CNL Healthcare Properties Inc.'s board urged the healthcare real estate investment trust's stockholders to reject an unsolicited mini-tender offer from Everest REIT Investors I LLC and Everest REIT Investors III LLC.

The investors offered to purchase up to 8,750,000 shares of the REIT's common stock at $7.50 per share, without interest.

The board argued, among other things, that the cash offer price is 27.3% less than the $10.32 estimated net asset value per share of CNL Healthcare's common stock as of Dec. 31, 2017.