KBS REIT II Closes $500 Million Financing Agreement

KBS Real Estate Investment Trust II, a publicly registered non-traded real estate investment trust, closed a loan facility for up to $500 million.

KBS Real Estate Investment Trust II, a publicly registered non-traded real estate investment trust, closed a loan facility for up to $500 million.

The two-year agreement, facilitated by Bank of America Merrill Lynch, is comprised of $375 million of term debt, which was funded at the close, and up to $125 million of revolving debt. KBS REIT II owns eight Class A office properties, totaling 4.1 million square feet, that will collateralize the loan.

“KBS is particularly proud of the reputation and relationships we have developed in the industry, which allowed for this efficient and successful collaboration with Bank of America Merrill Lynch,” said KBS CEO Chuck Schreiber. “This financing gives KBS REIT II the opportunity to further enhance our properties for the continued retention and attraction of world-class tenants.”

Robert Durand, executive vice president of financing for KBS, noted that the proceeds were used to repay existing debt agreements and will be used for liquidity management for the overall portfolio and to execute on tenant and capital improvements across its properties.

Bank of America Merrill Lynch acted as the administrative agent, bookrunner and sole arranger of the transaction.

KBS REIT II closed its primary offering in March 2011 after raising $1.8 billion in investor equity. As of December 31, 2017, the REIT’s $1.5 billion portfolio consisted of eight office properties and an office campus consisting of eight office buildings.

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