September 11, 2017 Comments (0) Blog, Current Investigations

KBS Legacy Partners Apartment REIT Plans Liquidation

KBS Legacy Partners Apartment REIT
(Last Updated On: September 12, 2017)

Concerned about investment losses in 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 recover your losses through FINRA Arbitration.

KBS Legacy Partners Apartment REIT, a publicly registered non-traded real estate investment trust, commenced its initial offering in March 2010 and terminated in March 2014 after raising approximately $216 million.

According to recent SEC filings, KBS Legacy Partners Apartment REIT Inc. has unanimously approved to liquidate and dissolve the company.

The plan of liquidation would allow the company to sell all of its remaining properties, pay all of its known liabilities, distribute its remaining cash to its stockholders, and wind up operations. The plan must still be approved by shareholders.

All 10 properties in the REIT’s portfolio are currently under contract for sale, however, shareholders must approve the liquidation plan in order to sell four of its multifamily properties for $218.9 million, as a condition of the sales contracts.

If stockholders do not approve the plan, the REIT intends to sell its remaining portfolio while pursuing a longer-term business plan for the four properties.

If the plan is successfully implemented, stockholders are expected to receive between approximately $8.27 and $8.70 per share for each share owned. Shares were originally sold for $10.00 each.

Shareholders will vote on the liquidation plan at the next annual shareholder meeting. If the liquidation plan is approved, it is expected to be completed within 12 months.

Are REITs a Suitable Investment for you?

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. For more information on The White Law Group, please visit us on the web at www.whitesecuritieslaw.com.