Home News KBS REIT II Sells Silicon Valley Office Building for $35 Million

KBS REIT II Sells Silicon Valley Office Building for $35 Million

KBS Real Estate Investment Trust II, a publicly registered non-traded REIT, has sold another office property at District 237 in North San Jose.

KBS Real Estate Investment Trust II, a publicly registered non-traded REIT, has sold its final office property at District 237, a Class A 415,500-square-foot office/research and development park formerly known as Corporate Technology Centre located in the North San Jose submarket of Silicon Valley.

On November 23rd, the REIT sold 300 Holger, a three-story, 99,900-square-foot building, to an unaffiliated third-party for $35 million, excluding closing costs of $0.8 million and disposition fees paid to the REIT’s advisor, according to a filing with the Securities and Exchange Commission.

KBS REIT II originally purchased Corporate Technology Centre (District 237) in March 2013 for $239 million. Built in 1999 and 2001, the campus consists of eight office buildings totaling 610,083 rentable square feet located on approximately 32.7 acres of land.

Last year, the REIT completed a number of dispositions at the office park including 350 Holger Way for $50.5 million in December 2020 and 250 Holger Way for $38.3 million in September 2020. In June 2020, it sold 100 Headquarters Drive and 200 Holger Way for $95.2 million. The sales were part of the REIT’s liquidation plan that was approved by shareholders in March 2020.

In 2018, the REIT sold three office buildings at the campus in separate transactions for $97.4 million.

The eight Corporate Technology Centre dispositions totaled $316.4 million before closing costs and fees.

KBS REIT II closed its primary offering in December 2010 after raising approximately $1.8 billion in investor equity. The company’s real estate investments currently includes two office properties.

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