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): June 14, 2012 (June 8, 2012)

 

Behringer Harvard Short-Term Opportunity

Fund I LP

(Exact Name of Registrant as Specified in Its Charter)
         
Texas   000-51291   71-0897614
(State or other jurisdiction of incorporation or
organization)
 

(Commission File Number)

 

 

(I.R.S. Employer

Identification No.)

         

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:

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
 

 

Item 2.01Completion of Acquisition or Disposition of Assets.

 

On June 8, 2012, Behringer Harvard Mockingbird Commons LLC (“Borrower’), a subsidiary in which a 70% interest is owned by Behringer Harvard Short-Term Opportunity Fund I LP (which may be referred to herein as the “Registrant,” “we,” “our” or “us”), entered into a Deed in Lieu of Foreclosure Agreement with Westdale Capital Investors I, Ltd (“Lender”) whereby the Borrower transferred ownership of 39 luxury high-rise condominiums and 1.4 acres of excess land located in Dallas, Texas (“Palomar Residences”) to the Lender, and subject to certain contingencies, resulted in full settlement of the outstanding debt to the Lender. The outstanding principal balance under the loan agreement was approximately $20.2 million at June 8, 2012.

 

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Item 9.01Financial Statements and Exhibits.

 

    Page
     
(a) Pro Forma Financial Information.  
     
  Unaudited Pro Forma Consolidated Financial Information 4
     
  Unaudited Pro Forma Consolidated Balance Sheet as of March 31, 2012 5
     
  Unaudited Pro Forma Consolidated Statement of Operations for the three months ended March 31, 2012 6
     
  Unaudited Pro Forma Consolidated Statement of Operations for the year ended December 31, 2011 7
     
  Notes to Unaudited Pro Forma Financial Statements 8

 

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Behringer Harvard Short-Term Opportunity Fund I LP

Unaudited Pro Forma Consolidated Financial Information

 

On June 8, 2012, the Borrower, a subsidiary in which a 70% interest is owned by us, entered into a Deed in Lieu of Foreclosure Agreement with the Lender whereby the Borrower transferred ownership of Palomar Residences to the Lender, and subject to certain contingencies, resulted in full settlement of the outstanding debt to the Lender. The outstanding principal balance under the loan agreement was approximately $20.2 million at June 8, 2012.

 

The following unaudited pro forma consolidated financial information gives effect to the disposition of the Palomar Residences. In our opinion, all material adjustments necessary to reflect the effects of the above transaction have been made.

 

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Behringer Harvard Short-Term Opportunity Fund I LP

Unaudited Pro Forma Consolidated Balance Sheet

For the Three Months Ended March 31, 2012

(in thousands, except per unit amounts)

 

The following unaudited Pro Forma Consolidated Balance Sheet is presented as if we had disposed of the Palomar Residences as of March 31, 2012. This Pro Forma Consolidated Balance Sheet should be read in conjunction with our Pro Forma Consolidated Statement of Operations and our historical financial statements and notes thereto as filed in our quarterly report on Form 10-Q for the three months ended March 31, 2012. The Pro Forma Consolidated Balance Sheet is unaudited and is not necessarily indicative of what the actual financial position would have been had we completed the above transaction on March 31, 2012, nor does it purport to represent our future financial position.

 

   March 31, 2012   Prior Disposition Pro
Forma
   Pro Forma     
   as Reported   Adjustments   Adjustments   Pro Forma 
   (a)   (b)   (c)   March 31, 2012 
                 
Assets                    
Real Estate                    
Land  $13,459   $-   $(3,222)  $10,237 
Buildings and improvements, net   59,401    -    (14,477)   44,924 
Total real estate   72,860    -    (17,699)   55,161 
                     
Real estate inventory, net   28,861    (23,234)   (5,627)   - 
Cash and cash equivalents   2,830    (3)   (19)   2,808 
Restricted cash   877    (332)   -    545 
Accounts receivable, net   3,310    -    -    3,310 
Prepaid expenses and other assets   823    (10)   -    813 
Furniture, fixtures and equipment, net   310    -    (37)   273 
Deferred financing fees, net   536    -    -    536 
Lease intangibles, net   2,044    -    -    2,044 
Total assets  $112,451   $(23,579)  $(23,382)  $65,490 
                     
Liabilities and Equity (deficit)                    
Liabilities                    
Notes payable  $110,824   $(27,721)  $(21,381)  $61,722 
Notes payable to related party   12,018    -    -    12,018 
Accounts payable   756    (114)   -    642 
Payables to related parties   3,789    -    -    3,789 
Accrued liabilities   8,389    (2,635)   (1,811)   3,943 
Total liabilities   135,776    (30,470)   (23,192)   82,114 
                     
Commitments and contingencies                    
                     
Equity (deficit)                    
Partners' capital (deficit)                    
Limited partners - 11,000,000 units authorized, 10,803,839 units issued and outstanding at March 31, 2012   (54,894)   6,891    (133)   (48,136)
General partners   38,437    -    -    38,437 
                     
Partners' capital (deficit)   (16,457)   6,891    (133)   (9,699)
Noncontrolling interest (deficit)   (6,868)   -    (57)   (6,925)
Total equity (deficit)   (23,325)   6,891    (190)   (16,624)
Total liabilities and equity (deficit)  $112,451   $(23,579)  $(23,382)  $65,490 

 

See accompanying Notes to Unaudited Pro Forma Consolidated Financial Statements.

 

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Behringer Harvard Short-Term Opportunity Fund I LP

Unaudited Pro Forma Consolidated Statement of Operations

For the Three Months Ended March 31, 2012

(in thousands, except per unit amounts)

 

The following unaudited Pro Forma Consolidated Statement of Operations is presented as if we had disposed of the Palomar Residences as of January 1, 2011. This Pro Forma Consolidated Statement of Operations should be read in conjunction with our historical financial statements and notes thereto as filed in our quarterly report on Form 10-Q for the three months ended March 31, 2012. The Pro Forma Consolidated Statement of Operations does not include nonrecurring items associated with the property such as impairment charges and gain/(loss) on troubled debt restructuring, is unaudited and is not necessarily indicative of what the actual results of operations would have been had we completed the above transaction on January 1, 2011 nor does it purport to represent our future operations.

 

   Three Months
Ended
 March 31, 2012
 as Reported
   Prior
Disposition
Pro Forma
Adjustments
   Pro Forma
Adjustments
   Pro Forma Three
Months Ended
March 31,
 
   (a)   (b)   (c)   2012 
                 
                 
Revenues                    
Rental revenue  $1,542   $-   $(203)  $1,339 
Hotel revenue   3,473    -    -    3,473 
Total revenues   5,015    -    (203)   4,812 
                     
Expenses                    
Property operating expenses   3,506    (99)   (214)   3,193 
Interest expense, net   2,275    (482)   (821)   972 
Real estate taxes, net   540    (41)   (129)   370 
Property and asset management fees   359    (60)   (62)   237 
General and administrative   176    -    -    176 
Depreciation and amortization   767    -    (163)   604 
Total expenses   7,623    (682)   (1,389)   5,552 
                     
Interest income   51    -    -    51 
Loss from continuing operations before income taxes  $(2,557)  $682   $1,186   $(689)
                     
Provision for income taxes   (32)   -    -    (32)
Loss from continuing operations  $(2,589)  $682   $1,186   $(721)
Loss from discontinued operations   44    -    -    44 
Net loss  $(2,545)  $682   $1,186   $(677)
                     
Noncontrolling interest in continuing operations  $573   $-   $(356)  $217 
Noncontrolling interest in discontinued operations   (13)   -    -    (13)
Net loss attributable to noncontrolling interest   560    -    (356)   204 
                     
Net gain (loss) attributable to the partnership  $(1,985)  $682   $830   $(473)
                     
Weighted average shares outstanding:                    
Basic and diluted   10,804              10,804 
                     
Income per share:                    
Basic and diluted  $(0.24)            $(0.06)

 

See accompanying Notes to Unaudited Pro Forma Consolidated Financial Statements.

 

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Behringer Harvard Short-Term Opportunity Fund I LP

Unaudited Pro Forma Consolidated Statement of Operations

For the Year Ended December, 31, 2011

(in thousands, except per unit amounts)

 

The following unaudited Pro Forma Consolidated Statement of Operations is presented as if we had disposed of the Palomar Residences as of January 1, 2011. This Pro Forma Consolidated Statement of Operations should be read in conjunction with our historical financial statements and notes thereto as filed in our annual report on Form 10-K for the year ended December 31, 2011. The Pro Forma Consolidated Statement of Operations does not include nonrecurring items associated with the property such as impairment charges and gain/(loss) on troubled debt restructuring, is unaudited and is not necessarily indicative of what the actual results of operations would have been had we completed the above transaction on January 1, 2011 nor does it purport to represent our future operations.

 

   Year Ended
 December 31,
2011
 as Reported
   Prior
Disposition
Pro Forma
Adjustments
   Pro Forma
Adjustments
   Pro Forma Year
Ended December 31,
 
   (a)   (b)   (c)   2011 
                 
                 
Revenues                    
Rental revenue  $4,487   $-   $(1,214)  $3,273 
Hotel revenue   14,158    -    -    14,158 
Real estate inventory sales   5,560    -    -    5,560 
Total revenues   24,205    -    (1,214)   22,991 
                     
Expenses                    
Property operating expenses   14,603    (656)   (1,025)   12,922 
Asset impairment loss   11,625    -    -    11,625 
Inventory valuation adjustment   26,768    (26,257)   -    511 
Interest expense, net   7,822    (2,026)   (2,050)   3,746 
Real estate taxes, net   1,781    (117)   (374)   1,290 
Property and asset management fees   1,414    (181)   (260)   973 
General and administrative   896    -    -    896 
Depreciation and amortization   4,030    -    (688)   3,342 
Cost of real estate inventory sales   5,414    -    -    5,414 
Total expenses   74,353    (29,237)   (4,397)   40,719 
                     
Interest income   183    -    -    183 
Loss from continuing operations before income taxes  $(49,965)  $29,237   $3,183   $(17,545)
                     
Provision for income taxes   (112)   -    -    (112)
Loss from continuing operations   (50,077)   29,237    3,183    (17,657)
Loss from discontinued operations   (80)   -    -    (80)
Net loss  $(50,157)  $29,237   $3,183   $(17,737)
                     
Noncontrolling interest in continuing operations  $1,985   $-   $(955)  $1,030 
Noncontrolling interest in discontinued operations   31    -    -    31 
Net loss attributable to noncontrolling interest   2,016    -    (955)   1,061 
                     
Net loss attributable to the partnership  $(48,141)  $29,237   $2,228   $(16,676)
                     
Weighted average shares outstanding:                    
Basic and diluted   10,804              10,804 
                     
Income per share:                    
Basic and diluted  $(4.64)            $(1.64)

 

See accompanying Notes to Unaudited Pro Forma Consolidated Financial Statements.

 

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Behringer Harvard Short-Term Opportunity Fund I LP

Unaudited Notes to Pro Forma Consolidated Financial Statements

 

Unaudited Pro Forma Consolidated Balance Sheet

 

a.Reflects our historical balance sheet as of March 31, 2012.

 

b.Reflects our disposition of the 23-unit condominium property in Telluride, Colorado (“Cassidy Ridge”). Amounts represent the necessary adjustments to remove the assets and liabilities returned to the lender as a result of the deed-in-lieu.

 

c.Reflects our disposition of the Palomar Residences. Amounts represent the necessary adjustments to remove the assets and liabilities returned to the lender as a result of the deed-in-lieu.

 

Unaudited Pro Forma Consolidated Statement of Operations for Three Months Ended March 31, 2012

 

a.Reflects our historical operations for the three months ended March 31, 2012.

 

b.Reflects the historical revenues and expenses of Cassidy Ridge, including property management fees, asset management fees, depreciation and amortization associated with the property.

 

c.Reflects the historical revenues and expenses of the Palomar Residences, including property management fees, asset management fees, depreciation and amortization associated with the property.

 

Unaudited Pro Forma Consolidated Statement of Operations for Year Ended December 31, 2011

 

a.Reflects our historical operations for the year ended December 31, 2011.

 

b.Reflects the historical revenues and expenses of Cassidy Ridge, including property management fees, asset management fees, depreciation and amortization associated with the property.

 

c.Reflects the historical revenues and expenses of the Palomar Residences, including property management fees, asset management fees, depreciation and amortization associated with the property.

 

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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.

 

  Behringer Harvard Short-Term
    OPPORTUNITY Fund I LP
     
  By: Behringer Harvard Advisors II LP,
    Co-General Partner
         
Dated: June 14, 2012   By: /s/ Gary S. Bresky  
      Gary S. Bresky  
      Chief Financial Officer  

 

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