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KBS REIT III Sells Northern California Office Park, Generates 18% Return

KBS Real Estate Investment Trust III, a publicly registered non-traded real estate investment trust, has sold Rocklin Corporate Center, a Class A, two-building office park located in the Sacramento suburb of Rocklin, California.

KBS Real Estate Investment Trust III, a publicly registered non-traded real estate investment trust, has sold Rocklin Corporate Center, a Class A, two-building office park located in the Sacramento suburb of Rocklin, California for approximately $42.9 million. KBS acquired the property in November 2014 for nearly $33.8 million.

“We are very pleased with this investment,” said Rod Richerson, western regional president of KBS. “Quickly stabilizing the asset and maintaining an average leased percentage of 96.24 percent during our hold period, the asset has generated an annual property level return to our investors of 17.73 percent over our 3.5-year hold period.”

Built in 2007, Rocklin Corporate Center is a 220,000-square-foot property located on nearly 14 acres of land with more than 1,000 parking spaces for tenants. The property earned an Energy Star label for its operating efficiency with sustainable elements, including low-flow fixtures and recycled content in carpet and ceiling tiles.

KBS is a private equity real estate company and an SEC-registered investment adviser. Founded in 1992 by Peter Bren and Chuck Schreiber, it is recognized as one of the largest commercial office owners globally. Since inception, KBS-affiliated companies have completed transactional activity in excess of $38 billion via 16 separate accounts and six commingled funds, for government and corporate pension funds. Additionally, KBS has sponsored five sovereign wealth funds and seven SEC-registered, non-traded REITs.

KBS REIT III’s initial offering commenced in October 2010 and closed in July 2015 after raising approximately $1.8 billion. As of the first quarter of 2018, the company’s $3.4 billion portfolio was comprised of 28 office properties and one mixed-use office/retail property, according to Summit Investment Research.

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