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KBS Real Estate Investment Trust Sells 61 Bank Branch Properties for $139.6 Million

KBS Real Estate Investment Trust Inc., a publicly registered non-traded REIT, sold 61 bank branch properties totaling 246,000 square feet to Pontus Net Lease Advisors LLC for $139.6 million, excluding closing costs. The company recognized a gain of approximately $30 million from the dispositions, after fees and expenses.

Included in the purchase price was a payment of $6.6 million by the buyer to compensate the company for costs and expenses associated with nullifying the mortgage loans on the properties, which had a total outstanding principal balance of $102.3 million.

The carrying value of the properties was approximately $105.7 million, which is net of $27.1 million of accumulated depreciation and amortization.

KBS Real Estate Investment Trust, which launched its initial public offering in January 2006, stopped selling common shares in May 2008 and terminated its dividend reinvestment plan in April 2012. The company raised $1.7 billion in the primary offering and $233.7 million under the dividend reinvestment plan. As of December 31, 2015, its portfolio consisted of 364 real estate properties, as well as four real estate loans receivable, and a participation interest in a real estate joint venture.

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