Exhibit (a)(3)







July 18, 2006



TO:          SHAREHOLDERS OF AMERICAN SPECTRUM REALTY, INC.

SUBJECT:     OFFER TO PURCHASE SHARES

Dear Shareholder:

As  described  in  the  enclosed  Offer  to  Purchase  and  related  Letters  of
Transmittal   (the  "Offer")  the   Purchasers   named  in  the  attached  Offer
(collectively the "Purchasers") are offering to purchase up to 145,000 Shares of
common  stock  (the   "Shares")  in  AMERICAN   SPECTRUM   REALTY,   INC.   (the
"Corporation") at a purchase price equal to:

                                $20.50 per Share
                                ----------------

The Offer will provide you with an  opportunity  to liquidate  all, or a portion
of,  your  investment  in  AMERICAN  SPECTRUM  REALTY,  INC.  without  the usual
transaction  costs associated with market sales (your broker may charge a fee to
tender the Shares, you should check with your broker).

After carefully  reading the enclosed Offer, if you elect to tender your Shares,
mail (using the  enclosed  pre-addressed,  postage  paid  envelope) or fax (then
mail) a duly completed and executed copy of the Letter of  Transmittal  (printed
on purple paper) and change of address forms,  and any other documents  required
by the Letter of Transmittal, to the Depositary for the Offer at:

                         MacKenzie Patterson Fuller, LP
                               1640 School Street
                            Moraga, California 94556
                            Facsimile: (925) 631-9119


If you have any  questions or need  assistance,  please call the  Depository  at
800-854-8357.

This Offer expires (unless extended) August 18, 2006