July 10, 2016 Comments (0) Blog

Investor Alert: KBS REIT, Inc.

UDF
(Last Updated On: March 6, 2017)

Concerned about investment losses in KBS REIT Inc.?

If you suffered losses investing in KBS REIT Inc., The White Law Group may be able to help you recover your losses by filing a FINRA Resolution claim against the brokerage firm that sold you the investment.

The White Law Group has handled a number of claims involving non-traded real estate investment trusts (REITs) like KBS REIT. In those claims, the firm has alleged, among other things, that REITs were (1) high-risk and unsuitable for our clients given their financial needs and investment objectives, (2) that the risks of the investment were not fully disclosed to them, and (3) that the brokerage firms that sold the investments failed to follow FINRA rules to perform adequate due diligence.

According to LPsales.com, a secondary marketplace for non-traded REITs, shares of KBS REIT inc. were priced at  $2.68 per share as of July 2016. That’s more than 70% less than the original purchase price of $10.00 per share.

REITs are Risky

A real estate investment trust (REIT) is a company that owns, and in most cases, operates income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and even timberlands. Some REITs also engage in financing real estate. The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks.

REITs are complex and high risk investments that are really only suitable for sophisticated investors. It is the duty of the brokerage firm to perform due diligence on any investment and to ensure that the investment is suitable for a particular investor in light of that investor’s age, investment objectives, income, net worth, and investment experience. Given the current risk of devaluation of these REITs, such investments are likely only suitable for wealthy and/or sophisticated investors.

Financial advisors have a fiduciary duty to put their client’s needs ahead of their own.  If a stockbroker recommends an investment that is unsuitable for the client or fails to perform adequate due diligence on an investment, the advisor and his/her firm can be held liable for the resulting losses.

The White Law Group continues to investigate the liability that brokerage firms have for recommending KBS REIT or another REIT unsuitably.

If you invested in KBS REIT inc. or another non-traded REIT and would like to discuss your litigation options with a securities attorneys, please call The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

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