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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C.&nbsp;&nbsp;20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>the Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>July 31, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CORNERSTONE CORE PROPERTIES</B></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REIT, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 32%; font-weight: bold; text-align: center">Maryland</TD>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 32%; font-weight: bold; text-align: center">000-52566</TD>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 32%; font-weight: bold; text-align: center">73-1721791</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: center">(State&nbsp;or&nbsp;Other&nbsp;Jurisdiction&nbsp;of&nbsp;Incorporation)</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(Commission File Number)</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(I.R.S. Employer Identification</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Number)</P></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>1920 Main Street, Suite 400</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Irvine, California 92614</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(949) 852-1007</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Registrant&rsquo;s telephone number, including
area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Not Applicable</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Former name or former address, if changed
since last report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligations of the registrant under any of the following provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Written communications pursuant to Rule
425 under the Securities Act (17 CFR 230.425)</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14d-2(b)</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pre-commencement communications pursuant
to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pre-commencement communications pursuant
to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 1.01</B></TD><TD><B>Entry into a Material Definitive Agreement</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The information in this Report set forth under Items 2.01 and
2.03 related to the joint venture to acquire the Portland Properties (as defined below) and the related financing arrangements
is incorporated by reference herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 2.01</B></TD><TD><B>Completion of Acquisition or Disposition of Assets</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Joint Venture to Acquire Portland Portfolio</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>General</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On August
3, 2012, through a wholly-owned subsidiary, we funded an investment in a joint venture, Cornerstone Healthcare Partners, LLC, that
concurrently acquired a portfolio of two skilled nursing facilities located in the Portland, Oregon metropolitan area from</FONT>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif">Sheridan Care Center LLC, Sheridan Properties LLC, Fernhill Estates LLC
and Fernhill Properties LLC (collectively, the &ldquo;Sellers&rdquo;). Cornerstone Healthcare Realty Fund (&ldquo;CHREF&rdquo;),
an affiliate of our advisor, is our joint venture partner in the $8.6 million transaction. The portfolio, which includes the property
at 411 SE Sheridan Road, Sheridan Oregon and 5737 NE 37<SUP>th</SUP> Avenue, Portland Oregon (collectively, the &ldquo;Portland
Properties&rdquo;) has a total of 102 beds. &nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Portland Properties will be leased by the joint venture
to Dakavia Management, the current operator of the facilities, pursuant to a long-term triple net lease. The lease term is fifteen
years with a lessee option to renew for an additional five-year period. The combined lease rate for the Portland Properties, calculated
as the first year lease payment as a percentage of the purchase price, is 10%. The Portland Properties provide an initial cash
on cash yield, calculated by dividing the first year lease payment, less the asset management and property management fees paid
to our advisor, by the equity contribution, is estimated to be approximately 13.4%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Additionally, the joint venture has acquired, for a fee
of $348,000, the option to purchase an additional property located at 14145 SW 105<SUP>th</SUP> Street, Tigard, Oregon
(&ldquo;Tigard&rdquo;) for a purchase price of $8.2 million. The option gives the joint venture the right, but not the
obligation, to purchase Tigard from Pacific Gardens Estates, LLC. The option may be exercised beginning in February 2013, and
the joint venture anticipates acquiring Tigard at that time. Tigard is a 78 bed facility that is currently 77% occupied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the acquisition, we executed an amendment
to our existing advisory agreement with Cornerstone Realty Advisors (the &ldquo;Advisor&rdquo;) in order to revise certain advisory
fees payable in connection with the acquisition, management and leasing of the Portland Properties and other property that we may
acquire in the future. The amendment revises the acquisition fee payable to the advisor from an amount equal to 2.0% of the gross
proceeds from our public offering to an amount not to exceed 2.0% of our pro rata portion of the contract purchase price of the
acquired property. In the case of the Portland Properties, the actual amount of the acquisition fee is 1.4% of our pro rata portion
of the contract purchase price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We also executed a property management and leasing agreement
with the Advisor pursuant to which the Advisor will perform property management and leasing services with respect to the Portland
Properties and will receive property management fees, payable monthly, of 3.0% of monthly gross revenues from the Portland Properties
and a one-time leasing fee with respect to the leasing of the Portland Properties of 2.5% of the rent payable by the tenant during
the initial term of the lease, payable upon the execution of the lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Parties and Structure</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Capital Contributions. </I>We invested approximately $3.5
million to acquire a 90% equity interest in Cornerstone Healthcare Partners, LLC (the &ldquo;JV Entity&rdquo;). CHREF invested
approximately $0.2 million to acquire the remaining 10% interest in the JV Entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Management of the JV Entity</I>. As the manager of the JV
Entity, we generally have the authority to direct and control the business of the JV Entity; however, under the terms of the operating
agreement for the JV Entity, certain major decisions regarding the business of the JV Entity require the unanimous approval of
us and CHREF. Such major decisions include, among others, (i) the sale or transfer of all or substantially all of the JV Entity&rsquo;s
assets, (ii) any merger or consolidation of the JV Entity with any other entity, (iii) admission of new members, (iv) loans of
JV Entity funds, (v) incur or enter into any lease, conveyance, mortgage or other agreement or indebtedness on behalf of the JV
Entity which requires the personal guarantee of any member or any affiliate of any member and (vi) taking any action to cause the
dissolution of the JV Entity. The operating agreement contains terms, conditions, representations, warranties and indemnities that
are customary and standard for joint ventures in the real estate industry. As the manager of the JV Entity, we may be entitled
to receive compensation for services as shall be determined by consent of all of the members.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Distributions to the JV Entity Members. </I>Distributions
to the members of the JV Entity are made first, in proportion to the remaining balance of capital contributions which were paid
by each member and not returned to such member, until the cumulative amount of capital contributions paid by each member has been
returned to such member; then, in proportion to the percentage interest in the JV Entity held by the member.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Portland Properties</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">411 SE Sheridan Road (&ldquo;Sheridan&rdquo;), located approximately
fifty miles southwest of Portland in Sheridan, Oregon, is a 51-bed intermediate care facility with a current occupancy of 81%.
In addition to skilled nursing services, Sheridan offers bariatric treatment for obesity. This 13,912 square foot single-story
facility was constructed in multiple phases between 1960 and 1970.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5737 NE 37<SUP>th</SUP> Avenue (&ldquo;37<SUP>th</SUP> Avenue&rdquo;),
located in Portland, Oregon, is a 51-bed, single-story facility with current occupancy of 72%. The facility was built in 1960 and
has obtained approval to expand to 63 beds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The operator of the Portland Properties has served in that capacity
since 2005, and has over twenty years of experience operating skilled nursing facilities in the Pacific Northwest. As described
above, upon the closing of the purchase, the existing operator will continue operating the Portland Properties under a long-term,
triple-net lease. Including the Portland Properties, the operator manages four skilled nursing facilities in Oregon.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In evaluating these properties as a potential acquisition and
determining the appropriate amount of consideration to be paid for the property, we considered a variety of factors including overall
valuation of targeted net rental income, quality of and regulatory compliance of the operator, location, demographics, existing
and planned competitive properties and price per square foot and analyzed how the property compares to comparable properties in
its market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>ITEM 2.03</B></TD><TD><B>Creation of a Direct Financial Obligation or an Obligation Under an Off Balance Sheet Arrangement of Registrant.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We acquired our interest in the Portland Properties subject
to a secured loan.&nbsp;&nbsp;On August 1, 2012, we entered into a loan agreement with the Sellers for a loan (the &ldquo;Seller
Loan&rdquo;) in the aggregate amount of approximately $5.8 million secured by security interests in the Portland Properties. The
Seller Loan, which bears interest fixed at 5%, matures on March 15, 2013, at which time all outstanding principal, accrued and
unpaid interest and any other amounts due under the loan agreement will become due.&nbsp;The Seller Loan is interest-only and may
be voluntarily prepaid in its entirety prior to the maturity date without penalty. Interest payments on the Seller Loan are due
monthly.&nbsp;Prior to the maturity date of the Seller Loan, the Company intends to refinance the property through a commercial
lending institution. No financing fee was incurred in connection with the Seller Loan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 5.02</B></TD><TD><B>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements
of Certain Officers</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Kent Eikanas</I>, age 42, will serve as the Company&rsquo;s
President and Chief Operating Officer as well as President and Chief Operating Officer of Healthcare Real Estate Group, of Cornerstone
Ventures, Inc., an affiliate of our advisor. Mr. Eikanas has over ten years of experience in the acquisition, financing, asset
management and disposition of healthcare real estate located throughout the United States. &nbsp;Mr. Eikanas joined Cornerstone
Ventures, Inc. in January 2012 and has been highly effective in advancing Cornerstone's healthcare real estate initiative forward.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr. Eikanas has built an extensive network of relationships
with high quality local and regional healthcare operators throughout the United States. This personal network of healthcare operator
relationships has enabled Mr. Eikanas to acquire many healthcare properties on behalf of his former employers on favorable terms
through off-market transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">From June, 2008 to January 2012, Mr. Eikanas was Vice President
of Senior Housing for Granite Investment Group. While at Granite, Mr. Eikanas helped significantly grow their skilled nursing portfolio.
From 2003 to 2008, Mr. Eikanas served as Vice President of Acquisitions at American Real Estate Investment (&ldquo;AREI&rdquo;),
a real estate Investment company specializing in independent living, assisted living and memory care facilities. While at AREI,
Mr. Eikanas helped grow that company&rsquo;s real estate assets through the acquisition of various properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On behalf of the companies noted above, Mr. Eikanas has been
involved in acquiring or asset managing healthcare real estate assets. His primary areas of specialty include assisted living facilities,
memory care facilities and skilled nursing facilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr. Eikanas graduated from California State University Sacramento
with a BA in Psychology and a Minor in Business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Timothy Collins</I>, age 64, will serve as the Company&rsquo;s
Interim Chief Financial Officer effective August 1, 2012. Since 1987, Mr. Collins has served as a principal at T.C. Collins and
Associates, Inc., a real estate development strategic consulting firm and oversees the firm&rsquo;s property management of 1.1
million square feet of multi-tenant, commercial/industrial properties. Prior to founding T.C. Collins and Associates, Mr. Collins
served as chief financial officer of two public companies from 1975 to 1985, and worked in public accounting as a licensed CPA
from 1970 through 1975. Mr. Collins serves on the board of directors of Instamed Holdings, a medical technology company and is
a volunteer member and chairman of the board of trustees of the Newport Harbor Nautical Museum. From 2003-2011, Mr. Collins served
on the advisory board of Cornerstone Realty Fund, an affiliate of our advisor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Timothy graduated from the University of Santa Clara with a
BA in Commerce.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 9.01</B></TD><TD><B>Financial Statements and Exhibits.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.75in">(a)</TD><TD><I><U>Financial statements of businesses acquired.</U></I>&nbsp;&nbsp;Audited financial statements for Sheridan and 37th Avenue
will be filed by amendment to this Form 8-K no later than October 17, 2012.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.75in">(b)</TD><TD><I><U>Pro forma financial information.</U>&nbsp;</I>Unaudited pro forma financial information will be filed by amendment to
this Form 8-K no later than October 17, 2012.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>SIGNATURE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the requirements of the Securities Exchange Act
of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">CORNERSTONE CORE PROPERTIES REIT, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 46%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Dated:&nbsp;&nbsp;August 6, 2012</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid">/s/ Terry G. Roussel</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Terry G. Roussel,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Chief Executive Officer</TD></TR>
</TABLE>
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 31, 2012
CORNERSTONE CORE PROPERTIES
REIT, INC.
(Exact name of registrant as specified in
its charter)
Maryland
000-52566
73-1721791
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(I.R.S. Employer Identification
Number)
1920 Main Street, Suite 400
Irvine, California 92614
(Address of principal executive offices)
(949) 852-1007
(Registrant's telephone number, including
area code)
Not Applicable
(Former name or former address, if changed
since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligations of the registrant under any of the following provisions.
¨
Written communications pursuant to Rule
425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14d-2(b)
¨
Pre-commencement communications pursuant
to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
¨
Pre-commencement communications pursuant
to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)
Item 1.01
Entry into a Material Definitive Agreement
The information in this Report set forth under Items 2.01 and
2.03 related to the joint venture to acquire the Portland Properties (as defined below) and the related financing arrangements
is incorporated by reference herein.
Item 2.01
Completion of Acquisition or Disposition of Assets
Joint Venture to Acquire Portland Portfolio
General
On August
3, 2012, through a wholly-owned subsidiary, we funded an investment in a joint venture, Cornerstone Healthcare Partners, LLC, that
concurrently acquired a portfolio of two skilled nursing facilities located in the Portland, Oregon metropolitan area from
Sheridan Care Center LLC, Sheridan Properties LLC, Fernhill Estates LLC
and Fernhill Properties LLC (collectively, the "Sellers"). Cornerstone Healthcare Realty Fund ("CHREF"),
an affiliate of our advisor, is our joint venture partner in the $8.6 million transaction. The portfolio, which includes the property
at 411 SE Sheridan Road, Sheridan Oregon and 5737 NE 37
th
Avenue, Portland Oregon (collectively, the "Portland
Properties") has a total of 102 beds.
The Portland Properties will be leased by the joint venture
to Dakavia Management, the current operator of the facilities, pursuant to a long-term triple net lease. The lease term is fifteen
years with a lessee option to renew for an additional five-year period. The combined lease rate for the Portland Properties, calculated
as the first year lease payment as a percentage of the purchase price, is 10%. The Portland Properties provide an initial cash
on cash yield, calculated by dividing the first year lease payment, less the asset management and property management fees paid
to our advisor, by the equity contribution, is estimated to be approximately 13.4%.
Additionally, the joint venture has acquired, for a fee
of $348,000, the option to purchase an additional property located at 14145 SW 105
th
Street, Tigard, Oregon
("Tigard") for a purchase price of $8.2 million. The option gives the joint venture the right, but not the
obligation, to purchase Tigard from Pacific Gardens Estates, LLC. The option may be exercised beginning in February 2013, and
the joint venture anticipates acquiring Tigard at that time. Tigard is a 78 bed facility that is currently 77% occupied.
In connection with the acquisition, we executed an amendment
to our existing advisory agreement with Cornerstone Realty Advisors (the "Advisor") in order to revise certain advisory
fees payable in connection with the acquisition, management and leasing of the Portland Properties and other property that we may
acquire in the future. The amendment revises the acquisition fee payable to the advisor from an amount equal to 2.0% of the gross
proceeds from our public offering to an amount not to exceed 2.0% of our pro rata portion of the contract purchase price of the
acquired property. In the case of the Portland Properties, the actual amount of the acquisition fee is 1.4% of our pro rata portion
of the contract purchase price.
We also executed a property management and leasing agreement
with the Advisor pursuant to which the Advisor will perform property management and leasing services with respect to the Portland
Properties and will receive property management fees, payable monthly, of 3.0% of monthly gross revenues from the Portland Properties
and a one-time leasing fee with respect to the leasing of the Portland Properties of 2.5% of the rent payable by the tenant during
the initial term of the lease, payable upon the execution of the lease.
Parties and Structure
Capital Contributions.
We invested approximately $3.5
million to acquire a 90% equity interest in Cornerstone Healthcare Partners, LLC (the "JV Entity"). CHREF invested
approximately $0.2 million to acquire the remaining 10% interest in the JV Entity.
2
Management of the JV Entity
. As the manager of the JV
Entity, we generally have the authority to direct and control the business of the JV Entity; however, under the terms of the operating
agreement for the JV Entity, certain major decisions regarding the business of the JV Entity require the unanimous approval of
us and CHREF. Such major decisions include, among others, (i) the sale or transfer of all or substantially all of the JV Entity's
assets, (ii) any merger or consolidation of the JV Entity with any other entity, (iii) admission of new members, (iv) loans of
JV Entity funds, (v) incur or enter into any lease, conveyance, mortgage or other agreement or indebtedness on behalf of the JV
Entity which requires the personal guarantee of any member or any affiliate of any member and (vi) taking any action to cause the
dissolution of the JV Entity. The operating agreement contains terms, conditions, representations, warranties and indemnities that
are customary and standard for joint ventures in the real estate industry. As the manager of the JV Entity, we may be entitled
to receive compensation for services as shall be determined by consent of all of the members.
Distributions to the JV Entity Members.
Distributions
to the members of the JV Entity are made first, in proportion to the remaining balance of capital contributions which were paid
by each member and not returned to such member, until the cumulative amount of capital contributions paid by each member has been
returned to such member; then, in proportion to the percentage interest in the JV Entity held by the member.
Portland Properties
411 SE Sheridan Road ("Sheridan"), located approximately
fifty miles southwest of Portland in Sheridan, Oregon, is a 51-bed intermediate care facility with a current occupancy of 81%.
In addition to skilled nursing services, Sheridan offers bariatric treatment for obesity. This 13,912 square foot single-story
facility was constructed in multiple phases between 1960 and 1970.
5737 NE 37
th
Avenue ("37
th
Avenue"),
located in Portland, Oregon, is a 51-bed, single-story facility with current occupancy of 72%. The facility was built in 1960 and
has obtained approval to expand to 63 beds.
The operator of the Portland Properties has served in that capacity
since 2005, and has over twenty years of experience operating skilled nursing facilities in the Pacific Northwest. As described
above, upon the closing of the purchase, the existing operator will continue operating the Portland Properties under a long-term,
triple-net lease. Including the Portland Properties, the operator manages four skilled nursing facilities in Oregon.
In evaluating these properties as a potential acquisition and
determining the appropriate amount of consideration to be paid for the property, we considered a variety of factors including overall
valuation of targeted net rental income, quality of and regulatory compliance of the operator, location, demographics, existing
and planned competitive properties and price per square foot and analyzed how the property compares to comparable properties in
its market.
ITEM 2.03
Creation of a Direct Financial Obligation or an Obligation Under an Off Balance Sheet Arrangement of Registrant.
We acquired our interest in the Portland Properties subject
to a secured loan.  On August 1, 2012, we entered into a loan agreement with the Sellers for a loan (the "Seller
Loan") in the aggregate amount of approximately $5.8 million secured by security interests in the Portland Properties. The
Seller Loan, which bears interest fixed at 5%, matures on March 15, 2013, at which time all outstanding principal, accrued and
unpaid interest and any other amounts due under the loan agreement will become due. The Seller Loan is interest-only and may
be voluntarily prepaid in its entirety prior to the maturity date without penalty. Interest payments on the Seller Loan are due
monthly. Prior to the maturity date of the Seller Loan, the Company intends to refinance the property through a commercial
lending institution. No financing fee was incurred in connection with the Seller Loan.
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements
of Certain Officers
Kent Eikanas
, age 42, will serve as the Company's
President and Chief Operating Officer as well as President and Chief Operating Officer of Healthcare Real Estate Group, of Cornerstone
Ventures, Inc., an affiliate of our advisor. Mr. Eikanas has over ten years of experience in the acquisition, financing, asset
management and disposition of healthcare real estate located throughout the United States.  Mr. Eikanas joined Cornerstone
Ventures, Inc. in January 2012 and has been highly effective in advancing Cornerstone's healthcare real estate initiative forward.
3
Mr. Eikanas has built an extensive network of relationships
with high quality local and regional healthcare operators throughout the United States. This personal network of healthcare operator
relationships has enabled Mr. Eikanas to acquire many healthcare properties on behalf of his former employers on favorable terms
through off-market transactions.
From June, 2008 to January 2012, Mr. Eikanas was Vice President
of Senior Housing for Granite Investment Group. While at Granite, Mr. Eikanas helped significantly grow their skilled nursing portfolio.
From 2003 to 2008, Mr. Eikanas served as Vice President of Acquisitions at American Real Estate Investment ("AREI"),
a real estate Investment company specializing in independent living, assisted living and memory care facilities. While at AREI,
Mr. Eikanas helped grow that company's real estate assets through the acquisition of various properties.
On behalf of the companies noted above, Mr. Eikanas has been
involved in acquiring or asset managing healthcare real estate assets. His primary areas of specialty include assisted living facilities,
memory care facilities and skilled nursing facilities.
Mr. Eikanas graduated from California State University Sacramento
with a BA in Psychology and a Minor in Business.
Timothy Collins
, age 64, will serve as the Company's
Interim Chief Financial Officer effective August 1, 2012. Since 1987, Mr. Collins has served as a principal at T.C. Collins and
Associates, Inc., a real estate development strategic consulting firm and oversees the firm's property management of 1.1
million square feet of multi-tenant, commercial/industrial properties. Prior to founding T.C. Collins and Associates, Mr. Collins
served as chief financial officer of two public companies from 1975 to 1985, and worked in public accounting as a licensed CPA
from 1970 through 1975. Mr. Collins serves on the board of directors of Instamed Holdings, a medical technology company and is
a volunteer member and chairman of the board of trustees of the Newport Harbor Nautical Museum. From 2003-2011, Mr. Collins served
on the advisory board of Cornerstone Realty Fund, an affiliate of our advisor.
Timothy graduated from the University of Santa Clara with a
BA in Commerce.
Item 9.01
Financial Statements and Exhibits.
(a)
Financial statements of businesses acquired.
Audited financial statements for Sheridan and 37th Avenue
will be filed by amendment to this Form 8-K no later than October 17, 2012.
(b)
Pro forma financial information.
Unaudited pro forma financial information will be filed by amendment to
this Form 8-K no later than October 17, 2012.
4
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CORNERSTONE CORE PROPERTIES REIT, INC.
Dated:  August 6, 2012
By:
/s/ Terry G. Roussel
Terry G. Roussel,
Chief Executive Officer
5