Boston Capital REIT Throws in Towel
I heard today, and confirmed through its filings, that Boston Capital has suspended sales in its REIT. This happened April 18th and it since has hired Wachovia to help it explore "strategic alternatives." I never liked this REIT and I guess I was not alone. There was significant dealings with other Boston Capital entities. Loans to affiliated entities were costing the REIT 9% or more, but the REIT was only paying a 6% dividend, which was probably a high percentage of principal. The loan paid 9% and the cap rates on apartments are less 6%. This is serious negative leverage.