KBS REIT III Tender Offer Price may Suggest Losses for Investors
The White Law Group continues to investigate potential securities claims involving the liability that brokerage firms may have for recommending KBS REIT III to investors.
KBS REIT III, a non-traded Real Estate Investment Trust (REIT), closed its initial public offering on May 29, 2015, and terminated the offering on July 28, 2015, according to its website.
According to a letter to investors on January 28, 2021, the board of KBS REIT III recommends that shareholders ignore a recent unsolicited tender offer by CMG Partners LLC and affiliates.
CMG Partners apparently offered to purchase shares of KBS REIT III for $7.02 per share. The REIT’s board notes that the offer is meant to “take advantage of the current illiquidity of the Company’s shares by purchasing your shares at a price significantly below their fair value in order to make a significant profit.”
According to the letter, shares of KBS REIT III are currently valued at $10.74 per share as of December 7, 2020. The original offering price was $10.00 per share.
Unfortunately for those investors who may be looking to liquidate, the company’s Ordinary Redemptions haven been suspended since December 2019. The company notes in the letter that “Ordinary Redemptions remain suspended as the Company navigates through the impact of the COVID-19 pandemic and evaluates its proposed conversion to an NAV REIT.”
Potential Lawsuits to Recover Financial Losses
The trouble with non-traded REITs is that they are complex and inherently risky products.
Lack of liquidity is often problematic for many investors. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.
Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.
If you have suffered losses investing in KBS REIT III, please contact 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.