KBS Strategic Opportunity REIT II to Buy Office Property in Oakland, California

KBS Strategic Opportunity REIT II Inc., a publicly registered non-traded real estate investment trust, signed an agreement to purchase Oakland City Center, a two-building office property in Oakland, California for $155 million, according to a filing with the Securities and Exchange Commission.

Built in 1985 and 1990, Oakland City Center totals 367,000 square feet and sits on 1.1 acres of land. The property is 92 percent leased to 44 tenants with an average remaining lease term of 3.7 years and an annual effective base rent of approximately $12.3 million.

KBS Strategic Opportunity REIT II intends to fund the purchase with proceeds from its initial public offering and from a mortgage loan from an unaffiliated lender. The company is currently negotiating the terms of the mortgage loan and has deposited $6 million to secure the property.

In other news, the company recently filed a registration statement for a $1 billion follow-on offering of its common stock.

KBS Strategic Opportunity REIT II went effective in August 2014, and through a private placement offering and a subsequent initial public offering, has raised a total of $210 million in investor equity. The company’s $334.3 million portfolio is comprised of six investments, according to Summit Investment Research.

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