We are a no fee, no commission based information exchange for individual, institutions, and pension plans who wish to sell or buy positions in non-traded REITs or limited partnerships. In some instances when the buyers and sellers have agreed on a trade, we will process the paperwork for a modest fee. We often are able to find buyers for your non-traded REIT units or sellers for those who wish to establish or expand a position. Through our Updates we provide current information on some of these REITs. The information is gleaned from the REIT’s website, Security Exchange Commission filings, and other sources. More general information and an overview of the non-traded REIT industry can be found at www.TheREITAdvisor.com We welcome calls from investors at 602-721-4730 but do not give investment advice. We hope this site is helpful to you.
We may be able to find buyers and sellers of all non-traded REITs and limited partnership. While it is always easier to focus on the larger entities such as Inland American, Inland Western, Wells Real Estate II, Behringer Harvard REIT I, Cole Credit Property Trust II and the Corporate Property Associate REITs, we also welcome inquires concerning less visible products.
THE PRIMARY GOAL OF THIS SITE IS TO PROVIDE INFORMATION TO BUYERS AND SELLERS OF NON-TRADED REITS AND LIMITED PARTNERSHIPS. IF YOU WANT TO SELL YOUR REIT OR BUY A NEW POSITION, PLEASE READ ABOUT THE REIT AND THEN CALL OR E-MAIL US.
These REIT Updates provide current information taken from the most recent quarterly reports and annual reports.
Inland American is the largest, active non-traded REIT with assets of over $11 billion.
Inland Western, a $7 billion REIT, had planned to liquidate several years ago.
Wells Real Estate II is heavily invested in office buildings with more than half east of the Mississippi River.
CPA has four active REITs with combined assets of over $8 billion. These include CPA 14, CPA 15, CPA 16 Global, and CPA 17 Global
Cole Credit II is a REIT that focuses on freestanding, single-tenant retail properties.
This site is managed by Lawrence M. Cohen, a former First Vice-President of E. F. Hutton, Shearson Lehman, and Smith Barney, who specializes in hard to trade and non-listed equities. After leaving the firm in the early nineties, he focuses on providing liquidity to investors who were sold public, non- traded REITs and limited partnerships without being informed that they are very difficult to sell.
We were pitched an investment, in a non-traded REIT
We trusted the salesman, and thought it was sweet
The truth became evident, as time moved on
The sale to us, was sort of a con
We aren't the ones, who would really get rich
The planners the one, - that son of a bitch
We've watched as the yield, has become less
Boy, we are stuck, – we are in a mess
We decided to sell, there was no other way
We found "TheREITAdvisor", who saved the day.
You can reach us at TheREITAdvisor@gmail.com
Tenders for non-traded REITs are almost always presented at prices below market. The REIT management typically recommends that you reject the tender offers. You must read the Securities Exchange Commission’s warning on mini-tenders www.sec.gov/investor/pubs/minitend.htm. Because there is no easy way to sell your position, investors may not be aware of other opportunities to liquidate their units. We usually will be able to find a buyer willing to offer more than the tender price. During the fourth quarter of 2009, there were tender offers for Piedmont Office REIT for $3.00, $4.00, and $4.60 per unit. At the same time, we were buying units in the $5.00 to $6.00 range. Call or e-mail us for a quote on your positions.
This section is reprinted from www.TheREITAdvisor.com
Analysis: It is difficult to find a common model for analyzing REITs that can be used for each different REIT. Each seems to have its own problems. We know that most investors are attracted to real estate in search of stable but increasing distributions, as well as, long term appreciation of the assets. We will try to focus on factors that affect these goals. We will watch for impairment charges which decrease long term appreciation and will also affect distributions eventually. Funds from Operations and Cash from Operating Activates are factors that show the REITs’ ability to continue to pay or increase distributions. The amount of leverage and the scheduled repayment also may require a REIT to conserve cash by cutting distributions. All these factors should be taken into consideration when deciding to buy or sell a real estate position.
Evaluation: It is difficult to determine the value of a unit of a non-traded REIT. We must first define what value means. The liquidation value or net asset value (NAV) is the amount you would receive if all the properties in the REIT were sold, all the debt repaid, and all the fees finalized. Since this is not going to happen until the REIT’s conclusion, it is irrelevant. There is a statement value that appears on your the monthly statements from the broker houses that sold you the REIT. The offering price is used as the statement value until eighteen months after the completion of the offering even though the actual market value is considerably less. After the eighteen months, the REITs provide the brokerage houses with an estimated value. These are seldom accurate since the REITs have a disincentive to show you that the investment may actually be worth less than you invested. We believe the value of most assets is the amount of cash a knowledgeable investor would be willing to pay for your asset today. This is market value.
Caution to Pension Plans and IRA’s: Pension plans that do not mark their partnerships and REITs to market, may allow departing employees to take larger distributions than they are entitled to. For example, if a plan held a $100,000 initial position of a non-traded REIT and a departing employee held 10% of the plan, an administrator may distribute $10,000 cash to that employee. If the position was marked to market, the employee may only be entitled to $5,000. Likewise, individuals who use the inaccurate statement value of non-traded REITs in their IRAs when they make calculates for Roth conversions or minimum IRA distributions at age 70 ½ may benefit from marking those investments to market.
|Inland Real Estate Investment Corp.|
|Inland American||$11.5 billion|
|Inland Western||$7.5 billion|
|Corporate Properties Associates|
|CPA 14, 15, 16 Global, 17 Global||$8.3 billion|
|Wells Real Estate Investment Trust II||$5.4 billion|
|Behringer Harvard REIT I||$5.0 billion|
|Piedmont Office Realty Trust||$4.5 billion|
|Cole Credit Property Trust II||$3.4 billion|
|Hines Real Estate Investment Trust||$3.3 billion|
|KBS Real Estate Investment Trust||$2.7 billion|
|CNL Lifestyles Properties||$2.6 billion|
You may have found any one of the affiliated sites of The REIT Advisory and were directed here for more information. Those sites include but are not limited to the Inland American Newsletter, Inland Western Newsletter, Wells Real Estate II Newsletter, Behringer Harvard REIT I Newsletter, Cole Credit Property Trust II Newsletter and Corporate Property Associate REITs Newsletter.