Exhibit 99.1

Lex-Win Concord LLC

Consolidated Financial Statements

For the Period from January 1, 2010 to August 26, 2010 (Dissolution),
and the Years Ended December 31, 2009 and December 31, 2008

LEX-WIN CONCORD LLC

Index to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm			1
Consolidated Balance Sheet at December 31, 2009			2
Consolidated Statements of Operations for the Period from January 1, 2010 to August 26, 2010 (Dissolution) (Unaudited) and the Years Ended December 31, 2009 and 2008			3
Consolidated Statements of Comprehensive Loss for the Period from January 1, 2010 to August 26, 2010(Dissolution) (Unaudited) and the Years Ended December 31, 2009 and 2008			4
Consolidated Statements of Changes in Members’ Capital for the Period from January 1, 2010 to August 26, 2010 (Dissolution) (Unaudited) and the Years Ended December 31, 2009 and 2008			5
Consolidated Statements of Cash Flows for the Period from January 1, 2010 to August 26, 2010 (Dissolution) (Unaudited) and the Years Ended December 31, 2009 and 2008			7
Notes to Consolidated Financial Statements			9

Report of Independent Registered Public Accounting Firm

To the Members of Lex-Win Concord LLC:

In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, comprehensive income, changes in members’ capital and cash flows present fairly, in all material respects, the financial position of Lex-Win Concord LLC and its subsidiaries at December 31, 2009 and 2008, and the results of their operations and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

As discussed in Note 4 to the consolidated financial statements, the Company changed the manner in which it accounts for non-controlling interests and other-than-temporary impairment of available for sale securities in 2009.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in the financial statements, the Company has suffered losses from operations and is in violation of certain debt covenants that raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also discussed in the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
February 19, 2010

LEX-WIN CONCORD LLC

(In thousands)

		December 31,
		2009
Assets:
Cash and cash equivalents		$	747
Restricted cash			25,369
Real estate debt investments, net of allowance for loss			447,270
Real estate debt investments held for sale, at fair value			66,311
Available for sale securities, net			83,977
Interest and other receivables			1,756
Deferred financing costs, net of accumulated amortization			5,306
Real estate properties held for sale			3,634
Other assets			138
Total assets		$	634,508
Liabilities and Members’ Capital:
Liabilities:
Repurchase agreements		$	135,064
Revolving credit facility			58,850
Collateralized debt obligations			347,525
Collateral support obligation			9,757
Sub-participation obligation			4,500
Liabilities of discontinued operations			142
Other liabilities			14,056
Note payable to related parties			—
Total liabilities			569,894
Non-controlling redeemable preferred interest:
Non-controlling redeemable preferred interest			5,720
Total non-controlling redeemable preferred interest			5,720
Members’ Capital:
Lex-Win Concord LLC members’ capital			113,928
Accumulated other comprehensive loss			(55,148	)
Total Lex-Win Concord LLC members’ capital			58,780
Non-controlling equity interest			114
Total members’ capital			58,894
Total liabilities and members’ capital		$	634,508

The accompanying notes are an integral part of these consolidated financial statements.

LEX-WIN CONCORD LLC

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands)

		(Unaudited)
		2010				2009				2008
Income:
Interest income on real estate debt investments and available for sale securities		$	17,930			$	38,948			$	71,307
Realized gain on sale of real estate debt investments			7,760				—				—
Total income			25,690				38,948				71,307
Expenses:
Interest			9,581				17,335				36,410
Provision for loss on real estate debt investments			106,150				80,620				31,053
Realized loss on sale of real estate debt investments			2,407				9,606				—
Impairment loss on real estate debt investments held for sale			—				101,027				—
Realized loss on sale of real estate debt investments held for sale			—				17,566				—
Other-than-temporary impairment losses on available-for-sale securities
Gross impairment losses			3,874				29,770				65,905
Less: Impairments recognized in other comprehensive losses			—				(13,468	)			7,927
Net impairment losses recognized in earnings			3,874				16,302				73,832
Realized loss on sale of available for sale securities			—				5,074				—
Fees and expenses paid to related party			470				1,108				1,637
Collateral support expense			319				9,757				—
General and administrative			1,754				4,604				3,187
Total expenses			124,555				262,999				146,119
Other income:
Interest income on bank deposits			6				7				426
Gain on extinguishment of debt			—				—				15,603
Total other income			6				7				16,029
Loss from continuing operations			(98,859	)			(224,044	)			(58,783	)
Discontinued operations:
Loss from discontinued operations			(971	)			(959	)			—
Total discontinued operations			(971	)			(959	)			—
Consolidated net loss			(99,830	)			(225,003	)			(58,783	)
(Income) loss attributable to the non-controlling redeemable preferred interest			4,585				68,709				(1,619	)
Income attributable to the non-controlling interest			(8	)			(12	)			(12	)
Net loss attributable to Lex-Win Concord LLC		$	(95,253	)		$	(156,306	)		$	(60,414	)

The accompanying notes are an integral part of these consolidated financial statements.

LEX-WIN CONCORD LLC

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
For the Period from January 1, 2010 to August 26, 2010 (Dissolution) and the
Years Ended December 31, 2009 and 2008

(In thousands)

		(Unaudited)
		2010				2009				2008
Consolidated net loss		$	(99,830	)		$	(225,003	)		$	(58,783	)
Other comprehensive income (loss):
Unrealized gain (loss) on cash flow hedges			(4,486	)			10,668				(20,200	)
Unrealized gain (loss) on available for sale securities			5,774				(29,770	)			(65,905	)
Reclassification of unrealized loss to impairment loss			—				16,302				73,832
Other comprehensive loss			1,288				(2,800	)			(12,273	)
Comprehensive loss			(98,542	)			(227,803	)			(71,056	)
Comprehensive income attributable to non-controlling interest			(8	)			(12	)			(12	)
Comprehensive (income) loss attributable to non-controlling redeemable preferred interest			4,585				68,709				(1,619	)
Comprehensive loss attributable to Lex-Win Concord LLC		$	(93,965	)		$	(159,106	)		$	(72,687	)

The accompanying notes are an integral part of these consolidated financial statements.

LEX-WIN CONCORD LLC

CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL
For the Period from January 1, 2010 to August 26, 2010 (Dissolution) and the
Years Ended December 31, 2009 and 2008

(In thousands)

										Accumulated
										Other				Non-
										Comprehensive				Controlling
		Winthrop				Lexington				Income (Loss)				Interest				Total
Balance at December 31, 2007		$	163,851			$	163,851			$	(16,781	)		$	102				311,023
Contributions from Members			5,087				5,087				—				—				10,174
Distributions to Members			(14,600	)			(14,600	)			—				—				(29,200	)
Net income allocated to non-controlling interests			—				—				—				12				12
Distributions to non- controlling interests			—				—				—				—				—
Unrealized loss on cash flow hedges			—				—				(20,200	)			—				(20,200	)
Unrealized gain on available for sale securities			—				—				7,927				—				7,927
Net income allocation			(30,207	)			(30,207	)			—				—				(60,414	)
Balance at December 31, 2008			124,131				124,131				(29,054	)			114				219,322
Adjustment to opening balance for cumulative effect of adopting new accounting method			11,647				11,647				(23,294	)			—				—
Net income allocated to non-controlling interests			—				—				—				12				12
Contributions from Members			118				118				—				—				236
Distributions to Members			(779	)			(779	)			—				—				(1,558	)
Distributions to non- controlling interests			—				—				—				(12	)			(12	)
Unrealized gain on cash flow hedges			—				—				10,668				—				10,668
Unrealized loss on available for sale securities			—				—				(13,468	)			—				(13,468	)
Net loss allocation			(78,153	)			(78,153	)			—				—				(156,306	)
Balance, December 31, 2009			56,964				56,964				(55,148	)			114				58,894

The accompanying notes are an integral part of these consolidated financial statements.

LEX-WIN CONCORD LLC

CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL
For the Period from January 1, 2010 to August 26, 2010 (Dissolution) and the
Years Ended December 31, 2009 and 2008

(In thousands, Continued)

										Accumulated
										Other				Non-
										Comprehensive				Controlling
(Unaudited)		Winthrop				Lexington				Income (Loss)				Interest				Total
Balance at December 31, 2009			56,964				56,964				(55,148	)			114				58,894
Net income allocated to non-controlling interests			—				—				—				8				8
Distributions to non- controlling interests			—				—				—				(12	)			(12	)
Unrealized loss on cash flow hedges			—				—				(4,486	)			—				(4,486	)
Unrealized gain on available for sale securities			—				—				5,774				—				5,774
Net loss allocation			(47,627	)			(47,626	)			—				—				(95,253	)
Dissolution adjustment			(9,337	)			(9,338	)			53,860				(110	)			35,075
Balance, August 26, 2010		$	—			$	—			$	—			$	—			$	—

The accompanying notes are an integral part of these consolidated financial statements.

LEX-WIN CONCORD LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

		(Unaudited)
		2010				2009				2008
Cash flows from operating activities:
Consolidated net income (loss)		$	(99,830	)		$	(225,003	)		$	(58,783	)
Adjustments to reconcile net income (loss) to cash provided by operating activities
Amortization and accretion of interest			(1,270	)			(4,866	)			(7,686	)
Amortization of deferred financing costs			1,634				1,945				1,469
Impairment loss on available for sale securities			3,874				16,302				73,832
Provision for loss on real estate debt investments			106,150				80,620				31,053
Impairment loss on real estate debt investments held for sale			—				101,027				—
Realized loss on sale of real estate debt investments			1,187				9,606				—
Realized loss on sale of real estate debt investments held for sale			1,220				17,566				—
Realized loss on sale of available for sale securities			—				5,074				—
Realized loss on sale of real estate properties held for sale			708				—				—
Realized gain on sale of investments held for sale			(2,130	)			—				—
Realized gain on available for sale securities			(1,323	)			—				—
Realized gain on sale of real estate debt investments			(4,307	)			—				—
Gain on extinguishment of debt			—				—				(15,603	)
Changes in operating assets and liabilities:
Interest and other receivables			250				1,842				1,579
Other assets			104				(36	)			455
Other liabilities			(527	)			(904	)			442
Liabilities of discontinued operations			(90	)			142				—
Collateral support obligation			319				9,757				—
Net cash provided by operating activities			5,969				13,072				26,758
Cash flows from investing activities:
Proceeds from sale of real estate debt investments			9,888				18,817				—
Proceeds from sale of real estate debt investments held for sale			70,038				86,481				—
Proceeds from sale of available for sale securities			2,868				3,670				—
Proceeds from sale of real estate properties held for sale — discontinued operations			—				6,721				—
Purchase of real estate debt investments			—				—				(14,534	)
Funding of commitments on real estate debt investments			—				(1,714	)			—
Real estate debt investments repaid			—				30,168				78,496
Available for sale securities purchased			(13,562	)			(6,856	)			—
Real estate debt investments purchased			(3,000	)
Available for sale securities repaid			296				3,935				5,296
Change in restricted cash			13,112				(22,550	)			2,770
Net cash provided by investing activities			79,640				118,672				72,028

The accompanying notes are an integral part of these consolidated financial statements.

LEX-WIN CONCORD LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Period from January 1, 2010 to August 26, 2010 (Dissolution) and the
Years Ended December 31, 2009 and 2008

(In thousands)

		(Unaudited)
		2010				2009				2008
Cash flows from financing activities:
Proceeds from related party notes payable		$	—			$	8,360			$	20,000
Repayment of related party notes payable			—				(18,360	)			(10,000	)
Repayments on repurchase agreements			(71,627	)			(105,540	)			(231,720	)
Proceeds from revolving line of credit facility			—				—				80,000
Repayment of revolving credit facility			(20,801	)			(21,150	)			—
Payment to terminate derivative contract			—				(8,221	)			—
Payment on collateralized debt obligation			—				—				(13,111	)
Proceeds from sub-participation arrangement			—				4,500				—
Payment of deferred financing costs			—				(87	)			(1,401	)
Distributions to non-controlling redeemable preferred interest			—				(3,152	)			—
Distributions to non-controlling interests			(12	)			(12	)			(1,178	)
Distribution to members			—				(1,240	)			(29,200	)
Distribution to members upon liquidation			(3,416	)			—				—
Contributions from non-controlling redeemable preferred interest			9,500				1,354				76,000
Contributions from members			—				236				10,174
Net cash used in financing activities			(86,356	)			(143,312	)			(100,436	)
Net decrease in cash and cash equivalents			(747	)			(11,568	)			(1,650	)
Cash and cash equivalents at beginning of period			747				12,315				13,965
Cash and cash equivalents at end of period		$	—			$	747			$	12,315
Supplemental cash flow information:
Interest paid		$	7,881			$	16,505			$	33,798
Collateral support arrangement		$	—			$	—			$	231
Non-cash investing activity:
Investment in real estate debt investment by issuance of first mortgage seller financing on real estate property sold		$	—			$	955			$	—
Non-cash financing activities:
Distribution of available for sale security to members		$	—			$	318			$	—
Distribution of available for sale security to non-controlling redeemable preferred interest		$	—			$	214			$	—
Accrued dividend payable to non-controlling interest		$	8			$	12			$	12
Accrued dividend payable to non-controlling redeemable preferred interest		$	—			$	5,720			$	441
Adjustment of Assets and Liabilites upon Dissolution
Resricted cash		$	(12,257	)		$	—			$	—
Real estate debt investments, net of allowance		$	(338,008	)		$	—			$	—
Available for sale securities		$	(98,217	)		$	—			$	—
Interest and other receivables		$	(1,506	)		$	—			$	—
Deferred and other assets		$	(4,788	)		$	—			$	—
Repurchase agreements		$	63,437			$	—			$	—
Revolving credit facility		$	38,049			$	—			$	—
Collaterlized debt obligations		$	347,525			$	—			$	—
Collateral support obligation		$	10,076			$	—			$	—
Sub-participation obligation		$	17,762			$	—			$	—
Deferred items and other liabilities		$	5,783			$	—			$	—
Non-controlling redeemable preferred interest		$	110			$	—			$	—
Non-controlling equity interest		$	10,635			$	—			$	—
Members’ capital		$	(35,185	)		$	—			$	—

The accompanying notes are an integral part of these consolidated financial statements.

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 1 — Description of Business and Dissolution

Lex-Win Concord LLC (the “Company” and “Lex-Win”) was created on August 2, 2008. Prior to the Company’s formation, its subsidiary Concord Debt Holdings LLC (“Concord”), a Delaware limited liability company, was formed on March 31, 2006 to acquire real estate whole loans and subordinate real estate debt investments such as B-notes, mezzanine loans and preferred equity, and commercial real estate securities including commercial mortgage backed securities, collateralized debt obligations and real estate mortgage investment conduits. Concord upon its formation was owned 50% each by Winthrop Realty Trust (“Winthrop”) and Lexington Realty Trust (“Lexington”), collectively the Members. In connection with the formation of Concord, Lexington contributed existing real estate debt investments and other assets totaling $54,279,000 and repurchase agreements and other liabilities of $32,251,000, which had been acquired in anticipation of the formation of the venture. Concurrently with the formation of Concord, Winthrop contributed $10,864,000 in exchange for 50% of the net equity of Concord.

Concord Debt Funding Trust is a majority owned subsidiary of the Company through its investment in Concord and was formed November 3, 2006. Concord Debt Funding Trust issued 100,000 common shares and 102 shares of 12% cumulative redeemable preferred shares and Concord owns 100% of the common shares while the preferred shares are owned by individuals associated with Winthrop and Lexington.

In connection with the formation of the Company, both Winthrop and Lexington contributed their 50% interests in Concord and WRP Management LLC (“WRP Management”), the entity that provided management services to Concord Real Estate CDO 2006-1, Ltd (“CDO-1”and “the Issuer”), and a wholly-owned subsidiary of Concord. WRP Management contracted with WRP Sub-Management LLC (“WRP Sub Management”) to act as Administrative Manager to the Company. The Second Amended and Restated Limited Liability Company Joint Venture Agreement (the “Joint Venture Agreement”) of Concord was amended and restated reflect this change in legal structure and to admit Inland America Concord Sub LLC (“Inland”) with a redeemable preferred membership interest in Concord. Inland committed to invest up to $100,000,000 in Concord over a 12-18 month investment period subject to certain conditions. The Company will hold 100% of the common membership interests in Concord and will serve as its managing member.

On May 22, 2009, a wholly-owned subsidiary of Inland filed a legal action against the Company and Concord generally seeking declaratory relief that Inland should not be required to satisfy the May 11, 2009 capital call made by Concord in the amount of $24,000,000 and that Inland is entitled to a priority return of its capital. The Company filed counterclaims against Inland which state, in general, that Inland is in material breach of their agreements with the Company and seeking to recover all losses incurred by it as a result of such breach.

On August 26, 2010 the Company finalized a settlement agreement to resolve the action which would provide for, among other things, no obligation on any of the parties to make additional capital contributions to Concord, the allocation of distributions equally among Inland, Lexington, and Winthrop and the formation of a new entity to be owned by subsidiaries of Inland, Lexington and Winthrop named CDH CDO LLC which purchased 100% of the stock of CDO-1 from Concord.

The settlement agreement triggered simultaneous transactions that effectively changed the organization structure, economics and governance of Concord such that Lex-Win was dissolved and transferred 100% of its interest in Concord to its members, Winthrop and Lexington. As a result of the concurrent transfer of the Company’s equity interests in Concord to Winthrop and Lexington and its dissolution on August 26, 2010, no balance sheet is presented as of August 26, 2010, the date of the Company’s dissolution.

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 2 — Going Concern Considerations

The conditions that existed as of December 31, 2009, as described below are indicative of the entity’s potential inability to continue as a going concern. The financial information included in this report does not include any adjustments that might result from the outcome of this uncertainty.

The real estate markets have been significantly impacted by the continued deterioration of the global credit markets and other macro economic factors. As a result of these and other factors including increased margin calls on Concord’s repurchase agreements, the Company has experienced further declines in values during the year ended December 31, 2009 to its real estate debt investments and available for sale securities. This has generated significant impairment charges and difficulty in executing sales of select investments pursuant to certain repurchase agreements. The initial strategy to issue CDOs and the availability of new financing has effectively been eliminated, making the execution of the Company’s initial strategy unachievable.

Accordingly, the Company is unable to satisfy certain of its financial covenants under its loan documents for which it has not yet received waivers and is in technical default under these loans. In addition the Company has near-term repayment obligations under its repurchase agreements. The Company is working with the lenders, but there can be no assurance that the lenders will grant long-term forbearance and could exercise their remedies at any time.

In addition, a continued decline in the operating performance of the underlying collateral of certain of the Company’s available for sale securities and real estate loans may result in borrowers’ inability to meet its debt service coverage, which could result in additional impairments of loan assets. Such defaults could significantly reduce the cash flow available to the Company for its obligations and also necessitate additional asset sales at disadvantageous terms.

In response to the declining real estate and capital markets the Company may be unable to consummate certain activities that would improve the Company’s financial flexibility such as the sale of encumbered assets for fair value.

Note 3 — Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company, and its subsidiaries, which are either majority owned or controlled by the Company. The Company identifies entities for which control is achieved through means other than through voting rights (a “variable interest entity” or “VIE”) and determines when and which business enterprise, if any, should consolidate the VIE. In addition, the Company discloses information pertaining to such entities wherein the Company is the primary beneficiary or other entities wherein the Company has a significant variable interest. All significant intercompany transactions and balances have been eliminated.

Out of Period Adjustment

During 2009, the Company determined that there was an error in the recognition of fees paid to the party which originated certain loans purchased by the Company which is recorded as a reduction of interest income. The Company determined that interest income was overstated by approximately $594,000 for the year ended December 31, 2008. The Company has recorded an adjustment to correct this error in 2009 and determined that adjustment does not materially affect the financial statements for any of the years presented.

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 3 — Summary of Significant Accounting Policies (Continued)

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates in the consolidated financial statements include the valuation of the Company’s real estate debt investments and available for sale securities and estimates pertaining to credit. Actual results could differ materially from those estimates.

Cash and Cash Equivalents

All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. The Company places its cash and cash equivalents in major financial institutions.

Concentration of Credit Risk

The Company maintains cash deposits and restricted cash deposits with major financial institutions, which from time to time may exceed federally insured limits. The Company believes it mitigates its risk of loss by maintaining its cash deposits with major financial institutions. To date, the Company has not experienced any losses of its cash deposits. Real estate debt investments and available for sale securities can potentially subject the Company to concentrations of credit risk. Management of the Company performs ongoing credit evaluations of borrowers and valuations of the real property and interests that collateralize the Company’s investments.

Within its real estate debt investment portfolio, the Company holds 11 impaired loans with related loan loss allowances at December 31, 2009, six of which are non-performing loans that subject the Company to a concentration of credit risk. See Note 7.

Restricted Cash

The Company had restricted cash of $25,369,000 at December 31, 2009 which included $20,726,000 in proceeds from the repayment of principal of real estate debt investments that the Company is required to reinvest under the terms of its CDO indenture. The remaining balance of $4,643,000 at December 31, 2009 represents funding of future lending commitments for certain real estate debt investments as well as amounts held in escrow accounts as collateral.

Real Estate Debt Investments

The majority of real estate debt investments are considered to be held for investment. Such investments are recorded at cost. Discounts and premiums on purchased assets are amortized over the life of the investment using the effective interest method. The amortization is reflected as an adjustment to interest income. Other costs incurred in connection with acquiring loans, such as marketing and administrative costs, are charged to expense as incurred.

Real Estate Debt Investment Impairment

The Company considers a real estate debt investment (“loan”) impaired when, based upon current information and events, it is probable that it will be unable to collect all amounts due for both principal and interest according to the contractual terms of the loan agreement. The Company believes its loans are collateral dependent and, accordingly, it generally utilizes the fair value of the loan collateral when assessing its loans for impairment. If the fair value of the collateral is equal to or greater than the recorded investment in the loan, no impairment is recognized. Specific valuation allowances are established for impaired loans based on the fair value of

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 3 — Summary of Significant Accounting Policies (Continued)

collateral on an individual loan basis. The fair value of the collateral is determined by selecting the most appropriate valuation methodology. These methodologies include the evaluation of operating cash flow from the collateral during the projected holding period, and the estimated sales value of the collateral computed by applying an expected capitalization rate to the stabilized net operating income of the specific property, discounted at market discount rates. If upon completion of the valuation, the fair value of the underlying real estate collateralizing the impaired loan is less than the net carrying value of the loan, a specific loan allowance is created with a corresponding charge to the provision for loan losses. The allowance for each loan is maintained at a level deemed adequate by management to absorb potential losses.

In addition, a formula specific loss allowance may be established to cover performing loans when (i) available information indicates that it is probable a loss has occurred in the portfolio and (ii) the amount of the loss can be reasonably estimated in accordance with FASB guidance on loss contingencies. Required loss allowance balances for the performing loan portfolio are derived from probabilities of default and loss severity estimates assigned to each loan as part of the Company’s quarterly internal risk rating assessment. Probabilities of principal loss and severity factors are based on industry and/or internal experience and may be adjusted for significant factors that, based on management’s judgment, impact the collectability of the loans.

Income Recognition for Impaired Real Estate Debt Investments

The Company recognizes interest income on impaired, non-performing real estate debt investments using the cash-basis method.

Real Estate Debt Investments Held for Sale

The Company reports real estate debt investments held for sale at the lower of cost or fair value.

Available for Sale Securities

The Company evaluates its portfolio of available for sale securities for other-than-temporary impairment by conducting and documenting periodic reviews of all securities with unrealized losses to evaluate whether the impairment is other than temporary. Any credit-related impairment on debt securities the Company does not plan to sell and is not more-likely-than-not to be required to sell is recognized in the Consolidated Statement of Operations, with the non-credit-related impairment recognized in other comprehensive loss. For other impaired debt securities, the entire impairment is recognized in the Consolidated Statement of Operations.

The Company recognizes interest income on its portfolio of available for sale securities by estimating the excess of all cash flows attributable to the security estimated at the measurement date over the Company’s initial investment in the security using the effective yield method. Discounts attributable to previously recognized other-than-temporary impairment charges are recognized in interest income on the effective interest method based upon the excess of all estimated prospective cash flows over the investment balance in the loan security at the measurement date. The Company will accrete certain impairment discounts over the remaining life of the securities using the effective interest method.

During the period from January 1, 2010 to August 26, 2010 and the years ended December 31, 2009 and 2008, the Company recognized in interest income accretion of discounts totaling $637,000, $1,071,000 and $1,215,000 respectively.

Deferred Financing Costs

Fees and costs incurred to obtain long-term financing have been deferred and are being amortized over the terms of the related financing, on a basis which approximates the effective interest method.

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 3 — Summary of Significant Accounting Policies (Continued)

Real Estate Properties Held For Sale — Discontinued Operations

Real estate properties held for sale are comprised of real property collateralizing certain loans that was acquired by foreclosure. Real estate that is acquired by foreclosure and held for sale is recorded at the lower of its carrying amount or fair value less cost to sell and is not depreciated.

Impairment charges, when applicable, are recorded as a valuation allowance with a loss from foreclosed assets held for sale recognized in the income statement. Any expenditure that significantly improves the estimated fair value of the assets may be capitalized.

Non-Controlling Interests

Effective January 1, 2009, the Company adopted new FASB provisions on non-controlling interests (previously known as “minority interests”). The adoption of this new accounting standard resulted in (i) the reclassification of minority interests in consolidated subsidiaries to non-controlling interests in consolidated subsidiaries, a component of permanent equity on the Company’s Consolidated Balance Sheet, (ii) the reclassification of minority interest expense to net income attributable to non-controlling interests on the Company’s consolidated statements of operations and comprehensive income, and (iii) additional disclosures, including consolidated statements of changes in members’ capital. The implementation of this standard had no effect on the Company’s results of operations. However on the Consolidated Balance Sheet as a result of the adoption, the Company reclassified certain non-controlling interests to permanent equity from the mezzanine section which totaled approximately $114,000 as of December 31, 2009. The remaining non-controlling interests related to redeemable preferred interests which continue to be classified in the mezzanine section was $5,720,000 as of December 31, 2009.

Allocations of members’ capital and the non-controlling redeemable preferred interest are determined in accordance with the governing documents of Concord. At each reporting period, Concord performs a hypothetical liquidation of the members’ capital and non-controlling redeemable preferred interests as a basis for these allocations. As a result of this analysis, the Company was allocated net losses from operations for the period from January 1, 2010 to August 26, 2010 and the year ended December 31, 2009 of $95,253,000 and $156,306,000 and net losses of $68,709,000 were allocated to the non-controlling redeemable preferred interest. The unpaid accrued preferred return was $5,720,000 at December 31, 2009.

As of December 31, 2009, Concord did not distribute $5,720,000 of the total $8,427,000 accrued priority interest payable to satisfy the 10% preferred return on Inland’s invested capital and was not in compliance with the Total Debt Limit as defined in Concord’s operating agreement. As a result, Concord is required to accrue and distribute to Inland its priority return at a rate of 13% per annum until such time as Concord is able to comply with these covenants.

Members’ Capital

Capital contributions, distributions and profits and losses are allocated in accordance with the terms of the Joint Venture Agreement.

Other Comprehensive Income (Loss)

Comprehensive income (loss) is comprised of net income, as presented in the consolidated statements of operations, adjusted for changes in unrealized gains or losses on debt securities available for sale and changes in the fair value of derivative financial instruments accounted for as cash flow hedges.

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 3 — Summary of Significant Accounting Policies (Continued)

Income Taxes

Concord Debt Funding Trust is organized and conducts its operations to qualify as a real estate investment trust and to comply with the provisions of the Internal Revenue Code with respect thereto. A real estate investment trust is generally not subject to federal income tax on the portion of its REIT taxable income (“Taxable Income”), which is distributed to its stockholders, provided that at least 90% of Taxable Income is distributed and certain other requirements are met.

Income taxes are not considered in the accompanying consolidated financial statements since the Company is not a taxable entity. Taxes on income, as applicable, are the responsibility of the individual Members; accordingly, no provision for federal or state income taxes has been recorded.

The Company reviews its tax positions under accounting guidance which requires that a tax position may only be recognized in the financial statements if it is more likely than not that the tax position will prevail if challenged by tax authorities. The Company believes it is more likely than not that our tax positions will be sustained in any tax examination. We have no income tax expense, deferred tax assets or deferred tax liabilities associated with any such uncertain tax positions for the operations of any entity included in the consolidated results of operations.

Derivatives and Hedging Activities

The Company measures its designated and qualifying derivative instruments at fair value and records them in the Consolidated Balance Sheets as an asset or liability, depending on the Company’s rights or obligations under the applicable derivative contract. Fair value adjustments will be recorded in accumulated other comprehensive income or earnings in the current period based on whether the derivative financial instrument is designated and qualifies as a hedging instrument. The effective portions of changes in fair value of designated and qualifying instruments are reported in other comprehensive income and are subsequently reclassified into earnings when the hedged item affects earnings.

The changes in fair value of derivative instruments which are not designated as hedging instruments and the ineffective portions of hedges are recorded in earnings for the current period.

The Company utilizes derivative financial instruments to reduce exposure to fluctuations in interest rates. The Company has not entered, and does not plan to enter, into financial instruments for trading or speculative purposes. Additionally, the Company has a policy of only entering into derivative contracts with major financial institutions. The principal financial instruments used by the Company are interest rate swaps.

Note 4- Changes in Accounting Principles

Other-than-temporary impairments

On April 1, 2009, the Company adopted newly issued accounting guidance that amended the existing accounting model for evaluating whether declines in the fair value of debt securities are other-than-temporary in nature. Previously, declines in the fair value of a debt security were generally considered to be other-than-temporary in nature unless the investor could positively assert that it had the intent and ability to hold the security long enough to recover its amortized cost basis. The guidance requires that an investor recognize other-than-temporary impairment for (a) those securities that the investor has the present intent to sell or (b) those securities that it will more likely than not be required to sell before the anticipated recovery. For those securities that the Company does not have the present intent to sell or for which it is not more likely than not it will be required to sell, the Company must recognize only credit losses in earnings. Non-credit losses are recognized as a charge to other comprehensive income.

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 4- Changes in Accounting Principles (Continued)

For other-than-temporary impairment charges recognized in prior periods, the newly issued accounting guidance required the Company to assess whether (a) it had the intent to sell, (b) more likely than not would have been required to sell the related securities and (c) for those not meeting these criteria (a) and (b), determine the decline in fair value attributable to non-credit factors and recognize the cumulative of initially applying the newly issued guidance as an adjustment to the opening balance of members’ capital with a corresponding adjustment to accumulated other comprehensive income.

The cumulative effect of the Company’s adoption of the newly issued accounting guidance resulted in an increase to members’ capital of $23,294,000 and a corresponding decrease to other comprehensive income totaling $23,294,000.

Non-controlling interests

The consolidated financial statements reflect certain retrospective revisions of prior period amounts, resulting from the adoption and retrospective application of newly adopted accounting guidance on related to non-controlling interests. The revisions had no impact on previously reported net income.

Effective January 1, 2009, the Company adopted accounting guidance which establishes and expands accounting and reporting standards for entities that have outstanding minority interests which are re-characterized as non-controlling interests in a subsidiary. It requires consolidated net income to be reported at amounts that include the amounts attributable to both the parent and the non-controlling interest. It also requires disclosure on the face of the consolidated statements of operations and comprehensive income, of the amounts of consolidated net income attributable to the parent and to the non-controlling interest. Previously, net income attributable to the non-controlling interest generally was reported as an expense in arriving at consolidated net income. This adoption resulted in (i) the reclassification of minority interests in consolidated subsidiaries to non-controlling interests in consolidated subsidiaries, a component of permanent equity on the Company’s Consolidated Balance Sheet, (ii) the reclassification of minority interest expense to net income attributable to non-controlling interests on the Company’s consolidated statements of operations and comprehensive income, and (iii) additional disclosure relating to non-controlling interests.

Note 5 — Fair Value Measurement

On January 1, 2008, the Company adopted guidance for fair value measurements and the fair value option for financial assets and liabilities. This guidance defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The guidance applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements. Accordingly, the standard does not require any new fair value measurements of reported balances. Cash equivalents, available for sale securities, derivative financial instruments, impaired real estate debt investments and real estate debt investments held for sale are reported at fair value.

The accounting standards emphasize that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability other than quoted prices, such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals.

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 5 — Fair Value Measurement (Continued)

Level 3 inputs are unobservable inputs for the asset or liability which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

Level 1 securities include highly liquid government bonds, mortgage products and exchange-traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows, which would generally be classified within Level 2 of the valuation hierarchy. Examples of such instruments include certain derivative financial instruments. In cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Securities classified within Level 3 include, for example, residual interests in securitizations and other less liquid securities.

In October 2008 the Company adopted amendments to the guidance for fair value measurements which provide clarification that determination of fair value in an inactive market depends on facts and circumstances and may require the use of significant judgment to determine whether certain individual transactions are forced liquidations or distressed sales. In cases where the volume and level of trading activity for an asset has declined substantially, the available prices vary significantly over time or among market participants, or the prices are not current, observable inputs might not be relevant and could require material adjustment. In addition, the amended guidance also clarifies that broker or pricing service quotes may be appropriate inputs when measuring fair value, but are not necessarily determinative if an active market does not exist for the financial asset. Regardless of the valuation techniques used, the accounting rules require that an entity include appropriate risk adjustments that market participants would make for nonperformance and liquidity risks. The Company has always considered nonperformance and liquidity risks in its analysis of loans and collateral underlying its securities and the adoption of this new guidance did not have a material impact on its consolidated financial statements.

The following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Recurring Measurements

Cash, Cash Equivalents and Restricted Cash

The Company’s cash, cash equivalents and restricted cash are generally classified within Level 1 or Level 2 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The types of instruments valued based on quoted market prices in active markets include most U.S. government securities and most money market securities. Such instruments are generally classified within Level 1 of the fair value hierarchy.

Available for Sale Securities

Broker quotations within Level 1 or Level 2 of the hierarchy are obtained if available and practicable. Management typically obtains counterparty quotations for certain of its securities that are pledged under certain repurchase agreements. Such counterparty quotations are predominantly based on the use of unobservable inputs that are considered Level 3 inputs. In addition, the Company uses a third-party pricing model to establish values for the securities in its portfolio. Management also performs further analysis of the performance of the loans and collateral underlying the securities, the estimated value of the collateral supporting such loans and a consideration of local, industry, and broader economic trends and factors. Significant judgment is utilized in the ultimate determination of fair value. This valuation methodology has been characterized as Level 3 in the fair value hierarchy as defined by FASB guidance for fair value measurements.

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 5 — Fair Value Measurement (Continued)

Derivative Financial Instruments

The Company has determined that the inputs used to value its derivatives fall primarily within Level 2 of the fair value hierarchy. Currently, the Company uses interest rate swaps to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments

(or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Impaired Real Estate Debt Investments

All of the Company’s loans identified as being impaired are collateral dependent loans and are evaluated for impairment by comparing the fair value of the underlying collateral to the carrying value of each loan. Due to the unique nature of the individual property collateralizing the Company’s loans, the Company uses the income or market approach, as deemed appropriate, through internally developed valuation models to estimate the fair value of the collateral. This approach requires the Company to make significant judgments in respect to discount rates and the timing and amounts of estimated future cash flows that are considered Level 3 inputs.

Real Estate Debt Investments Held For Sale

At December 31, 2009, the Company had identified four loans meeting the criteria for held-for-sale treatment. These loans are carried at their fair value of $66,311,000, which represents a decline of $64,143,000 from the Company’s cost basis of $130,454,000. This decline in fair value has been charged to impairment loss on real estate debt investments in the Company’s consolidated statements of operations.

The Company has estimated the fair value of these investments using current market spreads which are reflective of exit prices using market participant assumptions. These assets fall within Level 3 of the fair value hierarchy.

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 5 — Fair Value Measurement (Continued)

The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2009 aggregated by the level in the fair value hierarchy within which those measurements fall.

		Quoted Prices in
		Active Markets for				Significant Other				Significant
		Identical Assets				Observable				Unobservable				Balance at
		and Liabilities				Inputs				Inputs				December 31,
(in thousands)		(Level 1)				(Level 2)				(Level 3)				2009
Assets
Cash and cash equivalents		$	747			$	—			$	—			$	747
Restricted cash			25,369				—				—				25,369
Impaired real estate debt investments			—				—				15,473				15,473
Real estate debt investments held for sale			—				—				66,311				66,311
Available for sale securities			—				—				83,977				83,977
Liabilities
Derivative financial instruments		$	—			$	12,274			$	—			$	12,274

Changes in Level Three Fair Value Measurements

The tables below includes a roll forward of the balance sheet amounts for the period from January 1, 2010 to August 26, 2010 and January 1, 2009 to December 31, 2009, including the change in fair value, for financial instruments classified by the Company within level 3 of the valuation hierarchy. When a determination is made to classify a financial instrument within level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement.

						Impaired Real				Real Estate Debt
		Available For				Estate Debt				Investments
Period Ended August 26, 2010		Sale Securities				Investments				Held for Sale
(in thousands)
Fair value, January 1, 2010		$	83,977			$	15,473			$	66,311
Transfers in/and or out of level 3			—				—				—
Included in statement of operations:
Net impairment losses recognized in earnings			(3,874	)			—				—
Provision for loan loss contingencies			—				(4,078	)			—
Amortization of discount			637				119				—
Unrealized impairment losses			(5,774	)			—				—
Purchases, issuances and settlements, net			13,248				(17	)			—
Sale of investments			(1,545	)			—				—
Dissolution adjustment			(86,669	)			(11,497	)			(66,311	)
Fair value, August 26, 2010		$	—			$	—			$	—

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 5 — Fair Value Measurement (Continued)

						Impaired Real				Real Estate Debt
		Available For				Estate Debt				Investments
Year Ended December 31, 2009		Sale Securities				Investments				Held for Sale
(in thousands)
Fair value, January 1, 2009		$	118,491			$	65,638			$	—
Transfers in/and or out of level 3			—				11,731				276,243
Included in statement of operations:
Accretion income on realized losses			1,071				—				—
Impairment losses on real estate debt investments held for sale			—				—				(101,027	)
Net impairment losses recognized in earnings			(16,302	)			—				—
Provision for loan loss contingencies			—				(52,141	)			—
Amortization of discount			538				170				—
Unrealized impairment losses			(13,468	)			—				—
Purchases, issuances and settlements, net			11				75				(4,857	)
Sale of investments			(6,364	)			(10,000	)			(104,048	)
Fair value, December 31, 2009		$	83,977			$	15,473			$	66,311

Note 6 — Real Estate Debt Investments

Real estate debt investments, consisting of whole loans, B-note participation interests, and mezzanine loans, are intended to be held for investment and, accordingly, are carried at the Company’s investment cost basis, net of unamortized loan purchase discounts and allowances for loan losses when such investments are deemed to be impaired. Whole loans are loans to borrowers who are typically seeking capital for use in property acquisition and are predominantly collateralized by first mortgage liens on real property. B-Notes are junior positions of whole loans. Mezzanine loans are loans that are subordinate to a conventional first mortgage loan, including B Notes and senior to the borrower’s equity in a transaction. These loans may be in the form of a junior participating interest in the senior debt. Mezzanine financing may take the form of loans collateralized by pledges of ownership interests in entities that directly or indirectly control the real property or subordinated loans collateralized by second mortgage liens on the property.

The following table is a summary of the Company’s real estate debt investments at December 31, 2009 (in thousands):

		Real Estate Debt
		Investments,
		Net of Allowance
		December 31, 2009				Loan Count
Whole loans			50,836				4
B-notes			184,550				13
Mezzanine loans			303,979				23
Loan loss allowance			(86,035	)			—
Discounts on loans			(6,060	)			—
Total loans		$	447,270				40

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 6 — Real Estate Debt Investments (Continued)

The Company had $70,937,000 of impaired principal real estate debt investments with loan loss allowances of $55,464,000 at December 31, 2009. The Company recorded a provision for loss allowance in real estate debt investments of $106,150,000, $80,620,000 and $31,053,000 for the period from January 1, 2010 to August 26, 2010 (Dissolution) and the years ended December 31, 2009 and 2008, respectively.

The fair value of the Company’s real estate debt investments was $244,313,000 at December 31, 2009.

The following table sets forth the activity in the loan allowance for credit losses account balance for the period from January 1, 2010 to August 26, 2010 (Dissolution) and the years ended December 31, 2009 and 2008 (in thousands):

		2010				2009				2008
Balance at beginning of year		$	(55,464	)		$	(26,021	)		$	—
Charge-offs (1)			3,118				17,900				—
Recoveries			42,421				—				—
Valuation allowance			(111,870	)			(51,343	)			(26,021	)
Transfers (2)			—				4,000				—
Dissolution adjustment			121,795				—				—
Balance at end of year		$	—			$	(55,464	)		$	(26,021	)

Credit Risk Concentrations

As of December 31, 2009 no loan exceeded 10% of the Company’s assets and for the year ended December 31, 2009 no single loan generated more than 10% of the Company’s revenue.

Note 7 — Real Estate Debt Investments Held For Sale

Due to the disruption in the capital and credit markets, the continued decline in the fair value of the Company’s assets, and the covenant failures on its debt facilities, the Company was required to identify certain assets to be sold in order to reduce its outstanding balances on its debt.

During 2009 the Company sold six loans that were designated as real estate debt investments held for sale which resulted in losses of $17,566,000.

The Company was not able to completely satisfy its repayment obligation on the Column facility of $60,000,000 by December 31, 2009 and identified four real estate debt investments which were sold in 2010 and the Company recognized additional losses of $545,000 from these transactions and used the proceeds to repay Column and satisfy the remaining accelerated repayment schedule required by the modification.

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 8 — Available for Sale Securities

The Company had a portfolio of loan securities (also referred to as available for sale securities) which includes investments in CDO securities, pooled collateralized mortgage backed securities (“CMBS”), and rake bonds. These bonds are accounted for as available for sale securities and, accordingly, are marked to fair value on a quarterly basis based upon management’s assessment of fair value. The Company’s portfolio of available for sale securities was comprised of purchased beneficial interests in 36 CMBS consisting of both Pool and Rake bonds and three CDOs at December 31, 2009.

In April 2009 the Company adopted new accounting guidance on investments in debt and equity securities related to determining whether an impairment for investments in debt securities is other-than-temporary. As a result of the adoption, the Company recognized a cumulative-effect adjustment to retained earnings of $23,294,000 as of April 1, 2009, with a corresponding adjustment to accumulated other comprehensive loss.

The amortized cost and fair value of securities available-for-sale at December 31, 2009 was as follows (in thousands):

		Amortized				Gross Unrealized				Gross Unrealized
December 31, 2009		Cost (1)				Gains				Losses				Fair Value
CMBS
Rake Bonds		$	60,668			$	—			$	(13,804	)		$	46,864
Pool Bonds			59,521				2,176				(25,044	)			36,653
Total CMBS			120,189				2,176				(38,848	)			83,517
CDO			460				—				—				460
Total available for sale securities		$	120,649			$	2,176			$	(38,848	)		$	83,977

The table below shows the fair value of investments in available for sale securities that have been in an unrealized loss position for less than 12 months or for 12 months or longer (in thousands).

		Less than 12 months								12 months or longer								Total
						Gross								Gross								Gross
						Unrealized								Unrealized								Unrealized
December 31, 2009		Fair Value				Losses				Fair Value				Losses				Fair Value				Losses
CMBS
Rake Bonds		$	52			$	(986	)		$	45,231			$	(12,819	)		$	45,283			$	(13,805	)
Pool Bonds			4,513				(3,126	)			20,183				(21,918	)			24,696				(25,044	)
Total CMBS			4,565				(4,112	)			65,414				(34,737	)			69,979				(38,849	)
CDO			—				—				—				—				—				—
Total available for sale securities		$	4,565			$	(4,112	)		$	65,414			$	(34,737	)		$	69,979			$	(38,849	)

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 8 — Available for Sale Securities (Continued)

The following table presents the amortized cost and fair value of debt securities available for sale by contractual maturity dates as of December 31, 2009 (in thousands).

		December 31, 2009
		Amortized
		Cost				Fair Value
CMBS — Rake Bonds
Due within 1 year		$	36,506			$	28,107
After 1 but within 5 years			13,089				9,750
After 5 but within 10 years			11,072				9,007
After 10 years			—				—
Total CMBS — Rake Bonds			60,667				46,864
CMBS — Pool Bonds
Due within 1 year			33,736				17,277
After 1 but within 5 years			18,609				10,023
After 5 but within 10 years			7,177				9,353
After 10 years			—				—
Total CMBS — Pool Bonds			59,522				36,653
CDO
Due within 1 year			—				—
After 1 but within 5 years			—				—
After 5 but within 10 years			460				460
After 10 years			—				—
Total			460				460
Total available for sale securities		$	120,649			$	83,977

Interest income on the available for sale securities for the period from January 1, 2010 to August 26, 2010 (Dissolution) and years ended December 31, 2009 and 2008 was $3,523,000, $4,320,000 and $9,496,000, respectively.

Evaluating Investments for Other-than-Temporary Impairments

The Company conducts periodic reviews to identify and evaluate each investment that has an unrealized loss. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded in accumulated other comprehensive loss for available-for-sale securities.

The Company has assessed each position for credit impairment. Securities for which the amortized cost basis exceeds fair value are assessed to determine whether the Company has the present intent to sell the security in which case the entire difference between the amortized cost basis and fair value is recognized in earnings as an other than temporary impairment (“OTTI”). If the Company determines that it will more likely than not be required to sell securities for which the amortized cost basis exceed fair value then the entire difference between fair value and amortized cost basis is recognized in earnings as an other than temporary impairment.

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 8 — Available for Sale Securities (Continued)

For securities that the Company does not intend to sell, and does not believe it is more likely than not that it will be required to sell, management performs additional analysis to determine whether or not it will recover its amortized cost basis in the investment. Declines in fair value attributable to credit events are recognized as other than temporary impairment recognized in earnings while declines attributable to other factors are recognized in other comprehensive loss.

Factors considered in determining whether a loss is temporary or other than temporary include:

	•		The length of time and the extent to which fair value has been below amortized cost basis;
	•		Adverse conditions specifically related to the security, an industry, or a geographic area;
	•		The historical and implied volatility of the fair value of the security;
	•		The payment structure of the debt security;
	•		Failure of the issuer of the security to make scheduled interest or principal payments;
	•		Any changes to the rating of the security by the rating agency; and
	•		Recoveries or additional declines in fair value subsequent to the balance sheet date.

The Company’s review for impairment generally entails:

	•		Identification and evaluation of investments that have indications of possible impairment;
	•		Analysis of individual investments that have fair values less than amortized cost, including consideration of the length of time the investment has been in an unrealized loss position and expected recovery period;
	•		Discussion of evidential matter, including an evaluation of factors or triggers that could cause individual investments to qualify as having other-than-temporary impairment and those that would not support other-than-temporary impairment; and
	•		Documentation of the results of these analyses, as required under business policies.

A critical component of the evaluation for other-than-temporary impairments is the identification of credit impaired securities where management does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security. The extent of the Company’s analysis regarding credit quality and the stress on assumptions used in the analysis has been refined for securities where warranted by the current fair value or other characteristics of the security.

The following table presents the total other-then-temporary impairments recognized for the period from January 1, 2010 to August 26, 2010 (Dissolution) and the year ended December 31, 2009 (in thousands).

		2010				2009
Impairment losses related to securities which the Company does not intend to sell or is not more likely than not that it will be required to sell:
Total OTTI losses recognized during the period		$	3,874			$	24,826
Less: portion of OTTI loss recognized in other comprehensive loss			—				(13,468	)
Net impairment losses recognized in earnings for securities that the Company does not intend to sell or is more likely than not that will not be required to sell			3,874				11,358
Plus OTTI Losses recognized in earnings for securities that the Company intends to sell or is more-likely-than-not will be required to sell			—				4,944
Total impairment losses recognized in earnings		$	3,874			$	16,302

LEX-WIN CONCORD LLC
Notes to Consolidated Financial Statements
(Information from January 1, 2010 to August 26, 2010 (Dissolution) is Unaudited)

Note 8 — Available for Sale Securities (Continued)

The roll forward of the credit-related position recognized in earnings for all securities still held as of December 31, 2009 is as follows: (in thousands)

		Cumulative Other-Than-Temporary Impairment Credit Losses Recognized in Earnings for
		Available-for-Sale Debt Securities
														Credit
										Credit				impairments
										impairments				recognized in
						Beg Balance				recognized in				earnings on				Reductions due
						Adjustment to				earnings on				securities that				to sales or
						Other				securities not				have been				maturities of
		December 31,				Comprehensive				previously				previously				credit impaired				December 31,
		2008 Balance				Loss				impaired				impaired				securities				2009 Balance
CMBS
Rake Bonds		$	10,938			$	(9,095	)		$	689			$	949			$	—			$	3,481
Pool Bonds			45,896				(15,491	)			—				9,705				(3,009	)			37,101
Total CMBS			56,834				(24,586	)			689				10,654				(3,009	)			40,582
CDO			27,875				—				—				4,959				—				32,834
Total		$	84,709			$	(24,586	)		$	689			$	15,613			$	(3,009	)		$	73,416