KBS Strategic Opportunity REIT, a publicly registered non-traded real estate investment trust, is launching a $1 billion offering, according to preliminary documents filed with the Securities and Exchange Commission.
The company, which intends to operate as a perpetual life REIT, plans to offer four new classes of common stock: class T, class T-I, class W and class I shares. The company also expects to begin reporting a daily net asset value for each class of shares.
KBS Strategic Opportunity REIT intends to invest in a diverse portfolio of opportunistic real estate, real estate-related loans, real estate-related securities and other real estate-related investments. KBS Capital Markets Group LLC will serve as the dealer manager for the proposed offering.
The $1 billion offering will comprise up to $750 million of shares in a primary offering and up to $250 million dividend reinvestment plan shares. The per share purchase price will vary from day to day.
Class T shares include a 3.5 percent selling commission, a 0.6 percent dealer-manager fee, and a 0.5 percent distribution fee. The minimum initial purchase is $4,000 for class T shares.
Class T-I shares include a 1.5 percent selling commission, a 0.3 percent dealer manager fee, and a 0.25 percent distribution fee. The minimum initial purchase is $500,000 for class T-I shares
Class W shares have no selling commissions or distribution fees, but include a 0.6 percent dealer manager fee. The minimum initial purchase is $4,000 for class W shares.
Class I shares have no selling commissions or distribution fees, but include a 0.1 percent dealer manager fee. The minimum initial purchase is $1 million for class I shares.
The REIT intends to utilize an opportunistic investment strategy and plans to focus on acquiring properties with significant possibilities for short-term capital appreciation, such as those requiring development, redevelopment or repositioning, or those located in markets with higher volatility, lower barriers to entry, and high growth potential.
KBS Strategic Opportunity REIT went effective in November 2009 and closed its primary offering five years later after raising $561.7 million in investor equity. As of September 30, 2016, the company owned 11 office properties, one office campus, three office portfolios, one retail property, two apartment properties, two investments in undeveloped land and two investments in unconsolidated joint ventures.