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Mini-Tender Offers – Tracking the Activity

An often overlooked and misunderstand component to the non-traded direct investment industry is the mini-tender.

Mini-Tenders are offers to buy up to five percent of a targeted non-listed REIT or limited partnership and are often exempt from certain investor protections that are present with larger, fully registered tenders. Buyers typically offer prices much lower than the NAV or going rate in the secondary market.

Despite these potential drawbacks, mini-tenders happen frequently and many investors choose to sell.

As a means of providing advisors and broker-dealers an educational resource, The DI Wire and Pacific Partnership Group have teamed up to provide The Mini-Tender Update, a quarterly report that provides information regarding current mini-tender offers including a description of the target asset, the response from the sponsor, and secondary market activity for the particular non-listed REIT or limited partnership.

This quarter’s update may be obtained via a link at the bottom of this article. All future editions will be sent to registered members via email. Registration is free and may be completed here.

In February’s edition, there are offers for the following REITs:

  • Apple Hospitality REIT, Inc.
  • SmartShop Self Storage, Inc.
  • Behringer Harvard Opportunity REIT I, Inc.

To read about these and the results of recently completed mini-tender offers, click here.