REITCO LLC, the largest US purchaser of non-traded REITs on the secondary market, is restructuring its pricing policy.
REITCO has increased its offers for Inland American Real Estate Trust, CPA 16 (Corporate Property Associates 16) and TIER REIT (FKA Behringer Harvard REIT I).
Inland American has stated it intends to consider liquidation events but has not stated anything definitively and it appears that final liquidity is still several years away. REITCO'S pricing has, nevertheless, increased to approximately 85 per cent of the sponsor's announced net asset value of USD6.93.
CPA 16, a product of W P Carey, is also considering a liquidity event but the proposal is subject to a vote of the shareholders and the pricing is subject to the market variations for WPC stock. While CPA 16's posted a net asset value is USD8.70, REITCO LLC now will buy unit very close to the original offering price of USD10.00.
TIER REIT is the largest REIT without regular distributions. Shares for this REIT are being purchased at about USD1.80 or 18 per cent of original face.