Non-Traded REIT, KBS Real Estate Investment Trust III (KBS REIT III), recently announced the successful signing of over 69,000 square feet in leases across two different properties. Lessees agreed to rent 39,123 square feet (sf) and 30,147 sf in Salt Lake City and San Francisco respectively.
Mastery Connect, The Pelorus Group, and Perfectly Posh each leased space in the 21-story, Class-A office tower owned by KBS REIT III in the business district of Salt Lake City. The property, 222 Main, offers restaurants and retail outlets on the ground floor, while visitors enjoy views of the Wasatch Mountains and sights of the city’s downtown.
“We are thrilled to welcome these new tenants to this amenity-rich office building,” said Senior V.P. Tim Helgeson. “When the building was acquired in February, it was at 85% occupancy. It is now 94% leased with the 15th floor remaining available.”
Skidmore, Owings & Merrill, a well-known architect, designed the building, which is also LEED Gold Core & Shell certified.
Goldman Sachs happens to be 222 Main’s largest tenant.
At 201 Spear Street in San Francisco, KBS REIT III successfully signed renewals, one expansion, and a couple of new leases.
Pacific Business Center renewed a 10,292 sf lease while adding another 3,431 sf. Diversified Credit Investments, LLC also renewed 7,644 sf and Hightower Holding, LLC plus MIR Partners signed a 5,025 sf lease and a 4,025 sf lease respectively.
The Class-A, 18-story office tower, located in San Francisco’s South Financial District, offers 246,563 sf of rentable space. Its waterfront location and proximity to transportation and luxury high-rise apartments make it an appealing location.
“We believe 201 Spear Street’s location in a growing market is an attractive draw to tenants,” said KBS Senior VP/Market Leader Brent Carroll.
KBS REIT III acquired the building in December of 2013 for $121 million plus closing costs. At the time, 201 Spear Street was 82% leased to 19 tenants.
According to MTS Research Advisors, the REIT had raised over $895 million through the end of Q2 2014 and owned 13 properties with an invested value of just under $1.5 billion.