I will take an initial shot at this, but to the extent you or others reading this acquire more information, it would be great if you could follow up. I'm sure there are already people reading this that have much more information on Non-Traded REIT sales and secondary markets than I do, so I hope they'll add to my their dimes and quarters to my two cents.
Here are the firms I know of that might be of some help to you (again, I do not work for any of these firms, I don't buy REITs, I don't sell REITs, and I don't own REITs):
--- Phone 212-669-5920 (Broadly focused on secondary markets for ARS, CDOs, MBS, CMBS, Partnerships, etc.)
* Pacific Partnership Group
--- Phone 800-727-7244 (focus on Non-Traded REITs)
* REIT Secondary Exchange
--- Phone 602-721-4730 (focus on Non-Traded REITs)
* American Partnership Board
--- Phone 800-736-9797 (auctions of Non-Traded REIT shares)
* Madison International
--- Phone 212-688-8777 (Broadly focused on Real Estate Partnerships)
* MacKenzie Patterson Fuller
--- Phone 925-631-9100 (Focused on Real Estate Partnerships)
In terms of current pricing, I'm assuming your client has Wells II units, and if so I calculated a book value of $5.55 for Wells REIT II as of Q3 2010
. If it is Wells II that your client owns, then REIT Secondary Exchange, through an affiliate ("REITCo LLC") was offering $4.25 per share for Wells REIT II on February 1st, less administrative fees of $100 per investor, and less the amount of any dividends paid out after February 1st. The offer expiry date was March 15, and while they may not honor their $4.25 price after that date, I would be surprised if they wouldn't make your client an offer.
Another firm that is in the market quite a bit is MacKenzie Patterson Fuller. They have hooked up with a fee-based financial planning firm (and yes, I am aware of the distinction between a "fee-based" shop and a "fee only" shop, and I make the distinction here because you are an RIA), and together the two firms have organized a number of funds whose sole purpose is to buy Non-Traded REIT shares on the secondary market, such as it is. MacKenzie Patterson Fuller was also offering to buy Wells REIT II units earlier this year, but at $4 per share, less dividends after February 4, 2010. The expiry date for that offer was March 5, 2010. Again, I would be surprised if they wouldn't make your client an offer after that date.
Last and in no particular order except that I happened to post these tenders in descending order based on price, is Madison International. They were also tendering for Wells REIT II shares, but at $3.00 per share. Again, most of these offers expire only insofar as the sponsors are unwilling to take market risk on a price quote, so I would call for an update.
I have posted the SEC 14D filings for these tenders below, and the tender sponsors are all linked above. I have also posted a form of broker dealer letter from Wells REIT II in response to the tender from MacKenzie Patterson and REITCo, and the Wells REIT II press release in response to that tender. Not surprisingly, they recommend against the tender offer. However, since Wells REIT II won't buy any shares back (unless your client is dead or disabled, in which case Wells is only one step ahead of the IRS), there aren't any alternatives if you want/need liquidity. Unfortunately, the Piedmont IPO was not really an IPO
, so your client is locked up there until next year. Also, in my studied opinion, some of the Wells REIT II SEC filings are models of neither clarity nor disclosure. I would use your head when dealing with anyone in this market, even if it involves the SEC.
Last but not least, thanks for registering and posting, and best of luck to you and your client!