease contract.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Very truly yours,
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">/s/ Bruce J. Rushall
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">BRUCE J. RUSHALL
</DIV>

<DIV align="center">
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    <TD colspan="3" valign="top" align="left">BJR/cak</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
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    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">cc:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Kenneth Elsberry <br>
Jack Heilbron</TD>
</TR>
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