KBS Strategic Opportunity REIT II, a publicly registered non-traded real estate investment trust, has filed a $625 million registration statement with the Securities and Exchange Commission. The company plans to offer $500 million in Class A and Class T shares of common stock and $125 million in shares under the distribution reinvestment plan.
Although pricing for the shares was not disclosed in the preliminary prospectus, Class A shares will include a 6.5 percent selling commission and a 2 percent dealer manager fee paid to KBS Capital Markets Group LLC. Class T shares include a 3 percent selling commission, a 2 percent dealer manager fee, and a 1 percent annual stockholder servicing fee.
The REIT plans to use the offering proceeds to purchase real estate and real estate-related investments, to maintain a working capital reserve, and to pay other offering and investment related expenses.
KBS Strategic Opportunity REIT II went effective in August 2014, and through a private placement offering and a subsequent initial public offering, has raised a total of $233 million in investor equity. As of the second quarter of 2017, the company’s $337 million portfolio was comprised of six investments, according to Summit Investment Research.