Important alert to KBS REIT III investors: If your financial advisor recommended KBS REIT III, contact the investment loss attorneys at KlaymanToskes today at +1 (888) 997-9956 or request a free case evaluation to determine if you are eligible for recovery.
National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who unsuitably recommended investments in KBS Real Estate Investment Trust III (KBS REIT III). KBS REIT III’s net asset value (NAV) has dropped to $3.89 per share, marking a 30.5% decline from the previous year and a staggering fall from its peak of over $12.00 per share. Our law firm believes many investors may have been misled regarding the risks and liquidity issues associated with KBS REIT’s investment offering.
If your financial advisor recommended an unsuitable Real Estate Investment Trust (“REIT”) based on your investment profile, or disregarded your risk-tolerance when making investment recommendations, you may be entitled to a financial recovery through FINRA arbitration.
If you suffered losses in KBS REIT III, or any other investments due to recommendations by your brokerage firm or financial advisor, contact securities attorney Steven D. Toskes to discuss your recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KBS REIT III, a publicly registered non-traded real estate investment trust, has struggled with liquidity issues, declining property values, and multiple loan extensions. The company has entered its sixth loan modification agreement, extending the maturity date of a $601.3 million loan to November 20, 2024. Failure to meet certain lender requirements could result in a potential default.
The REIT’s net asset value (NAV) has dropped to $3.89 per share, marking a 30.5% decline from the previous year and a staggering fall from its peak of over $12.00 per share. This decline reflects challenges in the commercial real estate market, including rising interest rates and stricter lending conditions.
KBS REIT previously disclosed “substantial doubt” regarding its ability to continue in late 2023, according to SEC filings. In an attempt to stabilize its finances, KBS REIT III sold an office building in Franklin, Tennessee in February 2024 to meet loan obligations and returned the keys to a San Francisco office property in early 2024.
Investing in KBS REIT III carries several risks, particularly due to its nature as an alternative investment. According to SEC filings, KBS REIT III’s board has suspended ordinary redemptions under its share redemption program due to ongoing financial distress. The company has also lowered its distribution rate, further impacting investor returns. For investors seeking to sell their shares, liquidity remains a significant concern. Lodas Markets reports recent secondary sales at just $1.00 per share, compared to the original $10 per share offering price.
In an effort to explore liquidity options, KBS REIT III previously considered converting to a NAV REIT structure, which would have provided daily or quarterly valuations of shares. However, on July 29, 2022, the company withdrew its pre-effective registration statement for a $2 billion net asset value-based perpetual life offering, effectively ending this potential liquidity pathway.
If you suffered losses in KBS REIT III, or any other investments, contact securities attorney Steven D. Toskes to discuss your recovery options at (888) 997-9956 or fill out a short contact form for a free and confidential consultation.
The firm has helped recover over $600 million for investors (exclusive of attorneys fees and costs), and can help you determine if your loss is due to financial advisor misconduct, unsuitable investment advice, and/or other securities violations.
Potential conflicts of interest may arise when issuers incentivize brokers/investment advisors with substantial commissions to promote their financial products. A problem often associated with alternative investment recommendations, such as REITs and BDCs, is the high sales commissions brokers typically earn for selling these investments, which can be as high as 15%. A representative that recommends investments for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws.
To recover investment losses, you do not go through the traditional court system with a lawsuit. The only remedy is through a FINRA arbitration, a specific process designed for these types of disputes. This process involves presenting your case to a panel set by the Financial Industry Regulatory Authority (FINRA), not a courtroom. This approach is streamlined and focused on investment disputes, making it a suitable and effective way for investors to seek compensation for losses caused by financial advisors or brokerage firms.
FINRA (the Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokers and brokerages. In the event of a dispute between an investor and their financial advisor, investors can choose to file a FINRA arbitration claim. FINRA is overseen by the Securities and Exchange Commission (“SEC”).
The arbitration process is designed to be much faster than the court system and allows both parties to present their case before a panel of arbitrators. The arbitrators will then decide how to resolve the dispute, including ordering the advisor to pay damages for any losses suffered by the investor.
If you suffered losses in KBS REIT III or other investment losses, you are encouraged to contact attorney Steven D. Toskes, at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in American Healthcare REIT. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you purchased unsuitable KBS REIT III investments, or any other unsuitable investments through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you