August 31, 2017 Comments (0) Blog, Current Investigations

MacKenzie Realty Capital Extends Tender Offer for KBS REIT II

KBS REIT II
(Last Updated On: August 31, 2017)

Recovery of Investment Losses in KBS REIT II

Did you lose money investing in KBS REIT II at the advice of your broker? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses through FINRA Arbitration.

KBS REIT II, a publicly registered non-traded REIT, went effective in April 2008 and closed its primary offering in March 2011 after raising $1.8 billion in investor equity. The company’s portfolio consists of 10 properties and one real estate loan receivable.

The REIT was a hybrid, in that it was both an owner of and a lender on commercial real estate. Like most non-traded REITs, it was sold to investors at $10 a share

MacKenzie Realty Capital is now offering to purchase up to 2.5 million shares of the REIT’s common stock for $3.87 per share, or approximately 1.33 percent of the outstanding shares.

KBS REIT II Urges Shareholders to reject the offer.

According to SEC filings, the KBS REIT II is urging shareholders to reject the unsolicited tender offer from MacKenzie.

KBS REIT II told shareholders in a letter that the offer price is “substantially below” the value of the shares, which have an estimated value of $5.49 per share, as of September 30, 2016.

A KBS REIT II special committee determined that it would be in the best interest of stockholders to market certain properties for sale, and based on that effort, could possibly adopt a plan of liquidation in the future, subject to stockholder approval.

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

The Trouble with Non-traded REITs

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

The trouble with non-traded REITs, like KBS REIT II, 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.

If you lost money investing in KBS Real Estate Investment Trust 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 on The White Law Group and its investigations, visit www.whitesecuritieslaw.com.