Home Alts News KBS REIT Loses Portland Office Tower to Foreclosure

KBS REIT Loses Portland Office Tower to Foreclosure

KBS Growth & Income REIT Inc., a publicly registered non-traded real estate investment trust, reported that the Commonwealth Building, an iconic office tower located in Portland, Oregon, was sold at public auction in a foreclosure sale to a buyer affiliated with Metropolitan Life Insurance Company.

KBS Growth & Income REIT Inc. entered the loan agreement, secured by the Commonwealth Building in Portland, Oregon, with the Metropolitan Life Insurance Company for borrowings of up to $51.4 million in January 2018.

As previously reported by The DI Wire in February 2023, KBS was in maturity default following its failure to pay the amount of the debt outstanding on the Commonwealth Building mortgage loan on its February 1, 2023, due date.

KBS says that given the reduced rent and occupancy by the building’s tenants, as well as the market conditions in Portland, Oregon, where the property is located, the Commonwealth Building was valued at less than the outstanding debt of $47.8 million.

The company’s board of directors also previously proposed that its stockholders vote to approve a plan of liquidation at the company’s annual meeting. The company advised that its board of directors began a review of strategic alternatives which would likely lead to the adoption of a plan of liquidation.

In August 2020, KBS terminated their distribution reinvestment plan to pursue a liquidation strategy.

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