KBS REIT – Securities Investigation

The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitably recommended KBS REIT to investors.

KBS Real Estate Investment Trust (KBS REIT), a publicly registered non-traded real estate investment trust, launched its initial public offering in January 2006 for up to 200 million shares of common stock and 80 million DRIP shares. The REIT raised $1.7 billion in its primary offering before its closing in May 2008. Its dividend reinvestment plan was terminated in April 2012.

In January 2017, the REIT stockholders approved the liquidation and dissolution of the company. KBS REIT sold its final property in its portfolio in November.

According to SEC filings last week, the board of KBS REIT authorized a $2.40 per share liquidating distribution to the company’s stockholders of record on December 14, 2017. The distribution is expected to be paid this week and will be funded from proceeds from asset sales.

The board approved an estimated value of $0.00 per share for the company’s common stock, effective December 14, 2017, as a result of the distribution.

Investigating Potential Claims

The White Law Group has handled a number of claims involving non-traded real estate investment trusts (REITs) such as KBS REIT.

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 through FINRA Arbitration.

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.

Free Consultation

If you invested in KBS REIT or another non-traded REIT and would like to discuss your litigation options with a securities attorney, please call The White Law Group at 1-888-637-5510 for a free consultation.

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 and its investigations, visit www.whitesecuritieslaw.com.