NAPLES, Fla., July 2, 2012 (GLOBE NEWSWIRE) -- In a detailed analysis of Behringer Harvard, the Vernon Healy investors advocacy law firm is raising concerns about Berhinger Harvard's disclosure that suggests it is moving investors' money between two of its financially faltering non-traded REITs.
Behringer Harvard Opportunity REIT I announced earlier in June that it had opted to place some of its subsidiaries under Chapter 11 bankruptcy protection in the wake of its inability to restructure the debt it has accumulated in the past few years.
However, Vernon Healy believes that a March 30, 2012 quarterly Securities and Exchange Commission filing by Behringer Harvard REIT Opportunity I regarding a Dallas office building known as Bent Tree Green raises conflict of interest questions and concerns for investors about Behringer Harvard's movement of investors' money between two of its financially faltering REITs.
Specifically, Behringer Harvard Opportunity REIT I disclosed that it had leased 14,500 square foot of space at Bent Tree Green to another troubled Berhinger Harvard non-traded REIT — Behringer Harvard REIT I, Inc.
"We have clients who remain trapped in Behringer Harvard REIT I and who've been unable to withdraw their money since 2009. Now we learn that Beheringer Harvard is using investors' money to pay another failing Behringer Harvard non-traded REIT," said investor attorney Chris Vernon. "This represents another conflict of interest and the disclosures by Behringer Harvard about this deal to the SEC are inadequate. For example, how much Behringer Harvard REIT I is paying for the space is not disclosed."
Further, Vernon Healy's analysis, a full copy of which is posted on Vernon Healy's blog here at www.reitattorneys.com, points out that Behringer Harvard Opportunity REIT I has approximately $70 million in loans coming due in the next 12 months. This includes one loan on a London property on which Behringer Harvard is paying a 15 percent fixed interest rate on $6.2 million.
"As of March 31, 2012, the date of its latest quarterly report, Behringer Harvard Opportunity REIT I was approximately $264.9 million in debt... To put this in context, Behringer Harvard disclosed in its quarterly report that it only had a tangible net worth of approximately $209 million," the Vernon Healy report notes.
In its annual report filed with the SEC on Dec. 31, 2011, Behringer Harvard Opportunity REIT I disclosed a value per share of $4.12, a decline in value of almost 60 percent of its original $10 per share.
"The Behringer Harvard Opportunity REIT I has been a nightmare for investors who have been trapped in this non-traded REIT since Jan. 10, 2011 when Behringer Harvard suspended all redemption requests until further notice," securities attorney Vernon says.
The Vernon Healy law firm has been investigating non-traded REITs for more than three years on behalf of investors and has filed more than $5 million in arbitration claims on behalf of investors before the Financial Industry Regulatory Authority against broker dealers selling non-traded REITs.
Vernon Healy has issued numerous investor alerts on its blog, www.reitattorneys.com, regarding non-traded REITs in recent years including an article with questions that investors should ask before investing in a non-traded REIT.
For more information and to request an interview with Chris Vernon contact: