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Tuesday, 20 October 2015

KBS Realty Launches Non-Traded REIT to Pursue Value-Add Core Investments

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Commercial Real Estate Direct Staff Report

KBS Realty Advisors has launched another non-traded REIT, only its second during the past five years.

Its latest entry is KBS Growth & Income REIT Inc., through which it could raise up to $2.3 billion of equity by selling common shares for roughly $10/share. Its aim is to pursue what the Newport Beach, Calif., investment manager calls a value-creating core strategy, in that it will target properties that are at least 80 percent occupied and might be in need of capital improvements in order to attract the tenants needed to improve their occupancy.

Such a strategy typically is less risky than a traditional value-add, or opportunistic, approach in that targeted properties usually require relatively small improvements and also have existing stable tenant rosters, providing cash flow. The end-game is to preserve capital and provide relatively attractive returns to investors. It aims to hold its investments for three to seven years each, monetizing them when market conditions and values are ideal.

It plans to execute a liquidity event - a listing of its shares or liquidation - within 10 years.

KBS previously had sought to raise $105 million through a private placement of...





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Additional Info

  • Syndicate to Realpoint: No
  • Subject: REITS -general (REITS)
  • Company: Rialto Capital Management
  • Private: Yes
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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