KBS Real Estate Investment Trust III – KBS REIT III – Securities Investigation
KBS REIT III is a non-traded Real Estate Investment Trust (REIT) that closed its initial public offering on May 29, 2015, and terminated the offering on July 28, 2015, according to its website. KBS REIT III has invested in a portfolio of real estate investments across the United States.
On March 26, MacKenzie Realty Capital, Inc. extended a tender offer to purchase shares of KBS REIT III for $7.36 per Share. KBS estimates that its Shares are worth $11.73 per share as of the latest NAV in December 2017.
Unfortunately for investors, you cannot sell your shares of KBS REIT III on the market. It is an illiquid investment that has not stated when it will liquidate. Although it has a redemption program, as of February 28, 2018, it had only $15.2 million to use on redemptions for the remainder of 2018, according to Mackenzie. The program was reportedly fully depleted in 2017.
Are Non-traded REITs a suitable investment for you?
Non-traded 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 REIT II, 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 a KBS REIT III or another KBS REIT, 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, visit the firm’s website at https://www.whitesecuritieslaw.com.