Non-Traded REIT Continues to Sell Properties - At a Profit
KBS Real Estate Investment Trust II continues to unload properties for a profit. Announced yesterday, the REIT sold One Main Place, a Class A office property, for $86.3 million.
The 20-story, 315,133 square-foot building was originally purchased for $54 million in February of 2010.
In early December the REIT announced it had signed a new lease with a tenant for over 16,500 square feet, which may have helped solidify the sale.
One Main Place’s location along the waterfront of Portland, Oregon’s Central Business District makes the building a draw to tenants, while the amenities such as a fitness center, conference center, parking, a coffee shop and café, plus a full-service bank will attract employers and employees alike.
“Built in 1980 with significant capital improvements in 2008, we believe One Main Place property appeals to a wide range of tenants in industries ranging from technology and finance to legal services and education,” said KBS Regional President Rodney Richerson.
As a result of the sale, the REIT repaid a $16.9 million revolving loan that was partially secured by the property.
Based on this transaction and another announced in November, KBS REIT II owns 14 properties.
The REIT has sold about a dozen properties since May 2014. As a result, in September, it paid a special distribution of $4.50 per share to shareholders. Early investors have earned an aggregate of $8.50 per share.
In early December the REIT’s board approved an estimate value per share of $5.86.