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KBS Growth & Income, KBS Real Estate Investment Trust II, & KBS Real Estate Investment Trust III REITs

What is KBS Capital Markets Group?/strong>

Established in 2006 and led by Charles J. Schreiber, KBS Capital Markets Group aims to distribute a wide range of real estate and related investment products, as well as other investment offerings to investors who normally wouldn’t have access to these types of investing opportunities.

Unfortunately, three of its non-traded real estate investment trusts (non-traded REITs) have become the source of significant financial losses for investors.

At Shepherd Smith Edwards and Kantas, (SSEK Law Firm at investorlawyers.com), our non-traded REIT investment lawyers are working with investors who have suffered losses in KBS Capital Markets Group investments including:

  • KBS Growth & Income
  • KBS Real Estate Investment Trust II
  • KBS Real Estate Investment Trust III

If you wish to pursue damages against the brokers and their firms who may have unsuitably recommended and sold these alternative investments to you, call us at (800) 259-9010 today.

The Three KBS REITs KBS Growth & Income

Established in January 2015, this publicly-registered non-traded REIT raised $80M in public and private offerings.

August 2020: KBS Growth & Income terminated its distribution reinvestment plan to pursue a liquidation strategy. Its board ended its private placement offering, which had been suspended.

December 2020: This non-traded REIT notified investors that following a “significant decrease” in its net asset value (NAV) per share of $4.90/share from $8.43/share the year prior, it would be delaying its liquidation strategy until market conditions got better.

COVID-19, the civil unrest that had occurred that year, and a drop in oil prices were cited as negatively impacting its properties in Houston, Portland, and Chicago.

KBS Real Estate Investment Trust II (KBS REIT II)

Based out of Newport Beach, California, and having gone into effect in 2008, KBS REIT acquired Class A office and industrial properties in large metropolitan markets and also real-estate-related loans. KBS REIT II closed its primary offering in December 2010 after raising $1.8B in investor equity.

June 2016: KBS Real Estate Investment Trusts I and II announced that they would liquidate their assets and join KBS Strategic Opportunity REIT and KBS Legacy Apartment REIT.

December 2020: The company’s board authorized a $0.40/share liquidation distribution to stockholders as of the close of business on December 24, 2020. KBS REIT II also lowered its properties’ net value by $0.21/share because of the effect of COVID-19 on prices for projected rentals, leasing, and real estate properties. With net proceeds of the liquidation estimated at between $3.40 and $3.83 per share, losses for investors who paid the original $10/share offering price were expected to be significant.

KBS Real Estate Investment Trust III (KBS REIT III)

Closing its public offering in May 2015 and ending the offering in July 2015, this non-traded REIT has a portfolio of real estate investments around the United States.

November 2021: In a letter to investors, the KBS REIT III Board recommended to shareholders that they disregard a tender offer made by CMB Partners LLC and affiliates, which offered to purchase shares of this non-traded REIT for $7.19/share.

KBS Real Estate Investment Trust III noted that its share price was $10.78/share. Investors were also notified that the company could modify, suspend, or end its share redemption program on any grounds as long as it provided a ten business days notice.

Did You Suffer Losses After Your Broker Sold You Shares in a KBS Real Estate Investment Trust?

Our KBS REIT investment attorneys represent investors throughout the US. Unfortunately, your financial advisor may have unsuitably recommended this complex, risky, illiquid investment to you even if you lacked the required risk tolerance level for investing in this kind of product.

Your broker may not have fully apprised you of the risks or neglected to conduct the proper due diligence before marketing KBS REIT II, KBS REIT III, or KBS Growth & Income to you. Earning high commissions and other payment fees may have been a greater motivation for your financial advisor than watching out for your best interests.

Seasoned REIT Investment Fraud Lawyers

SSEK Law Firm has spent more than 30 years representing investors in litigation, mediation, and Financial Industry Regulatory Authority (FINRA) arbitration. Our non-traded REIT attorneys have recovered many millions of dollars on behalf of thousands of clients.

Call SSEK Law Firm at (800) 259-9010 today or contact us online.

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