Behringer Harvard Announces Completion of Opportunity REIT I

Behringer Harvard announced today that Behringer Harvard Opportunity REIT I, a non-traded real estate investment trust, reached full subscription. The REIT generated approximately $530 million in gross offering proceeds through the sale of approximately 53.1 million shares in its primary offering. The firm’s opportunity-style programs primarily invest in commercial real estate properties with value-added and opportunistic characteristics that are either operating or newly constructed, and that may require development, redevelopment, or repositioning to achieve favorable returns at exit. The Behringer Harvard Opportunity REIT I portfolio currently holds investments in nine office buildings, both domestic and international; four multi-family communities and one mixed-use development; and three upscale hospitality projects, including the Chase Park Plaza in St. Louis (pictured) and Royal Island, a 400-acre plus mixed-use island resort development under way in the Bahamas. This is the fourth value-added and opportunistic fund offered by Behringer Harvard through the independent broker-dealer community since 2003. All four programs have been fully subscribed. On December 12, Behringer Harvard said it has closed on a $500 million secured credit facility on behalf of REIT I that included a $200 million term loan and a $300 million revolving credit facility, each with a three-year term and a one-year extension option. The fund was started over two years ago, said Jason Mattox, executive vice president of Behringer Harvard, and the bulk of the assets in the fund have now been acquired. “The fund is for investors who are looking to diversify their investment portfolio,” Mattox said. He said the investments are focused on a providing capital appreciation to investors by repositioning value-added properties. He believes such opportunities are still abundant today. “We have been able to uncover opportunities in that regard,” he said. “There are a lot of great real estate opportunities out there.”