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KBS REIT III Buys Philadelphia Office Building for $90 Million

KBS Real Estate Investment Trust III Inc., a publicly registered non-traded real estate investment trust based in Newport Beach, California, acquired CrossPoint at Valley Forge, an office property in the Philadelphia suburb of Wayne, Pennsylvania, for $89.5 million plus closing costs.

CrossPoint at Valley Forge was constructed in 1974 and renovated in 2014 and contains 272,360 rentable square feet on approximately 25.3 acres of land. As of August 18, 2015, the property was 95 percent leased to 11 tenants with a weighted-average remaining lease term of 8.7 years. KBS Real Estate Investment Trust III funded the purchase with proceeds from the CrossPoint at Valley Forge mortgage loan and proceeds from its now-terminated primary initial public offering.

On August 18, 2015, in connection with the acquisition of the property, the buyer entered into a mortgage loan with an unaffiliated lender for borrowings of $51 million. The loan matures on September 1, 2022 and bears interest at a floating rate of 150 basis points over one-month LIBOR. Monthly payments are initially interest-only. Beginning October 1, 2020, monthly payments include principal and interest with principal payments calculated using an amortization schedule of 30 years at an interest rate of 6.50 percent.

The DI Wire reported the signing of the purchase and sale agreement on July 21. To read more, click here.

KBS Capital Advisors is KBS REIT III’s external advisor and is an affiliate of KBS Realty Advisors, a private equity real estate company and registered investment advisor founded in 1992. Since its inception, KBS-affiliated companies have completed transactional activity in excess of $32 billion via 14 separate accounts, six commingled funds, five sovereign wealth funds and six non-traded REITs.

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