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KBS REIT III Acquires a Class A Development for $76.7 Million

Public, non-traded real estate investment trust (REIT) KBS Real Estate Investment Trust III (KBS REIT III) recently acquired a 234,915 square-foot Class A development for $76.7 million.

Located in the City of Greenwood Village, Colorado, Village Center Station is a LEED Gold certified office building that also offers a mix of retail and restaurants in addition to a 786-space parking structure. Built in 2009, the property sits on 3.2 acres and is 99 percent leased to 11 tenants with an average remaining lease term of about 4.9 years.

“We are very excited about this acquisition and believe it fits our current asset strategy very well,” commented KBS Senior Vice President Mark Brecheen.

The property is conveniently connected to the Arapahoe at Village Center, a light rail stop connecting passengers throughout the Denver area.

“Village Center Station is one of the premier light rail served office projects in the Denver metroplex and is a perfect example of the live, work, play environment that we’ve been trying to acquire across the country,” added KBS Regional President Rodney Richerson.

Not only does the property benefit from the convenience of the rail station, it’s located next to Interstate 25 providing commuters and visitors an easy commute to access its amenities.

KBS REIT III funded the purchase with proceeds from its offering, but may seek mortgage debt secured by the property in the future.

The REIT expects to terminate its offering on Friday, May 29, 2015. As of February 20, 2015, it had accepted gross offering proceeds in excess of $1.3 billion.

For more KBS related news, visit their Directory Entry here.