Arbor Towers Associates, Ltd. - Page 3




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          develop a commercial office tower upon the land, Wolverine                  
          entered into a financing arrangement with the Trustees of the               
          General Electric Pension Trust (G.E.) wherein G.E. purchased the            
          land for $850,000, leased the land back to Wolverine for 55 years           
          (the land lease), and lent Wolverine $7,650,000.  Wolverine built           
          an 11-story office building on the land which was named the                 
          Wolverine Tower Office Building (Wolverine Tower or the                     
          building).                                                                  
               By 1979, Wolverine began experiencing financial troubles and           
          fell behind on the land lease and mortgage payments.  On January            
          31, 1979, Wolverine entered into a contract for sale and                    
          leaseback (the leaseback contract) with Arbor wherein Wolverine             
          sold to Arbor both its interest in the land lease and its                   
          interest in Wolverine Tower and contemporaneously leased back               
          Wolverine Tower and the land from Arbor.  The leaseback contract            
          called for a purchase price of $12.6 million to be paid with                
          interest over 5 years.  After execution of the leaseback                    
          contract, Arbor owned Wolverine Tower and, having assumed the               
          land lease, was the lessee of the land.  Wolverine was the lessee           
          of the building and the sublessee of the land from Arbor.                   
          Wolverine continued to operate the building and continued to be             
          the lessor under the various occupancy leases in effect.                    
               By 1992, Arbor and Wolverine wanted to sell their respective           
          interests in Wolverine Tower and the land.  On behalf of both               





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