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Non-Traded REIT Acquires Class A Office Property in San Jose

KBS Real Estate Investment Trust III (KBS REIT III) is now the proud new owner of Ten Almaden in San Jose, California. The 17-story Class A office project was purchased from Equity Office for $116.7 million.

The property contains 309,241 rentable square feet on 1.6 acres of land south of San Jose’s “Innovation Triangle.” It is near 100 restaurants, bars, and hotels and within walking distance of the San Jose Convention Center. In addition, it is approximately a ten-minute walk from the CalTrain.

“Ten Almaden can and does accommodate the needs of many different industries, including multi-billion dollar corporations,” said KBS Senior Vice President Brent Carroll. “We believe the central location and flexibility of the building will be helpful in attracting new tenants as more companies move to the downtown San Jose market.”

Built in 1988, the property was renovated in 2010 and is 89% occupied by 15 tenants from a variety of industries such as technology, financial services, business services, legal, marketing, and construction-architecture firms.

“Since 2009, millions have been invested into Ten Almaden to build out tenant spaces, provide upgrades to the lobby and elevators, renovate the common area, and implement ADA upgrades,” commented KBS Regional President, Rodney Richerson. He continued, “We believe these upgrades and careful ownership has made Ten Almaden one of the best properties in market. We hope to continue its track record of success with additional renovations including a new conference center, tenant lounge, property management office, remodeled fitness center, common area Wi-Fi, and an expanded outdoor tenant deck.”

Sponsored by KBS Capital Markets Group, KBS REIT III was formed in 2009 and through September 2014 had sold 99,729,109 shares of common stock for gross offering proceeds of $995.9 million.

KBS REIT III intends to fund the purchase of Ten Almaden with offering proceeds and a mortgage loan.