July 24, 2018 Comments (0) Blog, Current Investigations

Recovery of Investment Losses – KBS REIT II

KBS REIT II
(Last Updated On: July 24, 2018)

KBS REIT II – Secondary Sales Price $4.10

Have you suffered losses investing in KBS REIT II? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

KBS REIT II, a publicly registered non-traded real estate investment trust (REIT) closed its primary offering in March 2011 after raising $1.8 billion in investor equity. As of December 31, 2017, the REIT’s $1.5 billion portfolio consisted of eight office properties and an office campus consisting of eight office buildings.

Non-traded REITs are Complex & Risky

Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.

Lack of liquidity in non-traded REITs such as KBS REIT II can be problematic for investors. If you are looking to sell your investment, you may have difficulty finding a buyer, and can suffer significant losses on the sale.

According to LPsales.com, a secondary market for private placements, shares of KBS REIT II were recently sold for $4.10/share. This may represent a significant loss for many investors, as the original offering price was $10.00/share.

Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%.  Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Unfortunately, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.

The White Law Group continues to investigate potential securities fraud claims involving broker-dealers’ unsuitable recommendation that investors purchase high-risk non-traded REIT investments, like KBS REIT II.

If you suffered losses investing in KBS REIT II and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, please visit www.whitesecuritieslaw.com.

 

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