The White Law Group is investigating potential securities claims involving the liability that brokerage firms may have for recommending Pacific Oak Strategic Opportunity REIT to investors.
Pacific Oak Strategic Opportunity REIT (formerly KBS Strategic Opportunity REIT II), a non-traded REIT closed its initial public offering on November 20, 2012.
Last October Pacific Oak Strategic Opportunity REIT II shareholders approved a merger into Pacific Oak Strategic Opportunity REIT. The REIT was designed to capitalize on “the dislocation, lack of liquidity, and government intervention” that exists in the commercial real estate markets by acquiring a diverse portfolio of opportunistic investments in discounted debt and distressed equity assets.
On December 4, 2020, the board of directors of Pacific Oak Strategic Opportunity REIT approved an estimated value per share of the Company’s common stock of $9.68. This is a decline from the previous year’s NAV of $10.25 per share.
According to Central Trade and Transfer, a secondary market for illiquid investments, shares of Pacifc Oak are currently listed to sell for just $6.50 per share. This may indicate losses for investors as the original offering price for the REIT was $10 per share.
The Trouble with Non-Traded REITs
The trouble with non-traded REITs is that they are complex and inherently risky products.
Broker dealers are required to inform clients of the risks associated with investment recommendations and to 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.
Lack of liquidity is often problematic for many investors. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.
Investigating Potential Claims
If you have suffered losses investing in Pacific Oak Strategic Opportunity REIT, please contact 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.