Recovery of Investment losses in KBS Growth & Income REIT
Did you lose money investing in KBS Growth & Income REIT at the recommendation of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you recover your losses.
KBS Growth & Income REIT, a publicly registered non-traded real estate investment trust, was formed in January 2015 and has raised a combined $84.7 million in its private and public offerings, that latter of which commenced in April 2016. The company currently owns three properties with an investment cost of $136.8 million, according to reports.
According to SEC filings, the board of KBS Growth & Income REIT Inc. approved an estimated net asset value per share of $8.75, as of June 30, 2017.
The NAV per share is based on the estimated value of the company’s assets less the estimated value of its liabilities, divided by the number of shares outstanding and was performed in accordance with guidelines issued by the Investment Program Association.
Duff & Phelps, a third-party valuation advisory firm, assisted with the valuation and provided a value range of $8.01 to $9.53, with a mid-range value of $8.75 per share. KBS Growth & Income REIT previously sold Class A shares for $10.39 each and Class T shares for $10.00 each, while distribution reinvestment plan shares were priced at $9.40 each.
The company recently terminated its initial public offering, effective June 30th, to prepare for and market an online private offering to accredited investors.
KBS Capital Advisors, the REITs advisor, has agreed to pay stockholders any difference between the “net price paid” by stockholders and the estimated NAV per share. “Net price paid” is the gross purchase price paid by stockholders less selling commissions and dealer manager fees.
Are Alternative Investment Products Suitable for you?
The White Law Group is investigating the liability that brokerage firms may have for improperly selling private placements like KBS Growth & Income REIT and other KBS offerings.
The trouble with alternative investment products, like KBS Growth & Income REIT, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
Broker dealers are required to perform adequate due diligence on all investment recommendations to ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
Another problem with Reg D private placements is the high sales commissions and due diligence fees the brokers earn for selling such products. Sometimes this provides brokers with an incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments. They may even misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment, they may be found liable for investment losses in a FINRA arbitration claim.
Recovery of Investment Losses
To determine whether you may be able to recover investment losses incurred as a result of your purchase of KBS Growth & Income REIT or another KBS private placement investment, please contact 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. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.