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Behringer Harvard Nears Launch of $1.5B REIT

DALLAS-Behringer Harvard Multifamily REIT I Inc. is a $1.2-billion offering with a $285-million supplement. The carrot is mezz loans and stakes in a 2,377-unit portfolio.

By Connie Gore | Updated on February 13, 2008

DALLAS-With one year invested into building a portfolio, Behringer Harvard Multifamily REIT I Inc. has filed a pre-effective amendment with the feds to roll out a $1.48-billion fund-raising campaign. The drive is seeded with stakes in eight multifamily projects with 2,377 existing or to-be-developed units in six states.

The locally based investment group will be selling 120 million shares of common stock for $10 each in a primary offering. Another 30 million shares of common stock will be sold for $9.50 apiece as a distribution reinvestment plan. In the SEC filing, the REIT hasn’t set a date, but the pre-effective amendment and pricing mean it’s ready to launch. In keeping with the norm, the blind-pool offering has a two-year window. And in line with offering regulations, comment is unavailable from the investment group’s camp, led by founder and CEO Robert M. Behringer.

The REIT’s acquisition plan runs the full gamut of the multifamily industry: high-quality rental projects, student housing, age-restricted and mixed use. The SEC filing caps debt at 75%, with exceptions possible on a case-by-case basis, and long-term leverage at 60%, which is Behringer Harvard’s preferred level. It also spans the full investment spectrum of wholly owned, mezzanine loans, tenants in common and joint ventures, including other Behringer Harvard-sponsored buying pools.

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