KBS Capital Markets Group Growth & Income and Non-traded REITs

What is KBS Capital Markets Group?

KBS Capital Market Group is led by Charles J. Schreiber, who established the company in 2006. The firm distributes a range of real estate and related investment products. They also distribute other investment offerings to investors who normally wouldn’t have access to such investment opportunities.

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

At Shepherd Smith Edwards and Kantas, we care about investors who have suffered wrongfully. Our non-traded REIT investment lawyers work with investors with losses in KBS Capital Markets Group investments including:

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

Seeking to pursue damages against brokers and firms who may have unsuitably recommended and sold these alternative investments to you?. Call us at (866) 904-2456 today for a free consultation.

The Three KBS REITs KBS Growth & Income

Established in January 2015, KBS Capital Markets Group publicly registered this non-traded REIT raising $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: notified investors it would delay its liquidation strategy following a "significant decrease" in its net asset value (NAV) per share. Net asset value dropped to $4.90/share from $8.43/share the year prior.

COVID-19, the civil unrest, and a drop in oil prices negatively impacted its properties in Houston, Portland, and Chicago.

KBS Real Estate Investment Trust II (KBS REIT II)

Based in Newport Beach, California, and going into effect in 2008, KBS REIT acquired Class A office and industrial properties. These acquisitions were in large metropolitan markets and 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. Following liquidation, they would 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. This took effect by the close of business on December 24, 2020.

KBS REIT II also lowered its properties' net value by $0.21/share. This was due to the effect of COVID-19 on prices for projected rentals, leasing, and real estate properties. 

Net proceeds of the liquidation were estimated at between $3.40 and $3.83 per share. Investors suffered and those who paid the original $10/share offering price were expected to have significant losses.

KBS Real Estate Investment Trust III (KBS REIT III) 

KBS Capital Markets Group closed its public offering in May 2015 and ended the offering in July 2015. KBS Capital Markets Group’s third non-traded REIT has a portfolio of real estate investments around the United States.

  • November 2021: The KBS REIT III Board recommended that shareholders disregard a tender offer made by CMB Partners LLC and affiliates. CMB Partners LLC had 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. They also notified investors that the company could modify, suspend, or end its share redemption program on any grounds as long as it provided 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 investment to you. Such a complex, risky, illiquid investment requires a high-risk tolerance level many investors do not have.

Your broker may not have fully apprised you of the risks involved in such investments. They may also have neglected to conduct due diligence before marketing KBS Growth & Income, and KBS REIT to you.

Properly advising you and watching out for your best interest should be paramount to your advisor. However, earning high commissions and other payment fees may have been a greater motivation for your financial advisor.

Seasoned REIT Investment Fraud Lawyers 

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

Call SSEK Law Firm at (866) 904-2456 today or contact us online.

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