Edgar Filing: Cole Credit Property Trust II Inc

COLE CREDIT PROPERTY TRUST II, INC.

Filed Pursuant to Rule 424(b)(3)
Registration No. 333-138444

COLE CREDIT PROPERTY TRUST II, INC.
SUPPLEMENT NO. 2 DATED JULY 23, 2007
TO THE PROSPECTUS DATED MAY 11, 2007

This document supplements, and should be read in conjunction with, the prospectus of Cole Credit Property Trust II, Inc. dated May 11, 2007 and Supplement No. 1 dated May 16, 2007. Unless otherwise defined in this supplement, capitalized terms used in this supplement shall have the same meanings as set forth in the prospectus.

The purpose of this supplement is to describe the following:

(1) the status of the offering of shares in Cole Credit Property Trust II, Inc.;

(2) recent real property investments;

(3) potential real property investments; and

(4) updated annual operating results of prior real estate programs.

Status of Our Public Offerings

We commenced our initial public offering on June 27, 2005. We terminated our initial public offering on May 22, 2007. As of the close of business on May 22, 2007, we had issued a total of 54,838,315 shares in our initial public offering, including 53,909,877 shares sold in the primary offering and 928,438 shares sold pursuant to our distribution reinvestment plan, resulting in gross offering proceeds to us of approximately $547 million.

We commenced our follow-on offering of 150,000,000 shares of common stock on May 23, 2007. Of these shares, we are offering 125,000,000 shares in a primary offering and 25,000,000 shares pursuant to our distribution reinvestment plan. As of July 17, 2007, we had accepted investors’ subscriptions for, and issued, approximately 8,000,000 shares of our common stock in the follow-on offering, resulting in gross proceeds to us of approximately $80 million. Combined with our initial public offering, we had raised a total of approximately $627 million as of July 17, 2007.

Replace and Supplement Real Property Investments

The following information supplements and should be read in conjunction with the table in the section captioned “Prospectus Summary — Description of Real Estate Investments” beginning on page 7 of the prospectus.

Description of Real Estate Investments

As of July 23, 2007, we owned 216 properties, comprising approximately 9.0 million rentable square feet of commercial space located in 42 states and the U.S. Virgin Islands. Properties acquired between May 16, 2007, the date of our last prospectus supplement, and July 23, 2007 are listed below.


		Rentable		Purchase
Property Description	Tenant	Square Feet		Price

CVS — Florence, SC	Florence CVS, Inc.		10,125	$	2,625,000
Eckerd — Spartanburg (Main), SC	Eckerd Corporation		10,908		3,475,000
Staples — Warsaw, IN	Staples the Office Superstore East, Inc.		23,990		3,215,000
Walgreens — Bryan, TX	Walgreen Co.		15,050		6,325,000
Walgreens — Harris County, TX	Walgreen Co.		15,050		5,650,000
Tractor Supply — Fairview, TN	Tractor Supply Company		19,067		2,970,000
Borders — Rapid City, SD	Borders, Inc.		20,000		6,461,000
Borders — Reading, PA	Borders, Inc.		25,023		6,261,000
Walgreens — Gainesville, FL	Walgreen Co.		13,905		3,625,000
Chili’s — Fredericksburg, TX	Brinker Texas, L.P.		5,494		2,314,000
Tractor Supply — Baytown, TX	Tractor Supply Company		22,670		3,310,000
Winco — Eureka, CA	Winco Foods, LLC		82,490		16,300,000
Eckerd — Vineland, NJ	Eckerd Corporation		14,910		5,000,000
Eckerd — Mantua, NJ	Eckerd Corporation		8,710		2,050,000
Best Buy (Super Value) — Warwick, RI	Best Buy Stores, LP		64,514		7,300,000
Best Buy — Evanston, IL	Best Buy Stores, LP		45,397		8,250,000
Academy Sports — Houston, TX	Academy, LTD		53,381		5,400,000


		Rentable		Purchase
Property Description	Tenant	Square Feet		Price

Starbucks — Covington, TN	Starbucks Corporation		1,805		1,516,000
Starbucks — Sedalia, MO	Starbucks Corporation		1,800		1,227,000
Kroger — La Grange, GA	The Kroger Co.		61,331		7,293,750
La-Z-Boy — Kentwood, MI	La-Z-Boy Showcase Shoppes of Detroit, Inc.		30,245		5,145,386
Circuit City — Mesquite, TX	Circuit City Stores, Inc.		42,918		7,825,000
Tractor Supply — Prior Lake, MN	Tractor Supply Company		36,183		5,050,000
Circuit City Distribution Center — Groveland, FL	Circuit City Stores, Inc.		706,560		27,548,810
Walgreens — Fort Worth, TX	Walgreen Co.		15,120		4,855,153
Kohls — Lake Zurich, IL	Kohl’s Department Stores, Inc.		88,306		12,712,730
EDS — Salt Lake City, UT	EDS Information Services, LLC		406,101		22,824,824
Lowe’s — Cincinnati, OH	Lowe’s Home Centers, Inc.		129,044		20,558,483
Walgreens — Kansas City (Linwood), MO	Walgreen Co.		13,905		3,750,000
Walgreens — Kansas City (Troost), MO	Walgreen Co.		13,905		4,928,000
Walgreens — Kansas City (63rd St), MO	Walgreen Co.		13,905		4,335,000
Walgreens — Kansas City (Independence), MO	Walgreen Co.		13,905		4,598,000
Walgreens — Topeka, KS	Walgreen Co.		13,905		3,121,950
CVS — Amarillo, TX	Eckerd Corporation		9,504		2,791,067
Taco Bell — Brazil, IN	Southern Bells, Inc.		1,993		1,969,655
Taco Bell — Henderson, KY	Southern Bells, Inc.		2,320		1,552,607
Academy Sports — Baton Rouge, LA	Academy Louisiana Co.		52,500		6,942,782
Taco Bell — Washington, IN	Southern Bells, Inc.		2,093		1,255,545
Taco Bell — Robinson, IL	Southern Bells, Inc.		1,944		1,550,672
Taco Bell — Princeton, IN	Southern Bells, Inc.		2,436		1,424,328
Eckerd — Mableton, GA	Eckerd Corporation		8,996		1,850,637
Taco Bell/KFC — Spencer, IN	Southern Bells, Inc.		2,296		964,865
CVS — Del City, OK	Eckerd Corporation		10,906		4,179,502
Taco Bell — Anderson, IN	Southern Bells, Inc.		2,166		1,725,514
Academy Sports — North Richland Hills, TX	Academy, LTD		52,500		6,292,471
Dave and Buster’s — Addison, IL	Dave and Buster’s, Inc.		50,000		13,928,571
Academy Sports — Houston (Southwest), TX	Academy, LTD		52,548		7,138,821
Academy Sports — Houston (Breton), TX	Academy, LTD		53,381		4,724,567
Eckerd — Chattanooga, TN	Eckerd Corporation		10,909		2,797,644
Taco Bell/KFC — Vinceness, IN	Southern Bells, Inc.		2,691		1,478,690
Taco Bell — Martinsville, IN	Southern Bells, Inc.		2,057		1,973,552
LJS/A&W — Houston, TX	LJS Restaurants, Inc.		34,094		1,204,821
Dickinson Theatre — Yukon, OK	Dickinson Theatres, Inc.		27,442		4,550,000
Circuit City — Taunton, MA	Circuit City Stores, Inc.		32,748		7,860,000
Telerx — Kings Mountain, NC	TelerX Marketing, Inc.		60,000		8,690,000
Staples — Guntersville, AL	Staples the Office Super Store East, Inc.		23,942		3,325,000
Fed Ex — Peoria, IL	Federal Express Corporation		38,200		3,200,000


			2,577,288	$	321,192,397

The following information supplements, and should be read in conjunction with, the section of our prospectus captioned “Investment Objectives and Policies — Real Property Investments” beginning on page 84 of the prospectus.

Real Property Investments

We engage in the acquisition and ownership of commercial properties throughout the United States. We invest primarily in income-generating retail properties, net leased to investment grade and other creditworthy tenants.

As of July 23, 2007, we, through separate wholly-owned limited partnerships or limited liability companies, had acquired a 100% fee simple interest in 216 properties consisting of approximately 9.0 million gross rentable square feet located in 42 states and the U.S. Virgin Islands. The properties generally were acquired through the use of mortgage notes payable and proceeds from our ongoing public offering of our common stock.

The following table summarizes properties acquired between May 16, 2007, the date of our last prospectus supplement, and July 23, 2007 in order of acquisition date:


						Fees Paid
						To		Rentable
		Date	Year	Purchase		Sponsor		Square		Physical
Property	Type	Acquired	Built	Price		(1)		Feet		Occupancy

CVS — Florence, SC	Drugstore	May 17, 2007	1998		$ 2,625,000		$ 69,563		10,125		100	%
Eckerd — Spartanburg (Main), SC	Drugstore	May 17, 2007	1998		3,475,000		92,088		10,908		100	%
Staples — Warsaw, IN	Office supply	May 17, 2007	1998		3,215,000		82,800		23,990		100	%
Walgreens — Bryan, TX	Drugstore	May 18, 2007	2001		6,325,000		167,610		15,050		100	%
Walgreens — Harris County, TX	Drugstore	May 18, 2007	2000		5,650,000		149,730		15,050		100	%
Tractor Supply — Fairview, TN	Specialty retail	May 25, 2007	2007		2,970,000		78,705		19,067		100	%
Borders — Rapid City, SD	Specialty retail	June 1, 2007	1999		6,461,000		173,150		20,000		100	%
Borders — Reading, PA	Specialty retail	June 1, 2007	1997		6,261,000		167,790		25,023		100	%
Walgreens — Gainesville, FL	Drugstore	June 1, 2007	1997		3,625,000		97,150		13,905		100	%
Chili’s — Fredericksburg, TX	Restaurant	June 5, 2007	1985		2,314,000		61,320		5,494		100	%
Tractor Supply — Baytown, TX	Specialty retail	June 11, 2007	2007		3,310,000		88,710		22,670		100	%
Starbucks — Covington, TN	Restaurant	June 22, 2007	2006		1,516,000		30,320		1,805		100	%
Starbucks — Sedalia, MO	Restaurant	June 22, 2007	2006		1,227,000		24,540		1,800		100	%
Winco — Eureka, CA	Grocery store	June 27, 2007	1960		16,300,000		446,470		82,490		100	%
Eckerd — Vineland, NJ	Drugstore	June 27, 2007	1997		5,000,000		135,000		14,910		100	%
Eckerd — Mantua, NJ	Drugstore	June 27, 2007	1993		2,050,000		55,700		8,710		100	%
Best Buy (Super Value) — Warwick, RI	Specialty retail	June 27, 2007	1992		7,300,000		199,500		64,514		100	%
Best Buy — Evanston, IL	Specialty retail	June 27, 2007	1996		8,250,000		224,000		45,397		100	%
Academy Sports — Houston, TX	Specialty retail	June 27, 2007	1995		5,400,000		146,250		53,381		100	%
Kroger — La Grange, GA	Grocery store	June 28, 2007	1998		7,293,750		193,500		61,331		100	%
La-Z-Boy — Kentwood, MI	Specialty retail	June 28, 2007	1986		5,145,386		138,928		30,245		100	%
Circuit City — Mesquite, TX	Specialty retail	June 29, 2007	1996		7,825,000		199,550		42,918		100	%
Tractor Supply — Prior Lake, MN	Specialty retail	June 29, 2007	1991		5,050,000		133,833		36,183		100	%
Staples — Guntersville, AL	Office supply	July 6, 2007	2001		3,325,000		88,113		23,942		100	%
Walgreens — Kansas City (Independence), MO	Drugstore	July 11, 2007	1997		4,598,000		121,860		13,905		100	%
Walgreens — Topeka, KS	Drugstore	July 11, 2007	1999		3,121,950		81,139		13,905		100	%
Walgreens — Kansas City (Linwood), MO	Drugstore	July 11, 2007	2000		3,750,000		99,375		13,905		100	%
Walgreens — Kansas City (Troost), MO	Drugstore	July 11, 2007	2000		4,928,000		123,200		13,905		100	%
Walgreens — Kansas City (63rd St), MO	Drugstore	July 11, 2007	2000		4,335,000		117,045		13,905		100	%
Circuit City — Taunton, MA	Specialty retail	July 13, 2007	2001		7,860,000		200,430		32,748		100	%
Circuit City Distribution Center — Groveland, FL	Specialty retail	July 17, 2007	1999		27,548,810		753,476		706,560		100	%
Walgreens — Fort Worth, TX	Drugstore	July 17, 2007	1999		4,855,153		133,853		15,120		100	%
Kohls — Lake Zurich, IL	Apparel	July 17, 2007	2000		12,712,730		345,005		88,306		100	%
EDS — Salt Lake City, UT	Technology Services	July 17, 2007	1993		22,824,824		636,496		406,101		100	%
Lowe’s — Cincinnati, OH	Home improvement	July 17, 2007	1998		20,558,483		549,170		129,044		100	%


						Fees Paid
						To		Rentable
		Date	Year	Purchase		Sponsor		Square		Physical
Property	Type	Acquired	Built	Price		(1)		Feet		Occupancy
Dickinson Theatre — Yukon, OK	Theaters	July 17, 2007	2007		4,550,000		91,000		27,442		100	%
Telerx — Kings Mountain, NC	Marketing	July 17, 2007	2007		8,690,000		234,630		60,000		100	%
CVS — Amarillo, TX	Drugstore	July 19, 2007	1994		2,791,067		73,231		9,504		100	%
Taco Bell — Brazil, IN	Restaurant	July 19, 2007	1996		1,969,655		39,393		1,993		100	%
Taco Bell — Henderson, KY	Restaurant	July 19, 2007	1992		1,552,607		31,052		2,320		100	%
Academy Sports — Baton Rouge, LA	Sporting goods	July 19, 2007	1996		6,942,782		185,726		52,500		100	%
Taco Bell — Washington, IN	Restaurant	July 19, 2007	1995		1,255,545		25,111		2,093		100	%
Taco Bell — Robinson, IL	Restaurant	July 19, 2007	1994		1,550,672		31,013		1,944		100	%
Taco Bell — Princeton, IN	Restaurant	July 19, 2007	1992		1,424,328		28,487		2,436		100	%
Eckerd — Mableton, GA	Drugstore	July 19, 2007	1994		1,850,637		48,983		8,996		100	%
Taco Bell/KFC — Spencer, IN	Restaurant	July 19, 2007	1999		964,865		19,297		2,296		100	%
CVS — Del City, OK	Drugstore	July 19, 2007	1998		4,179,502		109,900		10,906		100	%
Taco Bell — Anderson, IN	Restaurant	July 19, 2007	1995		1,725,514		34,510		2,166		100	%
Academy Sports — North Richland Hills, TX	Sporting goods	July 19, 2007	1996		6,292,471		168,019		52,500		100	%
Dave and Buster’s — Addison, IL	Restaurant	July 19, 2007	2006		13,928,571		334,571		50,000		100	%
Academy Sports — Houston (Southwest), TX	Sporting goods	July 19, 2007	1996		7,138,821		189,026		52,548		100	%
Academy Sports — Houston (Breton), TX	Sporting goods	July 19, 2007	1995		4,724,567		124,941		53,381		100	%
Eckerd — Chattanooga, TN	Drugstore	July 19, 2007	1997		2,797,644		75,153		10,909		100	%
Taco Bell/KFC — Vinceness, IN	Restaurant	July 19, 2007	2000		1,478,690		29,574		2,691		100	%
Taco Bell — Martinsville, IN	Restaurant	July 19, 2007	1986		1,973,552		39,471		2,057		100	%
LJS/A&W — Houston, TX	Restaurant	July 19, 2007	2004		1,204,821		24,096		34,094		100	%
Federal Express — Peoria, IL	Distribution	July 20, 2007	1997		3,200,000		84,800		38,200		100	%

				$	321,192,397	$	8,427,353		2,577,288


(1)		Fees paid to sponsor include payments made to an affiliate of our advisor for acquisition fees in connection with the property acquisition and payments to our advisor for finance coordination fees for services in connection with the origination or assumption of debt financing obtained to acquire the respective property. For more detailed information on fees paid to affiliates of our sponsor, see the section captioned “Management Compensation” beginning on page 58 of the prospectus.

The following table sets forth the principal provisions of the lease terms for the major tenants at each property listed above:


					% of
			Total		Total						Base
	Number		Square		Square			Renewal	Current		Rent per
	of		Feet		Feet			Options	Annual		Square		Lease Term
Property	Tenants	Major Tenants*	Leased		Leased			**	Base Rent		Foot		Beginning		To
CVS — Florence, SC	1	Florence CVS, Inc.		10,125		100	%	4/5 yr.	$	177,188	$	17.50		5/17/2007		1/31/2019
Eckerd — Spartanburg (Main), SC	1	Eckerd Corporation		10,908		100	%	4/5 yr.		268,555		24.62		5/17/2007		9/28/2018
Staples — Warsaw, IN	1	Staples the Office Superstore East, Inc.		23,990		100	%	4/5 yr.		261,491		10.90		5/17/2007		5/31/2013
Walgreens — Bryan, TX	1	Walgreen Co.		15,050		100	%	8/5 yr.		432,900		28.76		5/18/2007		4/30/2021
Walgreens — Harris County, TX	1	Walgreen Co.		15,050		100	%	8/5 yr.		389,340		25.87		5/18/2007		3/31/2021
Tractor Supply — Fairview, TN	1	Tractor Supply Company		19,067		100	%	4/5 yr.		216,420		11.35		5/25/2007		5/4/2022
Borders — Rapid City, SD	1	Borders, Inc.		20,000		100	%	5/5 yr.		465,923		23.30		6/1/2007		3/31/2016
Borders — Reading, PA	1	Borders, Inc.		25,023		100	%	4/5 yr.		451,392		18.04		6/1/2007		1/31/2019
Walgreens — Gainesville, FL	1	Walgreen Co.		13,905		100	%	8/5 yr.		262,800		18.90		6/1/2007		1/31/2018
Chili’s — Fredericksburg, TX	1	Brinker Texas, L.P.		5,494		100	%	2/5 yr.		162,000		29.49		6/5/2007		11/30/2025
Tractor Supply — Baytown, TX	1	Tractor Supply Company		22,670		100	%	4/5 yr.		235,000		10.37		6/11/2007		5/29/2022
Winco — Eureka, CA	1	Winco Foods, LLC		82,490		100	%	2/5 yr.		1,043,955		12.66		6/27/2007		6/23/2016
Eckerd — Vineland, NJ	1	Eckerd Corporation		14,910		100	%	4/5 yr.		363,310		24.37		6/27/2007		3/5/2019
Eckerd — Mantua, NJ	1	Eckerd Corporation		8,710		100	%	4/5 yr.		157,227		18.05		6/27/2007		6/17/2014
Best Buy (Super Value) — Warwick, RI	1	Best Buy Stores, LP		64,514		100	%	4/5 yr.		537,625		8.33		6/27/2007		2/1/2020
Best Buy — Evanston, IL	1	Best Buy Stores, LP		45,397		100	%	3/5 yr.		576,300		12.69		6/27/2007		2/26/2017
Academy Sports — Houston, TX	1	Academy, LTD		53,381		100	%	4/5 yr.		379,277		7.11		6/27/2007		5/31/2015
Starbucks — Covington, TN	1	Starbucks Corporation		1,805		100	%	4/5 yr.		105,376		58.38		6/22/2007		4/30/2017
Starbucks — Sedalia, MO	1	Starbucks Corporation		1,800		100	%	4/5 yr.		85,302		47.39		6/22/2007		3/31/2017
Kroger — La Grange, GA	1	The Kroger Co.		61,331		100	%	N/A		531,126		8.66		6/28/2007		1/31/2018
La-Z-Boy — Kentwood, MI	1	La-Z-Boy Showcase Shoppes of Detroit, Inc.		30,245		100	%	4/5 yr.		385,904		12.76		6/28/2007		10/31/2017
Circuit City — Mesquite, TX	1	Circuit City Stores, Inc.		42,918		100	%	4/5 yr.		586,844		13.67		6/29/2007		1/31/2017
Tractor Supply — Prior Lake, MN	1	Tractor Supply Company		36,183		100	%	4/5 yr.		366,000		10.12		6/29/2007		6/4/2022
Circuit City Distribution Center — Groveland, FL	1	Circuit City Stores, Inc.		706,560		100	%	2/10 yr.		1,830,075		2.59		7/17/2007		8/31/2021
Walgreens — Fort Worth, TX	1	Walgreen Co.		15,120		100	%	8/5 yr.		305,842		20.23		7/17/2007		11/30/2019
Kohls — Lake Zurich, IL	1	Kohl’s Department Stores, Inc.		88,306		100	%	6/5 yr.		800,902		9.07		7/17/2007		1/30/2021


					% of
			Total		Total						Base
	Number		Square		Square			Renewal	Current		Rent per
	of		Feet		Feet			Options	Annual		Square		Lease Term
Property	Tenants	Major Tenants*	Leased		Leased			**	Base Rent		Foot		Beginning		To
EDS — Salt Lake City, UT	1	EDS Information Services, LLC		406,101		100	%	3/5 yr.		593,418		1.46		7/17/2007		7/31/2016
Lowe’s — Cincinnati, OH	1	Lowe’s Home Centers, Inc.		129,044		100	%	6/5 yr.		1,227,509		9.51		7/17/2007		2/28/2019
Walgreens — Kansas City (Linwood), MO	1	Walgreen Co.		13,905		100	%	8/5 yr.		264,400		19.01		7/11/2007		1/31/2018
Walgreens — Kansas City (Troost), MO	1	Walgreen Co.		13,905		100	%	8/5 yr.		348,000		25.03		7/11/2007		3/31/2020
Walgreens — Kansas City (63rd St), MO	1	Walgreen Co.		13,905		100	%	8/5 yr.		307,857		22.14		7/11/2007		12/31/2019
Walgreens — Kansas City (Independence), MO	1	Walgreen Co.		13,905		100	%	8/5 yr.		323,291		23.25		7/11/2007		12/31/2017
Walgreens — Topeka, KS	1	Walgreen Co.		13,905		100	%	8/5 yr.		228,000		16.40		7/11/2007		9/30/2019
CVS — Amarillo, TX	1	Eckerd Corporation		9,504		100	%	4/5 yr.		187,488		19.73		7/19/2007		12/3/2014
Taco Bell — Brazil, IN	1	Southern Bells, Inc.		1,993		100	%	3/5 yr.		142,800		71.65		7/19/2007		5/17/2021
Taco Bell — Henderson, KY	1	Southern Bells, Inc.		2,320		100	%	3/5 yr.		114,117		49.19		7/19/2007		5/17/2021
Academy Sports — Baton Rouge, LA	1	Academy Louisiana Co., LLC		52,500		100	%	4/5 yr.		455,582		8.68		7/19/2007		6/30/2017
Taco Bell — Washington, IN	1	Southern Bells, Inc.		2,093		100	%	3/5 yr.		93,538		44.69		7/19/2007		5/17/2021
Taco Bell — Robinson, IL	1	Southern Bells, Inc.		1,944		100	%	3/5 yr.		116,300		59.83		7/19/2007		5/17/2021
Taco Bell — Princeton, IN	1	Southern Bells, Inc.		2,436		100	%	3/5 yr.		106,825		43.85		7/19/2007		5/17/2021
Eckerd — Mableton, GA	1	Eckerd Corporation		8,996		100	%	4/5 yr.		135,490		15.06		7/19/2007		1/28/2014
Taco Bell/KFC — Spencer, IN	1	Southern Bells, Inc.		2,296		100	%	3/5 yr.		71,400		31.10		7/19/2007		5/17/2021
CVS — Del City, OK	1	Eckerd Corporation		10,906		100	%	4/5 yr.		283,290		25.98		7/19/2007		10/6/2018
Taco Bell — Anderson, IN	1	Southern Bells, Inc.		2,166		100	%	3/5 yr.		124,237		57.36		7/19/2007		5/17/2021
Academy Sports — N Richland Hills, TX	1	Academy, LTD		52,500		100	%	4/5 yr.		450,850		8.59		7/19/2007		5/31/2007
Dave and Buster’s — Addison, IL	1	Dave and Buster’s, Inc.		50,000		100	%	3/5 yr.		975,000		19.50		7/19/2007		5/31/2024
Academy Sports — Houston (Southwest), TX	1	Academy, LTD		52,548		100	%	4/5 yr.		494,548		9.41		7/19/2007		2/1/2017
Academy Sports — Houston (Breton), TX	1	Academy, LTD		53,381		100	%	4/5 yr.		325,550		6.10		7/19/2007		6/30/2015
Eckerd — Chattanooga, TN	1	Eckerd Corporation		10,909		100	%	4/5 yr.		201,276		18.45		7/19/2007		7/25/2017
Taco Bell/KFC — Vinceness, IN	1	Southern Bells, Inc.		2,691		100	%	3/5 yr.		107,205		39.84		7/19/2007		5/17/2021
Taco Bell — Martinsville, IN	1	Southern Bells, Inc.		2,057		100	%	3/5 yr.		143,082		69.56		7/19/2007		5/17/2021
LJS/A&W — Houston, TX	1	LJS Restaurants, Inc.		34,094		100	%	3/5 yr.		72,000		2.11		7/19/2007		12/1/2018
Dickinson Theatre — Yukon, OK	1	Dickinson Theatres, Inc.		27,442		100	%	3/5 yr.		392,421		14.30		7/17/2007		6/30/2022
Circuit City — Taunton, MA	1	Circuit City Stores, Inc.		32,748		100	%	2/10 yr.		570,000		17.41		7/13/2007		2/28/2021

% of

Total

Base

Number

Square

Renewal

Current

Rent per

Feet

Options

Annual

Square

Lease Term

Property

Tenants

Major Tenants*

Leased

Base Rent

Foot

Beginning

Telerx — Kings Mountain, NC

TelerX Marketing, Inc.

60,000

100

3/5 yr.

604,800

10.08

7/17/2007

5/31/2017

Staples — Guntersville, AL

Staples the Office Super Store East, Inc.

23,942

100

4/5 yr.

248,997

10.40

7/6/2007

3/31/2016

Federal Express — Peoria, IL

Federal Express Corporation

38,200

100

2/5 yr.

227,290

5.95

7/20/2007

3/31/2017

2,577,288

21,314,635


*		Major tenants include those tenants that occupy greater than 10.0% of the rentable square feet of their respective property.

**		Represents option renewal period / term of each option.

Cole Realty Advisors has the sole and exclusive right to manage, operate, lease and supervise the overall maintenance of the properties listed above and currently receives a property management fee of up to 2.0% of the monthly gross revenues from our single-tenant properties and up to 4.0% of the monthly gross revenues from our multi-tenant properties. We currently have no plans for any renovations, improvements or development of the properties listed above and we believe that all are adequately insured.

In connection with the property acquisitions noted above, we incurred or assumed the following fixed and variable rate mortgage notes:


	Fixed Rate		Fixed				Variable
	Loan		Interest			Maturity	Rate Loan		Maturity	Total Loan
Property	Amount		Rate			Date	Amount		Date	Outstanding

CVS — Florence, SC	$	1,706,205		5.73	%	6/1/2017		—	N/A	$	1,706,205
Eckerd — Spartanburg (Main), SC		2,258,750		5.73	%	6/1/2017		—	N/A		2,258,750
Staples — Warsaw, IN		1,850,000		5.73	%	6/1/2017		—	N/A		1,850,000
Walgreens — Bryan, TX		4,111,000		5.70	%	6/11/2017		949,000	8/16/2007		5,060,000
Walgreens — Harris County, TX		3,673,000		5.70	%	6/11/2017		848,000	6/11/2017		4,521,000
Tractor Supply — Fairview, TN		1,930,500		5.59	%	6/1/2017		—	N/A		1,930,500
Borders — Rapid City, SD		4,393,000		5.66	%	6/11/2017		776,000	9/1/2007		5,169,000
Borders — Reading, PA		4,257,000		5.66	%	6/11/2017		752,000	9/1/2007		5,009,000
Walgreens — Gainesville, FL		2,465,000		5.60	%	6/11/2017		435,000	9/1/2007		2,900,000
Chili’s — Fredericksburg, TX		1,504,000		5.55	%	6/11/2017		347,000	9/5/2007		1,851,000
Tractor Supply — Baytown, TX		2,251,000		5.60	%	6/11/2017		397,000	9/11/2007		2,648,000
Winco — Eureka, CA		11,247,000		5.71	%	7/1/2017		—	N/A		11,247,000
Eckerd — Vineland, NJ		3,500,000		5.71	%	7/1/2017		—	N/A		3,500,000
Eckerd — Mantua, NJ		1,470,000		5.71	%	7/1/2017		—	N/A		1,470,000
Best Buy (Super Value) — Warwick, RI		5,350,000		5.71	%	7/1/2017		—	N/A		5,350,000
Best Buy — Evanston, IL		5,900,000		5.71	%	7/1/2017		—	N/A		5,900,000
Academy Sports — Houston, TX		3,825,000		5.71	%	7/1/2017		—	N/A		3,825,000
Starbucks — Covington, TN		—		N/A		N/A		—	N/A		—
Starbucks — Sedalia, MO		—		N/A		N/A		—	N/A		—


	Fixed Rate		Fixed				Variable
	Loan		Interest			Maturity	Rate Loan		Maturity	Total Loan
Property	Amount		Rate			Date	Amount		Date	Outstanding

Kroger — La Grange, GA		4,750,000		5.21	%	7/1/2012		—	N/A		4,750,000
La-Z-Boy — Kentwood, MI		3,602,000		5.32	%	7/1/2012		—	N/A		3,602,000
Circuit City — Mesquite, TX		4,305,000		5.32	%	7/1/2012		—	N/A		4,305,000
Tractor Supply — Prior Lake, MN		3,283,250		5.73	%	7/1/2017		—	N/A		3,283,250
Circuit City Distribution Center — Groveland, FL		20,250,000		5.55	%	5/11/2017		—	N/A		20,250,000
Walgreens — Fort Worth, TX		3,675,000		5.55	%	5/11/2017		—	N/A		3,675,000
Kohls — Lake Zurich, IL		9,075,000		5.55	%	5/11/2017		—	N/A		9,075,000
EDS — Salt Lake City, UT		18,000,000		5.55	%	5/11/2017		—	N/A		18,000,000
Lowe’s-Cincinnati, OH		13,800,000		5.55	%	5/11/2017		—	N/A		13,800,000
Walgreens — Kansas City (Linwood), MO		2,437,500		5.69	%	7/11/2017		—	N/A		2,437,500
Walgreens — Kansas City (Troost), MO		2,464,000		5.79	%	7/11/2017		—	N/A		2,464,000
Walgreens — Kansas City (63rd St), MO		3,034,500		5.79	%	7/11/2017		—	N/A		3,034,500
Walgreens — Kansas City (Independence), MO		2,990,000		5.69	%	7/11/2017		—	N/A		2,990,000
Walgreens — Topeka, KS		1,870,000		5.79	%	7/11/2017		—	N/A		1,870,000
CVS — Amarillo, TX		1,741,000		5.83	%	8/1/2017		—	N/A		1,741,000
Taco Bell — Brazil, IN		—		N/A		N/A		—	N/A		—
Taco Bell — Henderson, KY		—		N/A		N/A		—	N/A		—
Academy Sports — Baton Rouge, LA		4,687,000		5.83	%	8/1/2017		—	N/A		4,687,000
Taco Bell — Washington, IN		—		N/A		N/A		—	N/A		—
Taco Bell — Robinson, IL		—		N/A		N/A		—	N/A		—
Taco Bell — Princeton, IN		—		N/A		N/A		—	N/A		—
Eckerd — Mableton, GA		1,197,000		5.67	%	8/1/2017		—	N/A		1,197,000
Taco Bell/KFC — Spencer, IN		—		N/A		N/A		—	N/A		—
CVS — Del City, OK		2,631,000		5.82	%	8/1/2017		—	N/A		2,631,000
Taco Bell — Anderson, IN		—		N/A		N/A		—	N/A		—
Academy Sports — N Richland Hills, TX		4,217,000		5.83	%	8/1/2017		—	N/A		4,217,000
Dave and Busters — Addison, IL		5,600,000		5.56	%	8/1/2017		—	N/A		5,600,000
Academy Sports — Houston (Southwest), TX		4,625,000		5.83	%	8/1/2017		—	N/A		4,625,000
Academy Sports — Houston (Breton), TX		3,045,000		5.83	%	8/1/2017		—	N/A		3,045,000
Eckerd — Chattanooga, TN		1,920,000		5.67	%	8/1/2017		—	N/A		1,920,000
Taco Bell/KFC — Vinceness, IN		—		N/A		N/A		—	N/A		—
Taco Bell — Martinsville, IN		—		N/A		N/A		—	N/A		—
LJS/A&W — Houston, TX		—		N/A		N/A		—	N/A		—
Dickinson Theatre — Yukon, OK		—		N/A		N/A		—	N/A		—
Circuit City — Taunton, MA		4,323,000		5.32	%	8/1/2012		—	N/A		4,323,000
Telerx — Kings Mountain, NC		6,083,000		5.27	%	8/1/2012		—	N/A		6,083,000
Staples — Guntersville, AL		2,161,250		5.24	%	8/1/2012		—	N/A		2,161,250
Federal Express — Peoria, IL		2,080,000		5.60	%	7/20/2017		—	N/A		2,080,000

	$	199,537,955					$	4,504,000		$	204,041,955

The fixed rate debt mortgage notes require monthly interest-only payments with the principal balance due on various dates from May 2012 through August 2017. The variable rate debt mortgage notes bear interest at the one-month LIBOR rate plus 200 basis points and require monthly interest-only payments and generally mature within 90 days. Each of the mortgage notes are secured by the respective property. The mortgage notes are generally non-recourse to us and Cole Op II, but both are liable for customary non-recourse carveouts.

The fixed rate mortgage notes generally may not be prepaid, in whole or in part, except under the following circumstances: (i) full prepayment may be made on any of the three (3) monthly payment dates occurring immediately prior to the maturity date, and (ii) partial prepayments resulting from the application of insurance or condemnation proceeds to reduce the outstanding principal balance of the mortgage notes. Notwithstanding the prepayment limitations, we may sell the properties to a buyer that assumes the respective mortgage loan. The transfer would be subject to the conditions set forth in the individual property’s mortgage note document, including without limitation, the lender’s approval of the proposed buyer and the payment of the lender’s fees, costs and expenses associated with the sale of the property and the assumption of the loan.

In the event that a mortgage note is not paid off on the respective maturity date, each mortgage note includes hyperamortization provisions. The interest rate during the hyperamortization period shall be the fixed interest rate as stated on the respective mortgage note agreement plus two percent (2.0%). The individual mortgage note maturity date, under the hyperamortization provisions, will be extended by twenty (20) years. During such period, the lender will apply 100% of the rents collected to (i) all payments for escrow or reserve accounts, (ii) payment of interest at the original fixed interest rate, (iii) payments for the replacement reserve account, (iv) any other amounts due in accordance with the mortgage note agreement other than any additional interest expense, (v) any operating expenses of the property pursuant to an approved annual budget, (vi) any extraordinary expenses, (vii) payments to be applied to the reduction of the principal balance of the mortgage note, and (viii) any additional interest expense, which is not paid will be added to the principal balance of the mortgage note.

For federal income tax purposes, the preliminary depreciable basis in the properties noted above is approximately $246.9 million in total. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 years, respectively. The depreciable basis in the properties noted above are detailed as follows:


Property	Depreciable Tax Basis

CVS — Florence, SC	$	1,939,879
Eckerd — Spartanburg (Main), SC		2,206,496
Staples — Warsaw, IN		2,975,976
Walgreens — Bryan, TX		5,688,753
Walgreens — Harris County, TX		4,130,920
Tractor Supply — Fairview, TN		2,616,643
Borders — Rapid City, SD		5,028,711
Borders — Reading, PA		4,289,688
Walgreens — Gainesville, FL		2,668,219
Chili’s — Fredericksburg, TX		1,917,255
Tractor Supply — Baytown, TX		2,582,105
Winco — Eureka, CA		12,402,598
Eckerd — Vineland, NJ		2,849,536
Eckerd — Mantua, NJ		1,213,686
Best Buy (Super Value) — Warwick, RI		3,435,067
Best Buy — Evanston, IL		4,638,272
Academy Sports — Houston, TX		1,590,469
Starbucks — Covington, TN		1,009,060
Starbucks — Sedalia, MO		1,026,547
Kroger — La Grange, GA		6,397,575
La-Z-Boy — Kentwood, MI		3,876,176
Circuit City — Mesquite, TX		6,928,335
Tractor Supply — Prior Lake, MN		3,437,491
Circuit City Distribution Center — Groveland, FL		22,039,048
Walgreens — Fort Worth, TX		3,884,122
Kohls — Lake Zurich, IL		10,170,184
EDS — Salt Lake City, UT		18,259,859


Property	Depreciable Tax Basis

Lowe’s — Cincinnati, OH		16,446,786
Walgreens — Kansas City (Linwood), MO		3,000,000
Walgreens — Kansas City (Troost), MO		3,942,400
Walgreens — Kansas City (63rd St), MO		3,468,000
Walgreens — Kansas City (Independence), MO		3,678,400
Walgreens — Topeka, KS		2,497,560
CVS — Amarillo, TX		2,232,854
Taco Bell — Brazil, IN		1,575,724
Taco Bell — Henderson, KY		1,242,086
Academy — Baton Rouge, LA		5,554,226
Taco Bell — Washington, IN		1,004,436
Taco Bell — Robinson, IL		1,240,538
Taco Bell — Princeton, IN		1,139,462
Eckerd — Mableton, GA		1,480,510
Taco Bell/KFC — Spencer, IN		771,892
CVS — Del City, OK		3,343,602
Taco Bell — Anderson, IN		1,380,411
Academy — N Richland Hills, TX		5,033,977
Dave and Buster’s — Addison, IL		11,142,857
Academy — Houston (Southwest), TX		5,711,057
Academy — Houston (Breton), TX		3,779,654
Eckerd — Chattanooga, TN		2,238,115
Taco Bell/KFC — Vinceness, IN		1,182,952
Taco Bell — Martinsville, IN		1,578,842
LJS/A&W — Houston, TX		963,857
Dickinson Theatre — Yukon, OK		3,640,000
Circuit City — Taunton, MA		6,288,000
Telerx — Kings Mountain, NC		6,952,000
Staples — Guntersville, AL		2,660,000
Federal Express — Peoria, IL		2,560,000

	$	246,932,868

Tenant Lease Expirations

The following table sets forth, as of July 23, 2007, lease expirations of the properties owned for each of the next ten years assuming no renewal options are exercised. For purposes of the table, the “total annual base rent” column represents annualized base rent, based on rent in effect on January 1 of the respective year, for each lease which expires during the respective year.


			Approx.				% of Total
Year Ending	Number of		Square Feet		Total Annual Base		Annual Base
December 31,	Leases Expiring		Expiring		Rent		Rent

2007		1		2,000	$	37,500		0.05	%
2008		8		43,210		644,731		0.78	%
2009		9		80,143		724,364		0.87	%
2010		6		20,968		400,235		0.48	%
2011		7		34,703		409,101		0.49	%
2012		9		90,077		891,923		1.07	%
2013		13		286,352		1,996,386		2.40	%
2014		7		130,899		1,555,402		1.87	%
2015		9		649,513		3,544,096		4.26	%
2016		22		1,203,741		7,685,829		9.24	%
2017		21		730,487		5,110,203		6.15	%

		112		3,272,093	$	22,999,770		27.66	%

Potential Property Investments

Our advisor has identified the following property as a potential suitable investments for us. The acquisition of the property is subject to a number of conditions. A significant condition to acquiring this potential acquisition is our ability to raise sufficient proceeds in this offering to pay a portion of the purchase price. An additional condition to acquiring this property will be our securing debt financing to pay the balance of the purchase price. Such financing may not be available on acceptable terms or at all.

Our evaluation of a property as a potential acquisition, including the appropriate purchase price, will include our consideration of a property condition report; unit-level store performance; property location, visibility and access; age of the property, physical condition and curb appeal; neighboring property uses; local market conditions, including vacancy rates; area demographics, including trade area population and average household income; neighborhood growth patterns and economic conditions; and the presence of demand generators.

We will decide whether to acquire these properties generally based upon:

	•		satisfaction of the conditions to the acquisitions contained in the respective contracts;

	•		no material adverse change occurring relating to the properties, the tenants or in the local economic conditions;

	•		our receipt of sufficient net proceeds from the offering of our common stock to the public and financing proceeds to make these acquisitions; and

	•		our receipt of satisfactory due diligence information including appraisals, environmental reports and tenant and lease information.

Other properties may be identified in the future that we may acquire before or instead of this property. Due to the considerable conditions to the consummation of the acquisition of these properties, we cannot make any assurances that the closing of these acquisitions is probable.

Expected

Approximate

Acquisition

Purchase

Compensation to

Property

Date

Seller (1)

Price (2)

Sponsor (3)

Fed Ex — Walker, MI

7/25/2007

A&R Development II, LLC

7,575,000

202,850

7,575,000

202,850


(1)		Seller is an unaffiliated third party.

(2)		Approximate purchase price does not include acquisition costs which we expect to be approximately 3.0% of the contract purchase price.

(3)		Amounts include acquisition fees payable to an affiliate of our advisor for acquisition fees in connection with the property acquisition and payments to our advisor for finance coordination fees for services in connection with the origination or assumption of debt financing to acquire the respective property.

Each potential property acquisition is subject to a net lease, pursuant to which the tenants are required to pay substantially all operating expenses and capital expenditures in addition to base rent. In the case of a multi-tenant commercial property the tenants are also required to pay a proportionate amount of common area maintenance charges in addition to the items listed above.

Total Square Feet

% of Total Square

Property

Major Tenants*

Guarantor

Leased

Feet Leased

Fed Ex — Walker, MI

Fed Ex Ground Package System, Inc.

N/A

78,034

100

78,034


*		Major tenants are those tenants that occupy greater than 10.0% of the rentable square of their respective property.

The table below provides leasing information for the major tenants at each respective property:

Renewal

Annual

Base Rent per

Lease Term

Property

Major Tenants*

Options

Base Rent

Square Foot

Beginning

Fed Ex — Walker, MI

Fed Ex Ground Package System, Inc.

2/5 yr.

380,736

4.88

2/22/02

5/31/17

380,736

The following table outlines the anticipated loan terms on debt financing to be secured in connection with the purchase of the potential property acquisition our advisor has identified for us. Generally, we expect the loans to have a fixed rate, with interest only payments and a five to ten-year maturity.

Property

Debt Financing

Type

Rate

Maturity Date

Fed Ex — Walker, MI

5,135,000

Interest Only

5.98

July 25, 2012

5,135,000

Each of our properties is adequately covered by insurance and we intend to obtain adequate insurance coverage for all future properties that we acquire.

The following table replaces in its entirety Table III of our Prior Performance Tables on Pages A-42 through A-68 of the prospectus.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED)

The following sets forth the unaudited operating results of Prior Real Estate Programs sponsored by affiliates of the sponsor of this program, the offerings of which have been closed since January 1, 2002. The information relates only to programs with investment objectives similar to this program. All amounts are as of December 31 of the year indicated, except as noted.


	Cole Blvd. Sq. Investors LP — (Sold)
	May 2002
	2002			2003			2004			2005			2006

Gross revenues	$	1,885,886		$	4,404,802		$	3,444,830		$	165,124		$	129,679
Profit (loss) on sale of properties		—			—			8,521,296			—			—
Less:
Operating expenses(4)		686,067			1,511,374			1,204,787			34,079			19,746
Interest expense		912,735			2,028,457			1,390,517			—			—
Depreciation and amortization(3)		486,358			1,354,613			1,236,383			—			—

Net income (loss) — Tax basis(6)	$	(199,274	)	$	(489,642	)	$	8,134,439		$	131,045		$	109,933

Taxable income
— from operations	$	(199,274	)	$	(489,642	)	$	(386,857	)	$	131,045		$	109,933
— from gain on sale		—			—			8,521,296			—			—
Cash generated
— from operations (5)		287,084			864,971			849,526			131,045			109,933
— from sales		—			—			14,423,979			—			—
— from refinancing		—			—			—			—			—

Cash generated from operations, sales and refinancing		287,084			864,971			15,273,505			131,045			109,933
Less: Cash distributions to investors
— from operating cash flow		102,209			844,489			850,000			—			—
— from sales and refinancing		—			—			12,837,500			420,000			111,000
— from other		—			—			—			—			—

Cash generated (deficiency) after cash distributions		184,875			20,482			1,586,005			(288,955	)		(1,067	)
Less: Special items (not including sales and refinancing)		—			—			—			—			—

Cash generated (deficiency) after cash distributions and special items	$	184,875		$	20,482		$	1,586,005		$	(288,955	)	$	109,933

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	(19.93	)	$	(48.96	)	$	(38.69	)	$	13.10		$	10.99
— from recapture		—			—			246.21			—			—
Capital gain (loss)		—			—			605.92			—			—
Cash distributions to investors:
Source (on a tax basis)
— investment income		10.22			84.45			85.00			—			—
— return of capital		—			—			—			—			—
Source (on a cash basis)
— sales		—			—			1,283.75			42.00			11.10
— refinancing		—			—			—			—			—
— operations		10.22			84.45			85.00			—			—
— other		—			—			—			—			—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table											0	%		0	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Cole Santa Fe Investors LP
	September 2002
	2002		2003			2004			2005			2006

Gross revenues	$	1,293,152	$	2,545,914		$	2,252,104		$	2,380,191		$	1,888,819
Profit (loss) on
sale of properties		—		—			—			—			—
Less:
Operating expenses(4)		431,161		883,118			839,177			939,120			890,625
Interest expense		581,968		1,144,762			1,142,336			1,123,891			1,111,509
Depreciation and amortization(3)		247,530		895,291			758,595			475,149			634,960

Net income (loss) — Tax basis(6)	$	32,493	$	(377,257	)	$	(488,004	)	$	(157,969	)	$	(748,275	)

Taxable income
— from operations	$	32,493	$	(377,257	)	$	(488,004	)	$	(157,969	)	$	(748,275	)
— from gain on sale		—		—			—			—			—
Cash generated
— from operations(5)		280,023		518,034			270,591			317,180			(113,315	)
— from sales		—		—			—			—			—
— from
refinancing		—		—			—			—			—

Cash generated from operations, sales and refinancing		280,023		518,034			270,591			317,180			(113,315	)
Less: Cash distributions to investors
— from operating cash flow		6,253		568,574			—			—			—
— from sales and refinancing		—		—			—			—			—
— from other		—		—			—			—			—

Cash generated (deficiency) after cash distributions		273,770		(50,540	)		270,591			317,180			(113,315	)
Less: Special items (not including sales and refinancing)		—		—			—			—			—

Cash generated (deficiency) after cash distributions and special items	$	273,770	$	(50,540	)	$	270,591		$	317,180		$	(113,315	)

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	5.26	$	(61.04	)	$	(78.97	)	$	(25.56	)	$	(121.08	)
— from recapture		—		—			—			—			—
Capital gain (loss)		—		—			—			—			—
Cash distributions to investors:
Source (on a tax basis)
— investment income		1.01		92.00			—			—			—
— return of capital		—		—			—			—			—
Source (on a cash basis)
— sales		—		—			—			—			—
— refinancing		—		—			—			—			—
— operations		1.01		92.00			—			—			—
— other		—		—			—			—			—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table													100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Cole Credit Property Fund LP
	November 2002
	2002			2003		2004		2005		2006

Gross revenues	$	—		$	3,360,284	$	4,457,358	$	5,127,208	$	2,442,267
Profit (loss) on sale of properties		—			—		—		—		—
Less:
Operating expenses(4)		762			222,734		289,925		262,887		261,530
Interest expense		—			849,115		1,470,906		1,554,842		1,459,916
Depreciation and amortization(3)		—			1,351,646		1,805,318		1,503,075		1,173,216

Net income (loss) — Tax basis(6)	$	(762	)	$	936,789	$	891,209	$	1,806,404	$	(452,396	)

Taxable income
— from operations	$	(762	)	$	936,789	$	891,209	$	1,806,404	$	(452,396	)
— from gain on sale		—			—		—		—		—
Cash generated
— from operations(5)		(762	)		2,288,435		2,696,527		3,309,479		720,821
— from sales		—			—		—		—		—
— from refinancing		—			—		—		—		—

Cash generated from operations, sales and refinancing		(762	)		2,288,435		2,696,527		3,309,479		720,821
Less: Cash distributions to investors
— from operating cash flow		—			1,400,125		2,187,497		2,124,998		2,000,012
— from sales and refinancing		—			—		—		—		—
— from other		—			—		—		—		—

Cash generated (deficiency) after cash distributions		(762	)		888,310		509,030		1,184,481		(1,279,191	)
Less: Special items (not including sales and refinancing)		—			—		—		—		—

Cash generated (deficiency) after cash distributions and special items	$	(762	)	$	888,310	$	509,030	$	1,184,481	$	(1,279,191	)

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	(0.47	)	$	37.47	$	35.65	$	72.26	$	(18.10	)
— from recapture		—			—		—		—		—
Capital gain (loss)		—			—		—		—		—
Cash distributions to investors:
Source (on a tax basis)
— investment income		—			56.01		87.50		85.00		80.00
— return of capital		—			—		—		—		—
Source (on a cash basis)
— sales		—			—		—		—		—
— refinancing		—			—		—		—		—
— operations		—			56.01		87.50		85.00		80.00
— other		—			—		—		—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table											100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Cole Credit Property Fund II LP
	July 2003
	2003		2004		2005		2006

Gross revenues	$	128,655	$	3,758,639	$	5,073,379	$	5,152,330
Profit (loss) on sale of properties		—		—		—		—
Less:
Operating expenses(4)		8,574		165,315		346,715		412,563
Interest expense		6,438		1,345,798		1,908,834		1,938,864
Depreciation and amortization(3)		21,234		1,667,189		1,527,717		1,369,651

Net income (loss) — Tax basis(6)	$	92,409	$	580,337	$	1,290,113	$	1,431,252

Taxable income
— from operations	$	92,409	$	580,337	$	1,290,113	$	1,431,252
— from gain on sale		—		—		—		—
Cash generated
— from operations(5)		113,643		2,247,526		2,817,830		2,800,903
— from sales		—		—		—		—
— from refinancing		—		—		—		—

Cash generated from operations, sales and refinancing		113,643		2,247,526		2,817,830		2,800,903
Less: Cash distributions to investors
— from operating cash flow		18,795		1,567,247		2,398,417		2,082,029
— from sales and refinancing		—		—		—		—
— from other		—		—		—		—

Cash generated (deficiency) after cash distributions		94,848		680,279		419,413		718,874
Less: Special items (not including sales and refinancing)		—		—		—		—

Cash generated (deficiency) after cash distributions and special items	$	94,848	$	680,279	$	419,413	$	718,874

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	6.56	$	23.69	$	52.67	$	58,43
— from recapture		—		—		—		—
Capital gain (loss)		—		—		—		—
Cash distributions to investors:
Source (on a tax basis)
— investment income		1.33		63.98		97.92		85.00
— return of capital		—		—		—		—
Source (on a cash basis)
— sales		—		—		—		—
— refinancing		—		—		—		—
— operations		1.33		63.98		97.92		85.00
— other		—		—		—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table								100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Cole Collateralized Senior Notes, LLC
	September 2003
	2003			2004			2005			2006

Gross revenues	$	162,409		$	5,087,274		$	3,784,381		$	1,341,850
Profit (loss) on sale of properties		—			6,332,735			1,768,269			1,547,193
Less:
Operating expenses(4)		7,327			304,377			438,007			57,254
Interest expense		248,806			4,128,321			4,275,923			1,426,798
Depreciation and amortization(3)		52,656			1,574,516			1,092,368			(131,509	)

Net income (loss) — Tax basis(6)	$	(146,380	)	$	5,412,795		$	(253,648	)	$	1,536,500

Taxable income
— from operations	$	(146,380	)	$	(919,940	)	$	(2,021,917	)	$	(10,693	)
— from gain on sale		—			6,332,735			1,768,268			1,547,193
Cash generated
— from operations(5)		(93,724	)		654,576			(929,549	)		(142,202	)
— from sales		—			25,913,341			52,237,261			9,413,734
— from refinancing		—			—			—			—

Cash generated from operations, sales and refinancing		(93,724	)		26,567,917			51,307,712			9,271,532
Less: Cash distributions to investors
— from operating cash flow		—			—			—			—(2	)
— from sales and refinancing		—			—			—			—
— from other		—			—			—			—

Cash generated (deficiency) after cash distributions		(93,724	)		26,567,917			51,307,712			9,271,532
Less: Special items (not including sales and refinancing)		—			—			—			—

Cash generated (deficiency) after cash distributions and special items	$	(93,724	)	$	26,567,917		$	51,307,712		$	9,271,532

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	—		$	—		$	—		$	—(2	)
— from recapture		—			—			—			—
Capital gain (loss)		—			—			—			—
Cash distributions to investors:
Source (on a tax basis)
— investment income		—			—			—			—(2	)
— return of capital		—			—			—			—
Source (on a cash basis)
— sales		—			—			—			—
— refinancing		—			—			—			—
— operations		—			—			—			—
— other		—			—			—			—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table											100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Cole Collateralized									Cole Collateralized
	Senior Notes II, LLC									Senior Notes III, LLC
	February 2004									January 2005
	2004			2005			2006			2005			2006

Gross revenues	$	1,822,545		$	3,323,749		$	2,957,169		$	1,810,020		$	3,300,297
Profit (loss) on sale of properties		—			1,433,092			186,386			289,643			3,124,045
Less:
Operating expenses(4)		98,921			238,585			121,582			120,231			169,907
Interest expense		2,095,747			4,407,598			3,613,049			2,568,620			3,606,300
Depreciation and amortization(3)		379,572			932,584			718,486			410,037			1,693,225

Net income (loss) — Tax basis(6)	$	(751,695	)	$	(821,926	)	$	(1,309,561	)	$	(999,224	)	$	954,910

Taxable income
— from operations	$	(751,695	)	$	(2,255,018	)	$	(1,495,947	)	$	(1,228,867	)	$	(2,169,135	)
— from gain on sale		—			1,433,092			186,386			289,643			3,124,045
Cash generated
— from operations(5)		(372,123	)		(1,322,434	)		(777,461	)		(875,830	)		(475,910	)
— from sales		16,927,937			47,905,072			24,378,796			17,740,380			19,046,303
— from refinancing		—			—			—			—			—

Cash generated from operations, sales and refinancing		16,555,814			46,582,638			23,601,335			16,861,550			18,570,393
Less: Cash distributions to investors
— from operating cash flow		—			—(2	)		—			—(2	)		—
— from sales and refinancing		—			—			—			—			—
— from other		—			—			—			—			—

Cash generated (deficiency) after cash distributions		16,555,814			46,582,638			23,601,335			16,861,550			18,570,393
Less: Special items (not including sales and refinancing)		—			—						—			—

Cash generated (deficiency) after cash distributions and special items	$	16,555,814		$	46,582,638		$	23,601,335		$	16,861,550		$	18,570,393

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	—		$	—(2	)	$	—		$	—		$	—(2	)
— from recapture		—			—			—			—			—
Capital gain (loss)		—			—			—			—			—
Cash distributions to investors:
Source (on a tax basis)
— investment income		—			—(2	)		—			—			—(2	)
— return of capital		—			—			—			—			—
Source (on a cash basis)
— sales		—			—			—			—			—
— refinancing		—			—			—			—			—
— operations		—			—			—			—			—
— other		—			—			—			—			—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table								100	%					100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Cole Collateralized
	Senior Notes IV, LLC						Cole Credit Property Trust, Inc.
	May 2005						April 2004
	2005			2006			2004			2005			2006

Gross revenues	$	91,908		$	2,070,894		$	951,220		$	10,987,553		$	16,149,526
Profit (loss) on sale of properties		—			—			—			—			—
Less:
Operating expenses(4)		88,074			1,131,745			169,619			1,357,842			2,030,411
Interest expense		538,378			2,908,292			322,238			4,664,223			7,698,059
Depreciation and amortization(3)		79,634			426,629			296,514			3,638,794			5,394,072

Net income (loss) — Tax basis(6)	$	(614,178	)	$	(2,395,772	)	$	162,849	(1)	$	1,326,694	(1)	$	1,026,984	(1)

Taxable income
— from operations	$	(614,178	)	$	(2,395,772	)	$	162,849		$	1,326,694		$	1,026,984
— from gain on sale		—			—			—			—			—
Cash generated
— from operations(5)		(534,544	)		(1,969,143	)		459,363			4,965,488			6,421,056
— from sales		1,975,851			61,566,541			—			—			—
— from refinancing		—			—			—			—			—

Cash generated from operations, sales and refinancing		1,441,307			59,597,398			459,363			4,965,488			6,421,056
Less: Cash distributions to investors
— from operating cash flow		—	(2)		—			132,344			4,751,612			7,070,390
— from sales and refinancing		—			—			—			—			—
— from other		—			—			—			—			—

Cash generated (deficiency) after cash distributions		1,441,307			59,597,398			327,019			213,876			(649,334	)
Less: Special items (not including sales and refinancing)		—			—			—			—			—

Cash generated (deficiency) after cash distributions and special items	$	1,441,307		$	59,597,398		$	327,019		$	213,876		$	—

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	—		$	—	(2)	$	5.73		$	13.14		$	10.17
— from recapture		—			—			—			—			—
Capital gain (loss)		—			—			—			—			—
Cash distributions to investors:
Source (on a tax basis)
— investment income		—			—	(2)		4.66			47.06			70.02
— return of capital		—			—			—			—			—
Source (on a cash basis)
— sales		—			—			—			—			—
— refinancing		—			—			—			—			—
— operations		—			—			4.66			47.06			70.02
— other		—			—			—			—			—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table					100	%								100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Cole Credit Property						Staples-
	Trust II, Inc.						Tulsa, OK
	June 2005						February 2004
	2005			2006			2004		2005		2006

Gross revenues	$	741,669		$	20,022,986		$	189,058	$	324,241	$	275,709
Profit (loss) on sale of properties		—			—			—		—		—
Less:
Operating expenses(4)		195,020			3,306,511			1,579		3,080		2,850
Interest expense		439,829			8,901,113			—		—		—
Depreciation and amortization(3)		221,411			6,469,366			—		—		—

Net income (loss) — Tax basis(6)	$	(114,591	)(1)	$	1,345,996	(1)	$	187,479	$	321,161	$	272,859

Taxable income
— from operations	$	(114,591	)	$	1,345,996		$	187,479	$	321,161	$	272,859
— from gain on sale		—			—			—		—		—
Cash generated
— from operations(5)		106,820			7,815,362			187,479		321,161		272,859
— from sales		—			—			—		—		—
— from refinancing		—			—			—		—		—

Cash generated from operations, sales and refinancing		106,820			7,815,362			187,479		321,161		272,859
Less: Cash distributions to investors
— from operating cash flow		—			3,554,073			158,709		289,515		289,512
— from sales and refinancing		—			—			—		—		—
— from other		—			—			—		—		—

Cash generated (deficiency) after cash distributions		106,820			4,261,289			28,770		31,646		(16,653	)
Less: Special items (not including sales and refinancing)		—			—			—		—		—

Cash generated (deficiency) after cash distributions and special items	$	106,820		$	4,261,289		$	28,770	$	31,646	$	(16,653	)

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	(4.08	)	$	4.39		$	45.33	$	77.65	$	65.97
— from recapture		—			—			—		—		—
Capital gain (loss)		—			—			—		—		—
Cash distributions to investors:
Source (on a tax basis)
— investment income		—			11.60			38.37		70.00		70.00
— return of capital		—			—			—		—		—
Source (on a cash basis)
— sales		—			—			—		—		—
— refinancing		—			—			—		—		—
— operations		—			11.60			38.37		70.00		70.00
— other		—			—			—		—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table					100	%						100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Mimi’s Café-							Walgreen’s-
	Lone Tree, CO							Windsor, CO
	April 2004							June 2004
	2004		2005		2006			2004		2005			2006

Gross revenues	$	92,614	$	185,632	$	181,170		$	135,696	$	353,024		$	354,194
Profit (loss) on sale of properties		—		—		—			—		—			—
Less:
Operating expenses(4)		1,900		3,654		3,886			1,684		6,339			5,389
Interest expense		—		—		—			53,114		161,554			161,554
Depreciation and amortization(3)		—		—		—			—		—			—

Net income (loss) — Tax basis(6)	$	90,714	$	181,978	$	177,284		$	80,898	$	185,131		$	187,252

Taxable income
— from operations	$	90,714	$	181,978	$	177,284		$	80,898	$	185,131		$	187,252
— from gain on sale		—		—		—			—		—			—
Cash generated — from operations(5)		90,714		181,978		177,284			80,898		185,131			187,252
— from sales		—		—		—			—		—			—
— from refinancing		—		—		—			—		—			—

Cash generated from operations, sales and refinancing		90,714		181,978		177,284			80,898		185,131			187,252
Less: Cash distributions to investors
— from operating cash flow		76,045		171,252		171,252			56,436		186,840			186,840
— from sales and refinancing		—		—		—			—		—			—
— from other		—		—		—			—		—			—

Cash generated (deficiency) after cash distributions		14,669		10,726		6,032			24,462		(1,709	)		412
Less: Special items (not including sales and refinancing)		—		—		—			—		—			—

Cash generated (deficiency) after cash distributions and special items	$	14,669	$	10,726	$	6,032		$	24,462	$	(1,709	)	$	412

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	37.09	$	74.40	$	72.48		$	30.31	$	69.36		$	70.16
— from recapture		—		—		—			—		—			—
Capital gain (loss)		—		—		—			—		—			—
Cash distributions to investors:
Source (on a tax basis)
— investment income		31.09		70.01		70.01			21.14		70.00			70.00
— return of capital		—		—		—			—		—			—
Source (on a cash basis)
— sales		—		—		—			—		—			—
— refinancing		—		—		—			—		—			—
— operations		31.09		70.01		70.01			21.14		70.00			70.00
— other		—		—		—			—		—			—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table						100	%							100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Walgreens-								Walgreens-
	Goldsboro, NC								Hamilton, OH
	June 2004								July 2004
	2004		2005			2006			2004		2005			2006

Gross revenues	$	101,750	$	330,000		$	330,613		$	126,522	$	386,000		$	386,836
Profit (loss) on sale of properties		—		—			—			—		—			—
Less:
Operating expenses(4)		1,416		5,920			5,323			3,060		10,773			10,139
Interest expense		36,706		145,628			145,628			45,878		169,146			169,146
Depreciation and amortization(3)		—		—			—			—		—			—

Net income (loss) — Tax basis(6)	$	63,628	$	178,452		$	179,662		$	77,584	$	206,081		$	207,552

Taxable income
— from operations	$	63,628	$	178,452		$	179,662		$	77,584	$	206,081		$	207,552
— from gain on sale		—		—			—			—		—			—
Cash generated
— from operations(5)		63,628		178,452			179,662			77,584		206,081			207,552
— from sales		—		—			—			—		—			—
— from refinancing		—		—			—			—		—			—

Cash generated from operations, sales and refinancing		63,628		178,452			179,662			77,584		206,081			207,552
Less: Cash distributions to investors
— from operating cash flow		40,334		179,892			179,892			34,958		207,624			207,624
— from sales and refinancing		—		—			—			—		—			—
— from other		—		—			—			—		—			—

Cash generated (deficiency) after cash distributions		23,294		(1,440	)		(230	)		42,626		(1,543	)		(72	)
Less: Special items (not including sales and refinancing)		—		—			—			—		—			—

Cash generated (deficiency) after cash distributions and special items	$	23,294	$	(1,440	)	$	(230	)	$	42,626	$	(1,543	)	$	(72	)

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	24.76	$	69.44		$	69.91		$	26.16	$	69.48		$	69.98
— from recapture		—		—			—			—		—			—
Capital gain (loss)		—		—			—			—		—			—
Cash distributions to investors:
Source (on a tax basis)
— investment income		15.69		70.00			70.00			11.79		70.00			70.00
— return of capital		—		—			—			—		—			—
Source (on a cash basis)
— sales		—		—			—			—		—			—
— refinancing		—		—			—			—		—			—
— operations		15.69		70.00			70.00			11.79		70.00			70.00
— other		—		—			—			—		—			—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table							100	%							100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Walgreens-								Walgreens-
	Carlsbad, NM								Willimantic, CT
	July 2004								September 2004
	2004		2005			2006			2004		2005			2006

Gross revenues	$	73,750	$	295,000		$	295,645		$	55,160	$	354,600		$	355,245
Profit (loss) on sale of properties		—		—			—			—		—			—
Less:
Operating expenses(4)		2,537		11,550			11,007			2,660		19,487			17,470
Interest expense		25,328		130,209			130,209			14,900		151,064			151,064
Depreciation and amortization(3)		—		—			—			—		—			—

Net income (loss) — Tax basis(6)	$	45,885	$	153,241		$	154,429		$	37,600	$	184,049		$	186,711

Taxable income
— from operations	$	45,885	$	153,241		$	154,429		$	37,600	$	184,049		$	186,711
— from gain on sale		—		—			—			—		—			—
Cash generated
— from operations(5)		45,885		153,241			154,429			37,600		184,049			186,711
— from sales		—		—			—			—		—			—
— from refinancing		—		—			—			—		—			—

Cash generated from operations, sales and refinancing		45,885		153,241			154,429			37,600		184,049			186,711
Less: Cash distributions to investors
— from operating cash flow		26,006		154,559			154,560			—		185,376			185,376
— from sales and refinancing		—		—			—			—		—			—
— from other		—		—			—			—		—			—

Cash generated (deficiency) after cash distributions		19,879		(1,318	)		(131	)		37,600		(1,327	)		1,335
Less: Special items (not including sales and refinancing)		—		—			—			—		—			—

Cash generated (deficiency) after cash distributions and special items	$	19,879	$	(1,318	)	$	(131	)	$	37,600	$	(1,327	)	$	1,335

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	20.04	$	66.93		$	67.44		$	13.69	$	67.02		$	67.99
— from recapture		—		—			—			—		—			—
Capital gain (loss)		—		—			—			—		—			—
Cash distributions to investors:
Source (on a tax basis)
— investment income		11.36		67.50			67.50			—		67.51			67.51
— return of capital		—		—			—			—		—			—
Source (on a cash basis)
— sales		—		—			—			—		—			—
— refinancing		—		—			—			—		—			—
— operations		11.36		67.50			67.50			—		67.51			67.51
— other		—		—			—			—		—			—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table							100	%							100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Walgreens-								Walgreens-
	Edgewood, NM								Fairborn, OH
	September 2004								September 2004
	2004		2005			2006			2004		2005			2006

Gross revenues	$	28,330	$	275,640		$	276,137		$	30,209	$	344,500		$	345,145
Profit (loss) on sale of properties		—		—			—			—		—			—
Less:
Operating expenses(4)		1,326		14,191			13,699			1,943		20,365			19,781
Interest expense		5,527		118,666			118,666			6,797		145,934			145,934
Depreciation and amortization(3)		—		—			—			—		—			—

Net income (loss) — Tax basis(6)	$	21,477	$	142,783		$	143,773		$	21,469	$	178,201		$	179,430

Taxable income
— from operations	$	21,477	$	142,783		$	143,773		$	21,469	$	178,201		$	179,430
— from gain on sale		—		—			—			—		—			—
Cash generated
— from operations(5)		21,477		142,783			143,773			21,469		178,201			179,430
— from sales		—		—			—			—		—			—
— from refinancing		—		—			—			—		—			—

Cash generated from operations, sales and refinancing		21,477		142,783			143,773			21,469		178,201			179,430
Less: Cash distributions to investors
— from operating cash flow		—		144,070			144,072			—		178,488			178,488
— from sales and refinancing		—		—			—			—		—			—
— from other		—		—			—			—		—			—

Cash generated (deficiency) after cash distributions		21,477		(1,287	)		(299	)		21,469		(287	)		942
Less: Special items (not including sales and refinancing)		—		—			—			—		—			—

Cash generated (deficiency) after cash distributions and special items	$	21,477	$	(1,287	)	$	(299	)	$	21,469	$	(287	)	$	942

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	11.64	$	66.91		$	67.37		$	8.12	$	67.40		$	67.86
— from recapture		—		—			—			—		—			—
Capital gain (loss)		—		—			—			—		—			—
Cash distributions to investors:
Source (on a tax basis)
— investment
income		—		67.51			67.51			—		67.51			67.51
— return of capital		—		—			—			—		—			—
Source (on a cash basis)
— sales		—		—			—			—		—			—
— refinancing		—		—			—			—		—			—
— operations		—		67.51			67.51			—		67.51			67.51
— other		—		—			—			—		—			—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table							100	%							100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Walgreens-							Walgreens-
	Slidell, LA							Westheimer, TX
	November 2004							October 2004
	2004		2005		2006			2004		2005		2006

Gross revenues	$	—	$	243,899	$	275,516		$	14,637	$	495,000	$	495,990
Profit (loss) on sale of properties		—		—		—			—		—		—
Less:
Operating expenses(4)		—		11,336		12,445			580		21,003		21,476
Interest expense		—		98,704		118,901			—		214,710		220,752
Depreciation and amortization(3)		—		—		—			—		—		—

Net income (loss) — Tax basis(6)	$	—		133,859		144,170		$	14,057	$	259,287	$	253,762

Taxable income
— from operations	$	—	$	133,859	$	144,170		$	14,057	$	259,287	$	253,762
— from gain on sale		—		—		—			—		—		—
Cash generated
— from operations(5)		—		133,859		144,170			14,057		259,287		253,762
— from sales		—		—		—			—		—		—
— from refinancing		—		—		—			—		—		—

Cash generated from operations, sales and refinancing		—		133,859		144,170			14,057		259,287		253,762
Less: Cash distributions to investors
— from operating cash flow		—		114,918		143,772			—		240,014		253,500
— from sales and refinancing		—		—		—			—		—		—
— from other		—		—		—			—		—		—

Cash generated (deficiency) after cash distributions		—		18,941		398			14,057		19,273		262
Less: Special items (not including sales and refinancing)		—		—		—			—		—		—

Cash generated (deficiency) after cash distributions and special items	$	—	$	18,941	$	398		$	14,057	$	19,273	$	262

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	—	$	60.51	$	65.18		$	4.11	$	66.48	$	65.07
— from recapture		—		—		—			—		—		—
Capital gain (loss)		—		—		—			—		—		—
Cash distributions to investors:
Source (on a tax basis)
— investment income		—		51.95		65.00			—		61.54		65.00
— return of capital		—		—		—			—		—		—
Source (on a cash basis)
— sales		—		—		—			—		—		—
— refinancing		—		—		—			—		—		—
— operations		—		51.95		65.00			—		61.54		65.00
— other		—		—		—			—		—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table						100	%						100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Walgreens-							Home Depot-
	Richmond Heights, OH							Spokane, WA
	October 2004							November 2004
	2004		2005		2006			2004		2005		2006

Gross revenues	$	—	$	423,387	$	420,807		$	—	$	1,014,839	$	1,323,040
Profit (loss) on sale of properties		—		—		—			—		—		—
Less:
Operating expenses(4)		—		18,416		17,830			—		12,592		12,670
Interest expense		—		173,029		182,004			—		394,654		551,910
Depreciation and amortization(3)		—		—		—			—		—		—

Net income (loss) — Tax basis(6)	$	—	$	231,942	$	220,973		$	—	$	607,593	$	758,459

Taxable income
— from operations	$	—	$	231,942	$	220,973		$	—	$	607,593	$	758,459
— from gain on sale		—		—		—			—		—		—
Cash generated
— from operations(5)		—		231,942		220,973			—		607,593		758,459
— from sales		—		—		—			—		—		—
— from refinancing		—		—		—			—		—		—

Cash generated from operations, sales and refinancing		—		231,942		220,973			—		607,593		758,459
Less: Cash distributions to investors
— from operating cash flow		—		203,676		220,220			—		514,099		749,580
— from sales and refinancing		—		—		—			—		—		—
— from other		—		—		—			—		—		—

Cash generated (deficiency) after cash distributions		—		28,266		753			—		93,494		8,879
Less: Special items (not including sales and refinancing)		—		—		—			—		—		—

Cash generated (deficiency) after cash distributions and special items	$	—	$	28,266	$	753		$	—	$	93,494	$	8,879

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	—	$	68.46	$	65.22		$	—	$	52.69	$	65.77
— from recapture		—		—		—			—		—		—
Capital gain (loss)		—		—		—			—		—		—
Cash distributions to investors:
Source (on a tax basis)
— investment
income		—		60.12		65.00			—		44.58		65.00
— return of capital		—		—		—			—		—		—
Source (on a cash basis)
— sales		—		—		—			—		—		—
— refinancing		—		—		—			—		—		—
— operations		—		60.12		65.00			—		44.58		65.00
— other		—		—		—			—		—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table						100	%						100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Walgreens-							Walgreens-
	Orlando, FL							Glen Burnie, MD
	November 2004							November 2004
	2004		2005		2006			2004		2005		2006

Gross revenues	$	—	$	232,208	$	300,483		$	—	$	312,387	$	416,142
Profit (loss) on sale of properties		—		—		—			—		—		—
Less:
Operating expenses(4)		—		10,463		13,562			—		13,428		17,695
Interest expense		—		90,054		124,904			—		119,319		169,158
Depreciation and amortization(3)		—		—		—			—		—		—

Net income (loss) — Tax basis(6)	$	—	$	131,691	$	162,017		$	—	$	179,640	$	229,289

Taxable income
— from operations	$	—	$	131,691	$	162,017		$	—	$	179,640	$	229,289
— from gain on sale		—		—		—			—		—		—
Cash generated
— from operations(5)		—		131,691		162,017			—		179,640		229,289
— from sales		—		—		—			—		—		—
— from refinancing		—		—		—			—		—		—

Cash generated from operations, sales and refinancing		—		131,691		162,017			—		179,640		229,289
Less: Cash distributions to investors
— from operating cash flow		—		111,711		161,592			—		151,637		226,524
— from sales and refinancing		—		—		—			—		—		—
— from other		—		—		—			—		—		—

Cash generated (deficiency) after cash distributions		—		19,980		425			—		28,003		2,765
Less: Special items (not including sales and refinancing)		—		—		—			—		—		—

Cash generated (deficiency) after cash distributions and special items	$	—	$	19,980	$	425		$	—	$	28,003	$	2,765

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	—	$	52.97	$	65.17		$	—	$	51.55	$	65.79
— from recapture		—		—		—			—		—		—
Capital gain (loss)		—		—		—			—		—		—
Cash distributions to investors:
Source (on a tax basis)
— investment income		—		44.94		65.00			—		43.51		65.00
— return of capital		—		—		—			—		—		—
Source (on a cash basis)
— sales		—		—		—			—		—		—
— refinancing		—		—		—			—		—		—
— operations		—		44.94		65.00			—		43.51		65.00
— other		—		—		—			—		—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table						100	%						100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Walgreens-							Walgreens-
	Covington, TN							Garfield Heights, OH
	December 2004							December 2004
	2004		2005		2006			2004		2005		2006

Gross revenues	$	—	$	237,696	$	261,606		$	—	$	145,569	$	385,036
Profit (loss) on sale of properties		—		—		—			—		—		—
Less:
Operating expenses(4)		—		10,629		11,782			—		1,893		3,936
Interest expense		—		93,795		110,081			—		54,853		169,672
Depreciation and amortization(3)		—		—		—			—		—		—

Net income (loss) — Tax basis(6)	$	—	$	133,272	$	139,743		$	—	$	88,823	$	211,428

Taxable income
— from operations	$	—		133,272		139,743		$	—	$	88,823	$	211,428
— from gain on sale		—		—		—			—		—		—
Cash generated — from operations(5)		—		133,272		139,743			—		88,823		211,428
— from sales		—		—		—			—		—		—
— from refinancing		—		—		—			—		—		—

Cash generated from operations, sales and refinancing		—		133,272		139,743			—		88,823		211,428
Less: Cash distributions to investors
— from operating cash flow		—		114,287		139,165			—		62,999		212,424
— from sales and refinancing		—		—		—			—		—		—
— from other		—		—		—			—		—		—

Cash generated (deficiency) after cash distributions		—		18,985		578			—		25,824		(996	)
Less: Special items (not including sales and refinancing)		—		—		—			—		—		—

Cash generated (deficiency) after cash distributions and special items	$	—	$	18,985	$	578		$	—	$	25,824	$	(996	)

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	—	$	62.25	$	65.27		$	—	$	30.32	$	72.16
— from recapture		—		—		—			—		—		—
Capital gain (loss)		—		—		—			—		—		—
Cash distributions to investors:
Source (on a tax basis)
— investment income		—		53.38		65.00			—		21.50		72.50
— return of capital		—		—		—			—		—		—
Source (on a cash basis)
— sales		—		—		—			—		—		—
— refinancing		—		—		—			—		—		—
— operations		—		53.38		65.00			—		21.50		72.50
— other		—		—		—			—		—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table						100	%						100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Walgreens-							Home Depot-
	Ponca City, OK							Tacoma, WA
	December 2004							February 2005
	2004		2005		2006			2005		2006

Gross revenues	$	—	$	118,085	$	312,409		$	1,051,101	$	1,750,475
Profit (loss) on sale of properties		—		—		—			—		—
Less:
Operating expenses(4)		—		1,477		3,272			35,286		53,645
Interest expense		—		44,763		138,460			461,947		843,053
Depreciation and amortization(3)		—		—		—			—		—

Net income (loss) — Tax basis(6)	$	—	$	71,845	$	170,676		$	553,868	$	853,777

Taxable income
— from operations	$	—	$	71,845	$	170,676		$	553,868	$	853,777
— from gain on sale		—		—		—			—		—
Cash generated
— from operations(5)		—		71,845		170,676			553,868		853,777
— from sales		—		—		—			—		—
— from refinancing		—		—		—			—		—

Cash generated from operations, sales and refinancing		—		71,845		170,676			553,868		853,777
Less: Cash distributions to investors
— from operating cash flow		—		50,034		168,708			426,665		821,808
— from sales and refinancing		—		—		—			—		—
— from other		—		—		—			—		—

Cash generated (deficiency) after cash distributions		—		21,811		1,968			127,203		31,969
Less: Special items (not including sales and refinancing)		—		—		—			—		—

Cash generated (deficiency) after cash distributions and special items	$	—	$	21,811	$	1,968		$	127,203	$	31,969

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	—	$	30.87	$	73.35		$	45.49	$	70.13
— from recapture		—		—		—			—		—
Capital gain (loss)		—		—		—			—		—
Cash distributions to investors:
Source (on a tax basis)
— investment income		—		21.50		72.50			35.04		67.50
— return of capital		—		—		—			—		—
Source (on a cash basis)
— sales		—		—		—			—		—
— refinancing		—		—		—			—		—
— operations		—		21.50		72.50			35.04		67.50
— other		—		—		—			—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table						100	%				100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Walgreens-					Walgreens-					Walgreens-
	Pineville, LA					Bartlett, TN					Sidney, OH
	April 2005					April 2005					April 2005
	2005		2006			2005		2006			2005		2006

Gross revenues	$	155,136	$	304,247		$	148,334	$	295,747		$	150,793	$	295,791
Profit (loss) on sale of properties		—		—			—		—			—		—
Less:
Operating expenses(4)		5,636		7,168			4,352		5,575			4,562		7,030
Interest expense		65,763		143,734			63,835		142,071			65,761		143,730
Depreciation and amortization(3)		—		—			—		—			—		—

Net income (loss) — Tax basis(6)	$	83,737	$	153,345		$	80,147	$	148,101		$	80,470	$	145,031

Taxable income
— from operations	$	83,737	$	153,345		$	80,147	$	148,101		$	80,470	$	145,031
— from gain on sale		—		—			—		—			—		—
Cash generated
— from operations(5)		83,737		153,345			80,147		148,101			80,470		145,031
— from sales		—		—			—		—			—		—
— from refinancing		—		—			—		—			—		—

Cash generated from operations, sales and refinancing		83,737		153,345			80,147		148,101			80,470		145,031
Less: Cash distributions to investors
— from operating cash flow		64,858		151,670			61,482		146,592			61,230		143,184
— from sales and refinancing		—		—			—		—			—		—
— from other		—		—			—		—			—		—

Cash generated (deficiency) after cash distributions		18,879		1,675			18,665		1,509			19,240		1,847
Less: Special items (not including sales and refinancing)		—		—			—		—			—		—

Cash generated (deficiency) after cash distributions and special items	$	18,879	$	1,675		$	18,665	$	1,509		$	19,240	$	1,847

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	40.03	$	73.30		$	39.64	$	73.24		$	40.74	$	73.43
— from recapture		—		—			—		—			—		—
Capital gain (loss)		—		—			—		—			—		—
Cash distributions to investors:
Source (on a tax basis)
— investment income		31.00		72.50			30.41		72.50			31.00		72.50
— return of capital		—		—			—		—			—		—
Source (on a cash basis)
— sales		—		—			—		—			—		—
— refinancing		—		—			—		—			—		—
— operations		31.00		72.50			30.41		72.50			31.00		72.50
— other		—		—			—		—			—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table				100	%				100	%				100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Walgreens-					Walgreens-					Walgreens-
	Wichita Falls, TX					Chicago, IL					Southington, CT
	May 2005					May 2005					June 2005
	2005		2006			2005		2006			2005		2006

Gross revenues	$	153,348	$	300,722		$	228,585	$	476,231		$	198,989	$	414,555
Profit (loss) on sale of properties		—		—			—		—			—		—
Less:		—		—			—		—			—		—
Operating expenses(4)		4,352		6,949			7,058		9,830			6,140		8,643
Interest expense		66,573		145,505			98,204		229,773			84,966		198,182
Depreciation and amortization(3)		—		—			—		—			—		—

Net income (loss) — Tax basis(6)	$	82,423	$	148,268		$	123,323	$	236,628		$	107,883	$	207,730

Taxable income
— from operations	$	82,423	$	148,268		$	123,323	$	236,628		$	107,883	$	207,730
— from gain on sale		—		—			—		—			—		—
Cash generated
— from operations(5)		82,423		148,268			123,323		236,628			107,883		207,730
— from sales		—		—			—		—			—		—
— from refinancing		—		—			—		—			—		—

Cash generated from operations, sales and refinancing		82,423		148,268			123,323		236,628			107,883		207,730
Less: Cash distributions to investors		—		—			—		—			—		—
— from operating cash flow		62,626		146,448			93,600		234,540			82,056		205,608
— from sales and refinancing		—		—			—		—			—		—
— from other		—		—			—		—			—		—

Cash generated (deficiency) after cash distributions		19,797		1,820			29,723		2,088			25,827		2,122
Less: Special items (not including sales and refinancing)		—		—			—		—			—		—

Cash generated (deficiency) after cash distributions and special items	$	19,797	$	1,820		$	29,723	$	2,088		$	25,827	$	2,122

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	40.80	$	73.40		$	38.12	$	73.15		$	38.04	$	73.25
— from recapture		—		—			—		—			—		—
Capital gain (loss)		—		—			—		—			—		—
Cash distributions to investors:
Source (on a tax basis)
— investment income		31.00		72.50			28.93		72.50			28.93		72.50
— return of capital		—		—			—		—			—		—
Source (on a cash basis)
— sales		—		—			—		—			—		—
— refinancing		—		—			—		—			—		—
— operations		31.00		72.50			28.93		72.50			28.93		72.50
— other		—		—			—		—			—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table				100	%				100	%				100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Walgreens-					Walgreens-					Gander Mountain-
	Nashville, TN					Derby, KS					Spring, TX
	June 2005					June 2005					June 2005
	2005		2006			2005		2006			2005		2006

Gross revenues	$	158,605	$	381,569		$	134,493	$	345,824		$	335,027	$	1,008,049
Profit (loss) on sale of properties		—		—			—		—			—		—
Less:		—		—			—		—			—		—
Operating expenses(4)		5,122		8,211			6,648		15,835			3,429		8,490
Interest expense		67,551		186,790			55,839		167,060			—		—
Depreciation and amortization(3)		—		—			—		—			—		—

Net income (loss) — Tax basis(6)	$	85,932	$	186,568		$	72,006	$	162,930		$	331,598	$	999,559

Taxable income
— from operations	$	85,932	$	186,568		$	72,006	$	162,930		$	331,598	$	999,559
— from gain on sale		—		—			—		—			—		—
Cash generated
— from operations(5)		85,932		186,568			72,006		162,930			331,598		999,559
— from sales		—		—			—		—			—		—
— from refinancing		—		—			—		—			—		—

Cash generated from operations, sales and refinancing		85,932		186,568			72,006		162,930			331,598		999,559
Less: Cash distributions to investors		—		—			—		—			—		—
— from operating cash flow		61,775		184,440			50,396		163,872			249,273		986,268
— from sales and refinancing		—		—			—		—			—		—
— from other		—		—			—		—			—		—

Cash generated (deficiency) after cash distributions		24,157		2,128			21,610		(942	)		82,325		13,291
Less: Special items (not including sales and refinancing)		—		—			—		—			—		—

Cash generated (deficiency) after cash distributions and special items	$	24,157	$	2,128		$	21,610	$	(942	)	$	82,325	$	13,291

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	33.78	$	73.34		$	30.76	$	69.60		$	25.22	$	76.01
— from recapture		—		—			—		—			—		—
Capital gain (loss)		—		—			—		—			—		—
Cash distributions to investors:
Source (on a tax basis)
— investment income		24.28		72.50			21.53		70.00			18.96		75.00
— return of capital		—		—			—		—			—		—
Source (on a cash basis)
— sales		—		—			—		—			—		—
— refinancing		—		—			—		—			—		—
— operations		24.28		72.50			21.53		70.00			18.96		75.00
— other		—		—			—		—			—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table				100	%				100	%				100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Walgreens-					Walgreens-					Walgreens-
	Blue Springs, MO					Garden City, KS					Pittsburg, KS
	June 2005					June 2005					June 2005
	2005		2006			2005		2006			2005		2006

Gross revenues	$	102,520	$	278,833		$	129,075	$	334,224		$	102,883	$	295,304
Profit (loss) on sale of properties		—		—			—		—			—		—
Less:
Operating expenses(4)		5,767		10,823			6,489		15,421			5,512		13,895
Interest expense		46,108		129,690			53,531		161,478			35,488		140,795
Depreciation and amortization(3)		—		—			—		—			—		—

Net income (loss) — Tax basis(6)	$	50,645	$	138,319		$	69,055	$	157,325		$	61,883	$	140,613

Taxable income
— from operations	$	50,645	$	138,319		$	69,055	$	157,325		$	61,883	$	140,613
— from gain on sale		—		—			—		—			—		—
Cash generated
— from operations(5)		50,645		138,319			69,055		157,325			61,883		140,613
— from sales		—		—			—		—			—		—
— from refinancing		—		—			—		—			—		—

Cash generated from operations, sales and refinancing		50,645		138,319			69,055		157,325			61,883		140,613
Less: Cash distributions to investors
— from operating cash flow		37,809		132,384			48,197		158,136			37,600		141,120
— from sales and refinancing		—		—			—		—			—		—
— from other		—		—			—		—			—		—

Cash generated (deficiency) after cash distributions		12,836		5,935			20,858		(811	)		24,283		(507	)
Less: Special items (not including sales and refinancing)		—		—			—		—			—		—

Cash generated (deficiency) after cash distributions and special items	$	12,836	$	5,935		$	20,858	$	(811	)	$	24,283	$	(507	)

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	26.78	$	73.15		$	30.57	$	69.64		$	30.70	$	69.75
— from recapture		—		—			—		—			—		—
Capital gain (loss)		—		—			—		—			—		—
Cash distributions to investors:
Source (on a tax basis)
— investment income		19.99		70.01			21.34		70.00			18.65		70.00
— return of capital		—		—			—		—			—		—
Source (on a cash basis)
— sales		—		—			—		—			—		—
— refinancing		—		—			—		—			—		—
— operations		19.99		70.01			21.34		70.00			18.65		70.00
— other		—		—			—		—			—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table				100	%				100	%				100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Walgreens-					Walgreens-					Walgreens-
	Gladstone, MO					Salt Lake City, UT					Sandy, UT
	June 2005					July 2005					July 2005
	2005		2006			2005		2006			2005		2006

Gross revenues	$	132,411	$	395,426		$	124,866	$	511,918		$	122,931	$	503,524
Profit (loss) on sale of properties		—		—			—		—			—		—
Less:
Operating expenses(4)		7,731		17,633			7,013		17,712			7,049		17,501
Interest expense		45,975		204,644			63,197		250,246			64,034		246,775
Depreciation and amortization(3)		—		—			—		—			—		—

Net income (loss) — Tax basis(6)	$	78,705	$	173,149		$	54,656	$	243,961		$	51,848	$	239,248

Taxable income
— from operations	$	78,705	$	173,149		$	54,656	$	243,961		$	51,848	$	239,248
— from gain on sale		—		—			—		—			—		—
Cash generated
— from operations(5)		78,705		173,149			54,656		243,961			51,848		239,248
— from sales		—		—			—		—			—		—
— from refinancing		—		—			—		—			—		—

Cash generated from operations, sales and refinancing		78,705		173,149			54,656		243,961			51,848		239,248
Less: Cash distributions to investors
— from operating cash flow		55,486		158,450			40,825		216,492			40,776		216,228
— from sales and refinancing		—		—			—		—			—		—
— from other		—		—			—		—			—		—

Cash generated (deficiency) after cash distributions		23,219		14,699			13,831		27,469			11,072		23,020
Less: Special items (not including sales and refinancing)		—		—			—		—			—		—

Cash generated (deficiency) after cash distributions and special items	$	23,219	$	14,699		$	13,831	$	27,469		$	11,072	$	23,020

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	31.11	$	68.44		$	17.04	$	76.07		$	16.19	$	74.70
— from recapture		—		—			—		—			—		—
Capital gain (loss)		—		—			—		—			—		—
Cash distributions to investors:
Source (on a tax basis)
— investment income		21.93		62.63			12.73		67.51			12.73		67.51
— return of capital		—		—			—		—			—		—
Source (on a cash basis)
— sales		—		—			—		—			—		—
— refinancing		—		—			—		—			—		—
— operations		21.93		62.63			12.73		67.51			12.73		67.51
— other		—		—			—		—			—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table				100	%				100	%				100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Walgreens-					Walgreens-					Wal-Mart-
	Midvale, UT					Metairie, LA					Hazard, KY
	August 2005					August 2005					September 2005
	2005		2006			2005		2006			2005		2006

Gross revenues	$	87,586	$	359,001		$	4,355	$	541,345		$	319,334	$	1,891,356
Profit (loss) on sale of properties		—		—			—		—			—		—
Less:
Operating expenses(4)		5,676		13,095			—		16,665			11,436		41,686
Interest expense		44,677		169,379			—		258,179			120,349		1,071,401
Depreciation and amortization(3)		—		—			—		—			—		—

Net income (loss) — Tax basis(6)	$	37,233	$	176,527		$	4,355	$	266,501		$	187,549	$	778,270

Taxable income
— from operations	$	37,233	$	176,527		$	4,355	$	266,501		$	187,549	$	778,270
— from gain on sale		—		—			—		—			—		—
Cash generated
— from operations(5)		37,233		176,527			4,355		266,501			187,549		778,270
— from sales		—		—			—		—			—		—
— from refinancing		—		—			—		—			—		—

Cash generated from operations, sales and refinancing		37,233		176,527			4,355		266,501			187,549		778,270
Less: Cash distributions to investors
— from operating cash flow		29,597		156,937			—		230,617			66,413		771,588
— from sales and refinancing		—		—			—		—			—		—
— from other		—		—			—		—			—		—

Cash generated (deficiency) after cash distributions		7,636		19,590			4,355		35,884			121,136		6,682
Less: Special items (not including sales and refinancing)		—		—			—		—			—		—

Cash generated (deficiency) after cash distributions and special items	$	7,636	$	19,590		$	4,355	$	35,884		$	121,136	$	6,682

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	16.24	$	75.93		$	3.02	$	73.03		$	14.83	$	61.53
— from recapture		—		—			—		—			—		—
Capital gain (loss)		—		—			—		—			—		—
Cash distributions to investors:
Source (on a tax basis)
— investment income		12.91		67.50			—		63.20			5.25		61.00
— return of capital		—		—			—		—			—		—
Source (on a cash basis)
— sales		—		—			—		—			—		—
— refinancing		—		—			—		—			—		—
— operations		12.91		67.50			—		63.20			5.25		61.00
— other		—		—			—		—			—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table				100	%				100	%				100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Gander Mountain —										Walgreens		Kohl’s
	Hermantown, MN					Best Buy — Baytown, TX					Natchitoches, LA		Lakewood, CO
	September 2005					October 2005					November 2005		November 2005
	2005		2006			2005		2006			2006		2006

Gross revenues	$	94,643	$	885,140		$	109,094	$	489,624		$	242,647	$	1,009,577
Profit (loss) on sale of properties		—		—			—		—			—		—
Less:
Operating expenses(4)		2,765		26,926			1,021		7,846			10,747		27,941
Interest expense		—		—			—		—			116,328		524,194
Depreciation and amortization(3)		—		—			—		—			—		—

Net income (loss) — Tax basis(6)	$	91,878	$	858,213		$	108,073	$	481,779		$	115,573	$	457,443

Taxable income
— from operations	$	91,878	$	858,213		$	108,073	$	481,779		$	115,573	$	457,443
— from gain on sale		—		—			—		—			—		—
Cash generated
— from operations(5)		91,878		858,213			108,073		481,779			115,573		457,443
— from sales		—		—			—		—			—		—
— from refinancing		—		—			—		—			—		—

Cash generated from operations, sales and refinancing		91,878		858,213			108,073		481,779			115,573		457,443
Less: Cash distributions to investors
— from operating cash flow		18,885		861,636			—		445,785			99,268		387,805
— from sales and refinancing		—		—			—		—			—		—
— from other		—		—			—		—			—		—

Cash generated (deficiency) after cash distributions		72,993		(3,423	)		108,073		35,993			16,305		69,638
Less: Special items (not including sales and refinancing)		—		—			—		—			—		—

Cash generated (deficiency) after cash distributions and special items	$	72,993	$	(3,423	)	$	108,073	$	35,993		$	16,305	$	69,638

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	8.23	$	73.21		$	94.06	$	57.89		$	65.55	$	61.31
— from recapture		—		—			—		—			—		—
Capital gain (loss)		—		—			—		—			—		—
Cash distributions to investors:
Source (on a tax basis)
— investment income		1.69		73.50			—		53.56			56.31		51.98
— return of capital		—		—			—		—			—		—
Source (on a cash basis)
— sales		—		—			—		—			—		—
— refinancing		—		—			—		—			—		—
— operations		1.69		73.50			—		53.56			56.31		51.98
— other		—		—			—		—			—		—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table				100	%				100	%				100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	The Shoppes at
	North Village — St.			Walgreens			Kohl’s			Home Depot-			Cole Net Lease			Cole Net Lease
	Joseph, MO			Sumter, SC			St. Joseph, MO			Bellingham, WA			Portfolio I			Portfolio II
	December 2005			January 2006			February 2006			April 2006			May 2006			June 2006
	2006			2006			2006			2006			2006			2006

Gross revenues	$	2,824,347		$	314,624		$	564,619		$	608,739		$	583,357		$	313,447
Profit (loss) on sale of properties		—			—			—			—			—			—
Less:
Operating expenses(4)		871,927			14,066			159,442			14,676			26,130			4,849
Interest expense		1,094,702			158,325			190,758			—			265,912			133,317
Depreciation and amortization(3)		—			—			—			—			—			—

Net income (loss) — Tax basis(6)	$	857,718		$	142,232		$	214,419		$	594,063		$	291,315		$	175,281

Taxable income
— from operations	$	857,718		$	142,232		$	214,419		$	594,063		$	291,315		$	175,281
— from gain on sale		—			—			—			—			—			—
Cash generated
— from operations(5)		857,718			142,232			214,419			594,063			291,315			175,281
— from sales		—			—			—			—			—			—
— from refinancing		—			—			—			—			—			—

Cash generated from operations, sales and refinancing		857,718			142,232			214,419			594,063			291,315			175,281
Less: Cash distributions to investors
— from operating cash flow		808,917			121,169			132,308			463,771			203,698			77,402
— from sales and refinancing		—			—			—			—			—			—
— from other		—			—			—			—			—			—
Cash generated (deficiency) after cash distributions		48,801			21,063			82,111			130,292			87,617			97,879
Less: Special items (not including sales and refinancing)		—			—			—			—			—			—

Cash generated (deficiency) after cash distributions and special items	$	48,801		$	21,063		$	82,111		$	130,292		$	87,617		$	97,879

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	41.98		$	66.09		$	52.08		$	24.05		$	30.37		$	17.51
— from recapture		—			—			—			—			—			—
Capital gain (loss)		—			—			—			—			—			—
Cash distributions to investors:
Source (on a tax basis)
— investment income		39.59			56.31			32.14			18.78			21.24			7.73
— return of capital		—			—			—			—			—			—
Source (on a cash basis)
— sales		—			—			—			—			—			—
— refinancing		—			—			—			—			—			—
— operations		39.59			56.31			32.14			18.78			21.24			7.73
— other		—			—			—			—			—			—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table		100	%		100	%		100	%		100	%		100	%		100	%

Past performance is not necessarily indicative of future results.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)


	Barrywoods
	Crossing
	Kansas City,			Cole Net Lease
	MO			Portfolio III
	July 2006			December 2006
	2006			2006

Gross revenues	$	969,929		$	—
Profit (loss) on sale of properties		—			—
Less:
Operating expenses(4)		642,129			—
Interest expense		126,766			—
Depreciation and amortization(3)		—			—

Net income (loss) — Tax basis(6)	$	201,034		$	—

Taxable income
— from operations	$	201,034		$	—
— from gain on sale		—			—
Cash generated
— from operations(5)		201,034			—
— from sales		—			—
— from refinancing		—			—

Cash generated from operations, sales and refinancing		201,034			—
Less: Cash distributions to investors
— from operating cash flow		58,685			—
— from sales and refinancing		—			—
— from other		—			—
Cash generated (deficiency) after cash distributions		142,349			—
Less: Special items (not including sales and refinancing)		—			—

Cash generated (deficiency) after cash distributions and special items	$	142,349		$	—

Tax and Distribution Data Per $1,000 Invested
Federal income tax results:
Ordinary income (loss)
— from operations	$	14.61		$	—
— from recapture		—			—
Capital gain (loss)		—			—
Cash distributions to investors:
Source (on a tax basis)
— investment income		4.26			—
— return of capital		—			—
Source (on a cash basis)
— sales		—			—
— refinancing		—			—
— operations		4.26			—
— other		—			—
Amount (in percentage terms) remaining invested in program properties at the end of last year reported in the table		100	%		100	%

Past performance is not necessarily indicative of future results.

NOTES TO TABLE III


(1)		Cole Credit Property Trust, Inc. and Cole Credit Property Trust II, Inc. maintain their books on a GAAP basis of accounting rather than a tax basis.

(2)		Investors in this program receive interest at a specified rate per annum, which is included in interest expense. Therefore, tax and cash distribution data per $1,000 invested is not applicable.

(3)		Amortization of organizational costs is computed over a period of 60 months. Depreciation of commercial real property is determined on the straight-line method over an estimated useful life of 39 years. Leasehold interest are amortized over the life of the lease.

(4)		Operating expenses include management fees paid to affiliates for such services as accounting, property supervision, etc.

(5)		Cash generated from operations generally includes net income plus depreciation and amortization plus any decreases in accounts receivable and accrued rental income or increases in accounts payable minus any increases in accounts receivable and accrued rental income or decreases in accounts payable. In addition, cash generated from operations is reduced for any property costs related to development projects and is increased by proceeds when the project is sold (usually in less than twelve months).

(6)		The partnerships maintain their books on a tax basis of accounting rather than a GAAP basis. There are several potential differences in tax and GAAP basis, including, among others; (a) tax basis accounting does not take certain income or expense accruals into consideration at the end of each fiscal year, (b) rental income is recorded on a tax basis, as it is received where it is accrued on a straight-line basis over the life of the lease for GAAP, and (c) all properties are recorded at cost and depreciated over their estimated useful life on a tax basis even if they qualify as a direct financing lease for GAAP purposes. These differences generally result in timing differences between fiscal years but total operating income over the life of the partnership will not be significantly different between the two basis of accounting.

Past performance is not necessarily indicative of future results.