UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE
ACT OF 1934
Date
of Report (Date of earliest event reported): January 21, 2011 (January 15,
2011)
Behringer
Harvard Short-Term Opportunity
Fund
I LP
(Exact
Name of Registrant as Specified in Its Charter)
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Texas
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000-51291
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71-0897614
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(State
or other jurisdiction of incorporation
or
organization)
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(Commission
File Number)
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(I.R.S.
Employer
Identification
No.)
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15601
Dallas Parkway, Suite 600, Addison, Texas
75001
(Address
of principal executive offices)
(Zip
Code)
(866)
655-1620
(Registrant’s
telephone number, including area code)
None
(Former
name or former address, if changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
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¨
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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¨
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
2.04 Triggering
Events That Accelerate or Increase a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement.
As
Behringer Harvard Short-Term Opportunity Fund I LP (which may be referred to
herein as the “Registrant,” “we,” “our,” or “us”) reported on January 6, 2011 in
a Current Report on Form 8-K, Behringer Harvard Mockingbird Commons LLC
(“Mockingbird Borrower”), an entity in which the Registrant has a 70% direct and
indirect ownership interest, entered into a Fourth Amendment to Note and
Construction Agreement as of December 30, 2010 (the “Loan Modification”) as part
of its efforts to renegotiate the Note and Construction Agreement (the “Loan
Agreement”) with Credit Union Liquidity Services, LLC (“Lender”). The
Mockingbird Borrower was permitted to borrow up to $34 million under the Loan
Agreement, which was used to construct luxury high-rise
condominiums. The Loan Modification extended the due date for a
mandatory $3 million principal paydown under the Loan Agreement to January 15,
2011 while the parties continued to work on a more comprehensive modification to
the Loan Agreement. While we continue to discuss terms of a loan
modification with the Lender, we did not make the mandatory $3 million principal
payment due on January 15, 2011, and that nonpayment constituted an event of
default under the Loan Agreement. As a result, past due amounts under
the note agreement may bear interest up to maximum amounts under applicable
laws. The outstanding principal balance under the Loan Agreement was
approximately $25 million at January 15, 2011 and bears interest at the Prime
Rate plus one percent (1.0%) with a maturity date of October 1,
2011. We have remained and continue to remain current on interest
payments due under the Loan Agreement. There are no assurances that
we will be successful in our negotiations with the Lender.
The
default under the Loan Agreement created a cross-default under an additional
loan between the Lender and the Registrant. Behringer Harvard
Mountain Village, LLC (“Cassidy Ridge Borrower”), a wholly-owned subsidiary of
the Registrant, entered into a promissory note payable to the Lender, whereby
the Cassidy Ridge Borrower was permitted to borrow a total principal amount of
$27.65 million (“Cassidy Ridge Loan Agreement”). Proceeds from the
Cassidy Ridge Loan Agreement are being used to construct 23 luxury condominiums
on a 1.56 acre site in Telluride, Colorado (“Cassidy Ridge”). The
Registrant has assigned a second lien position on Cassidy Ridge to the Lender in
the amount of $12.6 million as additional security to the Mockingbird Loan
Agreement. The maturity date of the Cassidy Ridge Loan Agreement is
October 1, 2011 and the current interest rate is a fixed rate of 6.5% with
interest being calculated on the unpaid principal. The outstanding
principal balance under the Cassidy Ridge Loan Agreement was approximately $25.5
million at January 15, 2011.
The
properties are subject to a deed of trust to secure payment under the loan
agreements and the Registrant has guaranteed payment of the obligations under
the Mockingbird Loan Agreement and the Cassidy Ridge Loan Agreement in the event
that, among other things, the borrowers become insolvent or enter into
bankruptcy proceedings.
2
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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BEHRINGER
HARVARD SHORT-TERM
OPPORTUNITY
FUND I LP
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By:
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Behringer
Harvard Advisors II LP,
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Co-General
Partner
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Dated: January
21, 2011
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By:
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/s/ Gary S. Bresky
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Gary
S. Bresky
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Chief
Financial Officer
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