LOS ANGELES, Nov. 13, 2007 (PRIME NEWSWIRE) -- SCI Real Estate Investments, LLC (SCI), today welcomed the SEC's newly released draft exemption guidance, supported by SCI, regarding compensation that may be paid to real estate brokers in sales of tenant-in-common (TIC) interests structured as securities. The exemption guidance is still in a "public comment" 30-day period.
The SEC guidance was requested by the National Association of REALTORS(r) (NAR) on behalf of their 1.3 million members and would clarify how licensed commercial real estate brokers can refer buyers and offer advice on the real estate aspects of TIC offerings and receive compensation for this involvement. This specifically applies to TICs structured as a security, whereas previously commercial real estate brokers only participated in the smaller percentage of TICs which were not securities.
SCI's position has always been that while all TIC transactions are real estate transactions, they may also be structured as securities. The new guidance will allow the investing public to be best served by securities and real estate licensed professionals acting together for the benefit of investors. SCI looks forward to working with both securities broker-dealers and licensed real estate brokers on TIC investments.
"We welcome the input of the securities industry and regulators, as well as input from real estate regulators and industry trade groups such as NAR and the Tenant-In-Common Association (TICA)," said Marc Paul, president of SCI Real Estate Investments. "Our industry is maturing and we need to work together for the benefit of real estate co-ownership buyers."
Paul worked with NAR on the request to the SEC, advocating the involvement of commercial real estate brokers in all TIC investments.
"There are approximately 200 licensed securities brokers in the U.S. that have been actively selling TICs, whereas there are at least 100,000 licensed commercial real estate brokers affiliated with NAR, and an additional 40,000 brokers at major commercial real estate firms across the United States," said Paul. "These commercial brokers can now play a role in advising on a TIC investment, priming the industry for significant growth."
About SCI Real Estate Investments
Since 1994, SCI Real Estate Investments, a diversified real estate company, has acquired more than 150 properties. With approximately $2 billion in closed portfolio acquisitions, SCI is an active principal and buyer of Class-A retail shopping centers and multifamily properties nationwide. SCI offers co-ownership real estate interests to accredited individual buyers and specializes in 1031 exchange replacement properties. Headquartered in Los Angeles, the company has approximately 30 regional directors in major markets across the U.S.
Recent acquisitions include River Place Shopping Center, a retail center in Sevierville, Tennessee; and Gateway on Apache, a 400-unit Class-A student apartment community in Tempe, AZ. For more information, visit www.sciproperties.com.