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): September 9, 2015

 

Behringer Harvard Opportunity REIT II, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

Maryland

000-53650

20-8198863

(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) 655-3600

(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:

 

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

 

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

 

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

 

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

 

 

 



 

Item 2.01                                           Completion of Acquisition or Disposition of Assets.

 

On September 9, 2015, 9727 Touchton Road, LLC, an indirect majority-owned subsidiary of Behringer Harvard Opportunity REIT II, Inc. (the “Registrant” or “we”) sold a 322-unit multifamily community in Jacksonville, Florida, (“Wimberly”), to an unaffiliated third party. The contract sales price was $43.5 million.  A portion of the proceeds from the sale of the asset were used to pay off in full the existing indebtedness of approximately $26.6 million secured by the property.  We acquired Wimberly on February 19, 2013.

 

ITEM 9.01                                  FINANCIAL STATEMENTS AND EXHIBITS.

 

 

Page

 

 

(a)

Pro Forma Financial Information.

 

 

 

 

 

Unaudited Pro Forma Consolidated Financial Information

3

 

 

 

 

Unaudited Pro Forma Consolidated Balance Sheet as of June 30, 2015

4

 

 

 

 

Unaudited Pro Forma Consolidated Statement of Operations for the Six Months Ended June 30, 2015

5

 

 

 

 

Unaudited Pro Forma Consolidated Statement of Operations for the Year Ended December 31, 2014

6

 

 

 

 

Notes to Unaudited Pro Forma Consolidated Financial Statements

7

 

2



 

Behringer Harvard Opportunity REIT II, Inc.

Unaudited Pro Forma Consolidated Financial Information

 

On September 9, 2015, we sold Wimberly to an unaffiliated entity for a contract sales price of $43.5 million.  A portion of the proceeds from the sale of the asset were used to pay off in full the existing indebtedness of approximately $26.6 million secured by the property.

 

The following unaudited pro forma consolidated financial information gives effect to the disposition of Wimberly as if we had sold it on January 1, 2014.  In our opinion, all material adjustments necessary to reflect the effects of the above transactions have been made.

 

3



 

Behringer Harvard Opportunity REIT II, Inc.

Unaudited Pro Forma Consolidated Balance Sheet

As of June 30, 2015

(in thousands, except shares)

 

The following unaudited Pro Forma Consolidated Balance Sheet is presented as if we had disposed of Wimberly as of June 30, 2015.  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 six months ended June 30, 2015.  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 June 30, 2015, nor does it purport to represent our future financial position.

 

 

 

 

 

Wimberly

 

Holstenplatz

 

 

 

 

 

June 30, 2015

 

Pro Forma

 

Pro Forma

 

Pro Forma

 

 

 

As Reported

 

Adjustments

 

Adjustments

 

June 30, 2015

 

 

 

(a)

 

(b)

 

(c)

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Real estate

 

 

 

 

 

 

 

 

 

Land and improvements, net

 

$

57,300

 

$

(5,562

)

$

 

$

51,738

 

Buildings and improvements, net

 

216,820

 

(27,636

)

 

189,184

 

Real estate under development

 

589

 

 

 

589

 

Total real estate

 

274,709

 

(33,198

)

 

241,511

 

 

 

 

 

 

 

 

 

 

 

Assets associated with real estate held for sale

 

9,581

 

 

(9,581

)

 

Cash and cash equivalents

 

47,985

 

42,864

 

16,787

 

107,636

 

Restricted cash

 

4,891

 

 

 

4,891

 

Accounts receivable, net

 

2,530

 

 

(140

)

2,390

 

Prepaid expenses and other assets

 

842

 

 

 

842

 

Investment in unconsolidated joint venture

 

14,222

 

 

 

14,222

 

Furniture, fixtures and equipment, net

 

7,384

 

(1,103

)

 

6,281

 

Deferred financing fees, net

 

2,204

 

(357

)

 

1,847

 

Lease intangibles, net

 

320

 

 

 

320

 

Total assets

 

$

364,668

 

$

8,206

 

$

7,066

 

$

379,940

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

Notes payable

 

$

206,152

 

$

(26,551

)

$

 

$

179,601

 

Accounts payable

 

594

 

 

 

594

 

Payables to related parties

 

389

 

(2

)

 

387

 

Acquired below-market leases, net

 

88

 

 

 

88

 

Distributions payable to noncontrolling interest

 

20

 

 

 

20

 

Income taxes payable

 

1,648

 

 

 

1,648

 

Accrued and other liabilities

 

8,029

 

(337

)

(51

)

7,641

 

Obligations associated with real estate held for sale

 

95

 

 

(95

)

 

Total liabilities

 

217,015

 

(26,890

)

(146

)

189,979

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

Preferred stock, $.0001 par value per share; 50,000,000 shares authorized, none outstanding

 

 

 

 

 

Convertible stock, $.0001 par value per share; 1,000 shares authorized, 1,000 outstanding

 

 

 

 

 

Common stock, $.0001 par value per share; 350,000,000 shares authorized, 25,691,443 shares issued and outstanding at June 30, 2015

 

3

 

 

 

3

 

Additional paid-in capital

 

230,480

 

 

 

230,480

 

Accumulated distributions and net income (loss)

 

(90,342

)

35,088

 

7,212

 

(48,042

)

Accumulated other comprehensive income

 

(22

)

 

 

(22

)

Total Behringer Harvard Opportunity REIT II, Inc. equity

 

140,119

 

35,088

 

7,212

 

182,419

 

Noncontrolling interest

 

7,534

 

8

 

 

7,542

 

Total equity

 

147,653

 

35,096

 

7,212

 

189,961

 

Total liabilities and equity

 

$

364,668

 

$

8,206

 

$

7,066

 

$

379,940

 

 

See Notes to Unaudited Pro Forma Consolidated Financial Statements.

 

4



 

Behringer Harvard Opportunity REIT II, Inc.

Unaudited Pro Forma Consolidated Statement of Operations

For the Six Months Ended June 30, 2015

(in thousands, except per share amounts)

 

The following unaudited Pro Forma Consolidated Statement of Operations is presented as if we had disposed of Wimberly as of January 1, 2014.  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 six months ended June 30, 2015.  The Pro Forma Consolidated Statement of Operations does not include nonrecurring items, is unaudited and is not necessarily indicative of what the actual results of operations would have been had we completed the above transactions on January 1, 2014 nor does it purport to represent our future operations.

 

 

 

 

 

 

 

Prior

 

 

 

 

 

Six Months Ended

 

Wimberly

 

Pro Forma

 

Pro Forma

 

 

 

June 30, 2015
as Reported

 

Pro Forma
Adjustments

 

Disposition
Adjustments

 

Six Months Ended
June 30, 2015

 

 

 

(a)

 

(b)

 

(c)

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Rental revenue

 

$

16,951

 

$

(2,070

)

$

(909

)

$

13,972

 

Hotel revenue

 

9,142

 

 

 

9,142

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

26,093

 

(2,070

)

(909

)

23,114

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Property operating expenses

 

5,664

 

(612

)

(354

)

4,698

 

Hotel operating expenses

 

6,274

 

 

 

6,274

 

Interest expense, net

 

3,567

 

(374

)

(264

)

2,929

 

Real estate taxes

 

3,156

 

(271

)

(58

)

2,827

 

Property management fees

 

864

 

(73

)

(41

)

750

 

Asset management fees

 

1,442

 

(136

)

(94

)

1,212

 

General and administrative

 

1,711

 

 

 

1,711

 

Depreciation and amortization

 

8,402

 

(1,014

)

(244

)

7,144

 

Total expenses

 

31,080

 

(2,480

)

(1,055

)

27,545

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

79

 

 

 

79

 

Loss on early extinguishment of debt

 

(119

)

 

92

 

(27

)

Other expense

 

(169

)

25

 

1

 

(143

)

Gain on sale of real estate

 

5,320

 

 

(5,320

)

 

Income tax expense

 

(1,664

)

 

1,620

 

(44

)

 

 

 

 

 

 

 

 

 

 

Net loss

 

(1,540

)

435

 

(3,461

)

(4,566

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to the noncontrolling interest

 

(593

)

(15

)

390

 

(218

)

 

 

 

 

 

 

 

 

 

 

Net loss attributable to the Company

 

$

(2,133

)

420

 

$

(3,071

)

$

(4,784

)

 

 

 

 

 

 

 

 

 

 

Loss per share

 

$

(0.08

)

 

 

 

 

$

(0.19

)

Weighted average shares outstanding

 

25,740

 

 

 

 

 

25,740

 

 

See Notes to Unaudited Pro Forma Consolidated Financial Statements.

 

5



 

Behringer Harvard Opportunity REIT II, Inc.

Unaudited Pro Forma Consolidated Statement of Operations

For the Year Ended December 31, 2014

(in thousands, except per share amounts)

 

The following unaudited Pro Forma Consolidated Statement of Operations is presented as if we had disposed of Wimberly as of January 1, 2014.  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, 2014.  The Pro Forma Consolidated Statement of Operations does not include nonrecurring items, is unaudited and is not necessarily indicative of what the actual results of operations would have been had we completed the above transactions on January 1, 2014 nor does it purport to represent our future operations.

 

 

 

 

 

 

 

Prior

 

 

 

 

 

Year Ended

 

Wimberly

 

Pro Forma

 

Pro Forma

 

 

 

December 31, 2014
as Reported

 

Pro Forma
Adjustments

 

Disposition
Adjustments

 

Year Ended
December 31, 2014

 

 

 

(a)

 

(b)

 

(c)

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Rental revenue

 

$

32,226

 

$

(3,850

)

$

(4,686

)

$

23,690

 

Hotel revenue

 

16,371

 

 

 

16,371

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

48,597

 

(3,850

)

(4,686

)

40,061

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Property operating expenses

 

11,288

 

(1,207

)

(1,605

)

8,476

 

Hotel operating expenses

 

11,954

 

 

 

11,954

 

Interest expense, net

 

7,833

 

(845

)

(1,513

)

5,475

 

Real estate taxes

 

5,388

 

(511

)

(562

)

4,315

 

Property management fees

 

1,642

 

(134

)

(188

)

1,320

 

Asset management fees

 

2,368

 

(260

)

(367

)

1,741

 

General and administrative

 

4,076

 

 

 

4,076

 

Acquisition expense

 

1,307

 

 

 

1,307

 

Depreciation and amortization

 

14,362

 

(1,843

)

(1,828

)

10,691

 

Total expenses

 

60,218

 

(4,800

)

(6,063

)

49,355

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

224

 

 

11

 

235

 

Loss on early extinguishment of debt

 

(454

)

 

454

 

 

Other expense

 

(38

)

 

 

(38

)

Gain on sale of real estate

 

11,454

 

8,147

 

13,899

 

33,500

 

Income tax benefit (expense)

 

101

 

 

(1,620

)

(1,519

)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

(334

)

7,197

 

14,121

 

22,884

 

 

 

 

 

 

 

 

 

 

 

Net loss (income) attributable to the noncontrolling interest

 

331

 

(372

)

(308

)

(349

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to the Company

 

$

(3

)

$

6,825

 

$

13,813

 

$

22,535

 

 

 

 

 

 

 

 

 

 

 

Loss per share

 

$

0.00

 

 

 

 

 

$

0.87

 

Weighted average shares outstanding

 

25,943

 

 

 

 

 

25,943

 

 

See Notes to Unaudited Pro Forma Consolidated Financial Statements.

 

6



 

Behringer Harvard Opportunity REIT II, Inc.

Notes to Unaudited Pro Forma Consolidated Financial Statements

 

Unaudited Pro Forma Consolidated Balance Sheet

 

a.              Reflects our historical balance sheet as of June 30, 2015.

 

b.              Reflects our disposition of Wimberly on September 9, 2015.  Amounts represent the necessary adjustments to remove the assets sold and liabilities assumed by the buyer, and the repayment of outstanding debt of $26.6 million as a result of the disposition.

 

c.               Reflects our disposition of Holstenplatz, an office building located in Hamburg, Germany, sold on September 1, 2015 for a sales price of $18.4 million. Amounts represent the necessary adjustments to remove the assets sold and liabilities assumed by the buyer as a result of the disposition.

 

Unaudited Pro Forma Consolidated Statement of Operations for the Six Months Ended June 30, 2015

 

a.              Reflects our historical operations for the six months ended June 30, 2015.

 

b.              Reflects the historical revenues and expenses of Wimberly, including property management fees and depreciation and amortization associated with the property.  The gain recognized on the sale of Wimberly is reflected in the unaudited Pro Forma Consolidated Statement of Operations for the year ended December 31, 2014 as if we had disposed of the property as of January 1, 2014.

 

c.               Reflects the historical revenues and expenses of Holstenplatz, Alte Jakobstraße (“AJS”), and Babcock Self Storage (“Babcock”), including property management fees and depreciation and amortization associated with the properties.  The gains recognized on the sales of the three properties are reflected in the unaudited Pro Forma Consolidated Statement of Operations for the year ended December 31, 2014 as if we had disposed of the properties as of January 1, 2014. We sold AJS, an office building located in Berlin, Germany, on February 21, 2015 for a contract sales price of approximately $14.1 million. We sold Babcock, a self storage facility located in San Antonio, Texas on January 8, 2015 for a contract sales price of approximately $5.4 million.

 

Unaudited Pro Forma Consolidated Statement of Operations for the Year Ended December 31, 2014

 

a.              Reflects our historical operations for the year ended December 31, 2014.

 

b.              Reflects the historical revenues and expenses of Wimberly, including property management fees and depreciation and amortization associated with the property. The gain recognized on the sale of Wimberly is reflected in the unaudited Pro Forma Consolidated Statement of Operations for the year ended December 31, 2014 as if we had disposed of the property as of January 1, 2014.

 

c.               Reflects the historical revenues and expenses of Holstenplatz, AJS, Babcock and 1875 Lawrence, including property management fees and depreciation and amortization associated with the properties. The gains recognized on the sales of these four properties are reflected in the unaudited Pro Forma Consolidated Statement of Operations for the year ended December 31, 2014 as if we had disposed of the properties as of January 1, 2014. We sold 1875 Lawrence, an office building located in Denver, Colorado, on May 30, 2014 for a contract sales price of approximately $46.7 million.

 

7



 

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 OPPORTUNITY REIT II, INC.

 

 

 

 

 

 

Dated: September 15, 2015

 

By:

/s/ S. Jason Hall

 

 

S. Jason Hall

 

 

Chief Financial Officer

 

8