Does the KBS strategy involve seaside acquisitions?
From one sunny shore to another, Newport Beach, CA based KBS Strategic Opportunity REIT (the REIT) finds an acquisition in the Sunshine State. Maitland Promenade II, located in the Maitland Submarket of Orlando, Florida, was purchased by KBS for $31.2 million plus closing costs.
The five-story building is located at 495 N. Keller Road near the intersection of Maitland Boulevard and near Interstate-4. Jeff Rader, KBS Capital Advisors’ Senior Vice President commented, “The Maitland submarket has benefited from its proximity to the Orlando Central Business District and we anticipate increased activity as tenants consider assets like Maitland Promenade II as a suburban alternative.”
The building’s 230,366 square feet are 77.2% leased, with some of the tenants including Star Networks (First Data), United Healthcare, Zurich Insurance, and New York Life. Mr. Rader added, “We believe Maitland Promenade II is one of a handful of assets that tenants consider when looking for Class-A office space with efficient floor plates and covered parking in Maitland.”
KBS Strategic Opportunity REIT closed its initial public offering November 20th, 2012 with gross offering proceeds of $561.7 million. According to its latest 10Q filing, the REIT had sold 1,575,836 shares of common stock under its dividend reinvestment plan for gross offering proceeds of $15 million through September 30th, 2013.
The REIT’s portfolio consists of 11 office properties, one office campus comprised of nine office buildings, an office portfolio of four office buildings and 43 acres of undeveloped land, and an office portfolio of three office properties and one retail property. Through September 30, 2013, these properties were 69% occupied.
The REIT also owns a 317 unit apartment property which was 72% occupied and 1,375 acres of undeveloped land.