Update 8/2/2007

Progress To Date: August 2, 2007

Saskia has completed plans for the project and has started on the construction drawings (see attached). The construction drawings will allow the contractor to obtain reliable construction estimates for the project. The rental tenancy situation is stabilized, but issues of deferred maintenance seem to arise every month. In the last couple of months we have spent nearly $2000 in termite treatment, plumbing, and bathroom repair to prepare for incoming tenants. Our cashflow continues to be negative, but next month should be our breakthrough.

With the new tenancies on lease through August 2008, we anticipate construction to begin by Spring, 2009. The market in our part of Baltimore has been slow but compared to when we started, there is beginning to be significant condominium inventory on Bolton Hill. Since January, 2007, there are 9 actively listed condominium units on the Hill and 13 sold or under contract. The bulk of the sales have been in Bolton Park, the converted monastery renovated last year.

With the completed plans, we will present to the Bolton Hill preservation groups. Based on our earlier contact with them, we expect that we will receive their endorsement and “permission to proceed”. At that time, we will apply for certification of our project for tax abatement and façade easement.

That’s it for now. More later.

Lou S.