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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>February 13, 2012</B></P>

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

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

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

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

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

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    <TD STYLE="width: 33%; line-height: 115%; font-weight: bold; text-align: center"><B>Maryland</B></TD>
    <TD STYLE="width: 34%; line-height: 115%; font-weight: bold; text-align: center"><B>000-52566</B></TD>
    <TD STYLE="width: 33%; line-height: 115%; font-weight: bold; text-align: center"><B>73-1721791</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; text-align: center">(State&nbsp;or&nbsp;Other&nbsp;Jurisdiction&nbsp;of&nbsp;Incorporation)</TD>
    <TD STYLE="line-height: 115%; text-align: center">(Commission File Number)</TD>
    <TD STYLE="line-height: 115%; text-align: center">(I.R.S. Employer Identification Number)</TD></TR>
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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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

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

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

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

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

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

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

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

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

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

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    <TD STYLE="width: 48px; line-height: 115%">&#9633;</TD>
    <TD STYLE="line-height: 115%">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR>
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    <TD STYLE="width: 48px; line-height: 115%">&#9633;</TD>
    <TD STYLE="line-height: 115%">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14d-2(b)</TD></TR>
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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px; line-height: 115%">&#9633;</TD>
    <TD STYLE="line-height: 115%">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)</TD></TR>
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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px; line-height: 115%">&#9633;</TD>
    <TD STYLE="line-height: 115%">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)</TD></TR>
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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><B>Item 1.01&#9;Entry into a Material
Definitive Agreement</B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">On February
13, 2012, we amended our Loan Agreement with Wells Fargo Bank, National Association, extending the maturity date from February
13, 2012 to February 13, 2014. In connection with this amendment, we made a principal payment of $7,500,000, reducing the outstanding
principal amount of our obligations under the Loan Agreement from $14,328,991 to $6,828,991 as of February 13, 2012, and paid fees
and expenses totaling approximately $65,000. The interest rate on the amended loan decreased from 300 basis points over one-month
LIBOR to 200 basis points over one-month LIBOR, with the one-month LIBOR floor remaining fixed at 150 basis points. Any amounts
repaid under the Loan Agreement may not be re-borrowed. All other terms of the Loan Agreement remain in full force and effect.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><B>Item 8.01&#9;&#9;Other Events</B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><B>Determination of Estimated Per-Share
Value</B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B><I>Overview</I></B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">We are announcing
an estimated per-share value of our common stock equal to $2.25 per share, calculated as of December 31, 2011 (unaudited). There
have been no material changes between December 31, 2011 and the date of this filing to the net values of our assets and liabilities
that existed at December 31, 2011. This estimate is being provided to assist broker-dealers in connection with their obligations
under applicable Financial Industry Regulatory Authority (&ldquo;FINRA&rdquo;) Rules with respect to customer account statements
and to assist fiduciaries in discharging their obligations under Employee Retirement Income Security Act (&ldquo;ERISA&rdquo;)
reporting requirements.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">The estimated
value per share was based upon the recommendation and valuation of Cornerstone Realty Advisors, LLC, our external advisor, based
on the methodologies and assumptions described further below. We did not engage a third-party real estate valuation firm for the
purpose of this estimate. As with any valuation methodology, our methodology is based upon a number of estimates and assumptions
that may prove later to be inaccurate or incomplete.&nbsp; Further, different parties using different assumptions and estimates
could derive a different estimated value per share, which could be significantly different from our estimated value per share.&nbsp;
The estimated per-share value determined below neither represents the fair value according to generally accepted accounting principles
(&ldquo;GAAP&rdquo;) of our assets less liabilities, nor does it represent the amount our shares would trade at on a national securities
exchange or the amount a shareholder would obtain if he or she tried to sell his or her shares or if we liquidated our assets.
As of the date of this filing, we had no potentially dilutive securities outstanding that would impact the estimated value per
share of our common stock.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><B><I>Valuation Methodology</I></B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">Our overall
objective was to determine an estimated per-share value that is supported by a methodology and assumptions that are appropriate
given our current circumstances and that employ procedures and calculations that can be reliably repeated in future periods.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">Our estimated
per-share value was calculated by aggregating the estimated fair value of our investments in real estate and the estimated fair
value of our other assets, subtracting the estimated fair value of our liabilities, and dividing the total by the number of our
common shares outstanding as of December 31, 2011. Our estimated per-share value is the same as our net asset value. Our estimated
per-share value does not reflect &ldquo;enterprise value,&rdquo; which may include a premium for the portfolio or the potential
increase in our share value if we were to list our shares on a national securities exchange. Our estimated per-share value also
does not reflect a liquidity discount for the fact that the shares are not currently traded on a national securities exchange.</P>

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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in"></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">The following
is a summary of the valuation methodologies used:</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in"><I>Investments
in Real Estate. </I>For purposes of calculating an estimated value per share, our advisor estimated the value of our investments
in real estate by using a discounted cash flow analysis. Our advisor calculated the value of our investments in real estate using
internally prepared cash flow estimates and employing a range of terminal capitalization rates, discount rates, growth rates and
other variables that fall within ranges our advisor believes would be used by similar investors to value the properties we own.
The cash flow estimates were developed for each property by our advisor&rsquo;s asset management team based on their industry knowledge
and expertise in managing multi-tenant, industrial real estate.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">From inception
through December 31, 2011, we acquired thirteen real estate assets for a total purchase price of $135.6 million and sold four assets
for approximately $34.2 million. In addition, from inception through December 31, 2011, we have invested approximately $1.1 million
in capital and tenant improvements on our real estate portfolio. As of December 31, 2011, the estimated value of our investments
in real estate using the valuation method described above was $46.7 million. The total real estate fair value as of December 31,
2011 compared to the total purchase price plus subsequent capital and tenant improvements to date, less the total sales price for
the four assets sold to date, results in an overall decrease in the value of the real estate portfolio of approximately 54%. The
following summarizes the key assumptions that were used in the discounted cash flow models to estimate the value of the Company&rsquo;s
real estate assets:</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 80%; border-collapse: collapse">
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding: 0.9pt; line-height: 115%; text-align: center">Range in Values</TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding: 0.9pt; line-height: 115%; text-align: center">Weighted-Average Basis</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%">Terminal capitalization rate</TD>
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%; text-align: center">7.00% &ndash; 9.00%</TD>
    <TD STYLE="vertical-align: top; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%; text-align: center">8.44%</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%">Discount rate</TD>
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%; text-align: center">8.75% - 9.50%</TD>
    <TD STYLE="vertical-align: top; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%; text-align: center">9.30%</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%">Annual net operating income growth rate <SUP>(1)</SUP></TD>
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%; text-align: center">1.40% - 18.20%</TD>
    <TD STYLE="vertical-align: top; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%; text-align: center">7.49%</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%">Holding period</TD>
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%; text-align: center">10 years</TD>
    <TD STYLE="vertical-align: top; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding: 0.9pt; line-height: 115%; text-align: center">10 years</TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD STYLE="text-align: justify">The annual net operating income compounded annual growth rate (&ldquo;CAGR&rdquo;) reflects both
the contractual and market rents (in cases where the contractual lease period is less than the holding period) net of expenses
over the holding period.&nbsp; The range of CAGRs shown is the constant annual rate at which the net operating income is projected
to grow to reach the net operating income in the final year of the holding period for each of the properties.</TD></TR></TABLE>

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

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">We believe
that the assumptions employed in the valuation methodology are reasonable and within the ranges used for properties that are similar
to ours and held by investors with similar expectations to our investors. However, a change in the assumptions would impact the
calculation of the value of our investments in real estate. For example, assuming all other factors remain unchanged, a change
in the assumed weighted-average terminal capitalization rate of 0.25% would yield a change in our net asset value of approximately
$0.03 per share.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">While our
advisor believes a discounted cash flow analysis is standard in the real estate industry and an acceptable valuation methodology
to determine fair value in accordance with GAAP, the estimated values for our investments in real estate may or may not represent
current market values or fair values determined in accordance with GAAP. Real estate is currently carried at its amortized cost
basis in our financial statements, subject to any adjustments required under GAAP.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in"><I>Notes Payable.</I>
Our advisor estimated the value of our notes payable using a discounted cash flow analysis. The cash flows were based on the remaining
loan terms and on management&rsquo;s estimates of current market interest rates for instruments with similar characteristics, including
remaining loan term, loan-to-value ratio and type of collateral. The estimated values of our notes payable are equal to the GAAP
fair values for such liabilities used to calculate the total fair value of notes payable disclosed in our financial statements.</P>

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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">As of December
31, 2011, the fair value and carrying value of our notes payable were $21.3 million and $21.1 million, respectively. The weighted-average
discount rate applied to the future estimated debt payments, which have a weighted-average remaining term of 0.98 years, was approximately
4.46%.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">We believe
that the assumptions employed in estimating the fair value of our notes payable are reasonable and reflect the terms currently
available on similar borrowing arrangements to borrowers with credit profiles similar to ours. However, a change in the assumptions
would impact the fair value of our notes payable. For example, assuming all other factors remain unchanged, a change in the assumed
weighted-average discount rate of 0.75% would yield a change in our net asset value of approximately $0.01 per share.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in"><I>Other Assets
and Liabilities. </I>The carrying values of our other assets and liabilities are considered to be equal to fair value due to their
short maturities. Certain balances, including above/below market leases related to real estate investments, have been eliminated
for the purpose of the valuation due to the fact that the value of those balances was already considered in the valuation of the
respective real estate investments.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">As of December 31, 2011, our estimated per-share value
was calculated as follows:</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><U>Estimated Per-Share Value Calculation:</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 90%">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 72%; font-size: 10pt; text-align: left; padding-left: 5.4pt">Investments in real estate</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">2.03</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font-size: 10pt; text-align: right"><SUP>(1</SUP></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><SUP>)</SUP></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 5.4pt">Notes payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(0.93</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"><SUP>(2</SUP></TD><TD STYLE="font-size: 10pt; text-align: left"><SUP>)</SUP></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Other assets and liabilities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1.15</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"><SUP>(3</SUP></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><SUP>)</SUP></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-left: 5.4pt">Estimated net asset value per-share value</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">2.25</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"><SUP>&nbsp;</SUP></TD><TD STYLE="font-size: 10pt; text-align: left"><SUP>&nbsp;</SUP></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Estimated enterprise value premium <BR></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">None assumed &#13;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"><SUP>&nbsp;</SUP></TD><TD STYLE="font-size: 10pt; text-align: left"><SUP>&nbsp;</SUP></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 5.4pt">Estimated liquidity discount</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">None assumed</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"><SUP>&nbsp;</SUP></TD><TD STYLE="font-size: 10pt; text-align: left"><SUP>&nbsp;</SUP></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt; padding-left: 5.4pt">Total estimated per-share value</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 2.5pt double">2.25</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"><SUP>&nbsp;</SUP></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><SUP>&nbsp;</SUP></TD></TR>
</TABLE>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD STYLE="text-align: justify">Our investments in real estate were valued using a discounted cash flow analysis. Our advisor calculated
the value of our investments in real estate using internally prepared cash flow estimates and employing a range of terminal capitalization
rates, discount rates, growth rates, and other variables that fall within ranges our advisor believes would be used by similar
investors to value the properties we own. The cash flow estimates were developed for each property by our advisor&rsquo;s asset
management team based on their industry knowledge and expertise in managing multi-tenant, industrial real estate.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(2)</TD><TD STYLE="text-align: justify">The fair value of our notes payable was estimated using discounted cash flow models, which incorporate
assumptions that we believe reflect the terms currently available on similar borrowing arrangements to borrowers with credit profiles
similar to ours.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(3)</TD><TD STYLE="text-align: justify">The fair value of our other assets and liabilities is estimated to materially reflect book value
given their typically short-term (less than one year) settlement periods. Certain balances, including above/below market leases
related to real estate investments, have been eliminated for the purpose of the valuation due to the fact that those balances were
already considered in the valuation of the respective real estate investments.</TD></TR></TABLE>

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

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">On February
14, 2012, the Board of Directors reviewed the valuation methodology with our advisor and unanimously agreed upon an estimated value
of $2.25 per share, calculated as of December 31, 2011, which is consistent with the recommendations of our advisor. Our estimated
per-share value of $2.25 as of December 31, 2011 is an adjustment from the estimated valuation of $8.00 per share determined as
of December 31, 2010, which estimate was based solely on the most recent price paid to acquire a share in a public offering of
our common stock (ignoring reduced purchase prices for certain categories of purchasers) and was not based on a valuation of the
underlying assets and liabilities. Our estimated per-share value has been adversely affected by the recent economic downturn resulting
in approximately $43.0 million of previously announced impairment charges recorded in the second and third quarters of 2011 and
significant occupancy decreases due to several of our small-business tenants downsizing which impact expected future cash flows.
The market for multi-tenant industrial real estate fluctuates, and values are expected to continually change in the future.</P>

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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in"></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">We plan to
update the estimated per-share value on an annual basis.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><B><I>Limitations and Risks</I></B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">As with any
valuation methodology, our methodology is based upon a number of estimates and assumptions that may not be accurate or complete
(see the footnotes to the aforementioned Estimated Per-Share Value Calculation). Different parties with different assumptions and
estimates could derive a different estimated per-share value. Accordingly, with respect to our estimated per-share value, we can
provide no assurance that:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">a stockholder would be able to realize
this estimated value per share upon attempting to resell his or her shares;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">we would be able to achieve, for our stockholders,
the estimated value per share, upon a listing of our shares of common stock on a national securities exchange, selling our real
estate portfolio, or merging with another company; </FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">an independent third-party appraiser or other third-party valuation
firm would agree with our estimated value per share; or </FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the estimated share value, or the methodologies
relied upon to estimate the share value, will be found by any regulatory authority to comply with FINRA, ERISA, or any other regulatory
requirements.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">Furthermore,
the estimated value of our shares was calculated as of a particular point in time. The value of our shares will fluctuate over
time in response to, among other things, changes in real estate market fundamentals, capital markets activities, and attributes
specific to the properties within our portfolio. We currently expect to engage our advisor and/or an independent valuation firm
to update the estimated value per share in the fourth quarter of 2012, but we are not required to update the estimated value per
share more frequently than every eighteen months.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">&nbsp;</P>

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

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

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

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

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<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;CORNERSTONE CORE PROPERTIES REIT, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 51%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 4%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 45%; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%">Dated:&nbsp;&nbsp;February 17, 2012</TD>
    <TD STYLE="line-height: 115%">By:</TD>
    <TD STYLE="line-height: 115%">/s/ Stephen I. Robie</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">Stephen I. Robie,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">Chief Financial Officer, Treasurer and Secretary</TD></TR>
</TABLE>
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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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{"company-data": {"conformed-name": "Cornerstone Core Properties REIT, Inc.", "cik": "0001310383", "assigned-sic": "6798", "irs-number": "731721791", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-52566", "film-number": "12622274"}, "business-address": {"street1": "1920 MAIN PLAZA", "street2": "SUITE 400", "city": "IRVINE", "state": "CA", "zip": "92614", "phone": "949-852-1007"}, "mail-address": {"street1": "1920 MAIN PLAZA", "street2": "SUITE 400", "city": "IRVINE", "state": "CA", "zip": "92614"}, "former-company": [{"former-conformed-name": "Cornerstone Core Properties REIT", "date-changed": "20050516"}, {"former-conformed-name": "Cornerstone Realty Fund Inc", "date-changed": "20041202"}]}
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):
February 13, 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
On February
13, 2012, we amended our Loan Agreement with Wells Fargo Bank, National Association, extending the maturity date from February
13, 2012 to February 13, 2014. In connection with this amendment, we made a principal payment of $7,500,000, reducing the outstanding
principal amount of our obligations under the Loan Agreement from $14,328,991 to $6,828,991 as of February 13, 2012, and paid fees
and expenses totaling approximately $65,000. The interest rate on the amended loan decreased from 300 basis points over one-month
LIBOR to 200 basis points over one-month LIBOR, with the one-month LIBOR floor remaining fixed at 150 basis points. Any amounts
repaid under the Loan Agreement may not be re-borrowed. All other terms of the Loan Agreement remain in full force and effect.
Item 8.01		Other Events
Determination of Estimated Per-Share
Value
Overview
We are announcing
an estimated per-share value of our common stock equal to $2.25 per share, calculated as of December 31, 2011 (unaudited). There
have been no material changes between December 31, 2011 and the date of this filing to the net values of our assets and liabilities
that existed at December 31, 2011. This estimate is being provided to assist broker-dealers in connection with their obligations
under applicable Financial Industry Regulatory Authority ("FINRA") Rules with respect to customer account statements
and to assist fiduciaries in discharging their obligations under Employee Retirement Income Security Act ("ERISA")
reporting requirements.
The estimated
value per share was based upon the recommendation and valuation of Cornerstone Realty Advisors, LLC, our external advisor, based
on the methodologies and assumptions described further below. We did not engage a third-party real estate valuation firm for the
purpose of this estimate. As with any valuation methodology, our methodology is based upon a number of estimates and assumptions
that may prove later to be inaccurate or incomplete.  Further, different parties using different assumptions and estimates
could derive a different estimated value per share, which could be significantly different from our estimated value per share. 
The estimated per-share value determined below neither represents the fair value according to generally accepted accounting principles
("GAAP") of our assets less liabilities, nor does it represent the amount our shares would trade at on a national securities
exchange or the amount a shareholder would obtain if he or she tried to sell his or her shares or if we liquidated our assets.
As of the date of this filing, we had no potentially dilutive securities outstanding that would impact the estimated value per
share of our common stock.
Valuation Methodology
Our overall
objective was to determine an estimated per-share value that is supported by a methodology and assumptions that are appropriate
given our current circumstances and that employ procedures and calculations that can be reliably repeated in future periods.
Our estimated
per-share value was calculated by aggregating the estimated fair value of our investments in real estate and the estimated fair
value of our other assets, subtracting the estimated fair value of our liabilities, and dividing the total by the number of our
common shares outstanding as of December 31, 2011. Our estimated per-share value is the same as our net asset value. Our estimated
per-share value does not reflect "enterprise value," which may include a premium for the portfolio or the potential
increase in our share value if we were to list our shares on a national securities exchange. Our estimated per-share value also
does not reflect a liquidity discount for the fact that the shares are not currently traded on a national securities exchange.
2
The following
is a summary of the valuation methodologies used:
Investments
in Real Estate.
For purposes of calculating an estimated value per share, our advisor estimated the value of our investments
in real estate by using a discounted cash flow analysis. Our advisor calculated the value of our investments in real estate using
internally prepared cash flow estimates and employing a range of terminal capitalization rates, discount rates, growth rates and
other variables that fall within ranges our advisor believes would be used by similar investors to value the properties we own.
The cash flow estimates were developed for each property by our advisor's asset management team based on their industry knowledge
and expertise in managing multi-tenant, industrial real estate.
From inception
through December 31, 2011, we acquired thirteen real estate assets for a total purchase price of $135.6 million and sold four assets
for approximately $34.2 million. In addition, from inception through December 31, 2011, we have invested approximately $1.1 million
in capital and tenant improvements on our real estate portfolio. As of December 31, 2011, the estimated value of our investments
in real estate using the valuation method described above was $46.7 million. The total real estate fair value as of December 31,
2011 compared to the total purchase price plus subsequent capital and tenant improvements to date, less the total sales price for
the four assets sold to date, results in an overall decrease in the value of the real estate portfolio of approximately 54%. The
following summarizes the key assumptions that were used in the discounted cash flow models to estimate the value of the Company's
real estate assets:
Range in Values
Weighted-Average Basis
Terminal capitalization rate
7.00% – 9.00%
8.44%
Discount rate
8.75% - 9.50%
9.30%
Annual net operating income growth rate
(1)
1.40% - 18.20%
7.49%
Holding period
10 years
10 years
(1)
The annual net operating income compounded annual growth rate ("CAGR") reflects both
the contractual and market rents (in cases where the contractual lease period is less than the holding period) net of expenses
over the holding period.  The range of CAGRs shown is the constant annual rate at which the net operating income is projected
to grow to reach the net operating income in the final year of the holding period for each of the properties.
We believe
that the assumptions employed in the valuation methodology are reasonable and within the ranges used for properties that are similar
to ours and held by investors with similar expectations to our investors. However, a change in the assumptions would impact the
calculation of the value of our investments in real estate. For example, assuming all other factors remain unchanged, a change
in the assumed weighted-average terminal capitalization rate of 0.25% would yield a change in our net asset value of approximately
$0.03 per share.
While our
advisor believes a discounted cash flow analysis is standard in the real estate industry and an acceptable valuation methodology
to determine fair value in accordance with GAAP, the estimated values for our investments in real estate may or may not represent
current market values or fair values determined in accordance with GAAP. Real estate is currently carried at its amortized cost
basis in our financial statements, subject to any adjustments required under GAAP.
Notes Payable.
Our advisor estimated the value of our notes payable using a discounted cash flow analysis. The cash flows were based on the remaining
loan terms and on management's estimates of current market interest rates for instruments with similar characteristics, including
remaining loan term, loan-to-value ratio and type of collateral. The estimated values of our notes payable are equal to the GAAP
fair values for such liabilities used to calculate the total fair value of notes payable disclosed in our financial statements.
3
As of December
31, 2011, the fair value and carrying value of our notes payable were $21.3 million and $21.1 million, respectively. The weighted-average
discount rate applied to the future estimated debt payments, which have a weighted-average remaining term of 0.98 years, was approximately
4.46%.
We believe
that the assumptions employed in estimating the fair value of our notes payable are reasonable and reflect the terms currently
available on similar borrowing arrangements to borrowers with credit profiles similar to ours. However, a change in the assumptions
would impact the fair value of our notes payable. For example, assuming all other factors remain unchanged, a change in the assumed
weighted-average discount rate of 0.75% would yield a change in our net asset value of approximately $0.01 per share.
Other Assets
and Liabilities.
The carrying values of our other assets and liabilities are considered to be equal to fair value due to their
short maturities. Certain balances, including above/below market leases related to real estate investments, have been eliminated
for the purpose of the valuation due to the fact that the value of those balances was already considered in the valuation of the
respective real estate investments.
As of December 31, 2011, our estimated per-share value
was calculated as follows:
Estimated Per-Share Value Calculation:
Investments in real estate
$
2.03
(1
)
Notes payable
(0.93
)
(2
)
Other assets and liabilities
1.15
(3
)
Estimated net asset value per-share value
$
2.25
Estimated enterprise value premium
None assumed
Estimated liquidity discount
None assumed
Total estimated per-share value
$
2.25
(1)
Our investments in real estate were valued using a discounted cash flow analysis. Our advisor calculated
the value of our investments in real estate using internally prepared cash flow estimates and employing a range of terminal capitalization
rates, discount rates, growth rates, and other variables that fall within ranges our advisor believes would be used by similar
investors to value the properties we own. The cash flow estimates were developed for each property by our advisor's asset
management team based on their industry knowledge and expertise in managing multi-tenant, industrial real estate.
(2)
The fair value of our notes payable was estimated using discounted cash flow models, which incorporate
assumptions that we believe reflect the terms currently available on similar borrowing arrangements to borrowers with credit profiles
similar to ours.
(3)
The fair value of our other assets and liabilities is estimated to materially reflect book value
given their typically short-term (less than one year) settlement periods. Certain balances, including above/below market leases
related to real estate investments, have been eliminated for the purpose of the valuation due to the fact that those balances were
already considered in the valuation of the respective real estate investments.
On February
14, 2012, the Board of Directors reviewed the valuation methodology with our advisor and unanimously agreed upon an estimated value
of $2.25 per share, calculated as of December 31, 2011, which is consistent with the recommendations of our advisor. Our estimated
per-share value of $2.25 as of December 31, 2011 is an adjustment from the estimated valuation of $8.00 per share determined as
of December 31, 2010, which estimate was based solely on the most recent price paid to acquire a share in a public offering of
our common stock (ignoring reduced purchase prices for certain categories of purchasers) and was not based on a valuation of the
underlying assets and liabilities. Our estimated per-share value has been adversely affected by the recent economic downturn resulting
in approximately $43.0 million of previously announced impairment charges recorded in the second and third quarters of 2011 and
significant occupancy decreases due to several of our small-business tenants downsizing which impact expected future cash flows.
The market for multi-tenant industrial real estate fluctuates, and values are expected to continually change in the future.
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We plan to
update the estimated per-share value on an annual basis.
Limitations and Risks
As with any
valuation methodology, our methodology is based upon a number of estimates and assumptions that may not be accurate or complete
(see the footnotes to the aforementioned Estimated Per-Share Value Calculation). Different parties with different assumptions and
estimates could derive a different estimated per-share value. Accordingly, with respect to our estimated per-share value, we can
provide no assurance that:
·
a stockholder would be able to realize
this estimated value per share upon attempting to resell his or her shares;
·
we would be able to achieve, for our stockholders,
the estimated value per share, upon a listing of our shares of common stock on a national securities exchange, selling our real
estate portfolio, or merging with another company;
·
an independent third-party appraiser or other third-party valuation
firm would agree with our estimated value per share; or
·
the estimated share value, or the methodologies
relied upon to estimate the share value, will be found by any regulatory authority to comply with FINRA, ERISA, or any other regulatory
requirements.
Furthermore,
the estimated value of our shares was calculated as of a particular point in time. The value of our shares will fluctuate over
time in response to, among other things, changes in real estate market fundamentals, capital markets activities, and attributes
specific to the properties within our portfolio. We currently expect to engage our advisor and/or an independent valuation firm
to update the estimated value per share in the fourth quarter of 2012, but we are not required to update the estimated value per
share more frequently than every eighteen months.
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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:  February 17, 2012
By:
/s/ Stephen I. Robie
Stephen I. Robie,
Chief Financial Officer, Treasurer and Secretary
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