Pacific Oak Strategic Opportunity REIT – Third Party Tender Offer – $2.50/Share
Tender Offer Price may Suggest Losses for Pacific Oak Strategic Opportunity REIT Shareholders.
Have you suffered losses investing in Pacific Oak Strategic Opportunity REIT, Inc. (formerly known as KBS Strategic Opportunity REIT Inc.,)? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
According to its website, Pacific Oak Strategic Opportunity REIT, Inc. is a public, non-traded corporation headquartered in Los Angeles, California, that has elected to be taxed and currently qualify as real estate investment trusts and invest in opportunistic real estate and other real estate-related investments.
On May 26, 2020, Mackenzie Capital Management extended an offer to purchase shares of Pacific Oak Strategic Opportunity REIT, Inc. for $2.50 per Share, according to a letter to investors.
According to Mackenzie, although Pacific Oak intends to complete a merger with Pacific Oak Strategic Opportunity REIT II during the second half of 2020, the potential merger is not a liquidity event. “If the merger is completed, and there can be no guarantee it occurs in a timely manner, or at all, Pacific Oak intends to convert to a perpetual-life REIT which will not list or liquidate, but institute an ongoing offering and share redemption program.”
Further, the letter states that as of December 31, 2019, “approximately 5.8 million shares totaling $58.7 million submitted for repurchase were unredeemed and the REIT has just $800,000 available for redemptions during 2020.”
In February 2020 all redemptions were reportedly suspended until the potential merger closes. The letter also notes that the REIT has a low distribution rate, at just $0.0344 per share during 2019.
The original offering price of the REIT was $10 per share. The company’s estimated Per Share Net Asset Value is currently $10.63 per share.
The Trouble with Non-Traded REITs
Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like Pacific Oak, are considerably more complex and involve a high degree of risk. Unfortunately many investors were not made adequately aware of the risks and liquidity problems associated with REITs.
The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to these investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.
If you have invested in Pacific Oak Strategic Opportunity REIT and would like to speak to a securities attorney about the potential to recover your investment losses, please call 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 and Vero Beach, Florida.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.