On August 22, 2012, according to the
Investment News, Behringer Harvard announced that yet another one of their real
estate investment trusts (REIT) Behringer Harvard Strategic Opportunity
Fund I, has debt that now exceeds the value of its assets.
This REIT is underwater, like many homeowner’s situations with
residences worth less than the mortgage balance, this REIT owes more
than the underlying property is worth. According to the article, the
company informed brokers last week and intends to make an announcement
to shareholders before Friday, August 24, 2012. As of the time of this
writing there was no information on the company’s website which can be accessed here.
This is not the company’s only problem investment product. Behringer
Harvard REIT shares were typically sold for $10 at the initial offerings:
Harvard Opportunity REIT I had dropped to $4.12 at the end of 2011,
with one of its properties going into bankruptcy in June 2012,
suggesting a further decline in value
- Behringer Harvard Short Term Opportunity Fund II had dropped to $.40 at the end of 2011
are investigating losses suffered by clients on a number of nontraded
REITs (Wells, Hines, CNL,KBS, Inland, Retail Properties of America, Dividend Capital) , as well as the Behringer Harvard products.
Our clients have told
us that they were often misled as to the risks associated with these
products and believed that distributions of income were certain and risk
of loss of value was minimal, similar to a bond.
Since many REITs have ceased distributions and cancelled redemption
programs as well as having suffered huge declines in value, investors
may now be faced with difficulty meeting daily living and healthcare
It is important that investors pursue claims as soon as possible since delay may result in the loss of valuable rights.
Robert H. Rex, Esq. been helping investors recover investment losses for over twenty years and we represent clients nationwide. Free consultation.
Rex Securities Law
561 391 1900