February 1, 2019 Comments (0) Blog, Current Investigations

KBS Strategic Opportunity REIT II –Tender Offer $2.75/Share

KBS Strategic Opportunity REIT II

KBS Strategic Opportunity REIT II –Investigating Claims

Are you concerned about your investment in KBS Strategic Opportunity REIT II? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration Claim against the brokerage firm that sold you the investment.

MacKenzie Capital Management is reportedly launching an unsolicited tender offer to purchase Class A shares of KBS Strategic Opportunity REIT II for $2.75/share. In a letter to investors on January 31, 2019, the Board of KBS Strategic Opportunity REIT strongly recommends against the offer. The REIT’s shares originally sold for $10.00/share.

In December 2018, the REIT’s board approved an estimated net asset value of $9.65 per share, as of September 30, 2018.

KBS Strategic Opportunity REIT II, a publicly listed, non-traded REIT, filed a Form D to raise capital from investors in 2013 in Newport Beach, California. The total offering amount was $105,000,000.

High Fees & Commissions

Investments such as KBS Strategic Opportunity REIT II  are typically sold by brokerage firms in exchange for a large up front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%. In this case, sales commissions were 6.5% Selling Commission plus 3.0% Dealer Manager fee for a total of 9.5% for shares sold in primary offering, according to the Form D.

Investors looking to sell non-traded REITs, like KBS Strategic Opportunity REIT II, often have difficulty finding a buyer, and can suffer significant losses on the sale.

Your financial advisor has a responsibility to perform adequate due diligence on any investment before recommending it to you. If your advisor unsuitably recommended KBS Strategic Opportunity REIT II and you lost money, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

For a free consultation with a securities attorney, please contact the offices of The White Law Group at 1-888-637-5510.

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.

FINRA provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors.