Since 2002, when the IRS issued official guidance in Revenue Procedure 2002-22 on how Tenant In Common investments would qualify for replacement property under Section 1031, the TIC Industry has exploded into a multi-billion dollar a year business. However, ever since 2002, the vast majority of TIC investments have been sold through the securities industry by licensed securities representatives and broker-dealers, not though the traditional means of licensed real estate professionals. Needless to say since 2002, the National Association of Realtors (NAR) and the real estate community has felt left out on these transactions and on October 11, 2007, NAR issued an exemption letter to the SEC on behalf of it’s 1.3 million members. This exemption request to the SEC would grant commercial real estate professionals with “substantial experience” in commercial real estate transactions, exemption from broker-dealer registration requirements of Section 15(a)(1) of the Securities Exchange Act of 1984. This exemption, if adopted in its current form would permit the real estate professional to obtain an advisory fee from the purchaser of a Tenant In Common securities investment that would be offered and sold together with other arrangements that would cause it to be deemed a security under federal securities law.

Click Here to view the NAR/SEC Exemption Letter in its entirety

As the TIC Industry and its new regulations evolve 1031 Alternatives Group remains committed as your Tenant In Common (TIC) strategic planning partner. Our website www.1031alternatives.net will be available to bring you the latest news and updates on this proposed exemption.

As a cooperative effort to educate the professional real estate community on the benefits and risks associated with TIC investments, 1031 Alternatives Group would be honored to conduct either an in-office educational presentation or a personal/small group consultation on TIC investments. Please feel free to contact our offices directly 866.405.1031 to schedule a date and time.

1031 Alternatives Group’s leading Tenant In Common (TIC) real estate sponsors Triple Net Properties and its parent company NNN Realty Advisors took over 50-year old Grubb & Ellis Company in a reverse merger to become the first publicly traded TIC Corporation. The merger was completed on December 10, 2007 as the result of Grubb & Ellis and NNN Realty Advisor majority shareholder approval.

The deal transpired in May when Grubb & Ellis agreed to merge with NNN Realty Advisors through a stock swap deal that gave NNN Realty Advisors’ stockholders 59% interest in the new company. Grubb & Ellis issued 0.88 shares of common stock for each outstanding share of NNN Realty Advisors common stock. The combined company has retained the name Grubb & Ellis Company and relocated its international headquarters from Chicago, IL to Santa Ana, CA. Grubb & Ellis will remain listed on the New York Stock Exchange under the ticker symbol “GBE”.

“The merger combines one of the largest and most recognized real estate investment services providers with one of the most innovative and successful sponsors of real estate investment programs, creating a new Grubb & Ellis poised to pursue growth and to provide a broader range of services to a global client base,” said newly appointed Grubb & Ellis President and CEO Scott D. Peters. “This merger combines two complementary firms to create a new company that is greater than the sum of its parts.”

Peters added, “Grubb & Ellis has exceptional name recognition and a nationwide presence. NNN Realty Advisors’ investment platforms can leverage the Grubb & Ellis brand and maximize the traditional services offered by the company. Together, the new Grubb & Ellis is a greater, stronger and more dynamic company.”

Tony Thompson the new chairman of Grubb & Ellis and original pioneer of the Tenant In Common (TIC) industry added, “The merger with NNN Realty Advisors is a transformational event in the 50-year history of Grubb & Ellis. This is essentially the creation of a new company that is equipped to pursue both domestic and international growth in order to better serve our clients and investors throughout the globe.”

About Grubb & Ellis Company

Grubb & Ellis Company (NYSE – “GBE”) is one of the largest and most respected commercial real estate services companies. With more than 130 owned and affiliate offices worldwide, Grubb & Ellis offers property owners, corporate occupants and investors comprehensive integrated real estate solutions, including transaction, management, consulting and investment advisory services supported by proprietary market research and extensive local market expertise.

Grubb & Ellis and its subsidiaries are leading sponsors of real estate investment programs that provide individuals and institutions the opportunity to invest in a broad range of real estate investment vehicles, including tax-deferred 1031 tenant-in-common (TIC) exchanges; public non-traded real estate investment trusts (REITs) and real estate investment funds. As of September 30, 2007, nearly $3 billion in investor equity has been raised for these investment programs. The company and its subsidiaries currently manage a growing portfolio of more than 214 million square feet of real estate. In 2007, Grubb & Ellis was selected from among 15,000 vendors as Microsoft Corporation’s Vendor of the Year.

The act of selling a property and walking away from the closing table empty handed can be uncomfortable for anyone new to 1031 Exchanges. Remember that the Qualified Intermediary will be responsible for the safety and management of your sales proceeds for up to 180 days, so you should make sure to be informed and comfortable as to how your money will be held. The IRS makes it very clear that the taxpayer cannot have receipt of funds, actual OR constructive, to qualify for tax deferral under §1031, so transparency is key with your 1031 Exchange. Here are some factors to consider and discuss in the planning stages of the transaction.

• Will my exchange have its own account or will my funds be mingled with other exchanges?
• Is the account a demand account with sufficient liquidity to fund quick escrow deposits for my replacement properties?
• How many signers from the intermediary are required to withdraw funds from my exchange account?
• Will the bank have a copy of my exchange agreement and authorized signature?
• At the end of the exchange can I receive a statement from the bank itemizing all account activity?