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KBS Capital Markets Reaches $5 billion in Capital Raised

KBS Capital Markets Group (KBS), the dealer manager for the KBS non-traded REITs, has announced that since its inception in 2005, they have raised over $5 billion in capital across several offerings.

Non-traded REITs as an industry, took in over $19 billion in 2013, according to data from Robert A. Stanger & Co. Realty Capital Securities, the dealer manager for American Realty Capital (ARC), contributed over $8 billion to that total, shattering all previous records.

Two other firms, Cole Capital (now part of ARC) and Griffin Capital both reach the billion plus mark taking in over $3 billion and $2 billion respectively.

“Raising more than $5 billion in capital for non-traded REIT offerings over the past eight years is even more remarkable when you consider the proliferation of competition during that time,” said Hans Henselman, COO and Chief Compliance Officer, in a statement.

Henselman joined KBS at its inception.

Mike Crimmins, CEO and Managing Director of KBS, has been with the firm since October of 2005. Originally, Crimmins amongst a handful of employees was hired as National Sales Director, and eventual earned a promotion to CEO in 2009.

“When we started KBS Capital Markets Group, we only had a handful of dedicated professionals and no selling agreements in place,” said Crimmins. “Through everyone’s hard work in the years since, we’ve built a firm of approximately 60 people and developed successful partnerships with leading broker-dealers, resulting in more than 900 selling agreements for all our offerings combined.”

“Our organization has consistently gathered assets by continuing to be among the most professional and knowledgeable teams on the street,” added Henselman.

See the chart below for capital raise details as of 9/30/2013.

REIT Status Capital Raise – as of 9/30/2013
KBS Real Estate Investment Trust Closed $1.9 billion*
KBS Real Estate Investment Trust II Closed $2.0 billion*
KBS Real Estate Investment Trust III Open $532 million
KBS Strategic Opportunity REIT Closed $576 million
KBS Strategic Opportunity REIT II N/A N/A
KBS Legacy Partners Apartment REIT Open $185 million

*Includes Dividend Reinvestment Plan