Haselkorn & Thibaut recently announced that it is moving forward with its probe into broker-dealers that unsuitably recommended KBS Growth & Income REIT to investors. The investigation is a great step forward for investors that lost their money by investing in the REIT. This is because it means they can potentially get recover the losses incurred by investing in KBS Growth & Income REIT if they go through FINRA Arbitration.
The sole purpose of this post is to investigate the manner in which KBS Growth & Income REIT were approved for sale by broker-dealers to investor clients, including new product reviews, due diligence, as well as the sales practice and supervision related to these purported conservative strategies. If you have any knowledge or experience with these matters, please contact Haselkorn & Thibaut, P.A. at 1-888-628-5590.
The KBS Growth & Income REIT submitted a recent filing in which it pointed out that most of its tenants would not be able to pay their rent arrears because they have been heavily affected by the coronavirus pandemic. It also stated that most of the tenants would likely apply for rent deferral. The REIT warned that the unforeseeable risks that arose as a result of the coronavirus pandemic were not accounted for when the company provided its $8.43 per share NAV estimate in September last year.
KBS Growth & Income REIT operates three office properties that delivered a 57% loan-to-value as of December last year. The company’s board of directors selected a new amount of limitation as part of its share redemption program. The latter currently only allows special cases for share redemption such as determination of incompetence, disability, or even death of a shareholder. KBS recently revealed that it plans to introduce a liquidation plan and the decision on whether or not to use that plan will be based on a vote by shareholders. The company plans to conduct the liquidation before the end of 2022.
The High-Risk Nature of Non-traded REITs
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Note that non-traded REITs such as the KBS Growth & Income REIT are classified as high-risk that are usually unsustainable over the long term. Investors with this type of REIT usually find it hard to sell especially because the high-risk factor discourages most investors. This means that the investors that own shares in this type of REIT may end up suffering losses when they do finally get a buyer on the secondary market.
Take Action to Recover Your Losses
If your broker advised you to invest in KBS Growth & Income REIT or any other non-traded REIT, then it might be a good idea to consider options through which you can recover your funds.
One of the most common approaches to funds recovery when investors end losing money through fraudulent brokers is through FINRA arbitration. FINRA is short for Financial Industry Regulatory Authority which oversees the arbitration process and regulatory processes for the New York Stock Exchange. The regulatory body provides arbitration for investors to resolve disputes with brokers. Meanwhile, Haselkorn & Thibaut presents legal support to investors, thus increasing their chances of getting back their funds. Investors that have lost money through KBS Growth & Income REIT usually can file a claim with FINRA to recover losses.
Haselkorn & Thibaut is a law firm that specializes in investor protection, securities arbitration, and securities fraud. The law firm, therefore, provides its services to anyone that has been ill-advised by their broker to invest in a high-risk non-traded REIT.
If you happen to find yourself in such a situation, for example, you had invested in KBS Growth & Income REIT, then perhaps consider calling 1-888-628-5590. We provide a free consultation and typically work on a contingency basis, meaning no recovery, no fee.