The White Law Group has handled a number of claims involving non-traded real estate investment trusts (REITs) including KBS REIT.
KBS Real Estate Investment Trust, Inc., publicly registered non-traded REIT, went effective in January 2006 and closed its offering in May 2008 after raising $1.7 billion in investor equity.
Stockholders of KBS REIT approved a plan of complete liquidation and dissolution of the company in January 2017, according to SEC filings. KBS REIT said that the net proceeds from the remaining asset sales will be distributed to stockholders by January 27, 2019. The dissolution filing will not affect the right of shareholders to receive distributions under the liquidation plan and Maryland general corporation law.
Shares of KBS REIT were originally sold for $10.00 each. The company previously paid special distributions of $0.65 per share to stockholders for property sales from 2012 through 2015.
The Trouble with Non-Traded REITs
The trouble with non-traded REITs, like KBS REIT, is that they are complex and inherently risky products.
Broker dealers are required to inform clients of the risks associated with investment recommendations. They must 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.
In addition, lack of liquidity can be problematic for many investors. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.
If you are concerned about investment losses in KBS REIT or another non-traded REIT, please call The White Law Group at 1-888-637-5510 for a free consultation. It may be possible to recover your losses through a FINRA arbitration claim against the brokerage firm that sold you the investment.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on The White Law Group, please visit www.whitesecuritieslaw.com.