The REIT was valued by its advisor, but it obtained a Good Housekeeping Seal of Approval by seeking the valuation consulting services of Duff & Phelps. I don't read that Duff & Phelps valued Strategic Retail's assets, but I'll let you decide:
Our board of directors determined the estimated per share value in its sole discretion and is ultimately and solely responsible for establishing the estimated value of a share of our common stock. Our board of directors did, however, engage the services of Duff & Phelps LLC, or Duff & Phelps, an independent valuation firm, to conduct valuation consulting services regarding all of our real estate assets. We believe there are no material conflicts of interest between Duff & Phelps, on the one hand, and us, our advisor and our directors or officers, on the other hand.Fees matter. Strategic Retail offers its shares at $10.00 per share. From this is deducted 10% in commissions and selling costs, and up to another 3% in organization fees, which the REIT estimates will be 1.75%. This amount of front-end costs is typical for non-traded REITs. The $10.00 per share purchase price becomes a net $8.83 (using 1.75% in organization fees) that is being invested in properties. I did not include the 2.50% acquisition fee paid on the price of each acquisition, which includes debt, and the 1.0% finance fee on the amount of any outstanding debt, which the REIT instituted earlier this year. So, by reading today's valuation we're to believe that a net investment of $8.83 today is worth $10.40. Fees matter.