American Spectrum Reports Sale of California Office Property for Net Proceeds of $6.1M and Insurance Settlement

American Spectrum Realty, Inc. AQQ announced today the sale of 7700 Irvine Center Drive and the settlement of its lawsuit with ACE American Insurance Company. 7700 Irvine Center, a 209,343 square foot office building, located in Irvine California, was sold on June 28, 2011 for $56.5 million. The sale generated net proceeds of approximately $6.1 million. The transaction generated a gain on sale before income tax expense of approximately $24.1 million, which will be recognized in the second quarter of 2011. The gain on the sale of 7700 Irvine Center is expected to significantly diminish the Company's federal net operating loss carry-forward. The proceeds from the sale will be used to reduce debt and payables and for other investments. The Company also reached a settlement with its insurance carrier with respect to its Hurricane Ike claims. The Company received net proceeds of approximately $4.0 million as a result of the settlement. The proceeds, which were received in June 2011, were net of attorney fees, expert fees, consulting fees and other costs associated with the claims.