KBS Real Estate Investment Trust II Inc., a publicly registered non-traded real estate investment trust, announced that the $280 million sale of Union Bank Plaza in Los Angeles has been canceled, according to a filing with the Securities and Exchange Commission. The purchaser, Pacific Reach Properties affiliate RC Acquisitions, exercised its right to terminate the agreement, the company said.
Located at 445 South Figueroa Street on 3.7 acres of land, Union Bank Plaza totals approximately 627,000 square feet and represented approximately 13.2 percent of KBS REIT II’s assets and 17.8 percent of its total revenues for the first half of 2017. The REIT purchased the 40-story office building in September 2010 for $208 million from international real estate firm Hines’ U.S. Office Value Added Fund.
RC Acquisitions signed an agreement earlier this month to purchase the property and will receive a refund of its earnest money deposit.
KBS REIT II went effective in April 2008 and closed its primary offering in March 2011 after raising $1.8 billion in investor equity. The company’s portfolio consists of 10 properties (9 office properties and an office campus consisting of eight office buildings) and one real estate loan receivable.