KBS REIT II recently sanctioned a net asset value (NAV) of $2.87 per share. This drop in NAV is attributed to the downturn in the value of real estate holdings, selling costs, capital outlays, and challenges with operational cash flow. The latest sanctioned NAV price represents a decrease for numerous investors. KBS depended on the assessed worth of the real estate properties along with the estimated prices of other assets and liabilities. Present secondary market rates indicate that actual liquidation valuations are considerably less, lying in the range of $1.50/share to $1.75/share.
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.
