KBS Real Estate Investment Trust III Inc., a publicly registered non-traded REIT, has sold Anchor Centre, a two-building, 333,000-square-foot Class A office property located in Phoenix, Arizona to TerraCap for $103.5 million.
KBS REIT III purchased the property in May 2014 for $85.1 million plus closing costs.
“Anchor Centre features an impressive tenant roster anchored by industry-leading, investment-grade, and creditworthy tenants,” said Tim Helgeson, asset manager for Anchor Centre and senior vice president for KBS. “The asset contains a blend of publicly-traded national and international firms, expanding regional firms, and well-respected local businesses. The high-grade tenant roster is one of the reasons why this property has been so resilient during the market fluctuations caused by COVID-19.”
Built in 1984 and 1986, Anchor Centre is a four- and six-floor office complex that is 93.2 percent occupied. On-site amenities at the Energy Star-certified asset include upscale dining, a deli, secured underground parking, a tenant lounge and game room, fitness center, conference facility, plaza area and outdoor patio.
The REIT began investing in the multimillion-dollar capital improvement program at the property. These upgrades included modernizing the lobby; renovating common areas, restrooms, and expanding and modernizing numerous amenity spaces, the company said.
KBS REIT III’s initial offering commenced in October 2010 and closed in July 2015 after raising approximately $1.7 billion. As of September 30, 2020, the REIT’s $2 billion property portfolio consists of 18 office properties and one mixed use office/retail property.