May 30, 2018 Comments (0) Blog, Current Investigations

KBS Strategic Opportunity REIT Losses | Third Party Tender Offer

KBS Strategic Opportunity REIT Losses, Featured by Top Securities Fraud Attorneys, The White Law Group

Concerned about your KBS Strategic Opportunity REIT Losses?

Are you concerned about KBS Strategic Opportunity REIT losses? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses through FINRA arbitration.

According to its website, KBS Strategic Opportunity REIT is a non-traded Real Estate Investment Trust (REIT) that closed its initial public offering on November 20, 2012.

KBS Strategic Opportunity REIT was specifically designed to “capitalize on the dislocation, lack of liquidity, and government intervention that exists in the commercial real estate markets by acquiring a diverse portfolio of opportunistic investments in discounted debt and distressed equity assets.”

According to SEC filings, the REIT has lowered its Net Asset Value from $14.81/share to $11.50/share.

Although KBS estimates that its shares are worth $11.50/share, on April 17 Everest REIT Investors I, LLC extended a tender offer to purchase shares of KBS Strategic Opportunity REIT for just $7.75/share. The REIT’s original offering price was $10/share.

Update on May 7, 2019 – New Tender Offer

According to reports, MacKenzie Capital Management has recently launched an unsolicited tender offer to purchase up to 120,000 shares of KBS Strategic Opportunity REIT for  just $5.15 per share.

The REIT’s most recent net asset value is $9.91 per share, as of September 30, 2018.

Are Non-traded REITs Suitable for you?

The White Law Group continues to investigate claims involving broker dealers who may have unsuitably recommended high risk REITs like KBS Strategic Opportunity REIT to investors.

Non-traded REITs 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.  The total commissions and expenses make it difficult for the REIT to perform in line with the market. Additionally, these type of investments are illiquid and it can be difficult to find a buyer when the investor is ready to sell.

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.

If you invested in a KBS Strategic Opportunity REIT 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, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.

Click here for your FREE consultation.