Mere weeks after a glut of property sales and a declared cash distribution of $3.75 per share, KBS Real Estate Investment Trust II (KBS REIT II) announced the sale of another property.
The non-traded REIT most recently sold Two Westlake Park in Houston, Texas to Bravo Strategies II LLC for $120 million. The 455,476-square-foot office building was first bought by KBS REIT II in 2011.
Located within the 58-acre Westlake Park, the building recently underwent a renovation of 67,334 square-feet that transformed certain areas into leasable office space with quartz countertops, Italian ceramic tiles, and energy efficient exterior glass.
“Two WestLake stands as an example of a successful asset in a thriving Houston market that transformed underutilized square footage into revenue-generating office space, while also solving any existing and future tenant’s plans for expansion,” said KBS Senior VP and Market Leader Gio Cordoves.
The aggregate cost of Two Westlake Park was $94.8 million, which includes the initial purchase price of $79.4 million as well as capital expenditures and lease commissions since acquisition of $14.5 million and acquisition fees and expenses of $0.9 million.
In addition, on July 25, 2014, in connection with the sale of the property, KBS REIT II repaid $53.1 million of the outstanding principal balance due under a portfolio mortgage loan, which was partially secured by Two Westlake Park.
The sale of Two Westlake Park is the company’s seventh property sale since May 2014. It is still unknown if the REIT, which is closed to new investors, is selling off its assets as part of a liquidity event or if it is poising itself for a merger, acquisition, or listing on an exchange.