Soreide Law Group Investigating KBS Strategic Opportunity REIT II

Soreide Law Group is investigating potential claims on behalf of investors who bought KBS Strategic Opportunity REIT II because of the advice of their brokers or financial advisors. KBS Strategic Opportunity REIT II is a publicly registered non-traded real estate investment trust that concentrates in the acquisition of an investment portfolio containing a total return profile comprised of investments providing current operating income and capital appreciation potential. Apparently, those investments possibly include distressed debt, value-added or opportunistic real estate, or other real-estate based investments located in Europe and the United States.
Apparently, KBS Strategic Opportunity REIT II contains higher risk because its strategy encompasses the opportunistic and value-added properties versus stabilized properties. Notably, KBS Capital markets Groups claims that KBS Strategic Opportunity REIT II has three primary goals: the preservation and return of investors’ contributions of capital; growth and capital appreciation; and the provision of cash distributions by way of targeted asset sales or increased cash flow from its operations.

MacKenzie Capital Management Tender Offer For KBS Strategic Opportunity REIT II Shares

Evidently, there is a shakeup at KBS Strategic Opportunity REIT II that investors should be concerned about. Apparently, MacKenzie Capital Management made an unsolicited tender offer for the Class A shares of KBS Strategic Opportunity REIT II. Apparently, MacKenzie Capital Management offered $2.75 per share – a far cry from the original $10.00 price per share and the estimated NAV of $9.65 per share that KBS Strategic Opportunity REIT II approved back in December.
Evidently, Chairman of the Board, Peter McMillan, penned KBS Strategic Opportunity REIT II’s January 31, 2019 letter to shareholders suggesting that MacKenzie Capital Management seeks to take advantage of the illiquidity of the REIT shares. McMillan indicated that MacKenzie Capital Management had a practice of making tender offers for non-traded REIT shares at prices far below estimated value. Accordingly, McMillan contended that MacKenzie Capital Management is seeking to profit from investors’ shares by purchasing them at steep discounts. Notably, the Chairman suggested that investors not sell the shares at the $2.75 price point.

KBS Strategic Opportunity REIT II Investor Concerns

Among the risks that KBS Strategic Opportunity REIT II contain, illiquidity is a major concern for investors. Specifically, there is no publicly traded marketplace for investors to sell their positions. This detriments investors’ chances at selling the shares quickly especially in sub-optimal market conditions.
Additionally, brokers sometimes sell investors non-traded REITs because they can make large commissions and charge high fees. Indeed, in KBS Strategic Opportunity REIT II’s initial offering, brokers charged investors just under ten percent when factoring in sales commissions and dealer manager fees.

If you have experienced losses by investing in KBS Strategic Opportunity REIT II shares, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advance all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.