KBS Real Estate Investment Trust II, a publicly registered non-traded REIT, has sold two office buildings in District 237, a Class A office/R&D complex formerly known as Corporate Technology Centre located in the North San Jose submarket of Silicon Valley.
According to a filing with the Securities and Exchange Commission, the sale price was $95.2 million, or $62.9 million net of credits given to the purchaser primarily for outstanding tenant improvements and lease incentives. Third-party closing costs totaled approximately $0.9 million.
The buildings include 100 Headquarters Drive and 200 Holger Way, which total 142,700 square-feet and were sold to the EXAN Group, an independent real estate fund and asset management company. During the first quarter of 2020, KBS leased the buildings to Raytheon Corporation, according to an investor presentation.
The properties were sold as part of KBS REIT II’s liquidation plan that was approved by shareholders in March 2020.
KBS REIT II purchased Corporate Technology Centre (District 237) in March 2013 for $239 million. The campus consists of eight office buildings totaling 610,083 rentable square feet located on approximately 32.7 acres of land. In 2018, the REIT sold three office buildings in Corporate Technology Centre to three separate purchasers for $97.4 million.
KBS REIT II closed its primary offering in December 2010 after raising approximately $1.8 billion in investor equity.