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KBS REIT III Acquires $98 Million Atlanta Office Tower

KBS Real Estate Investment Trust III, a non-traded real estate investment trust based in Newport Beach, CA, purchased 201 17th Street in Atlanta, GA from an unaffiliated third party for approximately $98.3 million, according to a recent SEC filing.

Built in 2007, the 18-story LEED Gold certified building serves as the centerpiece office tower of Atlantic Station, a shopping and residential neighborhood located in Midtown Atlanta. The 355,870-square-foot Class A property features a number of retailers and facilities, including a café and a state-of-the-art conference center. The surrounding neighborhood includes amenities such as a 47,000-square-foot fitness center, an 18-screen movie theater, IKEA, Target and Dillard’s.

201 17th Street is located at the intersection of Interstates 75 and 85 and provides easy access to the city’s art scene, including the Atlanta Symphony Orchestra and Fox Theatre.

“We are excited about the acquisition of a property in the Midtown submarket because it is Atlanta’s leading overall market in terms of growth and absorption,” said KBS senior vice president Allen Aldridge. “We truly value the Atlanta market and believe it fits our current asset strategy very well.”

As of June 23, 2015, 201 17th Street was 93 percent leased to 19 tenants, with a weighted-average remaining lease term of 7.7 years

The building is adjacent to 171 17th Street, a 509,237-square-foot Class A office building also acquired by KBS REIT III in 2014. The DI Wire covered the story last July, which you can read about here.

Sponsored by KBS, KBS REIT III seeks to invest in and manage a portfolio of high quality commercial real estate assets, consisting primarily of Class A office towers, in high job growth markets nationwide. As of May 11, 2015, the company had sold 162,925,910 shares of common stock for gross offering proceeds of $1.7 billion.

For more KBS related news, visit their Directory Listing here.