Although tenants-in-common has been a common ownership structure for many years, its widespread use for owning commercial real estate has been more recent. In 2002 the treasury issued guidance for structuring TIC offerings for 1031 exchange purposes. Since then, TIC's have become popular among exchange investors because of the many benefits they provide, including:

• Access to high-quality commercial real estate in major markets nationwide
• Pre-arranged institutional financing
• Potential for substantial cash flow
  
• Professional property management
  
• Freedom from property management responsibilities
  
• Ease of meeting 1031 exchange deadlines
  

In addition to benefits TIC's provide, there are also potential risks you should be aware of, including:

• TIC investment income and and return is not guaranteed; there is a potential for loss of principal invested
  
• TIC's are illiquid and there is no secondary market
  
• There are significant fees associated with TIC offerings
  
• TIC's are available only to suitable accredited investors
  
• Control is shared with co-owners. Owners do not have direct say over the day to day property management situations; they vote on major issues.
  
• Always refer to the Private Placement memorandum for a disclosure of potential risks