KBS Growth & Income REIT Sells California Office Building to Private Investor
KBS Growth & Income REIT Inc., a publicly registered non-traded REIT, has sold Von Karman Tech Center, a 101,200-square-foot multi-tenant office building located in Irvine, California.
KBS Growth & Income REIT Inc., a publicly registered non-traded REIT, has sold Von Karman Tech Center, a 101,200-square-foot multi-tenant office building located in Irvine, California. The property was sold in an off-market transaction for $25.4 million to private buyer, Dayani Partners.
Von Karman Tech Center was developed in 1980 and renovated in 2013 and 2014. KBS purchased the two-story property in August 2015 for approximately $21.5 million plus closing costs and recently invested in a multi-million-dollar renovation.
“Irvine matches well with KBS’ overall strategy of investing in strong tech markets throughout the country with solid employment and population growth,” says Rod Richerson, KBS regional president of the Western United States. “When KBS purchased this best-in-class office asset, we recognized this area of Irvine for its potential as an up-and-coming area for Orange County’s tech tenants. The area had a significant multifamily development pipeline and other walkable amenities that attract quality tenancy.”
The company said that following the renovations, the property has seen significant leasing activity in 2019, bringing occupancy up to nearly 90 percent. New leases, renewals, and expansions signed year-to-date topped more than 17,810 square feet, with the majority of space leased through 2023 and beyond.
Von Karman Tech Center sits on nearly five acres in the Irvine Business Complex, adjacent to The District at Tustin Legacy shopping center and entertainment hub, dining establishments, and boutiques.
In other company news, the REIT recently declared a net asset value of $8.43 per share as of September 30, 2019 and disclosed plans to evaluate strategic alternatives. The board has engaged a financial advisor to assist with the process and temporarily suspended the company’s private placement offering.
KBS Growth & Income REIT’s initial private offering launched in June 2015 and raised $76.8 million before closing in April 2016. Its initial public offering raised $3.9 million from April 2016 until June 2017, and its second private offering launched in October 2017 and raised $5.4 million via KBSDirect.com, as of September 30, 2019.
