KBS Strategic Opportunity REIT (nka Pacific Oak Strategic Opportunity REIT) – Investigating Potential Claims
Are you concerned about your investment in KBS Strategic Opportunity REIT? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
KBS Strategic Opportunity REIT, a publicly registered non-traded REIT, (now known as Pacific Oak Strategic Opportunity REIT Inc.), has just completed a merger with Reven Housing REIT Inc. (NASDAQ: RVEN), a publicly traded REIT, for approximately $56.6 million in cash, or $5.13 per share of Reven common stock.
Reven has reportedly become an indirect, wholly-owned subsidiary of Pacific Oak Strategic Opportunity REIT and changed its name to Pacific Oak Residential Trust Inc. as a result of the merger.
According to a press announcement, the company has just closed a private offering of newly created 6.0 Percent Series A Cumulative Convertible Redeemable Preferred Stock. Pacific Oak Residential Trust reportedly issued and sold 15,000 shares of Series A Preferred Stock to a group of Chinese investors for $1,000 per share for total proceeds of $15 million.
Risks of Non-traded REITs
Investments such as KBS Strategic Opportunity REIT are illiquid and it can be difficult to find a buyer when the investor is ready to sell.
In October Comrit Investments 1 extended a tender offer to purchase shares of the REIT for just $7.23 per share. The original offering price of KBS Strategic Opportunity REIT was $10.00 per share and the current NAV is reportedly $9.91 per share.
Unfortunately for investors, the REIT also disclosed that, due to share redemption program (SRP) funding limitations, 94.2 percent of the shares submitted for redemption were unfulfilled. In the second quarter of 2019, 3.8 million shares (94.9 percent) of the shares submitted for redemption were unfulfilled.
Free Consultation with a Securities Attorney
Brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment prior to recommending the 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 are concerned about your investment in KBS Strategic Opportunity REIT and would like to discuss your recovery 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.