May 21, 2018 Comments (0) Blog, Current Investigations

KBS REIT II – KBS Real Estate Investment Trust II – Secondary Sales

KBS REIT II

KBS REIT II – KBS Real Estate Investment Trust II – Investment Losses

The White Law Group continues to investigate FINRA arbitration claims involving KBS REIT II.  Unfortunately for investors it appears that many financial advisors/brokerage firms that sold REITs such as KBS REIT II, may have understated or misrepresented the risks and liquidity problems.

According to its filings with SEC, KBS REIT II is a publicly registered non-traded REIT that 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.

Secondary Market Listing Price

According to Central Trade & Transfer, a secondary market website, shares of KBS REIT II are listed for just $4.05 per share. Unfortunately for many investors, it appears that the secondary market price would represent a significant loss on their initial capital investment. The original offering price was $10.00/share.

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

These type of investments often have high commissions, which could be a motivating factor for unscrupulous financial advisors to sell the REIT regardless of whether the investment is in line with the client’s investment objectives and profile.  Moreover, the total commissions and expenses make it difficult for the REIT to perform in line with the market.

Free Consultation with a Securities Attorney

If you invested in a KBS REIT II and would like to discuss your litigation options, please call the securities attorneys of 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 https://www.whitesecuritieslaw.com.