The History Of Spectrum Properties

In January of 2007, Spectrum Properties began its 26th year in business. We have grown from a small, entrepreneurial company to a medium-size firm managing approximately 4.2 million square feet of space in the Carolinas and employing about 100 people. We have completed 23 development projects totaling 2,300,000 square feet.

Our Beginning

Spectrum Properties was founded in 1982 by Jim Dulin, Bill McGuire and Bob Street. Each of the principals were graduates of Davidson College and each brought a critical component necessary for the company's future success.

Bob Street was the Chief Executive Officer of McDevitt & Street Construction Company which started in 1917 and grew to be the nation's sixth largest contractor in the 1980's with $980 million in sales. Bob provided Spectrum with financial strength and a strategic planning focus not available to most small companies.

Bill McGuire was the President and part owner of McGuire Properties, a multifamily development and management firm that was begun in 1972. Bill brought a Harvard Business School perspective (graduated with High Distinction) as well as significant experience in dealing with development projects, partnerships and institutional lenders. Bill also provided a very sophisticated approach to recruiting, selecting and training people. McGuire Properties became Summit Properties in the early 1980's and went public as a $350 million REIT in 1993.

Jim Dulin brought a specialized knowledge about the development, leasing and management of office buildings, which he obtained while working for Spaulding & Slye Corporation, a Boston-based development firm. As President of Spectrum Properties, Jim also provided a solid set of values and was the driving force in creating all of Spectrum's projects.

Early Development Period (1982-1987)

During our first six years, Spectrum developed 14 office and industrial buildings for our own account. We developed a reputation and track record for build-to-suit projects, including projects for:

Several of our projects were joint ventures with such institutions as Aetna, General Electric and Phoenix Mutual. Others included a variety of land leases or land contribution partnerships with individual land owners.

In our 1987 Strategic Planning session, we recognized that real estate values were about to drop significantly. We aggressively sold approximately 75% of our assets while cap rates were below 9%, achieving above market returns for our joint venture partners and ourselves.

Bob Street died near the end of this period and his stock in Spectrum was purchased by Bill McGuire and Jim Dulin.

The Service Company Period (1988-1996)

During the 1988-96 period, Spectrum focused its energy primarily on third party leasing and management for owners with an abundance of vacant space in their projects. Our management teams developed quality operations and systems while our marketing teams, directed by Darryl Dewberry, produced the following results:

Each of our owners needed to strategically lease their projects to 90%+, and we accomplished that goal for each owner.

Our portfolio of projects managed grew substantially over this period:

Spectrum really distinguished itself as a service company during this period. Unlike many development firms, Spectrum developed a passion for customer service. We modeled our services from the hotel industry. We also had a continuous training and improvement headset with each person at all levels.

At the end of this period, Spectrum helped several of our clients dispose of significant properties. Many of these properties sold to self-managed entities or REITs, reducing the size of our service company but obtaining the best price for our clients in the disposition arena. We are excited about the Success Stories we achieved for our clients.

Mature Development / Acquisition / Disposition Period (1997-Present)

In 1997, Spectrum became active again in the development, acquisition and disposition arena. With a mature and seasoned team in place, Spectrum began working on more significant projects.

• We developed South Tryon Square, a $55M mixed-use project in downtown Charlotte, N.C. The project includes 240,000 SF of office space, 30,000 SF of streetfront retail, a 700 space parking deck, and a 180 room Marriott Courtyard. The project is now complete.
   
• We helped one of our clients buy First Union Capitol Center (now Wachovia Capitol Center) in Raleigh, N.C. This was a $73M acquisition of a Class A, 544,482 SF tower. In 2001 we added a 750 space parking deck and retail space as part of the value-added strategy.
  
• We started a new mixed-use project, Colonnade, in Raleigh, N.C., that will consist of 250,000 SF of office space and an upscale apartment community at full buildout. The 125,000 square foot Colonnade I was completed in 2001. Colonnade II is currently under construction and scheduled for completion in early 2008
   
• We have completed construction on Fifth & Poplar, a 300-unit, $60M urban multifamily project in downtown Charlotte, N.C. Construction was completed in Summer of 2003.
   
• We helped one of our clients rehab the Wachovia Place building in downtown Greenville, S.C. This was a $10 million rehab project where we assisted with securing long-term extensions of two anchor tenants comprising over 80% of the existing building. In addition, we constructed 10,000 square feet of new retail space, 5,000 square feet of new office space and 22 rental apartments.
   
• In 2005, Spectrum Properties Residential completed construction of a new $30M student housing apartment complex called City View Towers for Johnson & Wales University in Charlotte, N.C.

During this period, Bill McGuire retired and his stock was purchased. Darryl Dewberry (our CEO) became a stockholder. John Boylan became our Raleigh Partner. Jeff LaPiana joined as CFO. John Gray joined as a President of Spectrum Properties Residential.

Establishment of multifamily Development / Acquisition / Management Subsidiary (June 2001 - Present)

Simultaneously with the June 2001 groundbreaking of its $60 million Fifth & Poplar apartment community in center city Charlotte, Spectrum Properties launched a new corporate entity called Spectrum Properties Residential, Inc. This newly formed subsidiary specializes in the development, acquisition and management of multi-family properites.

We are proud of our past and excited about the current period of our company history.