Behringer Harvard REIT I is Now Called TIER REIT, Inc.; New Name, Same Problems

Behringer Harvard REIT I, Inc., a Dallas-based real estate investment trust, has announced a new name – TIER REIT, Inc. as of June 23rd., 2013.

TIER REIT owns 44 commercial office properties throughout the United States with the majority being in Houston, Austin and Dallas/Ft. Worth, Chicago, Philadelphia, Washington, D.C.; Charlotte, North Carolina and select other markets. The company is headquartered in Dallas, and has 55 employees with offices located in Dallas, Atlanta, Chicago and Louisville.

However, even with a name change the investors still feel they are trapped in an investment they can’t sell. Whatever the name, this REIT continues to pay zero distributions. They cannot sell unless sold in the secondary market at a deep discount. It is the only major non-traded REIT that does not allow any kind of redemption. TIER REIT is currently valued at $4.01 per share. At this price, it now has lost nearly 56 percent of its value.

In the latest SEC quarterly report, investors learned that there are notes payable amounting to approximately $221.8 million which will come due in 2013. It could increase significantly because of several of the REIT’s loans, which are in default. The REIT may have to pay over $300 million before the end of 2013 because of their outstanding loans. Also, the REIT had cash and cash equivalents of only $40.7 million and $71.3 million in restricted cash as of March 31, 2013.

If you were an investor who purchased Behringer Harvard REIT I, now called TIER REIT, Inc., at the recommendation of your broker/dealer who may have told you that it was a safe, low risk investment, and placed a substantial portion of your portfolio in this very risky investment, you may be able to recover your losses. For a free consultation on how to potentially recover your losses, with an attorney, call Soreide Law Group at 888-760-6552.