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KBS REIT III Acquires $52 Million Property near Washington DC

KBS Real Estate Investment Trust III, a publicly registered non-traded real estate investment trust based in Newport Beach, California, purchased an office building located at 3001 Washington Boulevard in the Clarendon neighborhood of Arlington, Virginia for $52 million. The seller, Penzance, is a privately-held real estate investment firm based in Washington, D.C.

The LEED Gold Certified property is an eight-story, 94,837-square-foot building located two blocks away from The Market Common at Clarendon, an outdoor, development with restaurants, residential buildings and 30 retailers, and one block away from the Clarendon Metrorail Station, which is three stops from downtown Washington, D.C., and four stops from the Pentagon. The property is also easily accessible by Interstate 66 and Route 50, and is 10 minutes by car from downtown Washington, D.C. The Clarendon neighborhood has become known for its unique mix of shops, bars and small restaurants and is considered the downtown of Arlington with its vibrant 24/7 environment.

“This building is located in what we believe is one of the most desirable submarkets of the Washington, D.C. metropolitan area and offers tenants an unparalleled amenity base and lifestyle,” said Marc DeLuca, KBS regional president.

The building offers a list of amenities, including a pending full-service restaurant (lease executed), private office terraces on two floors, and other shared amenities with 3003 Washington Boulevard, such as a fitness center, rooftop terrace, underground parking garage, on-site property management and a bike room.

KBS REIT III also owns 3003 Washington Boulevard, which was purchased in December 2014 from Penzance, and is connected to 3001 Washington Boulevard. The buildings together total 311,120 square-feet.

“We believe northern Virginia has become a popular place for businesses, and tenants will enjoy Clarendon’s urban feel, mass-transit options and accessibility to Washington, D.C.,” said Stephen Close, KBS senior vice president. “We are pleased to add this asset to the KBS portfolio and combine it with 3003 Washington Boulevard, as it was originally intended.”

KBS Capital Advisors is KBS REIT III’s external advisor and is an affiliate of KBS Realty Advisors, a private equity real estate company and SEC-registered investment advisor. Since its inception, KBS-affiliated companies have completed transactional activity in excess of $30.5 billion via 14 separate accounts, six commingled funds, five sovereign wealth funds and six non-traded REITs.


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