REITCO LLC (REITCO) announced today its interest to purchase shares of non-traded REITs Inland American Real Estate Trust (Inland American), Corporate Property Associates 16 (CPA 16) and TIER REIT, Inc. (Tier).
Inland American has made it known that liquidity options are being considered and could come in a series of liquidity events rather than one complete transaction.
In the release, REITCO commented “Inland American has stated they intend to consider liquidation events but have not stated anything definitively and it appears that final liquidity is still several years away.” Because of this, they are now offering “85% of the sponsor’s announced net asset value of $6.93.”
Inland American had not replied to an inquiry for comments at the time this article was published.
CPA 16, advised by W.P.Carey Inc. (W.P. Carey), has liquidity plans of its own. Its board of directors along with that of W.P. Carey’s, has approved a merger in which CPA 16 stockholders will receive $11.25 per share in the form of W.P. Carey common stock (NYSE: WPC). A communication detailing the timeline of events and anticipated closing of January 31, 2014 was filed today with the SEC. Financial Advisors with clients invested in CPA 16 should have received this communication along with a list of each client eligible to vote on the merger, today.
REITCO’s offer to CPA 16 shareholders is “very close to the original offering price of $10.00.” When asked about the offer, Larry Cohen of REITCO responded in an email “CPA 16 is planning a liquidation event but it is subject to a vote and the pricing is subject to the market variations of WPC stock.”
A spokesperson for CPA 16 declined to comment on the REITCO offer.
TIER REIT, now an internally managed organization, was formerly Behringer Harvard REIT I, Inc. REITCO’s offer is for $1.80 per share.
A spokesperson for TIER REIT declined to comment on the REITCO offer.
Based out of Scottsdale, Arizona, REITCO is a one owner enterprise, owned and operated by Lawrence (Larry) Cohen. Larry describes REITCO as himself, an individual investor buying interests in non-traded REITs and other limited partnerships from investors seeking liquidity.