Investor Lawyers Blog
Many investors have suffered significant REIT losses as a result of their investment in the Behringer Harvard Opportunity REIT I. The investment’s $10 per share offering price in 2009 fell significantly to an approximate value of $4.12 per share at the end of last year, representing a 58 percent loss. This figure includes the 46 percent drop experienced at the end of 2010, when it was valued at around $7.66 per share.
In the period beginning in December 2010 and ending in September 2011, Behringer Harvard Opportunity REIT I’s assets declined to $580 million from $697.6 million. The REIT reported an $83 million net loss.
According to investment fraud lawyers, many investors believed their non-traded REIT’s share price was stable. However, it only appeared stable because the manager reports the par value, which does not necessarily take into account the underlying assets deterioration. Furthermore, typically the initial pricing does not include fees and other expenses, which can result in a loss because these dollars are not actually invested.