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:
- Behringer 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
We 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 expenses.
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
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.