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A KBS Non-Traded REIT Agrees to Sell 8th Property Since May

KBS Real Estate Investment Trust II (KBS REIT II) has agreed to sell its 8th property since early May. In a filing with the SEC, KBS REIT II has announced that has a buyer for an 18-story office building in West Palm Beach, Florida. 

The property, located at 525 Okeechobee Blvd and named CityPlace Tower, was purchased indirectly by the REIT on April 6, 2011. The aggregate cost for the property, which includes 1.25 acres, was $131 million through July 28, 2014. The initial purchase price was $126.5 million.

KBS REIT II will sell the property to an unaffiliated buyer for $150 million.

Announced earlier this week, the REIT will pay a special distribution of $4.05 to investors on or about September 23, 2014. It is unclear if this sale, if successfully closed prior to the special distribution record date, would increase the amount of the special distribution.

As of June 30, 2014, KBS REIT II owned 23 properties and held six for sale at an aggregate net book value of $965.5 million. Since then, the REIT has closed on three property sales and now agreed to sell CityPlace Tower. 

Formed in 2007, KBS REIT II closed its IPO in December 2010 after raising almost $1.9 billion.

Since July 16, 2008, the REIT has paid an annualized distribution rate of 6.5%. In addition, there was a special distribution of $0.05416667 per share paid in February 2013. 

Through March 2014, 93% of distributions paid were funded from operating cash flows.