BOISE, Idaho, Oct. 23 /PRNewswire/ — Spectrus Real Estate Group today confirmed it will voluntarily not initiate any new offerings of its tenants-in-common income-producing real estate through the real estate channel and will focus on growing its single-buyer net lease and other business. Since its inception in 2003, Spectrus has been selling tenants-in-common real estate through a real estate subsidiary, FOR1031.
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The tenants-in-common industry is changing and the U.S. Securities and Exchange Commission (SEC) is currently considering whether sales of tenants-in-common real estate on a securities platform can include appropriate compensation for real estate agents. Following discussions with the staff of the SEC specific to Spectrus, and in light of potential industry changes, Spectrus has revised the scope of FOR 1031's business. Until it has received further judicial or regulatory clarification, any new offerings of real estate by Spectrus and FOR 1031 will focus solely on aspects of its business related to:
1. Selling raw land to single or multiple buyers;
2. Selling commercial real estate properties to single buyers; and,
3. Selling commercial real estate properties to tenants-in-common as
securities through registered broker-dealers.
Spectrus' recent discussions with the SEC staff, as well as its voluntary changes, result from a previously announced SEC administrative inquiry directed to FOR 1031 in 2005 regarding tenants-in-common income-producing real estate sales.
Gary Bringhurst, President and CEO of Spectrus confirmed today's action with this statement, “We acknowledge the SEC staff's stance on this matter, and will not initiate any new offerings of tenants-in-common income-producing real estate through the real estate channel. Clearly, the industry is changing and we will continue to monitor the changes, as the SEC staff gives consideration to whether sales on a securities platform can include appropriate compensation for real estate professionals.”
Bringhurst went on to say, “Our initiative to diversify our business two years ago is paying off today. We have built a significant single-buyer net lease business and will focus on continued growth in that and our other markets. We expect to complete in excess of $200 million in single-buyer net lease business in 2007 and expect it to grow to more than $400 million in 2008.”
Spectrus Real Estate Group is a real estate principal and leading provider of investment real estate. Established in 2003 as FOR 1031, the company launched into the real estate industry to meet the growing demands of the 1031 exchange market. Spectrus has multiple properties for real estate buyers. Spectrus is based in Boise, Idaho. http://www.spectrusgroup.com
SOURCE Spectrus Real Estate Group
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