First some background. At the end of 2012 we migrated our vs2008 solution to vs2010 but we still target .NET 3.5. (I know nothing but the latest and greatest here!)
I ran into the same issue with Visual Studio 2013. It turns out that I was using the old version of MSBuild--the one that ships with the .NET Framework--from the command line. Microsoft is now releasing MSBuild as part of Visual Studio itself and also as a separate installer (http://blogs.msdn.com/b/visualstudio/archive/2013/07/24/msbuild-is-now-part-of-visual-studio.aspx).
The solution was to use the new version of MSBuild.exe located in C:\Program Files (x86)\MSBuild\12.0\Bin. Once I did that, all the targets errors disappeared.
EDIT 1
As mentioned in the comments, each new version of MSBuild brings with it a new directory. For Visual Studio 2015, use C:\Program Files (x86)\MSBuild\14.0\Bin.
EDIT 2
As mentioned in the comments, for Visual Studio 2017, use C:\Program Files (x86)\Microsoft Visual Studio\2017\.