KBS ACQUIRES 201 SPEAR STREET OFFICE TOWER IN SAN FRANCISCO FOR $121M
SAN FRANCISCO — KBS Real Estate Investment Trust III, a public non-traded REIT, has purchased 201 Spear Street, a 246,563-square-foot Class-A waterfront office tower in San Francisco’s South Financial District, for $121 million plus closing costs.
According to the San Francisco Business Times, 201 Spear Street traded for $495 per square foot.
The 18-story, 201 Spear Street building has been institutionally owned and operated since its construction and was 82 percent occupied at the time of purchase. Tenants include Verizon Business Solutions, CoreLogic and Moovweb.
“San Francisco’s South Financial District is considered one of the nation’s top-performing office markets, and KBS REIT III is pleased to have a presence here,” says Brent Carroll, senior vice president and asset manager for Newport Beach, Calif.-based KBS. “201 Spear Street is near much of what downtown San Francisco has to offer, making it a great addition to this REIT’s nationwide portfolio.”
The property is two blocks from the site of the new Transbay Terminal transportation and housing project, Market Street, the recently revitalized Embarcadero promenade and the Ferry Building, according to Rodney Richerson, KBS western regional president. “This spot is quickly becoming the location of choice for premier technology companies and others.”
KBS REIT III invests in and manages a diverse portfolio of real estate properties and real estate-related debt assets across the United States through a hybrid investment strategy. In the office sector, the REIT seeks to acquire institutional Class A properties anchored by credit-rated tenants, which are typically nationwide companies with sound financial balance sheets.
The REIT’s advisor, KBS Capital Advisors, is an affiliate of KBS Realty Advisors, a private equity real estate firm founded in 1992. Since its inception, KBS Realty Advisors and its affiliated companies have completed transactional activity of approximately $26 billion via 14 separate accounts, six commingled funds, five sovereign wealth funds and five non-traded REITs. KBS Realty Advisors is a registered investment advisor with the U.S. Securities and Exchange Commission.
— Matt Valley