In December 2013, KBS REIT I reported to the Securities and Exchange Commission an estimated value of $4.45 per share, reflecting a decline from the estimated value of $5.18 reported at the end of 2012. The original share price of this offering, which closed in May 2008, was $10 a share. If you are thinking this means your loss is $5.55 a share, you may be in for a surprise.
If you sell it today, your loss is closer to $7.50.
Nontraded REITs like KBS I have no conventional market where investors can redeem them for cash. What this means is should an investor desire, or more importantly, need to liquidate this investment, there is no conventional market where it can be sold and converted to cash. Non traded REITs like KBS I can only be sold on secondary markets. Currently the going price for KBS I on the secondary market (for example www.cttauctions.com ) is about $2.50 per share.
ESTIMATED VALUE DOES NOT EQUAL FAIR MARKET VALUE
You can’t buy groceries, pay your mortgage, pay your association dues, take a trip or pay your healthcare provider with “estimated value “.
If you have losses in KBS REIT I that you were convinced to buy based upon misrepresentations, you may be able to recover all or a part of those losses through FINRA arbitration. Call us for a no charge consultation.
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