KBS Strategic Opportunity REIT, a publicly registered non-traded real estate investment trust, has purchased the City Tower in Orange, California, a 21-story, Class A office building totaling 435,000 square feet. As previously reported by The DI Wire, the purchase price was approximately $147.3 million plus closing costs.
Built in 1988 and renovated in 2015, City Tower is located at the connection of the 57, 22 and 5 Freeways, locally known as the “Orange Crush.” In addition to being the tallest office building in the area, onsite amenities include a six-level parking structure, café and Zagster bike service.
“City Tower’s location makes it particularly appealing to companies and employees within the Orange County area given its accessibility to businesses, residential space and recreational opportunities,” said Shep Wainwright, senior vice president at KBS and asset manager for the property.
In the coming year, KBS plans to make additional improvements that can add to the property’s appeal and provide a top-notch tenant experience. Renovations will include updates to the exterior entrance and lobby, an indoor/outdoor tenant lounge and a fitness facility complete with locker rooms, showers and towel service.
City Tower is within walking distance of The Outlets of Orange, which include a variety of retail, dining and entertainment options. Angel Stadium, Honda Center, the Grove of Anaheim, and Disneyland Resort and Theme Park are all within close proximity to the property.
In related news, the company recently purchased Marquette Plaza, a Class A office tower in Minneapolis, for $88.4 million.
KBS Strategic Opportunity REIT went effective in November 2009 and closed its primary offering three years later after raising $574 million in investor equity. As of the third quarter 2017, the company owned 20 properties with an investment cost of $1.2 billion, according to Summit Investment Research.