Investor Lawyers Blog
Behringer Harvard REIT I changed its name on June 21, 2013, to TIER REIT, Inc.
Despite the name change which, according to the REIT’S president Scott Fordham was supposed to symbolize “how the company reflects the goals and objectives of its tenants and stockholders in everything it does,” investors continue to be trapped in an investment they can’t sell except at a significant discount on the secondary market. Furthermore, according to stock fraud lawyers, the REIT continues to pay zero distributions.
To make matters worse, the REIT’s latest SEC quarterly report disclosed some disturbing information for investors. Reportedly, notes payable amounting to approximately $221.8 million will come due in 2013 and this amount may increase significantly because of several of the REIT’s loans, which are in default. As a result, the REIT may have to pay over $300 million before the end of 2013 because of its outstanding loans. In addition, the REIT had cash and cash equivalents of only $40.7 million and $71.3 million in restricted cash as of March 31, 2013.
Currently, securities fraud attorneys say that the TIER REIT, which is currently valued at $4.01 per share, has lost nearly 56 percent of its value. Furthermore, it is the only major non-traded REIT that does not allow any kind of redemption. Non-traded REITs in general are also inherently risky, which may make them unsuitable for many individuals with conservative risk tolerances and those who need easy access to funds.
If you purchased the Behringer Harvard REIT I, now known as TIER REIT, as a result of your broker or advisor’s recommendation and this investment was unsuitable for you given your age, investment objectives, or risk tolerance, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a stock fraud lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 for a no-cost, confidential consultation.