Investors owning non exchange traded real estate investment trusts (REIT) may not have been aware of the meaning of illiquid when they were convinced to purchase the investments, but no doubt, now have a full understanding of the term.
These high commission investments were generally sold with the promise of steady dependable income, a promise of steady or increasing value and with little discussion of the fact that the investment cannot be sold on any conventional exchange should a need for cash arise.
There are several secondary markets that have developed over the years which provide investors the opportunity to dispose of these investments. Here are three popular market makers. Each has its own set of procedures for buying and selling non traded REIT interests.
American Partnership Board
Central Trade & Transfer
REIT Secondary Exchange
Here are recent prices I received from these companies for the most popular non traded REITs. Prices can vary dependent upon the size of the lot being sold. I have also listed the estimated value published by the company. As you can see, in some cases the value estimated by the company is many times the actual value purchasers are currently paying.For more on estimated values, see this.
REIT ----------------Recent Price------- Est Value
Behringer Harvard Multifamily $7.60 $10.03
Behringer Harvard REIT I $2.20 $4.01
Behringer Harvard OpportunityI $.85 $3.58
Behringer Harvard OpportunityII $3.30 $10.00
CNL Lifestyle Properties $5.70 $7.31
Cole Credit II $9.15 $9.35
Cole Credit III $9.35 $10.00
Corporate Prop 16 $8.60 $9.10
Corporate Prop 17 $9.00 $10.00
Dividend Capital Diversified $4.90 $6.64
Healthcare Trust of Amer $10.25 $11.48
Hines $5.60 $7.61
Inland American $6.05 $6.93
Inland Diversified $8.85 $10.00
KBS I $2.75 $5.18
KBS II $8.85 $10.28
KBS Strategic Opp $8.85 $10.00
Landmark Apt Trust $5.45 $8.15
Lightstone Value I $7.80 $11.80
Retail Prop of America $13.65 $14.64
United Development Fund III $18.25 $20.00
United Development Fund IV $18.25 $20.00
Wells II $6.40 $7.31
Wells Timberland $4.85 $6.56
Purchasers of non traded REITs may be able to recover all or a part of your losses through FINRA arbitration, contact our office for more information.
561 391 1900
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.