MacKenzie Offers $1.00 Per Share for Behringer Opportunity REIT Ahead of Liquidation Vote

MacKenzie Capital Management LP, a real estate investment firm, offered to purchase up to 2.5 million shares of Behringer Harvard Opportunity REIT I for $1.00 per share in a mini tender offer that constitutes 4.4 percent of the outstanding shares.

In a letter to its shareholders, Behringer recommended against selling shares at that price because the offer is below the share’s net asset value. The REIT’s most recent NAV of $3.58 per share was published in October 2014, and the company recently engaged an independent appraisal firm to estimate its share value in connection with the proposed plan of liquidation. Based on preliminary indications, the REIT believes the value of its portfolio is “significantly” above MacKenzie’s tender offer price, but also “significantly” below its most recent NAV. Shares of Behringer Harvard Opportunity REIT were originally priced at $10.00 each.

In the next few weeks, the non-traded REIT said that it will be seeking shareholder approval for its liquidation and dissolution. The company expects to sell its assets and make a distribution to stockholders within a two-year period.

Behringer Harvard Opportunity REIT I went effective in September 2005 and closed in December 2007 after raising $559 million in investor equity. The company suspended its distribution in March 2011 and currently oversees a portfolio of five properties with an investment cost of $357 million.

MacKenzie Capital is based in Moraga, California and has specialized in the area of discounted real estate securities and asset management since its formation in 1982.

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