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KBS REIT II Liquidity Event


KBS REIT II Investment Losses

According to Investment News, investors in KBS REIT II should be on the lookout for a one time dividend payment following the sale of a large office building for $850 million. The company said in a filing with the Securities and Exchange Commission that if it completes the sale of the Chicago property, KBS REIT II “expects to make a special distribution to stockholders of a significant portion of the net proceeds from the sale.”

According to SEC filings, the property is a 60-story office building located in Chicago’s business district on approximately 1.2 acres. Containing more than 1 million square feet of rentable space, the building accounted for 19.5% of the company’s total revenues for the first quarter of 2014.

Although, the pending sale may provide some liquidity to investors, redemption of shares remains limited to special circumstances, such as the death or qualifying disability of a stockholder. For many investors, KBS REIT II has not turned out to be the investment many thought they purchased.

Many brokers pitched non-traded REIT’s, like KBS REIT II, as low risk and relatively safe products. They failed to adequately disclose the risks and liquidity problems often associated with non-traded REITs.

Brokerage firms have a fiduciary duty to their clients to perform adequate due diligence on an investment prior to recommending it for sale, as well as to ensure that any investment recommended is appropriate in light of the investor’s age, investment experience, net worth, and investment objectives. Given what is now known about KBS REIT II, it appears that some brokerage firms that sold this investment failed in its fiduciary duty to their clients.

Recovery of Investment Losses

To determine whether you may be able to recover investment losses incurred as a result of your purchase of KBS REIT II, please contact The White Law Group at 888-637-5510.

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 and Vero Beach, Florida.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.

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