I mean really cheap.
According to the Investment News, there have recently been a couple of unsolicited tender offers for Behringer Harvard Short-Term Opportunity Fund I, a limited partnership and Behringer Harvard REIT I, Inc. a nontraded real estate investment trust.
Investors purchased most of the shares and units at $10.
In one minitender, Peachtree Partners is offering twelve, yes $.12, cents per share for the Short-Term Opportunity Fund I. In another, CMG Legacy Income Fund LLC is offering $1.80 per share for Behringer Harvard REIT I. Both of these offers are only a fraction of the fund’s most recently report valuations.
Behringer Harvard suspended their redemption program some time ago and investors needing liquidity have few options, if any, if they need to dispose of the investment to raise cash. A websearch for "REIT secondary market" will yield a number of companies who help investors dispose of illiquid investments not traded on exchanges.
Many investors purchased nontraded REITs with the belief that distributions would be consistent and unaware of the fact that no market existed should they need to dispose of the investment to raise cash. Stockbrokers have a duty to warn investors of risks and to make recommendations that are suitable.
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