July 7, 2017 Comments (0) Current Investigations

KBS REIT Secondary Market Offer

KBS REIT
(Last Updated On: July 7, 2017)

Investigating Potential Claims involving KBS REIT

Have you suffered losses investing in KBS REIT? If so, 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.

KBS Real Estate Investment Trust (KBS REIT) launched its initial public offering in January 2006 for up to 200 million shares of common stock and 80 million DRIP shares. The REIT raised $1.7 billion in its primary offering before its closing in May 2008, and $233.7 million under its dividend reinvestment plan which was terminated in April 2012. The company’s portfolio consists of 188 real estate properties, three real estate loans receivable, and a participation interest in a real estate joint venture.

In October, the board of KBS REIT, a publicly registered non-traded real estate investment trust, approved an estimated $3.65 per share net asset value of its common stock. In addition to satisfying the requirements of FINRA 15-02, the NAV estimate was used to help calculate the projected net proceeds that investors could receive from the proposed liquidation and dissolution of the company.

Unfortunately for investors, Central Trade & Transfer, a secondary market for private placements, is listing shares of KBS REIT for just $1.85 per share. That’s significantly less than the original purchase price of $10.00 per share.

The Trouble with Non-traded REITs

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

The trouble with non-traded REITs, like KBS REIT, is that they are complex and inherently risky products.

Broker dealers are required to inform clients of the risks associated with investment recommendations. They must ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so may be held responsible for any losses.

Lack of liquidity is often problematic for many investors.  Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.

Recovery of Investment Losses

If you invested in KBS REIT 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 on The White Law Group and its investigations, visit www.whitesecuritieslaw.com.