American Spectrum Realty Inc. (AMEX:AQQ) acquired 19 real properties from American Spectrum Dunham Properties LLC in exchange of preferred stock on December 30, 2013. Under the agreement, the portfolio to be acquired valued $84.8 million which included the assumption of approximately $17.2 million of debt. The Series “B” Preferred Stock will earn a dividend calculated as simple interest at a rate of 8% from the closing date until December 31, 2014 and thereafter at a rate of 12%. 50% of the dividends accruing before or on December 31, 2014 will be payable monthly and the remainder will accrue and be paid in a lump sum on December 1, 2015. All of the dividends that accrue after December 31, 2014 will be payable monthly. American Spectrum Realty may be obligated to pay to the holders of Series “B” Preferred Stock additional amounts based on sales of contributed properties under the terms of the contribution agreement. In connection with the closing of the transaction, American Spectrum Realty offered holders of its outstanding Series “A” Preferred Stock to exchange such shares on a one-for-one basis for new shares of 8% Cumulative Preferred Stock, Series “C.” The dividend rates are identical to the rates on the Series “B” Preferred Stock and the liquidation and redemption rights are substantially the same as the rights provided to the holders of Series “B” Preferred Stock. Holders of two-thirds of the existing Series “A” Preferred Stock have already agreed to such exchange.

American Spectrum Realty Inc. (AMEX:AQQ) completed the acquisition of 19 real properties from American Spectrum Dunham Properties LLC in exchange of preferred stock on December 30, 2013.