REIT Fraud Lawyers

Are You An Investor Who Sustained Losses in KBS REIT III? Our Skilled Non-Traded REIT Fraud Lawyers Can Help You Explore Your Legal Options

Shepherd Smith Edwards and Kantas (investorlawyers.com) is continuing to investigate losses involving KBS Real Estate Investment Trust III, Inc. (KBS REIT III). We recently filed a six-figure lawsuit against LPL Financial and its Houston registered representative Bradley Alan Bowman on behalf of a Texas retiree who sustained significant losses in this publicly registered non-traded real estate investment trust (non-traded REIT), as well as other alternative investments.

In light of the recent news that KBS REIT III has amended its loan agreement with lenders, in part to extend the maturity date of its amended loan of $601.3M until November 20—this is its sixth extension agreement—the concerns over potential investor losses continue.

Also, it has been almost a year since the non-traded REIT reported “substantial doubt” about being able to continue. It was also around that time, in December 2023, that KBS REIT III’s net asset value had declined to about $133M from about $1.3B the year prior. Its NAV/share also dropped from $9/share to $5.60/share.

In a December 2023 SEC filing, KBS REIT III noted that it had more than $1.7B in debt due within the year and it would likely have to give up some of its secured properties. Challenges in leasing properties was one of the issues cited. Ordinary redemptions were suspended.

With its original offering price at $10/share, its secondary market price was recently $1/share.

Why You Need To Hire Skilled Non-Traded REIT Fraud Lawyers

Pursuing damages for non-traded real estate investment trust losses from your broker-dealer can be a difficult task. It is why you want to work with a seasoned securities law firm that knows how to prove liability while protecting your legal rights to financial recovery.

Unfortunately, non-traded REITs are often unsuitably recommended by financial advisors because of the high commissions and fees they end up earning as a result. As of late, many of our clients are investors of non-traded real estate investment trusts that were never fully apprised of the risks and/or for whom alternative investments of this kind were an inappropriate recommendation from the start.

Shepherd Smith Edwards and Kantas REIT Fraud Lawyers have represented investors in more than 1000 matters in arbitration, mediation, and litigation. This is not the kind of lawsuit you want to file and argue on your own.

The first step is to contact us today so that we can help you explore your legal options. Remember that not all investment losses are due to financial advisor negligence. That said, if you are a victim of non-traded REIT fraud, even if your broker was not directly involved in that wrongdoing, you still may be able to hold them liable for due diligence failures, breach of fiduciary duty, and more.

This type of claim—a dispute between a financial advisor and their customer—is usually brought in FINRA arbitration. You want to work with skilled securities attorneys like us who have experience fighting for and recouping damages for investors in this legal forum.

How To Contact Our KBS REIT Fraud Lawyers

We are also looking into investor losses involving KBS REIT II and KBS Growth and Income. Call (800) 259-9010 or fill out this form.