Item 1.01 Entry into a Material Definitive Agreement.

On October 10, 2012, FSP Westchase LLC (the "Buyer"), a wholly-owned subsidiary of Franklin Street Properties Corp. (the "Registrant"), entered into an agreement to purchase real property (the "Agreement") from Granite Westchase Partners, Ltd. (the "Seller"). There are no material relationships, other than in respect of the Agreement, among the Buyer and the Seller, the Registrant or any of the Registrant's affiliates. The Seller's real property is located at 10370 and 10350 Richmond Avenue, Houston, Texas and consists of two, 14-story, multi-tenant office buildings containing an aggregate of approximately 629,022 rentable square feet of space and a parking garage located on approximately 6.5 acres of land (the "Property"). The purchase price of the Property is $154,750,000. The purchase of the Property is subject to customary conditions and termination rights for transactions of this type, including a due diligence inspection period for the Buyer. Assuming that the Buyer completes a satisfactory due diligence inspection of the Property and certain other conditions are satisfied, the Registrant anticipates that the closing of the purchase of the Property will take place on or about November 1, 2012.