For KBS REIT III Investors, A Net Asset Value Reduction For This Non-Traded REIT May Mean More Trouble

Shepherd Smith Edwards and Kantas REIT Investor Loss Lawyers Continues To Investigate

In December 2025, KBS Real Estate Investment Trust III’s board announced its latest Net Asset Value (NAV) of $2.89/common stock share, which is down from $3.89 the year before. This shows a harsh decline in per-share value for this non-traded real estate investment trust.

KBS REIT III is a publicly registered, non-listed real estate investment trust concentrated primarily on US commercial assets involving office spaces. Its management blames low office property values, higher interest rates, sluggish rentals, cash-sweep loan structures, refinancing pressures, and low looming maturities on this latest NAV/share drop. Shepherd Smith Edwards and Kantas (investorlawyers.com) is continuing to investigate potential claims of losses by investors who were sold KBS REIT III investments by a financial advisor.

These are not the first signs of trouble involving this alternative real estate investment, which is why we have been investigating the brokerage firms that may have unsuitably recommended KBS REIT III for some time now. We have filed investor lawsuits on behalf of claimants over this specific investment, including a six-figure KBS REIT III loss case against LPL Financial.

What Were Previous Signs of Trouble Involving KBS REIT III Losses?

• In January 2023, investor redemptions were suspended because of purported challenges affecting office commercial spaces. That same year in December, KBS REIT III expressed worry it might not be able to stay afloat.
• In 2024, thenon-traded REIT returned ownership of a San Francisco property. It also extended the maturity periods of several loans.
• Last June, KBS REIT III reported an over 10% year-over-year drop in total assets from $1.99B to $1.78B. Its shares have traded on the secondary market for as low as $1/share.
• KBS REIT III also reported lower distribution payments and, at one point, withdrew registration efforts to convert into a perpetual NAV REIT.

I’m A KBS REIT III Investor. How Can I Explore My Legal Options?

During your free, no obligation case consultation, we can assess whether unsuitability, misrepresentations and omissions, excessive concentration, negligence, breach of contract, breach of fiduciary duty, Regulation Best interest violations, or failure to supervise played a part in causing you to sustain KBS REIT losses. Even if your broker-dealer wasn’t directly involved in the problems impacting this non-traded REIT, the firm is supposed to conduct a thorough investigation into any investment recommendation that it makes. If they notice problems arise with an investment, they should take necessary steps to protect their customers from any financial fallout rather than ignoring red flags.

Our KBS REIT III investor recovery attorneys represent investors against financial advisors who sold them their non-traded REITs and may be liable for our clients’ losses. Over the decades, we have secured a collective many millions of dollars for thousands of investors in arbitration, mediation, and litigation.

Call (800) 259-9010 or fill out this online contact form today to speak with the seasoned REIT Investor Loss Lawyers at Shepherd Smith Edwards and Kantas.