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KBS Growth & Income REIT’s Houston Office Building Gets New Buyer

KBS Growth & Income REIT Inc. – a publicly registered non-traded real estate investment trust – announced entering into a new purchase and sale agreement for The Offices at Greenhouse to Austin-based Capital Commercial Investments Inc. The sale price is $17.6 million, subject to prorations and closing credits.

This activity follows the KBS REIT’s announcement earlier this month that the planned sale of The Offices to Red River Management LLC for $18.3 million had been terminated.

Originally acquired by the REIT in November 2016 for $47 million, the property is a five-story Class A office building containing more than 203,000 rentable square feet located on approximately 4.6 acres of land in Houston, Texas.

The REIT borrowed $72 million from JP Morgan Chase Bank, N.A., at the time of purchase. On May 31, the REIT entered into a fifth modification agreement with JP Morgan to extend the maturity date of the term loan to Aug. 31.

The new closing is expected to occur by July 8, 2024; however, Capital Commercial Investments has a one-time option to extend the closing an additional 15 days by paying a $1 million closing extension fee. If Capital Commercial fails to complete the acquisition, it could forfeit up to $3 million.

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