Transaction Summary The Norseman Group, LLC recently completed a $50,000,000 financing, on a property located at One  Lincoln  Street  Boston,  Massachusetts,  for  a special    purpose    entity    created   by    American

Financial Realty Trust (the 'Borrower' or 'AFRT').  Norseman provided AFRT with a flexible and low cost source of incremental capital to be used for general corporate purposes.  The financing was structured as a proprietary form of mezzanine note (the 'Norseman Credit Tenant Note™' or 'CTN™'), which financed the excess cash flow generated by the lease payments from the office lease with State Street Corporation ('Lessee') after taking into account the senior mortgage loan’s debt service and having reserved through a cash management structure for all Borrower related obligations.

The underlying property is a newly constructed 36-story office building located in Boston, Massachusetts that is 100% occupied by State Street Corporation.  The property was developed by the Gale Company and is currently owned by AFRT.  The property was acquired by AFRT for a purchase price of $705,000,000 and financed with a $520,000,000 senior mortgage provided by Lehman Brothers.  Subsequent to the placement of the first mortgage loan by Lehman, Norseman successfully structured and placed with an institutional investor a $50,000,000 mezzanine loan on the property. The mezzanine loan was priced with a start rate of 30 day LIBOR plus 1.83%.

Transaction Highlights:   $50 million mezzanine loan at 1.83% over floating 30 day Libor.   Closed within 45 days of Norseman engagement.   Non-recourse to AFRT.   Collateralized by excess cash flow and pledge of membership interests.

Mezzanine Loan Structure The $50,000,000 CTN™ was structured as a fully amortizing 106 month loan with a 2 year, interest only, floating rate period followed by a fixed rate conversion period.  The loan was priced at 30 day LIBOR plus 1.83% during its floating rate period with a 6% LIBOR cap.  Subsequent to its two year floating rate period the loan converts to a fixed rate loan which fully amortizes over its remaining term. The borrower has an option to prepay the loan within two years at no cost.

The CTN™ is repaid by rent payments from a 20 year space lease with State Street Corporation.  The rent payments are deposited into a lock box and associated cash management account which pays Lehman Brothers its senior mortgage payment, all operating expenses up to a fixed cap, the CTN™ loan payment and finally remits the excess cash flow to the Borrower.  The Norseman debt service represents approximately 90% of the excess cash flows after payment of the senior loan and operating expenses.  The CTN™ is secured by a pledge of the membership interests in the Borrower. Corporate Profiles State Street Corporation is a financial holding company that provides a range of products to sophisticated Global investors.  The company has two lines of business - Investment Services and Investment Management.  As of year end 2003 assets under custody totaled $9.4 trillion and assets under management totaled $1.1 trillion. The Company is rated AA- by Standard & Poor’s. American Financial Reality Trust is a self-managed, self-administered real estate investment trust acquiring and operating properties leased to regulated financial institutions, publicly traded on the New York Stock exchange under the symbol AFRT.  AFRT seeks to lease properties to banks, institutions, which are typically high credit tenants, using longterm net leases.  AFRT is located in Jenkintown, Pennsylvania.