KBS REIT III to Buy $150 Million San Jose Office Plaza

KBS Real Estate Investment Trust III Inc., a publicly registered non-traded REIT based in Newport Beach, California, entered into a purchase agreement to acquire The Almaden  in downtown San Jose, California for $150 million plus closing costs. The seller is reportedly an affiliate of Embarcadero Capital Partners.

The Almaden is comprised of three office buildings totaling 416,127 square feet and situated on approximately 5.8 acres of land. The property was constructed between 1980 and 1981 and renovated in 2006. As of September 2, 2015, The Almaden was 94 percent leased to 54 tenants with a weighted average remaining lease term of 3.9 years.

The company intends to fund the purchase with proceeds from a mortgage loan from an unaffiliated lender and proceeds from its now-terminated primary initial public offering. The company is currently negotiating the terms of the mortgage loan.

Last week, The DI Wire reported that KBS Real Estate Investment Trust III acquired a 26-story high-rise office building in Austin, Texas from an unaffiliated third-party seller for undisclosed purchase price.

KBS Real Estate Investment Trust III is a publicly registered non-traded real estate investment trust that closed its initial public offering on May 29, 2015. The company invests in and manages a diverse portfolio of real estate properties and real estate-related debt assets across the United States. The REIT’s strategy is 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.

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