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The fund will continue to raise capital to fund its targeted growth to $500 million in assets, and will employ a "hold" philosophy on its portfolio during that time frame. While our plan is to reach this goal by the end of 2010, the 2008-9 credit climate may extend the target into 2011. Going forward, we will target acquisition of stabilized properties with a focus on Pennsylvania, New Jersey, Delaware and Maryland. Given the 2008-2009 market dislocation, we are employing a "value" approach to purchases, targeting prime locations and strongly tenanted buildings. We will be poised to either purchase properties which have been priced defensively or to develop those sites which have achieved conservative pre-leasing levels. As reinforced by our history, developing our own assets ensures higher quality controls through closely managing the design, construction and leasing processes.
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Spectrum Alliance is a Pennsylvania Limited Partnership, with each property separately owned by a limited liability company (LLC) or limited partnership (LP) in accordance with institutional financing requirements. Investments in Spectrum Alliance are structured as limited partnership interests, denominated in "units." The partnership units are valued annually, as of June 30th of each year, to facilitate performance tracking.
Spectrum's Business Plan calls for the continued growth of the fund to $500 million in assets by the end of 2011. The vast majority of that growth is to be accomplished by the completion of existing development projects, with the balance coming from future acquisitions.
Spectrum was constructed as a diversified portfolio, with a superior foundation of income-producing assets to provide stability. Our portfolio, consisting of high quality assets in strategic locations, has benefited from a flight to quality by both tenants and lenders. We have a strong platform of tenancy, with a significant portion carrying investment-grade credit ratings.
In addition, the portfolio's lease expiration schedule is designed to weather an economic downturn. Future lease expirations indicate modest leasing exposure by any yardstick. Over and above the rolling expiration schedule, we aim to retain more than two-thirds of expiring tenants, based on historical conversion rates.
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