KBS REIT II Third party Tender Offer Suggests Investment Losses for Investors
The White Law Group continues to investigate potential securities claims involving broker dealers who may have unsuitably recommended non-traded REITs such as KBS Real Estate Investment Trust II (KBS REIT II) to investors.
On April 13, MacKenzie Capital Management, LP reportedly extended a tender offer to purchase shares of KBS REIT II for just $0.75 per Share. The original offering price of the REIT was $10.00 per share.
According to Mackenzie’s letter to investors, “shareholders recently approved a plan of liquidation and the REIT estimates a value of $2.87 per Share. Given the broad impact of the COVID-19 pandemic and its disruption to the global economy, there can be no guarantee that the liquidation will be completed in a timely manner or that you will ultimately receive the amount that KBS II estimates.”
Unfortunately for investors, the share redemption program is limited to special redemptions such as death, disability, or incompetence.
Non-traded REITs are generally complex, high risk investments and not suitable for every investor. They are also illiquid, meaning they are not traded on any market. Often investors find themselves in the situation of being unable to sell the investment when they are ready. If they are able to find a buyer, it is often at a reduced price.
Free Consultation with a Securities Attorney
If you are concerned about your investment in KBS REIT II, the securities attorneys may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you this investment. For a free consultation with a securities attorney, please call 888-637-5510.
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 and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.