Michelle Napoliis editor of TIC Monthly, from which thisarticle is excerpted.

Calabasas, CA—New sponsors continue to swell the industry'sranks, despite the fact that other sponsors have sidelined theirTIC businesses, failed to make a successful go of their first dealor are simply putting greater attention on other investmentplatforms. It's counter-intuitive, but, as Daniel Oschin, directorof real estate services and due diligence at Calabasas, CA-basedbroker-dealer AFA Financial Group, notes, "You're seeing new peoplecome into the business, but they really aren't coming in now. Theywere coming in a year ago or 18 months ago when they said, 'Thebusiness is fantastic and everything's flying off the shelves.Let's get into the TIC business.'"

It's only now that these new sponsors are actually coming outwith their first or second deal in a rather different marketenvironment--particularly in terms of equity for many deals thatare taking longer to sell out, notes Oschin, whose firm iscurrently a managing BD for newer TIC market entrants such asDeSanto Realty Group and Franklin Capital Group.