How to Recover Investment Losses in KBS Growth & Income REIT Inc.
KBS Growth & Income REIT, a publicly registered non-traded real estate investment trust, was formed in January 2015 and has raised a combined $80 million in its private and public offerings.
According to a letter to investors, the REIT said that it has decided to delay its liquidation strategy until market conditions improve after a “significant decrease” in the company’s net asset value per share.
The company declared a Net Asset Value (NAV) of $4.90 per share in December 2020, a decline from $8.43 per share the previous year. The REIT addresses the NAV decline in its letter to shareholders noting that the large decrease was due to appraisal values of its real estate properties that were “significantly impacted by the civil unrest in certain markets where some of our properties are located and the ongoing COVID-19 pandemic.” The three properties whose appraisals were negatively affected were located in Houston, Texas, Portland, Oregon and Chicago, Illinois.
The REIT blamed COVID-19 and its negative impact on the oil and gas markets, resulting in increased vacancy and expanding cap rates across the office marketplace in Houston, Texas.
“In addition to the negative effects of COVID-19, Portland, Oregon has been further impacted by the social unrest that lasted over 100 days, resulting in daily riots and substantial physical damage to properties and businesses in the business districts,” according to the letter.
Due to COVID-19 lockdowns and restrictions, the REIT said that leasing was slow in Chicago and five current tenants reportedly gave notice they will be vacating at the end of their leases.
Although the REIT announced a plan to pursue a liquidation strategy in August 2020, it has reportedly decided to halt its liquidation strategy until market conditions improve and notes it has been unable to raise substantial funds.
The White Law Group continues to investigate the liability that brokerage firms may have for improperly selling private placements like KBS Growth & Income REIT;
Broker dealers are required to perform adequate due diligence on all investment recommendations to ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.
Recovery of Investment Losses
To determine whether you may be able to recover investment losses incurred as a result of your purchase of KBS Growth & Income REIT please contact The White Law Group at 1-888-637-5510 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. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.