Edgar Filing: Cole Credit Property Trust II Inc

COLE CREDIT PROPERTY TRUST II, INC.

COLE CREDIT PROPERTY TRUST II, INC.

SUPPLEMENT NO. 18 DATED APRIL 18, 2007

TO THE PROSPECTUS DATED JUNE 27, 2005

This document supplements, and should be read in conjunction with, the prospectus of Cole Credit Property Trust II, Inc. dated June 27, 2005, Supplement No. 13 dated December 20, 2006, Supplement No. 14 dated January 11, 2007, Supplement No. 15 dated January 24, 2007,Supplement No. 16 dated March 20, 2007 and Supplement No. 17 dated March 29, 2007. Supplement 13 supersedes and replaces all prior supplements to the prospectus. 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) the replacement and supplement of our real property investments;

(3) the disclosure of distributions made; and


	(4)	the termination of a purchase agreement for a single-tenant, net leased commercial retail property containing approximately 75,000 rentable square feet in Sherwood, Arkansas.

Status of the Offering

We commenced our initial public offering of shares of our common stock on June 27, 2005. We have accepted investors’ subscriptions received through April 13, 2007, and have issued an aggregate of approximately 47.8 million shares of our common stock to stockholders, with gross proceeds of approximately $478 million distributed to us. For additional information, see the “Plan of Distribution — Subscription Process” section of the prospectus beginning on page 133.

Replace and Supplement Real Property Investments

The following information replaces the section of our prospectus captioned “Prospectus Summary — Description of Real Estate Investments” beginning on page 8 of the prospectus:

Description of Real Estate Investments

As of April 11, 2007, we owned 124 properties, comprising approximately 6,000,000 rentable square feet of commercial space located in 43 states and the U.S. Virgin Islands. Our properties as of April 11, 2007, are listed below.


		Rentable Square		Purchase
Property Description	Tenant	Feet		Price

Tractor Supply — Parkersburg, WV	Tractor Supply Company		21,688	$	3,259,243
Walgreens — Brainerd, MN	Walgreen Co.		15,120		4,328,500
Rite Aid — Alliance, OH	Rite Aid of Ohio, Inc.		11,348		2,100,000
La-Z-Boy — Glendale, AZ	EBCO, Inc.		23,000		5,691,525
Walgreens — Florissant, MO	Walgreen Co.		15,120		5,187,632
Walgreens — Saint Louis, MO (Gravois)	Walgreen Co.		15,120		6,152,942
Walgreens — Saint Louis, MO (Telegraph)	Walgreen Co.		15,120		5,059,426
Walgreens — Columbia, MO	Walgreen Co.		13,973		6,271,371
Walgreens — Olivette, MO	Walgreen Co.		15,030		7,822,222
CVS — Alpharetta, GA	Mayfield CVS, Inc.,		10,125		3,100,000
Lowe’s — Enterprise, AL	Lowe’s Home Centers, Inc		95,173		7,475,000
CVS — Richland Hills, TX	CVS EGL Grapevine N Richland Hills Texas, LP		10,908		3,660,000
FedEx — Rockford, IL	Fed Ex Ground Package System, Inc.		67,925		6,150,000
Plastech — Auburn Hills, MI	LDM Technologies, Inc.		111,881		23,600,000


		Rentable Square		Purchase
Property Description	Tenant	Feet		Price

Academy Sports — Macon, GA	Academy, LTD		74,532		5,600,000
David’s Bridal — Lenexa, KS	David’s Bridal, Inc.		12,083		3,270,000
Rite Aid — Enterprise, AL	Harco, Inc.		14,564		3,714,000
Rite Aid — Wauseon, OH	Rite Aid of Ohio, Inc.		14,564		3,893,679
Staples — Crossville, TN	Staples the Office Superstore East, Inc		23,942		2,900,000
Rite Aid — Saco, ME	Rite Aid of Maine, Inc.		11,180		2,500,000
Wadsworth Boulevard — Denver, CO	Various		198,477		18,500,000
Mountainside Fitness — Chandler, AZ	Hatten Holdings, Inc.		31,063		5,863,000
Drexel Heritage — Hickory, NC	Drexel Heritage Furniture Industries, Inc.		261,057		4,250,000
Rayford Square — Spring, TX	Various		79,968		9,900,000
CVS — Portsmouth, OH	Revco Discount Drug Centers, inc.		10,170		2,166,000
Wawa — Hockessin, DE	Wawa, Inc.		5,160		4,830,000
Wawa — Manahawkin, NJ	Wawa, Inc.		4,695		4,414,000
Wawa — Narbeth, PA	Wawa, Inc.		4,461		4,206,000
CVS (Sublease) — Lakewood, OH	Various		12,800		2,450,000
Rite Aid — Cleveland, OH	Rite Aid of Ohio, Inc.		11,325		2,568,700
Rite Aid — Fremont, OH	Rite Aid of Ohio, Inc.		11,325		2,524,500
Walgreens — Knoxville, TN	Walgreen Co.		15,120		4,750,000
CVS — Madison, MS	CVS EGL Highland Madison MS, Inc.		13,824		4,463,088
Rite Aid — Defiance, OH	Rite Aid of Ohio, Inc.		14,564		4,326,165
Conns — San Antonio, TX	CAI, LP		25,230		4,624,619
Dollar General — Crossville, TN	Dolgencorp, Inc.		24,341		3,000,000
Dollar General — Ardmore, TN	Dolgencorp, Inc.		24,341		2,775,000
Dollar General — Livingston, TN	Dolgencorp, Inc.		24,341		2,856,000
Wehrenberg — Arnold, MO	Wehrenberg, Inc.		50,000		8,200,000
Sportmans Warehouse — Wichita, KS	Sportsman’s Warehouse, Inc.,		50,003		8,231,000
CVS — Portsmouth, OH	Revco Discount Drug Centers, Inc.		10,650		2,101,708
Advance Auto — Greenfield, IN	Advance Stores Company, Inc.		7,000		1,375,500
Advance Auto — Trenton, OH	Advance Stores Company, Inc.		7,000		1,060,000
Rite Aid — Lansing, MI	Rite Aid of Michigan, Inc.		11,680		1,735,000
Advance Auto — Columbia Heights, MN	Advance Stores Company, Inc.		7,000		1,730,578
Advance Auto — Fergus Falls, MN	Advance Stores Company, Inc.		7,000		1,203,171
CVS — Okeechobee, FL	Eckerd Corporation		13,050		6,459,262
Office Depot — Dayton, OH	Office Depot, Inc.		19,880		3,416,526
Advance Auto — Holland, MI	Advance Stores Company, Inc.		7,000		2,071,843
Advance Auto — Holland Township, MI	Advance Stores Company, Inc.		7,000		2,137,244
Advance Auto — Zeeland, MI	Advance Stores Company, Inc.		7,000		1,840,715
CVS — Orlando, FL	CVS EGL Lake Pickett FL, LLC		13,013		4,956,763
Office Depot — Greenville, MS	Office Depot, Inc.		25,083		3,491,470
Office Depot — Warrensburg, MO	Office Depot, Inc.		20,000		2,880,552
CVS — Gulfport, MS	CVS EGL East Pass Gulfport MS, Inc.		11,359		4,414,117
Advance Auto — Grand Forks, ND	Advance Stores Company, Inc.		7,000		1,399,657
CVS — Clinton, NY	CVS BDI, Inc.,		10,055		3,050,000
Oxford Theatre — Oxford, MS	Oxford Theater Company, Inc.		35,000		9,692,503
Advance Auto — Duluth, MN	Advance Stores Company, Inc.		7,000		1,432,565
Walgreens — Picayune, MS	Walgreen Co.		14,820		4,255,000
Kohl’s — Wichita, KS	Kohl’s Illinois, Inc.		86,584		7,866,000


		Rentable Square		Purchase
Property Description	Tenant	Feet		Price

Lowe’s — Lubbock, TX	Lowe’s Home Centers, Inc		137,480		11,508,000
Lowe’s — Midland, TX	Lowe’s Home Centers, Inc		134,050		11,099,000
Advance Auto — Grand Bay, AL	Advance Stores Company, Inc.		7,000		1,115,605
Advance Auto — Hurley, MS	Advance Stores Company, Inc.		7,000		1,083,195
Advance Auto — Rainsville, AL	Advance Stores Company, Inc.		7,000		1,328,000
Gold’s Gym — O’Fallon, IL	Gold’s St Louis, LLC		38,000		7,300,000
Rite Aid — Glassport, PA	Rite Aid of Pennsylvania, Inc.		14,564		3,788,000
David’s BridalRadio Shack — Topeka, KS	Federated Dept. Stores & Radio Shack Corp.		10,150		3,021,000
Rite Aid — Hanover, PA	Rite Aid		14,584		6,330,000
American TV & Appliance — Peoria, IL	American TV & Appliance of Madison, Inc.		126,852		11,336,983
Tractor Supply — La Grange, TX	Tractor Supply Texas		24,727		2,580,000
Staples — Peru, IL	Staples the Office Superstore East, Inc		23,925		3,215,000
Fedex — Council Bluffs, IA	Fedex Freight East, Inc.		23,510		3,361,000
Fedex — Edwardsville, KS	Fedex Freight East, Inc.		155,965		19,815,000
CVS — Glenville Scotia, NY	CVS Mack Drug of New York, LLC		12,900		5,250,000
Advance Auto — Ashland, KY	Advance Stores Company, Inc.		7,000		1,681,000
Advance Auto — Jackson, OH	Advance Stores Company, Inc.		7,000		1,352,000
Advance Auto — New Boston, OH	Advance Stores Company, Inc.		7,000		1,516,000
Advance Auto — Scottsburg, IN	Advance Stores Company, Inc.		7,000		1,272,000
Tractor Supply — Livingston, TN	Tractor Supply Texas		24,727		3,100,000
Tractor Supply — New Braunfels, TX	Tractor Supply Texas		24,727		3,150,000
Office Depot — Benton, AR	Office Depot, Inc.		20,515		3,275,000
Old Time Pottery — Fairview Heights, IL	Old Time Pottery, Inc.		97,849		4,280,000
Infiniti — Davie, FL	Warren Henry Automobiles, Inc.		20,927		9,432,000
Office Depot — Oxford, MS	Office Depot, Inc.		20,000		3,487,450
Tractor Supply — Crockett, TX	Tractor Supply Texas		24,727		2,450,000
Mercedes Benz — Atlanta, GA	Atlanta Eurocars		40,588		11,760,000
Dick’s Sporting Goods — Amherst, NY	Dick’s Sporting Goods		55,745		9,725,000
Chili’s — Paris, TX	Brinker Texas, L.P.		6,698		2,750,000
Staples — Clarksville, IN	Staples the Office Superstore East, Inc.		20,388		4,430,000
HOM — Fargo, ND	HOM Furniture, Inc.		122,108		12,000,000
La-Z-Boy — Newington, CT	LZB Furniture Galleries of Paramus, Inc		20,701		6,900,000
Advance Auto — Maryland Heights, MO	Advance Stores Company, Inc.		7,000		1,893,000
Victoria Crossing — Victoria, TX	Various		87,473		12,608,000
Academy Sports — Katy, TX	Academy Ltd		1,500,596		102,000,000
Gordmans — Peoria, IL	Gordmans, Inc.		60,947		9,000,000
One Pacific Place — Omaha, NE	Various		91,564		36,000,000
Sack n’ SaveO’Reilly Auto — Garland, TX	Various		65,295		5,060,000
Tractor Supply — Ankeny, IA	Tractor Supply Company		19,097		3,000,000
ABX Air — Coventry, RI	ABX Air, Inc.		33,000		4,090,000
Office Depot — Enterprise, AL	Office Depot, Inc.		20,000		2,776,357
Northern Tool — Blaine, MN	Northern Tool and Equipment, Inc.		25,488		4,900,000
Office Max — Orangeburg, SC	OfficeMax, Inc.		23,500		3,125,000
Walgreens — Cincinnati, OH	Walgreen Co.		15,120		5,140,000
Walgreens — Madeira, OH	Walgreen Co.		13,905		4,425,000
Walgreens — Sharonville, OH	Walgreen Co.		13,905		4,085,000
AT&T — Beaumont, TX	AT&T Services, Inc.		141,525		12,275,000


		Rentable Square		Purchase
Property Description	Tenant	Feet		Price

Walgreens — Shreveport, LA	Walgreen Co.		13,905		4,140,000
Cost-U-Less, St. Croix, USVI	CULUSVI, Inc.		38,365		6,210,000
Gallina Centro — Collierville, TN	Various		142,727		17,750,000
Apria Healthcare — St. John, MO	Apria Healthcare, Inc.		52,200		6,500,000
Logan’s Roadhouse — Fairfax, VA	Logan’s Roadhouse, Inc.		7,839		3,209,000
Logan’s Roadhouse — Johnson City, TN	Logan’s Roadhouse, Inc.		7,839		3,866,000
Center at 7500 Cottonwood — Jenison, MI	Hob-Lob Limited Partnership		84,933		5,290,000
Eckerd — Lincolnton, NC	ECK-001, LLC		10,908		2,262,000
Tractor Supply — Greenfield, MN	Tractor Supply Company		22,675		4,050,000
Lincoln Place — Fairview Heights, IL	Various		272,829		44,000,000
Ashley Furniture — Amarillo, TX	Choice Furniture, Inc.		74,797		5,920,000
Pocatello Square — Pocatello, ID	Various		138,925		23,000,000
Tractor Supply — Paw Paw, MI	Tractor Supply Company		22,670		3,095,000
Tractor Supply — Marinette, MI	Tractor Supply Company		19,097		2,950,000
Staples — Greenville, SC	Staples the Office Superstore East, Inc.		20,388		4,545,000
Big 5 Center — Aurora, CO	Various		15,800		4,290,000

			6,032,670	$	811,349,376

For additional information regarding our prior acquisitions, see the discussion below under the caption “Real Property Investments.”

We expect to use substantially all of the net proceeds from this offering to acquire and operate a portfolio of commercial real estate consisting primarily of freestanding, single-tenant commercial properties net leased to investment grade tenants, which generally are companies that have a debt rating by Moody’s of Baa3 or better or a credit rating by Standard & Poor’s of BBB or better, or are guaranteed by a company with such rating, and other creditworthy tenants located throughout the United States. We also may invest in a smaller number of multi-tenant properties that compliment our overall investment objectives. In addition, we may invest in entities that make similar investments. If our advisor determines that, due to the state of the real estate market or in order to diversify our investment portfolio, it would be advantageous to us, we also may invest in mortgage loans secured by commercial properties similar to those in which we invest directly. We intend to hold each property for eight to ten years.

Our advisor, Cole Advisors II, makes recommendations to our board of directors for our investments. All acquisitions of commercial properties are evaluated for tenant creditworthiness and the reliability and stability of their future income and capital appreciation potential. We consider the risk profile, credit quality and reputation of potential tenants and the impact of each particular acquisition as it relates to the portfolio as a whole. Our board of directors will exercise its fiduciary duties to our stockholders in determining to approve or reject each of these investment recommendations. See the section of this prospectus captioned “Investment Objectives and Policies — Real Property Investments” for a description of our properties as of the date of this prospectus. As we acquire properties, we will supplement this prospectus to describe material changes to our portfolio.

The following information replaces the first paragraph of the section of our prospectus captioned “Investment Objectives and Policies — Real Property Investments” beginning on page 82 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 April 11, 2007, we, through separate wholly-owned limited partnerships or limited liability companies, have acquired a 100% fee simple interest in 124 properties consisting of an aggregate of approximately 6,000,000 gross rentable square feet located in 43 states and the U.S. Virgin Islands. The properties were generally acquired through the use of mortgage notes payable and proceeds from our ongoing public offering of our common stock. The following table summarizes these properties in order of acquisition date.


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

Tractor Supply — Parkersburg, WV	Specialty retail	September 26, 2005	2005	$	3,259,243	$	83,115		21,688		100	%
Walgreens — Brainerd, MN	Drugstore	October 5, 2005	2000		4,328,500		114,710		15,120		100	%
Rite Aid — Alliance, OH	Drugstore	October 20, 2005	1996		2,100,000		42,000		11,348		100	%
La-Z-Boy — Glendale, AZ	Home furnishings	October 25, 2005	2001		5,691,525		148,000		23,000		100	%
Walgreens — Florissant, MO	Drugstore	November 2, 2005	2001		5,187,632		111,671		15,120		100	%
Walgreens — Saint Louis, MO (Gravois)	Drugstore	November 2, 2005	2001		6,152,942		108,917		15,120		100	%
Walgreens — Saint Louis, MO (Telegraph)	Drugstore	November 2, 2005	2001		5,059,426		132,412		15,120		100	%
Walgreens — Columbia, MO	Drugstore	November 22, 2005	2002		6,271,371		125,000		13,973		100	%
Walgreens — Olivette, MO	Drugstore	November 22, 2005	2001		7,822,222		156,000		15,030		100	%
CVS — Alpharetta, GA	Drugstore	December 1, 2005	1998		3,100,000		82,000		10,125		100	%
Lowe’s — Enterprise, AL	Home improvement	December 1, 2005	1995		7,475,000		184,000		95,173		100	%
CVS — Richland Hills, TX	Drugstore	December 8, 2005	1997		3,660,000		97,000		10,908		100	%
FedEx — Rockford, IL	Distribution	December 9, 2005	1994		6,150,000		149,000		67,925		100	%
Plastech — Auburn Hills, MI	Automotive parts	December 15, 2005	1995		23,600,000		472,000		111,881		100	%
Academy Sports — Macon, GA	Sporting goods	January 6, 2006	2005		5,600,000		148,000		74,532		100	%
David’s Bridal — Lenexa, KS	Specialty retail	January 11, 2006	2005		3,270,000		83,000		12,083		100	%
Rite Aid — Enterprise, AL	Drugstore	January 26, 2006	2005		3,714,000		94,000		14,564		100	%
Rite Aid — Wauseon, OH	Drugstore	January 26, 2006	2005		3,893,679		79,000		14,564		100	%
Staples — Crossville, TN	Office supply	January 26, 2006	2001		2,900,000		77,000		23,942		100	%
Rite Aid — Saco, ME	Drugstore	January 27, 2006	1997		2,500,000		64,000		11,180		100	%
Wadsworth Boulevard — Denver, CO	Specialty Retail/Warehouse Club	February 6, 2006	1991		18,500,000		490,000		198,477		100	%
Mountainside Fitness — Chandler, AZ	Health and fitness	February 9, 2006	2001		5,863,000		117,000		31,063		100	%
Drexel Heritage — Hickory, NC	Furnishings	February 24, 2006	1963		4,250,000		113,000		261,057		100	%
Rayford Square — Spring, TX	Automotive parts/Restaurant/Specialty Retail	March 2, 2006	1973		9,900,000		257,000		79,968		100	%
CVS — Portsmouth, OH	Drugstore	March 8, 2006	1997		2,166,000		57,000		10,170		100	%
Wawa — Hockessin, DE	Convenience stores	March 29, 2006	2000		4,830,000		—		5,160		100	%
Wawa — Manahawkin, NJ	Convenience stores	March 29, 2006	2000		4,414,000		—		4,695		100	%
Wawa — Narbeth, PA	Convenience stores	March 29, 2006	2000		4,206,000		—		4,461		100	%
CVS — Lakewood, OH	Drugstore/Financial Services	April 20, 2006	1996		2,450,000		62,000		12,800		100	%
Rite Aid — Cleveland, OH	Drugstore	April 27, 2006	1997		2,568,700		71,000		11,325		100	%
Rite Aid — Fremont, OH	Drugstore	April 27, 2006	1997		2,524,500		70,000		11,325		100	%
Walgreens — Knoxville, TN	Drugstore	May 8, 2006	2000		4,750,000		125,000		15,120		100	%
CVS — Madison, MS	Drugstore	May 26, 2006	2004		4,463,088		28,000		13,824		100	%
Rite Aid — Defiance, OH	Drugstore	May 26, 2006	2005		4,326,165		23,000		14,564		100	%
Conns — San Antonio, TX	Consumer electronics	May 26, 2006	2002		4,624,619		36,000		25,230		100	%
Dollar General — Crossville, TN	Specialty retail	June 2, 2006	2006		3,000,000		80,000		24,341		100	%
Dollar General — Ardmore, TN	Specialty retail	June 9, 2006	2005		2,775,000		73,000		24,341		100	%
Dollar General — Livingston, TN	Specialty retail	June 12, 2006	2006		2,856,000		76,000		24,341		100	%
Wehrenberg — Arnold, MO	Theaters	June 14, 2006	1998		8,200,000		82,000		50,000		100	%
Sportmans Warehouse — Wichita, KS	Specialty retail	June 27, 2006	2006		8,231,000		226,000		50,003		100	%
CVS — Portsmouth, OH	Drugstore	June 28, 2006	1997		2,101,708		61,000		10,650		100	%
Advance Auto — Greenfield, IN	Automotive parts	June 29, 2006	2003		1,375,500		28,000		7,000		100	%


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

Advance Auto — Trenton, OH	Automotive parts	June 29, 2006	2003		1,060,000		21,000		7,000		100	%
Rite Aid — Lansing, MI	Drugstore	June 29, 2006	1950		1,735,000		45,000		11,680		100	%
Advance Auto — Columbia Heights, MN	Automotive parts	July 6, 2006	2005		1,730,578		45,000		7,000		100	%
Advance Auto — Fergus Falls, MN	Automotive parts	July 6, 2006	2005		1,203,171		31,000		7,000		100	%
CVS — Okeechobee, FL	Drugstore	July 7, 2006	2001		6,459,262		41,000		13,050		100	%
Office Depot — Dayton, OH	Office supply	July 7, 2006	2005		3,416,526		21,000		19,880		100	%
Advance Auto — Holland, MI	Automotive parts	July 12, 2006	2006		2,071,843		12,000		7,000		100	%
Advance Auto — Holland Township, MI	Automotive parts	July 12, 2006	2006		2,137,244		12,000		7,000		100	%
Advance Auto — Zeeland, MI	Automotive parts	July 12, 2006	2006		1,840,715		11,000		7,000		100	%
CVS — Orlando, FL	Drugstore	July 12, 2006	2005		4,956,763		30,000		13,013		100	%
Office Depot — Greenville, MS	Office supply	July 12, 2006	2000		3,491,470		22,000		25,083		100	%
Office Depot — Warrensburg, MO	Office supply	July 19, 2006	2001		2,880,552		18,000		20,000		100	%
CVS — Gulfport, MS	Drugstore	August 10, 2006	2000		4,414,117		26,000		11,359		100	%
Advance Auto — Grand Forks, ND	Automotive parts	August 15, 2006	2005		1,399,657		36,000		7,000		100	%
CVS — Clinton, NY	Drugstore	August 24, 2006	2006		3,050,000		80,000		10,055		100	%
Oxford Theatre — Oxford, MS	Theaters	August 31, 2006	2006		9,692,503		246,000		35,000		100	%
Advance Auto — Duluth, MN	Automotive parts	September 8, 2006	2006		1,432,565		9,000		7,000		100	%
Walgreens — Picayune, MS	Drugstore	September 15, 2006	2006		4,255,000		113,000		14,820		100	%
Kohl’s — Wichita, KS	Apparel	September 27, 2006	1996		7,866,000		209,000		86,584		100	%
Lowe’s — Lubbock, TX	Home improvement	September 27, 2006	1996		11,508,000		305,000		137,480		100	%
Lowe’s — Midland, TX	Home improvement	September 27, 2006	1996		11,099,000		293,000		134,050		100	%
Advance Auto — Grand Bay, AL	Automotive parts	September 29, 2006	2005		1,115,605		22,000		7,000		100	%
Advance Auto — Hurley, MS	Automotive parts	September 29, 2006	2005		1,083,195		22,000		7,000		100	%
Advance Auto — Rainsville, AL	Automotive parts	September 29, 2006	2005		1,328,000		27,000		7,000		100	%
Gold’s Gym — O’Fallon, IL	Health and fitness	September 29, 2006	2005		7,300,000		183,000		38,000		100	%
Rite Aid — Glassport, PA	Drugstore	October 4, 2006	2006		3,788,000		99,000		14,564		100	%
David’s Bridal/Radio Shack — Topeka, KS	Specialty Retail/Consumer Electronics	October 13, 2006	2006		3,021,000		60,000		10,150		100	%
Rite Aid — Hanover, PA	Drugstore	October 17, 2006	2006		6,330,000		168,000		14,584		100	%
American TV & Appliance — Peoria, IL	Consumer electronics	October 23, 2006	2003		11,336,983		304,000		126,852		100	%
Tractor Supply — La Grange, TX	Specialty retail	November 6, 2006	2006		2,580,000		66,000		24,727		100	%
Staples — Peru, IL	Office supply	November 9, 2006	1998		3,215,000		83,000		23,925		100	%
Fedex — Council Bluffs, IA	Distribution	November 15, 2006	1999		3,361,000		89,000		23,510		100	%
Fedex — Edwardsville, KS	Distribution	November 15, 2006	1999		19,815,000		525,000		155,965		100	%
CVS — Glenville Scotia, NY	Drugstore	November 16, 2006	2006		5,250,000		139,000		12,900		100	%
Advance Auto — Ashland, KY	Automotive parts	November 17, 2006	2006		1,681,000		34,000		7,000		100	%
Advance Auto — Jackson, OH	Automotive parts	November 17, 2006	2005		1,352,000		27,000		7,000		100	%
Advance Auto — New Boston, OH	Automotive parts	November 17, 2006	2005		1,516,000		30,000		7,000		100	%
Advance Auto — Scottsburg, IN	Automotive parts	November 17, 2006	2006		1,272,000		25,000		7,000		100	%
Tractor Supply — Livingston, TN	Specialty retail	November 22, 2006	2006		3,100,000		79,000		24,727		100	%
Tractor Supply — New Braunfels, TX	Specialty retail	November 22, 2006	2006		3,150,000		81,000		24,727		100	%
Office Depot — Benton, AR	Office supply	November 21, 2006	2001		3,275,000		87,000		20,515		100	%
Old Time Pottery — Fairview Heights, IL	Home furnishings	November 21, 2006	1979		4,280,000		107,000		97,849		100	%
Infiniti — Davie, FL	Motor vehicle dealerships	November 30, 2006	2006		9,432,000		189,000		20,927		100	%
Office Depot — Oxford, MS	Office supply	December 1, 2006	2006		3,487,450		93,000		20,000		100	%
Tractor Supply — Crockett, TX	Specialty retail	December 1, 2006	2006		2,450,000		62,000		24,727		100	%
Mercedes Benz — Atlanta, GA	Motor vehicle dealerships	December 15, 2006	2000		11,760,000		235,000		40,588		100	%


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

Dick’s Sporting Goods — Amherst, NY	Sporting goods	December 20, 2006	1986		9,725,000		195,000		55,745		100	%
Chili’s — Paris, TX	Restaurant	December 28, 2006	1999		2,750,000		73,000		6,698		100	%
Staples — Clarksville, IN	Office supply	December 29, 2006	2006		4,430,000		118,000		20,388		100	%
HOM — Fargo, ND	Furniture retail	January 4, 2007	2004		12,000,000		288,000		122,108		100	%
La-Z-Boy — Newington, CT	Furnishings store	January 5, 2007	2006		6,900,000		179,000		20,701		100	%
Advance Auto — Maryland Heights, MO	Specialty retailer	January 12, 2007	2005		1,893,000		38,000		7,000		100	%
Victoria Crossing — Victoria, TX	Shopping center	January 12, 2007	2006		12,608,000		338,000		87,473		92.3	%
Academy Sports — Katy, TX	Headquarters	January 18, 2007	1976		102,000,000		2,683,000		1,500,596		100	%
Gordmans — Peoria, IL	Department store	January 18, 2007	2006		9,000,000		230,000		60,947		100	%
One Pacific Place — Omaha, NE	Shopping center	February 6, 2007	1988		36,000,000		954,000		91,564		95.2	%
Sack n’ Save/O’Reilly Auto — Garland, TX	Shopping center	February 6, 2007	1970		5,060,000		134,000		65,295		100	%
Tractor Supply — Ankeny, IA	Specialty retail	February 9, 2007	2006		3,000,000		60,000		19,097		100	%
ABX Air — Coventry, RI	distribution center	February 16, 2007	1998		4,090,000		107,000		33,000		100	%
Office Depot — Enterprise, AL	office supply	February 27, 2007	2006		2,776,357		75,000		20,000		100	%
Northern Tool — Blaine, MN	Specialty retail	February 28, 2007	2006		4,900,000		130,000		25,488		100	%
Office Max — Orangeburg, SC	office supply	February 28, 2007	1999		3,125,000		82,000		23,500		100	%
Walgreens — Cincinnati, OH	drug store	March 6, 2007	2000		5,140,000		136,000		15,120		100	%
Walgreens — Madeira, OH	drug store	March 6, 2007	1998		4,425,000		118,000		13,905		100	%
Walgreens — Sharonville, OH	drug store	March 6, 2007	1998		4,085,000		109,000		13,905		100	%
AT&T — Beaumont, TX	office building	March 19, 2007	1971		12,275,000		332,000		141,525		100	%
Walgreens — Shreveport, LA	Drugstore	March 23, 2007	1998		4,140,000		111,000		13,905		100	%
Cost-U-Less — St. Croix, USVI	Warehouse Club	March 26, 2007	2005		6,210,000		164,000		38,365		100	%
Gallina Centro — Collierville, TN	Shopping center	March 26, 2007	2000		17,750,000		497,000		142,727		100	%
Apria Healthcare — St. John, MO	Healthcare	March 28, 2007	1996		6,500,000		130,000		52,200		100	%
Logan’s Roadhouse — Fairfax, VA	Restaurant	March 28, 2007	1998		3,209,000		80,000		7,839		100	%
Logan’s Roadhouse — Johnson City, TN	Restaurant	March 28, 2007	1996		3,866,000		97,000		7,839		100	%
Center at 7500 Cottonwood — Jenison, MI	Shopping center	March 30, 2007	1993		5,290,000		106,000		84,933		100	%
Eckerd — Lincolnton, NC	Drugstore	April 3, 2007	1998		2,262,000		61,000		10,908		100	%
Tractor Supply — Greenfield, MN	Specialty retail	April 2, 2007	2006		4,050,000		103,000		22,675		100	%
Lincoln Place — Fairview Heights, IL	Shopping center	April 5, 2007	1998		44,000,000		1,234,320		272,829		100	%
Ashley Furniture — Amarillo, TX	Furniture retail	April 6, 2007	1980		5,920,000		159,000		74,797		100	%
Pocatello Square — Pocatello, ID	Shopping center	April 6, 2007	2006		23,000,000		632,500		138,925		90	%
Tractor Supply — Paw Paw, MI	Specialty retail	April 9, 2007	2006		3,095,000		82,000		22,670		100	%
Tractor Supply — Marinette, WI	Specialty retail	April 9, 2007	2006		2,950,000		78,000		19,097		100	%
Staples — Greenville, SC	Office supply	April 11, 2007	2007		4,545,000		120,000		20,388		100	%
Big 5 Center — Aurora, CO	Retail center	April 11, 2007	2006		4,290,000		114,000		15,800		100	%

				$	811,349,376	$	19,235,845		6,032,670


(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 59 of the prospectus.

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


			Total		% of					Current		Base
	Number		Square		Total					Annual		Rent per
	of		Feet		Square			Renewal		Base		Square		Lease Term
Property	Tenants	Major Tenants*	Leased		Feet			Options**		Rent		Foot		Beginning	To

Tractor Supply — Parkersburg, WV	1	Tractor Supply Company		21,688		100	%		4/5 yr.	$	228,147	$	10.52	9/26/2005	7/31/2010

											250,962		11.57	8/1/2010	7/31/2015

											276,058		12.73	8/1/2015	7/31/2020

Walgreens — Brainerd, MN	1	Walgreen Co.		15,120		100	%		8/5 yr.		303,000		20.04	10/5/2005	6/30/2020

Rite Aid — Alliance, OH	1	Rite Aid of Ohio, Inc.		11,348		100	%		6/5 yr.		189,023		16.66	10/20/2005	4/30/2017

La-Z-Boy — Glendale, AZ	1	EBCO, Inc.		23,000		100	%		3/5 yr.		419,750		18.25	10/25/2005	10/31/2015

Walgreens — Florissant, MO	1	Walgreen Co.		15,120		100	%		8/5 yr.		344,000		22.75	11/2/2005	2/28/2021

Walgreens — Saint Louis, MO (Gravois)	1	Walgreen Co.		15,120		100	%		8/5 yr.		408,000		26.98	11/2/2005	10/31/2021

Walgreens — Saint Louis, MO (Telegraph)	1	Walgreen Co.		15,120		100	%		8/5 yr.		335,500		22.19	11/2/2005	12/31/2021

Walgreens — Columbia, MO	1	Walgreen Co.		13,973		100	%		8/5 yr.		427,300		30.58	11/22/2005	6/30/2022

Walgreens — Olivette, MO	1	Walgreen Co.		15,030		100	%		10/5 yr.		528,000		35.13	11/22/2005	10/31/2026

CVS — Alpharetta, GA	1	Mayfield CVS, Inc.,		10,125		100	%		3/5 yr.		206,600		20.40	12/1/2005	5/31/2008

											218,997		21.63	6/1/2008	5/31/2013

											232,136		22.93	6/1/2013	1/31/2019

Lowe’s — Enterprise, AL	1	Lowe’s Home Centers, Inc		95,173		100	%		6/5 yr.		500,000		5.25	12/1/2005	4/30/2015

CVS — Richland Hills, TX	1	CVS EGL Grapevine N Richland Hills Texas, LP		10,908		100	%		4/5 yr.		265,249		24.32	12/8/2005	8/28/2007

											270,849		24.83	8/29/2007	8/28/2012

											276,449		25.34	8/29/2012	8/28/2017

FedEx — Rockford, IL	1	Fed Ex Ground Package System, Inc.		67,925		100	%		2/5 yr.		445,632		6.56	12/9/2005	9/30/2015



Plastech — Auburn Hills, MI	1	LDM Technologies, Inc.		111,881		100	%		2/5 yr.		1,790,100		16.00	12/15/2005	1/31/2021(2)

Academy Sports — Macon, GA	1	Academy, LTD		74,532		100	%		4/5 yr.		408,804		5.48	1/6/2006	1/31/2011

											421,064		5.65	2/1/2011	1/31/2016

											433,695		5.82	2/1/2016	1/31/2021

											446,706		5.99	2/1/2021	1/31/2026

David’s Bridal — Lenexa, KS	1	David’s Bridal, Inc.		12,083		100	%		2/5 yr.		235,200		19.47	1/11/2006	12/31/2010

											258,720		21.41	1/1/2011	12/31/2015

Rite Aid — Enterprise, AL	1	Harco, Inc.		14,564		100	%		6/5 yr.		289,629		19.89	1/26/2006	1/31/2026

Rite Aid — Wauseon, OH	1	Rite Aid of Ohio, Inc.		14,564		100	%		6/5 yr.		311,720		21.40	1/26/2006	1/31/2026

Staples — Crossville, TN	1	Staples the Office Superstore East, Inc		23,942		100	%		3/5 yr.		221,463		9.25	1/26/2006	6/30/2016

Rite Aid — Saco, ME	1	Rite Aid of Maine, Inc.		11,180		100	%		4/5 yr.		210,743		18.85	1/27/2006	2/28/2017

Wadsworth Boulevard — Denver, CO	2	Sam’s PW, Inc.		108,224		55	%		10/5 yr.		820,245		7.58	2/8/2006	11/30/2016

		Hob-Lob Limited Partnership		90,253		45	%		10/5 yr.		585,000		6.48	2/8/2006	10/31/2016

Mountainside Fitness — Chandler, AZ	1	Hatten Holdings, Inc.		31,063		100	%		2/5 yr.		469,051		15.10	2/10/2006	12/31/2006

											523,101		16.84	1/1/2007	12/31/2011

											583,363		18.78	1/1/2012	12/31/2016

											651,391		20.97	1/1/2017	7/18/2022

Drexel Heritage — Hickory, NC	1	Drexel Heritage Furniture		261,057		100	%		3/5 yr.		338,078		1.30	2/24/2006	9/8/2010

		Industries, Inc.									390,090		1.49	9/9/2010	9/8/2015

Rayford Square — Spring, TX	5	Academy Corp		50,500		63	%		2/5 yr.		371,175		7.35	3/1/2006	10/31/2009

											383,800		7.60	11/1/2009	10/31/2014

											396,425		7.85	11/1/2014	10/31/2019

											409,050		8.10	11/1/2019	10/31/2024

		CB Jackson		12,302		15	%		None		125,484		10.20	3/1/2006	12/31/2008

		Hi-Lo Auto Supply, LP		8,136		10	%		1/5 yr.		60,720		7.46	3/1/2006	3/31/2008

CVS — Portsmouth — OH (Scioto Trail)	1	Revco Discount Drug Centers, inc.		10,170		100	%		4/5 yr.		153,333		15.08	3/8/2006	7/31/2008

											156,666		15.40	8/1/2008	7/31/2013

											160,000		15.73	8/1/2013	7/31/2018

Wawa — Hockessin, DE	1	Wawa, Inc.		5,160		100	%		6/5-9 yrs.		365,185		70.77	3/29/2006	12/31/2021(3)

Wawa — Manahawkin, NJ	1	Wawa, Inc.		4,695		100	%		6/5-9 yrs.		332,276		70.77	3/29/2006	12/31/2021(3)

Wawa — Narbeth, PA	1	Wawa, Inc.		4,461		100	%		6/5-9 yrs.		315,715		70.77	3/29/2006	12/31/2021(3)


			Total		% of					Current		Base
	Number		Square		Total					Annual		Rent per
	of		Feet		Square			Renewal		Base		Square		Lease Term
Property	Tenants	Major Tenants*	Leased		Feet			Options**		Rent		Foot		Beginning	To


CVS — Lakewood, OH	2	Revco Discount Drug Centers		10,800		84	%		2/5 yr.		180,900		16.75	4/20/2006	9/30/2006

											191,700		17.75	10/1/2006	9/30/2016

		Charter One Bank, N.A		2,000		16	%		1/5yr		30,992		15.50	4/20/2006	7/31/2006

											33,898		16.95	8/1/2006	7/31/2011

Rite Aid — Cleveland, OH	1	Rite Aid of Ohio, Inc.		11,325		100	%		6/5 yr.		220,470		19.47	4/27/2006	6/30/2018

Rite Aid — Fremont, OH	1	Rite Aid of Ohio, Inc.		11,325		100	%		6/5 yr.		201,955		17.83	4/27/2006	2/28/2018

Walgreens — Knoxville, TN	1	Walgreen Co.		15,120		100	%		8/5 yr.		350,000		23.15	5/8/2006	5/31/2020

CVS — Madison, MS	1	CVS EGL Highland Madison MS, Inc.		13,824		100	%		4/5 yr.		302,484		21.88	5/26/2006	6/10/2024

Rite Aid — Defiance, OH	1	Rite Aid of Ohio, Inc.		14,564		100	%		6/5 yr.		337,917		23.20	5/26/2006	1/31/2026

Conns — San Antonio, TX	1	CAI, LP		25,230		100	%		5/3 yr.		338,000		13.40	5/26/2006	4/30/2008

											351,520		13.93	5/1/2008	4/30/2011

											365,581		14.49	5/1/2011	4/30/2014

											380,204		15.07	5/1/2014	4/30/2017

Dollar General — Crossville, TN	1	Dolgencorp, Inc.		24,341		100	%		6/5 yr.		217,852		8.95	6/2/2006	3/31/2016

											239,637		9.84	4/1/2016	3/31/2021

Dollar General — Ardmore, TN	1	Dolgencorp, Inc.		24,341		100	%		6/5 yr.		208,116		8.55	6/9/2006	11/30/2015

											228,928		9.41	12/1/2015	11/30/2020

Dollar General — Livingston, TN	1	Dolgencorp, Inc.		24,341		100	%		6/5 yr.		214,200		8.80	6/12/2006	4/30/2016

											235,620		9.68	5/1/2016	4/30/2021

Wehrenberg Theatre — Arnold, MO	1	Wehrenberg, Inc.		50,000		100	%		2/5 yr.		784,453		15.69	6/14/2006	3/31/2009

											836,094		16.72	4/1/2009	3/31/2014

											897,572		17.95	4/1/2014	3/31/2019

Sportmans Warehouse — Wichita, KS	1	Sportsman’s Warehouse, Inc.,		50,003		100	%		5/5 yr.		639,046		12.78	6/27/2006	4/30/2011

											670,998		13.42	5/1/2011	4/30/2016

											704,548		14.09	5/1/2016	4/30/2021

CVS — Portsmouth — OH (Chillicothe)	1	Revco Discount Drug Centers, Inc.		10,650		100	%		4/5 yr.		143,700		13.49	6/28/2006	11/30/2007

											149,100		14.00	12/1/2007	11/30/2017

Advance Auto — Greenfield, IN	1	Advance Stores Company, Inc.		7,000		100	%		2/5 yr.		110,040		15.72	6/29/2006	6/30/2013

Advance Auto — Trenton, OH	1	Advance Stores Company, Inc.		7,000		100	%		2/5 yr.		84,782		12.11	6/29/2006	6/30/2013

Rite Aid — Lansing, MI	1	Rite Aid of Michigan, Inc.		11,680		100	%		4/5 yr.		160,480		13.74	6/29/2006	12/31/2006

											166,320		14.24	1/1/2007	12/31/2011

											172,160		14.74	1/1/2012	12/31/2016

Advance Auto — Columbia Heights, MN	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		131,524		18.79	7/6/2006	1/31/2016

											138,100		19.73	2/1/2016	1/31/2021

Advance Auto — Fergus Falls, MN	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		91,441		13.06	7/6/2006	11/30/2015

											96,013		13.72	12/1/2015	11/30/2020

CVS — Okeechobee, FL	1	Eckerd Corporation		13,050		100	%		5/5 yr.		435,130		33.34	7/7/2006	7/5/2026

Office Depot — Dayton, OH	1	Office Depot, Inc.		19,880		100	%		4/5 yr.		237,566		11.95	7/7/2006	12/31/2021

Advance Auto — Holland, MI	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		149,063		21.29	7/12/2006	1/31/2016

											163,969		23.42	2/1/2016	1/31/2021

Advance Auto — Holland Township, MI	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		153,908		21.99	7/12/2006	1/31/2016

											169,299		24.19	2/1/2016	1/31/2021

Advance Auto — Zeeland, MI	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		132,089		18.87	7/12/2006	1/31/2016

											145,298		20.76	2/1/2016	1/31/2026

CVS — Orlando, FL	1	CVS EGL Lake Pickett FL, LLC		13,013		100	%		4/5 yr.		324,765		24.96	7/12/2006	11/1/2025

Office Depot — Greenville, MS	1	Office Depot, Inc.		25,083		100	%		3/5 yr.		256,804		10.24	7/12/2006	9/30/2015

Office Depot — Warrensburg, MO	1	Office Depot, Inc.		20,000		100	%		4/5 yr.		210,000		10.50	7/19/2006	8/31/2016

CVS — Gulfport, MS	1	CVS EGL East Pass Gulfport MS, Inc.		11,359		100	%		4/5 yr.		281,136		24.75	8/10/2006	10/24/2025

Advance Auto — Grand Forks, ND	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		106,375		15.20	8/15/2006	12/31/2015

											111,694		15.96	1/1/2016	12/31/2020

CVS — Clinton, NY	1	CVS BDI, Inc.,		10,055		100	%		4/5 yr.		222,661		22.14	8/24/2006	1/31/2032

Oxford Theatre — Oxford, MS	1	Oxford Theater Company, Inc.		35,000		100	%		N/A		848,088		24.23	8/31/2006	7/31/2011

											883,092		25.23	8/1/2011	7/31/2016

											918,084		26.23	8/1/2016	7/31/2021

											953,088		27.23	8/1/2021	7/31/2026

Advance Auto — Duluth, MN	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		108,875		15.55	9/8/2006	2/28/2016

											114,319		16.33	3/1/2016	2/28/2021

Walgreens — Picayune, MS	1	Walgreen Co.		14,820		100	%		10/5 yr.		291,385		19.66	9/15/2006	3/31/2031

Kohl’s — Wichita, KS	1	Kohl’s Illinois, Inc.		86,584		100	%		6/5 yr.		601,759		6.95	9/27/2006	1/28/2017


			Total		% of					Current		Base
	Number		Square		Total					Annual		Rent per
	of		Feet		Square			Renewal		Base		Square		Lease Term
Property	Tenants	Major Tenants*	Leased		Feet			Options**		Rent		Foot		Beginning	To


Lowe’s — Lubbock, TX	1	Lowe’s Home Centers, Inc.		137,480		100	%		6/5 yr.		861,280		6.26	9/27/2006	4/30/2016

Lowe’s — Midland, TX	1	Lowe’s Home Centers, Inc.		134,050		100	%		6/5 yr.		829,960		6.19	9/27/2006	4/30/2016

Advance Auto — Grand Bay, AL	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		84,786		12.11	9/29/2006	8/31/2015

											93,265		13.32	9/1/2015	8/31/2020

Advance Auto — Hurley, MS	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		82,324		11.76	9/29/2006	3/31/2016

											90,556		12.94	4/1/2016	3/31/2021

Advance Auto — Rainsville, AL	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		100,928		14.42	9/29/2006	12/31/2015

											111,021		15.86	1/1/2015	12/31/2020

Gold’s Gym — O’Fallon, IL	1	Gold’s St Louis, LLC		38,000		100	%		2/5 yr.		588,000		15.47	9/29/2006	9/30/2015

											616,800		16.23	10/1/2015	9/30/2019

Rite Aid — Glassport, PA	1	Rite Aid of Pennsylvania, Inc.		14,564		100	%		6/5 yr.		295,504		20.29	10/4/2006	7/31/2026

David’s Bridal/Radio Shack — Topeka, KS	2	David’s Bridal, Inc.		7,750		76	%				166,625		21.50	10/13/2006	10/31/2011

											183,288		23.65	11/1/2011	10/31/2016

		Radio Shack Corporation		2,400		24	%				60,000		25.00	10/13/2006	1/31/2012

Rite Aid — Hanover, PA	1	Rite Aid		14,584		100	%		4/5 yr.		493,787		33.86	10/17/2006	10/31/2026

American TV & Appliance — Peoria, IL	1	American TV & Appliance of Madison, Inc.		126,852		100	%		8/5 yr.		840,750		6.63	10/23/2006	9/23/2008

											924,825		7.29	9/24/2008	9/23/2013

											1,017,308		8.02	9/24/2013	9/23/2018

Tractor Supply — La Grange, TX	1	Tractor Supply Texas		24,727		100	%		4/5 yr.		189,000		7.64	11/6/2006	5/31/2011

											207,900		8.41	6/1/2011	5/31/2016

											228,690		9.25	6/1/2016	5/31/2021

Staples — Peru, IL	1	Staples the Office Superstore East, Inc		23,925		100	%		3/5 yr.		255,998		10.70	11/10/2006	6/30/2003

											257,194		10.75	7/1/2003	6/30/2008

Fedex — Council Bluffs, IA	1	Fedex Freight East, Inc.		23,510		100	%		4/5 yr.		258,390 252,054		10.80 10.72	7/1/2008 11/15/2006	6/30/2013 9/30/2021

Fedex — Edwardsville, KS	1	Fedex Freight East, Inc.		155,965		100	%		4/5 yr.		1,486,123		9.53	11/15/2006	9/30/2021

CVS — Glenville Scotia, NY	1	CVS Mack Drug of New York, LLC		12,900		100	%		4/5 yr.		371,912		28.83	11/16/2006	1/31/2032

Advance Auto — Ashland, KY	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		126,948		18.14	11/17/2006	6/30/2016

											139,643		19.95	7/1/2016	6/30/2021

Advance Auto — Jackson, OH	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		102,100		14.59	11/17/2006	9/30/2015

											112,304		16.04	10/1/2015	9/30/2020

Advance Auto — New Boston, OH	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		114,501		16.36	11/17/2006	6/30/2015

											125,951		17.99	7/1/2015	6/30/2020

Advance Auto — Scottsburg, IN	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		96,008		13.72	11/17/2006	8/31/2016

											100,808		14.40	9/1/2016	8/31/2021

Tractor Supply — Livingston, TN	1	Tractor Supply Texas		24,727		100	%		4/5 yr.		225,000		9.10	11/22/2006	11/13/2011

											247,500		10.01	11/14/2011	11/13/2016

											272,250		11.01	11/14/2016	11/13/2021

Tractor Supply — New Braunfels, TX	1	Tractor Supply Texas		24,727		100	%		4/5 yr.		224,500		9.08	11/22/2006	2/28/2011

											246,950		9.99	3/1/2011	2/28/2016

											271,645		10.99	3/1/2016	2/28/2021

Office Depot — Benton, AR	1	Office Depot, Inc.		20,515		100	%		4/5 yr.		246,180		12.00	11/21/2006	11/30/2011

											251,309		12.25	12/1/2011	11/30/2016

Old Time Pottery — Fairview Heights, IL	1	Old Time Pottery, Inc.		97,849		100	%		3/5 yr.		342,472		3.50	11/21/2006	12/31/2010

											366,934		3.75	1/1/2011	12/30/2015

Infiniti — Davie, FL	1	Warren Henry Automobiles, Inc.		20,927		100	%		4/5 yr.		707,395		33.80	11/30/2006	7/1/2021(4)

Office Depot — Oxford, MS	1	Office Depot, Inc.		20,000		100	%		3/5 yr.		264,000		13.20	12/1/2006	10/31/2016

											290,000		14.50	11/1/2016	10/31/2021

Tractor Supply — Crockett, TX	1	Tractor Supply Texas		24,727		100	%		4/5 yr.		179,000		7.24	12/1/2006	10/23/2011

											196,900		7.96	10/24/2011	10/23/2016

											216,590		8.76	10/24/2016	10/23/2021

Mercedes Benz — Atlanta, GA	1	Atlanta Eurocars		40,588		100	%		4/5 yr.		900,000		22.17	12/15/2006	12/31/2011

											990,000		24.39	1/1/2012	12/31/2016

											1,089,000		26.83	1/1/2017	12/31/2021

											1,197,900		29.51	1/1/2022	12/31/2026

Dick’s Sporting Goods — Amherst, NY	1	Dick’s Sporting Goods		55,745		100	%		3/5 yr.		762,592		13.68	12/20/2006	11/30/2010

											790,464		14.18	12/1/2010	11/30/2015

Chili’s — Paris, TX	1	Brinker Texas, L.P.		6,698		100	%		2/5 yr.		200,913		30.00	12/28/2006	11/30/2025

Staples — Clarksville, IN	1	Staples the Office Superstore East, Inc.		20,388		100	%		3/5 yr.		326,208		16.00	12/29/2006	10/31/2011

											356,790		17.50	11/1/2011	10/31/2016


			Total		% of					Current		Base
	Number		Square		Total					Annual		Rent per
	of		Feet		Square			Renewal		Base		Square		Lease Term
Property	Tenants	Major Tenants*	Leased		Feet			Options**		Rent		Foot		Beginning	To


HOM — Fargo, ND	1	HOM Furniture, Inc.		122,108		100	%		4/5 yr.		968,000		7.93	1/4/2007	12/31/2011

											1,017,159		8.33	1/1/2012	12/31/2016

											1,070,877		8.77	1/1/2017	1/31/2022

La-Z-Boy — Newington, CT	1	LZB Furniture Galleries of Paramus, Inc.		20,701		100	%		2/5 yr.		496,824		24.00	1/5/2007	12/31/2016

											558,297		27.00	1/1/2017	12/26/2021

Advance Auto — Maryland Heights, MO	1	Advance Stores Company, Inc.		7,000		100	%		3/5 yr.		142,940		20.42	1/12/2007	2/28/2016

											150,088		21.44	3/1/2016	2/28/2021

Victoria Crossing — Victoria, TX	3	Ross Dress for Less, Inc.		30,187		35	%		5/5 yr.		279,230		9.25	1/12/2007	1/31/2012

											286,777		9.50	2/1/2012	1/31/2017

		Bed Bath & Beyond, Inc.		23,000		26	%		5/5 yr.		172,500		7.50	1/12/2007	1/31/2017

		Petsmart, Inc.		20,087		23	%		6/5 yr.		270,959		13.50	1/12/2007	5/31/2016

Academy Sports — Katy, TX	1	Academy Ltd		1,500,596		100	%		8/5 yr.		7,038,000		4.69	1/18/2007	1/31/2027(5)

Gordmans — Peoria, IL	1	Gordmans, Inc.		60,947		100	%		4/5 yr.		684,000		11.22	1/18/2007	3/31/2011

											714,000		11.72	4/1/2011	3/31/2016

One Pacific Place — Omaha, NE	24	No single tenant occupies greater than 10.0% of the rentable square feet of this property.

Sack n’ Save/O’Reilly Auto — Garland, TX	2	Minyard Food Stores, Inc.		58,695		90	%		3/10 yr.		375,648		6.40	2/6/2007	4/30/2010
											396,191		6.75	5/1/2010	4/30/2020

		Hi-Lo Auto Supply, LP		6,600		10	%		3/5 yr.		25,920		3.93	2/6/2007	6/30/2011

											27,994		4.24	7/1/2011	6/30/2016

											30,233		4.58	7/1/2016	6/30/2021

Tractor Supply — Ankeny, IA	1	Tractor Supply Company		19,097		100	%		4/5 yr.		213,252		11.17	2/9/2007	8/23/2011

											234,576		12.28	8/24/2011	8/23/2016

											258,036		13.51	8/24/2016	8/23/2021

ABX Air — Coventry, RI	1	ABX Air, Inc.		33,000		100	%		4/5 yr.		316,990		9.61	2/14/2007	1/31/2014(6)

Office Depot — Enterprise, AL	1	Office Depot, Inc.		20,000		100	%		3/5 yr.		215,129		10.76	2/27/2007	10/31/2016

											225,135		11.26	11/1/2016	10/31/2021

Northern Tool — Blaine, MN	1	Northern Tool and Equipment, Inc.		25,488		100	%		3/5 yr.		344,598		13.52	2/28/2007	11/30/2016

											380,536		14.93	12/1/2016	11/30/2021

Office Max — Orangeburg, SC	1	OfficeMax, Inc.		23,500		100	%		4/5 yr.		252,625		10.75	2/28/2007	6/30/2014

Walgreens — Cincinnati, OH	1	Walgreen Co.		15,120		100	%		8/5 yr.		365,000		24.14	3/5/2007	3/31/2020

Walgreens — Madeira, OH	1	Walgreen Co.		13,905		100	%		8/5 yr.		314,000		22.58	3/5/2007	8/31/2018

Walgreens — Sharonville, OH	1	Walgreen Co.		13,905		100	%		8/5 yr.		290,000		20.86	3/5/2007	10/31/2023

AT&T — Beaumont, TX	1	AT&T Services, Inc.		141,525		100	%		2/5 yr.		900,473		6.36	3/19/2007	3/18/2012(7)

Walgreens — Shreveport, LA	1	Walgreen Co.		13,905		100	%		8/5 yr.		327,000		23.52	3/23/2007	9/30/2019

Cost-U-Less — St. Croix, USVI	1	CULUSVI, Inc.		38,365		100	%		2/5 yr.		512,000		13.35	3/26/2007	3/31/2022

Gallina Centro — Collierville, TN	11	Stein Mart, Inc.		36,000		34	%		3/5 yr.		234,000		6.50	3/28/2007	3/31/2011

											252,000		7.00	4/1/2011	3/31/2016

		Kroger Limited Partnership, I		59,670		41	%		11/5 yr.		172,000		2.88	3/28/2007	3/31/2011

											189,200		3.17	4/1/2011	3/31/2021

		Walgreen Co.		20,071		14	%		8/5 yr.		350,000		17.44	5/9/2006	5/31/2016

Apria Healthcare — St. John, MO	1	Apria Healthcare, Inc.		52,200		100	%		1/5 yr.		514,464		9.86	3/28/2007	10/31/2013

Logan’s Roadhouse — Fairfax, VA	1	Logan’s Roadhouse, Inc.		7,839		100	%		5/5 yr.		224,619		28.65	3/28/2007	11/29/2026(8)

Logan’s Roadhouse — Johnson City, TN	1	Logan’s Roadhouse, Inc.		7,839		100	%		5/5 yr.		270,623		34.52	3/28/2007	11/29/2026(9)

Center at 7500 Cottonwood — Jenison, MI	4	Hob-Lob Limited Partnership		54,533		64	%		2/5 yr.		259,032		4.75	3/30/2007	10/31/2009

		Leppinks, Inc.		16,000		19	%		3/5 yr.		97,104		6.07	3/30/2007	7/31/2007

											99,046		6.19	8/1/2007	7/31/2008

											101,027		6.31	8/1/2008	7/31/2009

											103,048		6.44	8/1/2009	7/31/2010

											105,108		6.57	8/1/2010	7/31/2011

Eckerd — Lincolnton, NC	1	ECK-001, LLC		10,908		100	%		4/5 yr.		169,648		15.55	4/30/2007	8/7/2007

											175,100		16.05	8/8/2007	8/7/2012

											180,552		16.55	8/8/2012	8/7/2017

Tractor Supply — Greenfield, MN	1	Tractor Supply Company		22,675		100	%		4/5 yr.		289,228		12.76	4/2/2007	3/31/2011

											318,150		14.03	4/1/2011	3/31/2016

											349,965		15.43	4/1/2016	3/31/2021


			Total		% of					Current		Base
	Number		Square		Total					Annual		Rent per
	of		Feet		Square			Renewal		Base		Square		Lease Term
Property	Tenants	Major Tenants*	Leased		Feet			Options**		Rent		Foot		Beginning	To


Lincoln Place — Fairview Heights, IL	19	Kohl’s Department Stores, Inc.		86,584		32	%		5/5 yr.		530,760		6.13	4/5/2007	2/1/2020

		Ultimate Electronics, Inc.		31,000		13	%		2/5 yr.		367,816		11.50	4/5/2007	2/28/2008

											409,780		12.81	3/1/2008	2/28/2010

											439,780		13.75	3/1/2010	2/28/2013

											483,758		15.13	3/1/2013	2/28/2018

		Marshalls of IL, LLC		30,000		11	%		3/5 yr.		292,500		9.75	4/5/2007	8/31/2007

											307,500		10.25	9/1/2007	8/31/2012

		LNT, Inc.		28,023		10	%				308,000		10.99	4/5/2007	8/31/2007

											322,000		11.49	9/1/2007	8/31/2012

Amarillo Furniture — Ashley, TX	1	Choice Furniture, Inc.		74,797		100	%		N/A		463,741		6.20	4/6/2007	4/30/2011

											493,660		6.60	5/1/2011	4/30/2016

											523,579		7.00	5/1/2016	4/30/2021

Pocatello Square — Pocatello, ID	5	Sportsman’s Warehouse, Inc		47,979		35	%		5/5 yr.		428,705		8.94	4/6/2007	11/30/2007

											476,605		9.93	12/1/2007	11/30/2008

											493,370		10.28	12/1/2008	11/30/2009

											514,925		10.73	12/1/2009	11/30/2010

											535,522		11.16	12/1/2010	11/30/2011

											562,346		11.72	12/1/2011	11/30/2016

											590,607		12.31	12/1/2016	11/30/2021

		Ross Dress for Less, Inc.		30,187		22	%				530,760		17.58	4/6/2007	1/31/2017

		Staples the Office Superstore, Inc.		20,388		15	%				243,637		11.95	4/6/2007	9/30/2016

Tractor Supply — Paw Paw, MI	1	Tractor Supply Company		22,670		100	%		4/5 yr.		277,840		10.05	4/9/2007	12/10/2011

											250,624		11.06	12/11/2011	12/10/2016

											275,686		12.16	12/11/2016	12/10/2021

Tractor Supply — Marinette, WI		Tractor Supply Company		19,097		100	%		4/5 yr.		213,933		11.20	4/9/2007	12/15/2011

											235,326		12.32	12/16/2011	12/15/2016

											258,858		13.55	12/16/2016	12/15/2021

Staples — Greenville, SC	1	Staples the Office Superstore East, Inc.		20,388		100	%		4/5 yr.		318,053		15.60	4/11/2007	3/31/2012

											339,460		16.65	4/1/2012	3/31/2017

Big 5 Center — Aurora, CO	4	Big 5 Corporation		10,000		63	%		3/5 yr.		150,000		15.00	4/11/2007	12/31/2011

											162,000		16.20	1/1/2012	12/31/2016

											178,200		17.82	1/1/2017	1/31/2022

		M-Fast, Inc.		3,500		22	%		2/5 yr.		87,500		25.00	4/11/2007	12/31/2007

											88,900		25.40	1/1/2008	12/31/2008

											90,300		25.80	1/1/2009	12/31/2009

											91,700		26.20	1/1/2010	12/31/2010

											93,100		26.60	1/1/2011	12/31/2011

											94,500		27.00	1/1/2012	12/31/2012

											95,900		27.40	1/1/2013	12/31/2013

											97,300		27.80	1/1/2014	12/31/2014

											98,700		28.20	1/1/2015	12/31/2015

											100,100		28.60	1/1/2016	12/31/2016


*		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.

(1)		The initial annual rent of $419,750 — as displayed in the table above — is subject to rental escalations of 2% each year through the remainder of the lease, which expires October 31, 2015. For the purposes of presentation the individual rental escalations were not displayed in the table above.

(2)		The annual base rent of $1,790,100 — as displayed in the table above — is fixed through the first 13 months of the initial lease term, with a 2.5% rental escalation beginning 14 months after the start of the initial lease term, and every 12 months thereafter for the remaining term of the lease, which expires January 31, 2021. For the purposes of presentation the individual rental escalations were not displayed in the table above.


(3)		The Wawa Properties are 100% leased to Wawa under a master lease agreement. The current aggregate annual base rent of $1,013,117 is fixed through the initial lease term and was allocated based on the square feet of each property as a percentage of the total square feet for all three properties.

(4)		The current aggregate annual base rent of $707,395 — as displayed in the table above — is fixed through July 1, 2007 with rental escalations of 1.25% each year for the remainder of the initial lease term, which expires July 1, 2021. For the purposes of presentation the individual rental escalations were not displayed in the table above.

(5)		The initial annual base rent under the lease is $7,038,000 — as displayed in the table above — increases each year, by 1.5% of the then current annual base rent. The initial term of the lease expires January 31, 2027. For the purposes of presentation the individual rental escalations were not displayed in the table above.

(6)		The current aggregate annual base rent of $316,990 — as displayed in the table above — is fixed through the first year of the initial lease term and increases 3% each year through the remainder of the lease term, which expires January 31, 2014. For the purposes of presentation the individual rental escalations were not displayed in the table above.

(7)		The current aggregate annual base rent of $900,473 is fixed through the first year of the initial lease, and increases 1.5% each year through the initial lease term, which expires March 31, 2017. For the purposes of presentation the individual rental escalations were not displayed in the table above.

(8)		The current aggregate annual base rent of $224,619 — as displayed in the table above — is fixed through November 29, 2007 with rental escalations of 1.75% each year for the remainder of the initial lease term, which expires November 29, 2026. For the purposes of presentation the individual rental escalations were not displayed in the table above.

(9)		The current aggregate annual base rent of $270,623 — as displayed in the table above — is fixed through November 29, 2007 with rental escalations of 1.75% each year for the remainder of the initial lease term, which expires November 29, 2026. For the purposes of presentation the individual rental escalations were not displayed in the table above.

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 will receive a property management fee of 2.0% of the monthly gross revenues from our properties. We currently have no plan 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						Variable
	Rate		Fixed				Rate			Total
	Loan		Interest			Maturity	Loan		Maturity	Loan
Property	Amount		Rate			Date	Amount		Date	Outstanding

Tractor Supply — Parkersburg, WV	$	1,793,000		5.57	%	10/11/15	$	814,000	12/26/05	$	2,607,000	(7)
Walgreens — Brainerd, MN		2,814,000		5.44	%	10/11/15		649,000	1/4/06		3,463,000	(7)
Rite Aid — Alliance, OH		—		N/A		N/A		—	N/A		—
La-Z-Boy — Glendale, AZ		3,415,000		5.76	%	11/11/10		1,138,000	1/25/06		4,553,000	(7)
Walgreens — Florissant, MO		3,372,000		5.48	%	11/11/15		778,000	2/2/06		4,150,000	(7)
Walgreens — Saint Louis, MO (Gravois)		3,289,000		5.48	%	11/11/15		759,000	2/2/06		4,048,000	(7)
Walgreens — Saint Louis, MO (Telegraph)		3,999,000		5.48	%	11/11/15		923,000	2/2/06		4,922,000	(7)
Walgreens — Columbia, MO		4,645,369		5.15	%	7/11/08		—	N/A		4,487,895	(7)
Walgreens — Olivette, MO		5,567,894		5.15	%	7/11/08		—	N/A		5,379,146	(7)
CVS — Alpharetta, GA		2,015,000		5.52	%	12/11/10		465,000	3/1/06		2,480,000	(7)
Lowe’s — Enterprise, AL		4,859,000		5.52	%	12/11/10		1,121,000	3/1/06		5,980,000	(7)
CVS — Richland Hills, TX		2,379,000		5.52	%	12/11/10		549,000	3/8/06		2,928,000	(7)
FedEx — Rockford, IL		3,998,000		5.61	%	12/11/10		922,000	3/10/06		4,920,000	(7)


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

Plastech — Auburn Hills, MI		—		N/A		N/A		17,700,000	12/14/06		17,700,000	(7)
Academy Sports — Macon, GA		3,478,000		5.69	%	1/11/16		802,000	4/6/06		4,280,000	(7)
David’s Bridal — Lenexa, KS		1,799,000		5.86	%	1/11/11		817,000	4/11/06		2,616,000	(7)
Rite Aid — Enterprise, AL		2,043,000		5.80	%	2/11/16		928,000	4/26/06		2,971,000	(7)
Rite Aid — Wauseon, OH		2,142,000		5.80	%	2/11/16		973,000	4/26/06		3,115,000	(7)
Staples — Crossville, TN		1,885,000		5.71	%	2/11/11		435,000	4/26/06		2,320,000	(7)
Rite Aid — Saco, ME		1,375,000		5.82	%	2/11/11		625,000	4/27/06		2,000,000	(7)
Wadsworth Boulevard — Denver, CO		12,025,000		5.57	%	3/1/11		2,275,000	12/31/06		14,300,000	(7)
Mountainside Fitness — Chandler, AZ		—		N/A		N/A		4,690,400	12/31/06		4,690,400
Drexel Heritage — Hickory, NC		2,763,000		5.80	%	3/11/11		637,000	5/24/06		3,400,000	(7)
Rayford Square — Spring, TX		5,940,000		5.64	%	4/1/16		—	N/A		5,940,000	(5)
CVS — Portsmouth, OH		1,424,000		5.67	%	3/11/11		329,000	6/8/06		1,753,000	(7)
Wawa — Hockessin, DE, Manahawkin, NJ, Narberth, PA		—		N/A		N/A		7,234,787	2/26/10		7,234,787	(7)
CVS — Lakewood, OH		1,348,000		5.77	%	5/11/11		612,000	7/20/06		1,960,000	(7)
Rite Aid — Cleveland, OH		1,413,000		6.05	%	5/11/11		642,000	7/27/06		2,055,000	(7)
Rite Aid — Fremont, OH		1,388,000		6.05	%	5/11/11		632,000	7/27/06		2,020,000	(7)
Walgreens — Knoxville, TN		3,088,000		5.80	%	5/11/11		712,000	8/8/06		3,800,000	(7)
CVS — Madison, MS		2,809,000		5.60	%	2/11/16		—	N/A		2,809,000	(7)
Rite Aid — Defiance, OH		2,321,000		5.76	%	1/11/16		—	N/A		2,321,000	(7)
Conns — San Antonio, TX		2,461,000		5.86	%	5/11/11		1,119,000	7/25/06		3,580,000	(7)
Dollar General — Crossville, TN		1,950,000		5.75	%	6/11/16		450,000	9/2/06		2,400,000	(7)
Dollar General — Ardmore, TN		1,804,000		5.79	%	6/11/16		416,000	9/9/06		2,220,000	(7)
Dollar General — Livingston, TN		1,856,000		5.79	%	7/11/16		429,000	10/12/06		2,285,000	(7)
Wehrenberg — Arnold, MO		—		N/A		N/A		—	N/A		—
Sportmans Warehouse — Wichita, KS		—		N/A		N/A		6,173,250	12/27/06		6,173,250	(7)
CVS — Portsmouth, OH		—		N/A		N/A		—	N/A		—
Advance Auto — Greenfield, IN		—		N/A		N/A		—	N/A		—
Advance Auto — Trenton, OH		—		N/A		N/A		—	N/A		—
Rite Aid — Lansing, MI		1,041,000		5.90	%	7/1/16		—	N/A		1,041,000
Advance Auto — Columbia Heights, MN		1,038,000		5.83	%	7/11/16		346,000	10/6/06		1,384,000	(7)
Advance Auto — Fergus Falls, MN		722,000		5.83	%	7/11/16		241,000	10/6/06		963,000	(7)
CVS — Okeechobee, FL		4,076,000		5.60	%	2/11/16		—	N/A		4,076,000	(7)
Office Depot — Dayton, OH		2,130,000		5.73	%	2/11/16		—	N/A		2,130,000	(7)
Advance Auto — Holland, MI		1,193,000		5.83	%	4/11/16		—	N/A		1,193,000	(7)
Advance Auto — Holland Township, MI		1,231,000		5.83	%	4/11/16		—	N/A		1,231,000	(7)
Advance Auto — Zeeland, MI		1,057,000		5.83	%	4/11/16		—	N/A		1,057,000	(7)
CVS — Orlando, FL		3,016,000		5.68	%	4/11/16		—	N/A		3,016,000	(7)
Office Depot — Greenville, MS		2,192,000		5.76	%	3/11/11		—	N/A		2,192,000	(7)
Office Depot — Warrensburg, MO		1,810,000		5.85	%	4/11/11		—	N/A		1,810,000	(7)
CVS — Gulfport, MS		2,611,000		5.28	%	4/11/16		—	N/A		2,611,000	(7)
Advance Auto — Grand Forks, ND		840,000		5.87	%	9/11/16		280,000	11/15/06		1,120,000	(7)
CVS — Clinton, NY		1,983,000		5.74	%	9/11/16		457,000	12/24/06		2,440,000	(2)(7)


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

Oxford Theatre — Oxford, MS		5,175,000		6.11	%	9/1/16		—	N/A		5,175,000	(1)(5)
Advance Auto — Duluth, MN		860,000		5.87	%	10/11/16		286,000	12/22/06		1,146,000
Walgreens — Picayune, MS		2,766,000		5.53	%	10/11/16		638,000	1/15/07		3,404,000	(2)(7)
Kohl’s — Wichita, KS		5,200,000		6.11	%	9/1/16		—	N/A		5,200,000	(1)(5)
Lowe’s — Lubbock, TX		7,150,000		6.11	%	9/1/16		—	N/A		7,150,000	(1)(5)
Lowe’s — Midland, TX		7,475,000		6.11	%	9/1/16		—	N/A		7,475,000	(1)(5)
Advance Auto — Grand Bay, AL		—		N/A		N/A		—	N/A		—
Advance Auto — Hurley, MS		—		N/A		N/A		—	N/A		—
Advance Auto — Rainsville, AL		—		N/A		N/A		—	N/A		—
Gold’s Gym — O’Fallon, IL		3,650,000		5.83	%	10/11/16		2,190,000	17/27/06		5,840,000	(2)(7)
Rite Aid — Glassport, PA		2,325,000		6.10	%	11/1/16		—	N/A		2,325,000	(5)
David’s Bridal/Radio Shack — Topeka, KS		2,000,000		5.77	%	12/1/16		—	N/A		2,000,000	(8)
Rite Aid — Hanover, PA		4,115,000		6.11	%	11/1/16		—	N/A		4,115,000	(5)
American TV & Appliance — Peoria, IL		7,358,971		6.00	%	10/1/18		—	N/A		7,358,971	(6)
Tractor Supply — La Grange, TX		1,405,000		5.99	%	12/1/16		—	N/A		1,405,000	(3)(5)
Staples — Peru, IL		1,930,000		5.66	%	12/1/11		—	N/A		1,930,000	(5)
Fedex — Council Bluffs, IA		2,185,000		5.97	%	12/1/16		—	N/A		2,185,000	(5)
Fedex — Edwardsville, KS		12,880,000		5.97	%	12/1/16		—	N/A		12,880,000	(5)
CVS — Glenville Scotia, NY		3,413,000		5.74	%	12/11/16		787,000	3/16/07		4,200,000	(7)
Advance Auto — Ashland, KY		—		N/A		N/A		—	N/A		—
Advance Auto — Jackson, OH		—		N/A		N/A		—	N/A		—
Advance Auto — New Boston, OH		—		N/A		N/A		—	N/A		—
Advance Auto — Scottsburg, IN		—		N/A		N/A		—	N/A		—
Tractor Supply — Livingston, TN		1,725,000		5.99	%	12/1/16		—	N/A		1,725,000	(3)(5)
Tractor Supply — New Braunfels, TX		1,750,000		5.99	%	12/1/16		—	N/A		1,750,000	(3)(5)
Office Depot — Benton, AR		2,130,000		5.77	%	12/1/16		—	N/A		2,130,000	(8)
Old Time Pottery — Fairview Heights, IL		2,140,000		6.31	%	12/11/11		1,284,000	3/21/07		3,424,000	(7)
Infiniti — Davie, FL		—		N/A		N/A		—	N/A		—
Office Depot — Oxford, MS		2,295,000		6.17	%	12/1/16		—	N/A		2,295,000	(5)
Tractor Supply — Crockett, TX		1,325,000		5.99	%	12/1/16		—	N/A		1,325,000	(3)(5)
Mercedes Benz — Atlanta, GA		—		N/A		N/A		—	N/A		—
Dick’s Sporting Goods — Amherst, NY		6,321,000		5.62	%	2/1/17		—	N/A		6,321,000	(8)
Chili’s — Paris, TX		1,790,000		5.65	%	1/1/17		—	N/A		1,790,000	(5)
Staples — Clarksville, IN		2,900,000		5.78	%	1/1/17		—	N/A		2,900,000	(8)
HOM — Fargo, ND		4,800,000		5.56	%	2/1/2017		—	N/A		4,800,000	(5)
La-Z-Boy — Newington, CT		4,140,000		5.66	%	2/1/2017		—	N/A		4,140,000	(5)
Advance Auto — Maryland Heights, MO		—		N/A		N/A		—	N/A		—
Victoria Crossing — Victoria, TX		8,288,000		5.71	%	2/11/17		1,912,000	4/12/07		10,200,000	(7)
Academy Sports — Katy, TX		68,250,000		5.61	%	2/1/17		—	N/A		68,250,000	(5)
Gordmans — Peoria, IL		4,950,000		5.71	%	2/1/17		—	N/A		4,950,000	(8)
One Pacific Place — Omaha, NE		23,400,000		5.53	%	3/1/17		—	N/A		23,400,000	(5)
Sack n’ Save/O’Reilly Auto — Garland, TX		3,290,000		5.54	%	3/1/17		—	N/A		3,290,000	(5)


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

Tractor Supply — Ankeny, IA		1,950,000		5.65	%	5/1/17		—	N/A		1,950,000	(5)
ABX Air — Coventry, RI		2,454,000		5.70	%	4/1/12		—	N/A		2,454,000	(5)
Office Depot — Enterprise, AL		1,850,000		6.29	%	3/1/17		—	N/A		1,850,000	(5)
Northern Tool — Blaine, MN		3,185,000		6.00	%	9/1/16		—	N/A		3,185,000	(4)(5)
Office Max — Orangeburg, SC		1,875,000		5.61	%	4/1/12		—	N/A		1,875,000	(5)
Walgreens — Cincinnati, OH		3,341,000		6.00	%	9/1/16		—	N/A		3,341,000	(4)(5)
Walgreens — Madeira, OH		2,876,000		5.70	%	4/1/12		—	N/A		2,876,000	(5)
Walgreens — Sharonville, OH		2,655,000		5.62	%	4/1/12		—	N/A		2,655,000	(5)
AT&T — Beaumont, TX		8,592,000		5.87	%	4/1/17		—	N/A		8,592,000	(8)
Walgreens — Shreveport, LA		2,815,000		5.56	%	4/11/17		497,000	6/23/07		3,312,000	(7)
Cost-U-Less,- St. Croix, USVI		4,035,000		5.76	%	4/1/17		—	N/A		4,035,000	(5)
Gallina Centro — Collierville, TN		14,200,000		5.72	%	4/11/17		—	N/A		14,200,000	(7)
Apria Healthcare — St. John, MO		—		N/A		N/A		—	N/A		—
Logan’s Roadhouse — Fairfax, VA		1,605,000		6.00	%	4/11/17		962,000	6/27/07		2,567,000	(7)
Logan’s Roadhouse — Johnson City, TN		1,933,000		6.00	%	4/11/17		1,160,000	6/27/07		3,093,000	(7)
Center at 7500 Cottonwood — Jenison, MI		—		N/A		N/A		—	N/A		—
Eckerd — Lincolnton, NC		1,538,000		5.80	%	4/11/17		271,000	7/3/07		1,809,000	(7)
Tractor Supply — Greenfield, MN		2,227,500		5.57	%	7/1/17		—	N/A		2,227,500	(5)
Lincoln Place — Fairview Heights, IL		35,432,000		5.70	%	5/1/17		—	N/A		35,432,000	(8)
Amarillo Furniture — Ashley, TX		4,026,000		5.59	%	4/11/17		710,000	7/5/07		4,736,000	(7)
Pocatello Square — Pocatello, ID		17,250,000		5.53	%	4/11/17		1,150,000	8/6/07		18,400,000	(7)
Tractor Supply — Paw Paw, MI		2,048,000		5.65	%	5/1/17		—	N/A		2,048,000	(7)
Tractor Supply — Marinette, WI		1,918,000		5.65	%	5/1/17		—	N/A		1,918,000	(7)
Staples — Greenville, SC		2,955,000		5.51	%	6/11/17		—	N/A		2,955,000	(5)
Big 5 Center — Aurora, CO		2,804,000		5.57	%	6/11/17		—	N/A		2,804,000	(5)

	$	455,344,734					$	69,920,437		$	525,265,171


(1)		Mortgage note is cross-collateralized and cross-secured with the LO Midland Property, LO Lubbock Property, KO Wichita Property and OT Oxford Property.

(2)		Mortgage note is cross-collateralized and cross-secured with the CV Clinton Property, WG Picayune Property and GG O’Fallon Property.

(3)		Mortgage note is cross-collateralized and cross-secured with the TS La Grange Property, TS Crockett Property, TS Livingston Property and TS New Braunfels Property.

(4)		Mortgage note is cross-collateralized and cross-secured with the NT Blaine Property and the WG Cincinnati Property.

(5)		Lender: Bear Stearns Commercial Mortgage.

(6)		Lender: GE Commercial Finance Business Property Corporation.

(7)		Lender: Wachovia Bank, N.A.

(8)		Lender: JP Morgan Chase Bank, N.A.

The fixed rate debt mortgage notes require monthly interest-only payments with the principal balance due on various dates from July 2008 through October 2018. 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 the Company 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, the Company 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 depreciable basis in the properties noted above is approximately $708 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:


	Depreciable
Property	Tax Basis

Tractor Supply — Parkersburg, WV	$	2,419,149
Walgreens — Brainerd, MN		3,455,534
Rite Aid — Alliance, OH		1,721,992
La-Z-Boy — Glendale, AZ		3,308,706
Walgreens — Florissant, MO		3,798,660
Walgreens — Saint Louis, MO (Gravois)		4,041,203
Walgreens — Saint Louis, MO (Telegraph)		3,405,433
Walgreens — Columbia, MO		4,066,885
Walgreens — Olivette, MO		4,920,452
CVS — Alpharetta, GA		1,974,033
Lowe’s — Enterprise, AL		6,620,785
CVS — Richland Hills, TX		2,617,497
FedEx — Rockford, IL		4,810,302
Plastech — Auburn Hills, MI		20,812,140
Academy Sports — Macon, GA		4,546,122
David’s Bridal — Lenexa, KS		2,588,991
Rite Aid — Enterprise, AL		2,892,211
Rite Aid — Wauseon, OH		2,920,310
Staples — Crossville, TN		2,421,793
Rite Aid — Saco, ME		2,188,010


	Depreciable
Property	Tax Basis

Wadsworth Boulevard — Denver, CO		14,190,910
Mountainside Fitness — Chandler, AZ		4,818,016
Drexel Heritage — Hickory, NC		3,958,998
Rayford Square — Spring, TX		7,936,443
CVS — Portsmouth, OH		1,667,154
Wawa — Hockessin, DE		3,087,470
Wawa — Manahawkin, NJ		2,821,552
Wawa — Narbeth, PA		2,688,592
CVS — Lakewood, OH		1,973,647
Rite Aid — Cleveland, OH		2,070,669
Rite Aid — Fremont, OH		1,728,442
Walgreens — Knoxville, TN		3,068,515
CVS — Madison, MS		3,368,662
Rite Aid — Defiance, OH		3,126,556
Conns — San Antonio, TX		3,562,750
Dollar General — Crossville, TN		2,435,881
Dollar General — Ardmore, TN		2,114,108
Dollar General — Livingston, TN		2,033,053
Wehrenberg — Arnold, MO		5,698,096
Sportmans Warehouse — Wichita, KS		6,843,371
CVS — Portsmouth, OH		1,770,141
Advance Auto — Greenfield, IN		755,462
Advance Auto — Trenton, OH		772,177
Rite Aid — Lansing, MI		1,547,295
Advance Auto — Columbia Heights, MN		1,236,120
Advance Auto — Fergus Falls, MN		1,058,994
CVS — Okeechobee, FL		4,812,804
Office Depot — Dayton, OH		2,583,810
Advance Auto — Holland, MI		1,432,089
Advance Auto — Holland Township, MI		1,463,900
Advance Auto — Zeeland, MI		1,384,950
CVS — Orlando, FL		2,807,200
Office Depot — Greenville, MS		2,583,810
Office Depot — Warrensburg, MO		1,829,024
CVS — Gulfport, MS		3,032,978
Advance Auto — Grand Forks, ND		1,070,994
CVS — Clinton, NY		2,462,819
Oxford Theatre — Oxford, MS		9,636,227
Advance Auto — Duluth, MN		1,190,975
Walgreens — Picayune, MS		3,153,167
Kohl’s — Wichita, KS		6,289,365
Staples — Greenville, SC		4,545,000
Lowe’s — Lubbock, TX		7,247,827
Lowe’s — Midland, TX		7,883,933


	Depreciable
Property	Tax Basis

Advance Auto — Grand Bay, AL		905,396
Advance Auto — Hurley, MS		952,326
Advance Auto — Rainsville, AL		991,239
Gold’s Gym — O’Fallon, IL		6,060,922
Rite Aid — Glassport, PA		3,268,815
David’s Bridal/Radio Shack — Topeka, KS		2,535,491
Rite Aid — Hanover, PA		4,638,296
American TV & Appliance — Peoria, IL		9,573,469
Tractor Supply — La Grange, TX		2,402,825
Staples — Peru, IL		2,024,975
Fedex — Council Bluffs, IA		2,932,591
Fedex — Edwardsville, KS		18,589,934
CVS — Glenville Scotia, NY		3,796,109
Advance Auto — Ashland, KY		1,096,360
Advance Auto — Jackson, OH		952,219
Advance Auto — New Boston, OH		1,092,304
Advance Auto — Scottsburg, IN		1,054,818
Tractor Supply — Livingston, TN		2,761,104
Tractor Supply — New Braunfels, TX		2,733,111
Office Depot — Benton, AR		2,803,944
Old Time Pottery — Fairview Heights, IL		3,338,050
Infiniti — Davie, FL		6,661,739
Office Depot — Oxford, MS		2,666,293
Tractor Supply — Crockett, TX		2,236,043
Mercedes Benz — Atlanta, GA		9,401,653
Dick’s Sporting Goods — Amherst, NY		6,873,019
Chili’s — Paris, TX		2,234,337
Staples — Clarksville, IN		3,598,588
HOM — Fargo, ND		12,288,100
La-Z-Boy — Newington, CT		7,055,777
Advance Auto — Maryland Heights, MO		1,954,435
Victoria Crossing — Victoria, TX		12,900,521
Academy Sports — Katy, TX		104,953,899
Gordmans — Peoria, IL		9,192,935
One Pacific Place — Omaha, NE		36,779,512
Sack n’ Save/O’Reilly Auto — Garland, TX		5,257,530
Tractor Supply — Ankeny, IA		3,075,880
ABX Air — Coventry, RI		4,193,919
Office Depot — Enterprise, AL		2,859,725
Northern Tool — Blaine, MN		5,022,678
Office Max — Orangeburg, SC		3,216,571
Walgreens — Cincinnati, OH		5,140,000
Walgreens — Madeira, OH		4,425,000
Walgreens — Sharonville, OH		4,085,000


	Depreciable
Property	Tax Basis

AT&T — Beaumont, TX		12,275,000
Walgreens — Shreveport, LA		4,140,000
Cost-U-Less, St. Croix, USVI		6,210,000
Gallina Centro — Collierville, TN		17,750,000
Apria Healthcare — St. John, MO		6,500,000
Logan’s Roadhouse — Fairfax, VA		3,209,000
Logan’s Roadhouse — Johnson City, TN		3,866,000
Center at 7500 Cottonwood — Jenison, MI		5,390,000
Eckerd — Lincolnton, NC		2,262,000
Tractor Supply — Greenfield, MN		4,050,000
Lincoln Place — Fairview Heights, IL		44,000,000
Ashley Furniture — Amarillo, TX		5,920,000
Pocatello Square — Pocatello, ID		23,000,000
Tractor Supply — Paw Paw, MI		3,095,000
Tractor Supply — Marinette, MI		2,950,000
Big 5 Center — Aurora, CO		4,290,000

	$	716,758,606

Tenant Lease Expirations

The following table sets forth, as of April 11, 2007, lease expirations of our portfolio 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.


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

2007		1		2,000	$	37,500		0	%
2008		8		43,210		644,731		1	%
2009		9		80,143		718,694		1	%
2010		6		20,968		398,731		1	%
2011		7		34,703		410,627		1	%
2012		9		90,077		891,923		2	%
2013		11		138,594		1,530,973		3	%
2014		5		74,699		1,042,450		2	%
2015		9		649,513		3,544,096		6	%
2016		18		720,817		6,073,290		10	%
2017		13		487,150		4,423,552		8	%

		96		2,341,874	$	19,716,565		35	%

Potential Property Investments

Our advisor has identified the following properties as potential suitable investments for us. The acquisition of each such property is subject to a number of conditions. A significant condition to acquiring any one of these potential acquisitions is our ability to raise sufficient proceeds in this offering to pay a portion of the purchase price. An additional condition to acquiring these properties 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 these properties. 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.

Approximate

Expected

Approximate

Compensation to

Property

Acquisition Date

Seller(1)

Purchase Price(2)

Sponsor(3)

Rite Aid — Fredericksburg, VA

April, 2007

NNN Development, Inc.

5,415,000

189,525

Eckerd — Easton, PA

April, 2007

GV (William Penn & 25th), LP

5,970,000

208,950

Sportsman’s Warehouse — DePere, WI

April, 2007

Spirit Master Funding, LLC

6,010,000

210,350

Rite Aid — Plains, PA

April, 2007

Rap Plain, LP

5,200,000

182,000

Tractor Supply — Navasota, TX

April, 2007

Navasota Marketplace, LP

3,015,000

105,525

25,610,000

896,350


(1)		Seller is an unaffiliated third party.

(2)		Approximate purchase price does not include acquisition costs.

(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		% of Total Square
Property	Major Tenants*	Guarantor	Feet Leased		Feet Leased

Rite Aid — Fredericksburg, VA	Rite Aid of Virginia, Inc.	Rite Aid Corporation		14,564		100	%
Eckerd — Easton, PA	Thrift Drug, Inc.	Eckerd Corporation		13,813		100	%
Sportsman’s Warehouse — DePere, WI	Sportsman’s Warehouse, Inc.	Sportsman’s Warehouse Holdings, Inc.		48,153		100	%
Rite Aid — Plains, PA	Rite Aid of Pennsylvania, Inc.	Rite Aid Corporation		14,564		100	%
Tractor Supply — Navasota, TX	Tractor Supply Co. of Texas, LP	Tractor Supply Company		22,670		100	%


*		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

Rite Aid — Fredericksburg, PA

Rite Aid of Virginia, Inc.

4/5 yr.

392,063

8.09

3/1/07

2/28/27

Eckerd — Easton, PA

Thrift Drug, Inc.

2/5 yr.

442,266

30.37

2/1/06

1/31/26

Sportsman’s Warehouse — DePere, WI

Sportsman’s Warehouse, Inc.

5/5 yr.

474,839

20.95

11/1/04

10/31/09

523,292

23.08

11/1/09

10/31/14

571,745

25.22

11/1/14

10/31/19

Rite Aid — Plains, PA

Rite Aid of Pennsylvania, Inc.

6/5 yr.

390,173

26.79

5/15/06

5/31/26

Tractor Supply — Navasota, TX

Tractor Supply Co. of Texas, LP

4/5 yr.

215,640

9.51

9/27/06

9/30/11

229,657

10.13

10/1/11

9/30/16

244,584

10.79

10/1/16

9/30/21

The following table outlines the anticipated loan terms on debt financing to be secured in connection with the purchase of the potential property acquisitions 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

Rite Aid — Fredericksburg, VA		3,519,750		Interest Only		5.71	%		May, 2017
Eckerd — Easton, PA		4,059,600		Interest Only		5.77	%		May, 2017
Sportsman’s Warehouse — DePere, WI		3,906,500		Interest Only		6.21	%		May, 2017
Rite Aid — Plains, PA		3,380,000		Interest Only		5.68	%		May, 2017
Tractor Supply — Navasota, TX		2,050,200		Interest Only		5.80	%		May, 2017

Cole Advisors II, our advisor, is continually evaluating various potential property investments and engaging in discussions and negotiations with sellers, developers and potential tenants regarding the purchase and development of properties for us and other Cole-sponsored programs. At such time while this offering is pending, if we believe that a reasonable probability exists that we will acquire a specific property, this prospectus will be supplemented to disclose the negotiations and pending acquisition of such property. We expect that this will normally occur upon the signing of a purchase agreement for the acquisition of a specific property, but may occur before or after such signing or upon the satisfaction or expiration of major contingencies in any such purchase agreement, depending on the particular circumstances surrounding each potential investment. A supplement to this prospectus will describe any improvements proposed to be constructed thereon and other information that we consider appropriate for an understanding of the transaction. Further data will be made available after any pending acquisition is consummated, also by means of a supplement to this prospectus, if appropriate. YOU SHOULD UNDERSTAND THAT THE DISCLOSURE OF ANY PROPOSED ACQUISITION CANNOT BE RELIED UPON AS AN ASSURANCE THAT WE WILL ULTIMATELY CONSUMMATE SUCH ACQUISITION OR THAT THE INFORMATION PROVIDED CONCERNING THE PROPOSED ACQUISITION WILL NOT CHANGE PRIOR TO ANY ACTUAL PURCHASE.

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

Distributions

The following information replaces the section of our prospectus captioned “— Distribution Policies” beginning on page 81 of the prospectus:

Distribution Policy and Distributions

We currently pay distributions to our stockholders and we intend to continue to pay regular distributions to our stockholders. We currently calculate our monthly distributions on a daily record and declaration date. Therefore, new investors will be entitled to distributions immediately upon the purchase of their shares.

Because substantially all of our operations will be performed indirectly through Cole OP II, our operating partnership, our ability to pay distributions depends in large part on Cole OP II’s ability to pay distributions to its partners, including to us. In the event we do not have enough cash from operations to fund the distribution, we may borrow, issue additional securities or sell assets in order to fund the distributions or make the distributions out of net proceeds from this offering.

Historically, we have primarily declared distributions to stockholders as of daily record dates and aggregated and paid such distributions monthly. Our board of directors declared distributions equal to $0.05 per share for stockholders of record as of the close of business on the seventh day of each month during the period from October 2005 through February 2006 and $0.0521 per share for stockholders of record on March 7, 2006. During the period from April 1, 2006 through June 30, 2006, our board of directors declared daily distributions of $0.0017123 per share for stockholders of record as of the close of business on each day during the period. During the period from July 1, 2006 through March 31, 2007, our board of directors declared daily distributions of $0.0017808 per share for stockholders of record as of the close of business on each day during the period.

Our board of directors began declaring distributions in October 2005, after we commenced business operations. We have primarily declared distributions on a quarterly basis, with daily record dates. These distributions generally are aggregated and paid monthly. Our board of directors intends to continue this distribution policy for so long as it decides this policy is in the best interests of our stockholders. We have made the following distributions to our stockholders:


Period Ended	Date Paid		Distribution

12/31/2005(1)		1/3/2006	$	195,209
3/31/2006(1)		4/3/2006		621,070
4/30/2006		5/26/2006		368,157
5/31/2006		6/15/2006		462,055
6/30/2006		7/15/2006		536,858
7/31/2006		8/15/2006		688,819
8/30/2006		9/15/2006		830,693
9/30/2006		10/15/2006		940,028
10/31/2006		11/15/2006		1,123,576
11/30/2006		12/15/2006		1,308,857
12/31/2006		1/15/2007		1,612,094
1/31/2007		2/15/2007		1,803,080
2/28/2007		3/15/2007		1,835,149

			$	12,325,645


(1)		Distribution was paid on a quarterly basis.

Distributions to stockholders are characterized for federal income tax purposes as ordinary income, capital gains, non-taxable return of capital or a combination of the three. Distributions that exceed our current and accumulated earnings and profits (calculated for tax purposes) constitute a return of capital for tax purposes rather than a distribution and reduce the shareholders’ basis in our common shares. To the extent that a distribution exceeds both current and accumulated earnings and profits and the shareholders’ basis in the common shares, it will generally be treated as a capital gain. We annually notify stockholders of the taxability of distributions paid during the preceding year.

For the year ended December 31, 2006, approximately 42% of the distributions paid were taxable to the investor as ordinary taxable income and approximately 58% were treated as return of capital for federal income tax purposes. No distributions were paid during the year ended December 31, 2005. The amount of distributions paid and taxable portion in this period are not indicative or predictive of amounts anticipated in future periods.

We expect to continue to regularly pay distributions on a monthly basis, unless our results of operations, our general financial condition, general economic conditions, or other factors inhibit us from doing so. Distributions will be authorized at the discretion of our board of directors, which will be directed, in substantial part, by its obligation to cause us to comply with the REIT requirements of the Internal Revenue Code. The funds we receive from operations that are available for distribution may be affected by a number of factors, including the following:


	•	the amount of time required for us to invest the funds received in the offering;

	•	our operating and interest expenses;

	•	the ability of tenants to meet their obligations under the leases associated with our properties;

	•	the amount of distributions or dividends received by us from our indirect real estate investments;

	•	our ability to keep our properties occupied;

	•	our ability to maintain or increase rental rates when renewing or replacing current leases;

	•	capital expenditures and reserves for such expenditures;

	•	the issuance of additional shares; and

	•	financings and refinancings.

We must distribute to our stockholders at least 90% of our taxable income each year in order to meet the requirements for being treated as a REIT under the Internal Revenue Code. This requirement is described in greater detail in the “Federal Income Tax Considerations — Requirements For Qualification as a REIT — Operational Requirements — Annual Distribution Requirements” section of this prospectus. Our directors may authorize distributions in excess of this percentage as they deem appropriate. Because we may receive income from interest or rents at various times during our fiscal year, distributions may not reflect our income earned in that particular distribution period, but may be made in anticipation of cash flow that we expect to receive during a later period and may be made in advance of actual receipt of funds in an attempt to make distributions relatively uniform. To allow for such differences in timing between the receipt of income and the payment of expenses, and the effect of required debt payments, among other things, could require us to borrow funds from third parties on a short-term basis, issue new securities, or sell assets to meet the distribution requirements that are necessary to achieve the tax benefits associated with qualifying as a REIT. These methods of obtaining funding could affect future distributions by increasing operating costs and decreasing available cash. In addition, such distributions may constitute a return of capital. See “Federal Income Tax Considerations — Requirements for Qualification as a REIT.”

Prior Potential Property Investments

A prior supplement to this prospectus described a potential acquisition of an approximately 75,000 square foot single-tenant retail building on an approximately 6.0 acre site located in Sherwood, Arkansas. The purchase agreement between Cole Acquisitions I, LLC, an affiliate of our advisor, and the seller for the acquisition of the property was terminated prior to assignment to the Company, and this property is no longer under consideration for purchase.