Public, non-traded REIT KBS Real Estate Investment Trust III, Inc. (KBS REIT III) recently agreed to purchase a mixed-used office and retail property for $126.5 million according to a filing.
Known as Park Place Village (the village), the property contains 372,201 rentable square feet of office space and 110,918 rentable square feet of retail space on about 17.1 acres of land in Leawood, Kansas, a submarket of Kansas City.
Construction of Park Place Village began in 2007 and now includes 10 separate buildings. Tenants include restaurants such as 801 Chophouse, California Pizza Kitchen, and RA Sushi, while retailers consist of national brands and local boutiques.
On May 1, 2015, the village was 95 percent leased to 55 tenants with a weighted-average remaining lease term of 7 years.
KBS REIT III intends to fund the purchase with proceeds from an existing portfolio loan and does not intend to make significant renovations or improvements to the property.
The REIT terminated its public offering Friday, May 29, 2015.
As of February 20, 2015, it had accepted gross offering proceeds in excess of $1.3 billion.