When Brokers Allegedly Unsuitably Recommend Non-Traded REITs To Investors
Our Broker-Dealer Negligence Lawyers Are Investigating Potential Pacific Oak Strategy Opportunity REIT Losses
Placing your trust in a broker to properly handle your funds is a big decision. You are relying on a financial professional to take care of your money and invest your assets wisely. Unfortunately, there are stockbrokers that will unsuitably recommend investments that are too risky for a client and when this happens serious investment losses can result.
Shepherd Smith Edwards and Kantas (https://www.investorlawyers.com) are currently investigating claims of losses involving Pacific Oak Strategic Opportunity REIT (previously known as KBS Strategic Opportunity REIT II). Last week this non-traded real estate investment trust (non-traded REIT) sent a letter to investors about a tender offer by Comrit Investments 1, Limited Partnership to buy its shares at a $6.62/share price. Pacific Oak Strategic Opportunity REIT shares were originally sold at $10/share and its NAV/share was $10.50 as of September 30, 2022.
In 2022, Pacific Oak Strategic Opportunity REIT had 13.9M shares worth $128M that were validly tendered for redemption but were not redeemed because of the limits involving its existing share redemption program. In January 2023, the company’s board of directors temporarily suspended its share redemption program with redemptions anticipated to start up at end of this month. Secondary market Central Trade and Transfer has noted that shares of this non-traded REIT were recently sold for $7/share.
Why You Want Savvy Non-Traded REIT Lawyers To Help You Recover Your Investor Losses
Brokerage firms are supposed to notify customers of the risks they are taking on with any kind of investment. It is also their job to make sure that any financial products or investment strategies they recommend are suitable for a client given their age, risk tolerance level, financial goals, investment experience, and other criteria.
Non-traded REITs are typically illiquid, risky, and complex investments. They are unsuitable for most retail investors, older retirees, and inexperienced investors. Yet broker-dealers will often market non-traded REITs and other risky alternative investments to customers who lack the risk tolerance level to handle potential losses.
Our REIT Broker-Dealer Negligence Lawyers represent investors in pursuing damages against the broker-dealers who unsuitably recommended these illiquid investments and/or made misrepresentations and omissions about the risks.
Our knowledgeable REIT Broker-Dealer Negligence Lawyers can help you explore your legal options and provide recommendations on how to best proceed. Should we agree to work together, we can prepare and file your non-traded REIT loss lawsuit for you and represent you before a panel of arbitrators.
Call the Shepherd Smith Edwards and Kantas REIT Broker-Dealer Negligence Lawyers at (800) 259-9010 today.