December 22, 2016 Comments (0) Blog

KBS REIT II Tender Offer $3.46/share

Cypress Income Fund VIII
(Last Updated On: January 25, 2017)

 

KBS REIT II: Bad News for Investors

Are you concerned about your investment losses in KBS REIT II, Inc.? If so, the attorneys at The White Law Group may be able to help you by filing a FINRA arbitration claim against the brokerage firm that sold you the investment.

According to their website, KBS REIT II is a non-traded Real Estate Investment Trust (REIT) that closed its initial public offering on December 31, 2010. KBS REIT II used a “hybrid” real estate investment strategy by acting as both an owner of real property and as a lender.

As of September 30, KBS estimated value per share of the REIT’s common stock of $5.49. This is $.13 lower than its previously estimated value of $5.62/share. Now Mackenzie Capital, a secondary market for private placements, has extended a tender offer for only $3.46 per share.

More bad news for investors, the share redemption program was suspended as of June 18, 2014 and KBS recently stated that it does not expect to have funds available for ordinary redemptions in the future.

The White Law Group has handled a number of claims involving non-traded real estate investment trusts (REITs) like KBS REIT II. 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

(3) that the brokerage firms that sold the investments failed to follow FINRA rules to perform adequate due diligence.

KBS REIT II Recovery Options

Non-Traded REITs are complex products that involve a significant degree of risk and arguably unsuitable for many investors. Brokerage firms that overlooked suitability requirements or failed to disclose the risk when recommending KBS REIT II to clients may be liable for losses.

If you invested in KBS REIT II or another non-traded REIT and would like to discuss your litigation options with a securities attorney, 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. For more information about our firm visit www.whitesecuritieslaw.com.