Talon Real Estate Holding Corp. financed the acquisition by obtaining (1) a secured loan from RCC Real Estate Inc. of an aggregate principal amount of $33 million and an average interest rate of 5.75% (the RCC Loan) and (2) a secured loan from Jackson I, LLC of an aggregate principal amount of $1.14 million and an average interest rate of 6%. The RCC Loan has an initial maturity date of July 5, 2017 and the option to extend such date upon the satisfaction of certain conditions.

The RCC Loan is secured by (i) a mortgage on the Company's fee interest in the Property, (ii) an assignment of leases and rents, (iii) a security agreement covering the personal property at the Property and (iv) other collateral specified in the RCC Loan documents. The RCC Loan documents contain events of default that are customary for loans of this type. The company entered into the RCC Loan documents through Talon First Trust, LLC, a Delaware limited liability company that is wholly owned by Talon OP.

The Jackson Loan has a maturity date of August 31, 2014. The Jackson Loan is secured by a second mortgage on the company's real property and personal property at 10301 Bren Road West, Minnetonka, MN as well as certain other collateral specified in the Jackson Loan documents. The Jackson Loan documents contain events of default that are customary for loans of this type.

The company entered into the Jackson Loan documents through Talon Bren Road, LLC, also a Delaware limited liability company that is wholly owned by Talon OP.