X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Stonehaven’s push into the Internet applications forthe commercial real estate industry has prompted twoof its top officers to leave the company and could putthe status of the REIT in question. Soon after the St. Paul-based real estate and technology company put most of its real estate up forsale, Arnold Leas left his post as chairman and BobRice, president, resigned as well. As of June 30,Stonehaven had six properties encompassing 326,000 sf.

“They indicated that given they are exiting the realestate management business, so the managementstructure became redundant,” says Dennis Nielson, asecurities analyst with R.J. Steichen & Co. inMinneapolis. “The company was going to offer all their real estateof sale, and they would prefer to sell it in one bigchunk.”

When it was formed two years ago, plans were tocreate Stonehaven into a major REIT. Investors werecounting on Duane Lund, who remains Stonehaven’s chiefexecutive officer, to repeat with the company what hehad done with Chicago-based First Industrial RealtyTrust, which grew into a major holder of industrialproperties. But the REIT market had changed, and Lunddecided to take the company in a different direction.In its recent quarterly report, Stonehaven said thatgiven its acquisition of RESoft, “no assurance can begiven that the company will continue to qualify” as aREIT. What’s more, given its opportunities in thechanging economy, it may choose to change itsstructure itself differently, according to thedisclosure. Any change in its status could subjectdistributions to both corporate and personal incometaxes, according to the company.

Stonehaven entered the Internet business in February,when it purchased St. Paul-based NetLinkInternational. The idea was to create a softwarepackage that would allow property managers tocommunicate with vendors, employees and tenants. TheStonehaven acquisition has been renamed RESoft Inc.and has launched at least three Internet softwareproducts since it was acquired.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.