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KBS Legacy Sells Minnesota Property Ahead of Liquidation Vote

KBS Legacy Partners Apartment REIT Inc., a publicly registered non-traded real estate investment trust, has sold Watertower Apartments in Eden Prairie, Minnesota to an unaffiliated buyer for $41.8 million, according to a filing with the Securities and Exchange Commission.

The REIT originally purchased Watertower Apartments in January 2013 for $38.4 million, and following the sale, repaid the entire $23.5 million principal balance and all other sums due under two mortgage loans secured by the property.

Watertower Apartments is a 228-unit mixed-use community located approximately 15 miles southwest of downtown Minneapolis. The 229,000-square-foot property is comprised a three-story, 28-unit residential building with 10,000 square feet of ground-level retail space, and a four-story, 200-unit apartment building above a two-level underground parking garage. The 5.6-acre community offers one-, two-, and three-bedroom units ranging in size from 726 to 1,529 square feet, and property amenities include a fitness center, sauna and hot tub.

In other KBS Legacy news, the board of directors recently approved the company’s plan of liquidation, which must still be approved by shareholders at the yet-to-be scheduled annual meeting.

If the plan is successfully implemented, stockholders are expected to receive between approximately $8.27 and $8.70 per share for each share owned. In May 2017, the REIT paid a special distribution of $1.00 per share to stockholders for the sale of Wesley Village, which is not included in the estimated range of liquidating distributions. Shares were originally sold for $10.00 each.

KBS Legacy Partners Apartment REIT commenced its initial offering in March 2010 and terminated in March 2014 after raising approximately $216 million. The company’s portfolio is comprised of 10 multifamily properties valued at approximately $410 million.

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