Bad-news Behringer: Fund is underwater

Behringer Harvard Holdings LLC, the real estate investment firm, last week dropped a bomb on its clients: One of its funds for wealthy, accredited investors is underwater.

Launched in 2005, the Behringer Harvard Strategic Opportunity Fund I raised $65 million and invested in six properties, including a hotel on Wilshire Boulevard in Los Angeles and an office building in Amsterdam.

A related fund, Strategic Opportunity Fund II, raised $62 million over a similar period.

Like so many mortgages signed at the top of the real estate market in 2006 or 2007, the fund is underwater. Its debt far outweighs its equity.

Read the full story at Investment News.