KBS REIT II just approved a net asset value (NAV) price of $2.87 per share. The decrease in NAV was credited to the decline in real estate properties, selling expenses, capital expenditures, and operating cash flow issues. The recently approved NAV price Reflects a Reduction for several investors. The appraised value of the actual estate properties combined with the projected price of other assets and liabilities was relied upon by KBS. Current secondary market pricing reflects real liquidation pricing is even significantly lower in the $1.50/share to $1.75/share range.
KBS REIT Tender Offer
Some investors may remember that KBS REIT II was first sold in December 2010, and by March 2011, it had increased about $1.8 billion from investors. Back in September 2018, a tender offer to KBS REIT II investors was received for $3.53/share in MacKenzie Realty Capital, Inc. Many investors took advantage of the tender offer since the illiquidity of the non-traded REIT investment left them with very little or no choice.
Unfortunately, the tender offer NAV evaluation, in addition to the newly approved NAV evaluation represent substantial reductions for most investors, particularly any that recall the initial purchase price was based on a NAV of $10.00 per share.
KBS REIT Lawsuit “FINRA”
Compared to traditional investments and securities, such as stocks, bonds and mutual funds, non-traded REIT investments such as KBS REIT II, are illiquid and considerably more complicated and involve a high level of risk.
Unfortunately, many investors weren’t made adequately aware of the dangers and liquidity issues associated with non-traded REITs. Broker-dealer firms selling non-traded REITs are needed to perform sufficient due diligence on any investment that they recommend. They must also properly manage their financial advisors to ensure that all recommendations are acceptable for the buyer. Investment recommendations ought to be in accord with the investor’s age, risk tolerance, net worth, and investment expertise. In addition to suitability difficulties, every investor is eligible for accurate and reasonable disclosures, irrespective of their age, net worth, or investment experience.
A deceptive practice that induces investors to make purchase decisions based on false or misleading information. Broker-dealer firms and their financial advisors have to disclose material risks satisfactorily and to make suitable and proper investment recommendations, or they may be held liable for investment losses resulting from their failure to do so.
Haselkorn And Thibaut P.A. (InvestmentFraudLawyers.com) is investigating financial advisors and broker-dealer companies that sold KBS REIT II investments to their customers. Additionally, the company is continuing to investigate numerous financial advisors and broker-dealer firms involved with selling non-traded REIT investments as well as other comparable, illiquid, non-publicly traded investments too. For investors that were sold KBS REIT II, or similar kinds of investments, and those who are interested in learning more, or who might have information associated with those issues, they are encouraged to telephone 1-888-628-5590.
The Sole intention of this release is to research the way non-traded REIT and other illiquid investments were accepted for sale by broker-dealers to Investor customers, such as new product reviews, due diligence, in addition to the Sales practice and supervision about the recommendations in KBS REIT II. In Case You Have any knowledge or experience with these things, please contact Haselkorn & Thibaut, P.A. at 1-888-628-5590 , or see the InvestmentFraudLawyers.com law firm site.
Donald S. Wiggins loves learning about business trends. He has 5 years of experience in financial news and worked his way up from a writer to a senior staff member. He is one of the original writers of alphabetastock.com with a goal to increase readership and financial news coverage throughout 2019. Wiggins is the editor and manager of “Services” category.