February 27, 2017 Comments (0) Blog, Current Investigations

KBS Legacy Partners Apartment REIT Tender Offer

ARC New York City REIT
(Last Updated On: March 2, 2017)

Everest REIT Investors Offers $7.50 per share for KBS Legacy Partners Apartment REIT

Have you suffered losses investing in KBS Legacy Partners Apartment REIT? If so, The White Law Group may be able to help you.

KBS Legacy Partners Apartment REIT, a non-traded real estate investment trust sponsored by KBS Capital Advisors and affiliates of Legacy Partners Residential Realty, closed its offering in March 2014 after raising approximately $200 million in investor equity. KBS Legacy REIT had 20.8 million shares outstanding as of November 4, 2016, and Everest REIT Investors and its affiliates currently own 94,217 shares of the REIT.

Everest REIT Investors I, a private real estate investment firm, offered to purchase up to 950,000 shares of common stock in KBS Legacy Partners Apartment REIT Inc. for $7.50 each. The offer, which constitutes roughly 5.01 percent of the outstanding shares, expires on February 6, 2017. If all shares are tendered Everest will pay a total of $7.1 million.

KBS Legacy Partners declared an estimated per share net asset value of $9.35, as of September 30, 2016. The Everest tender offer price of $7.50 per share is $1.85 less than the REIT’s estimated NAV, a discount of 19.8 percent. Shares were originally sold to investors for $10.00 each.

REITs are Risky

REITs are complicated and often risky investments which should only be sold to high-net worth and sophisticated investors.

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk REITs, like KBS Legacy Partners Apartment REIT, to their clients.

Notwithstanding the risks of investing in REITs, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.  Brokerage firms generally make between 7-10% for selling a REIT, which is far in excess of the typical commission for more traditional investment types.

To speak with a securities attorney regarding your investment in KBS Legacy Partners Apartment REIT or another KBS investment, please call The White Law Group at (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.