Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Monday, 18 November 2013

KBS Seeks up to $1.8Bln for Latest Non-Traded REIT

Written by 
Rate this item
(0 votes)

Commercial Real Estate Direct Staff Report

KBS Realty Advisors, has registered to raise up to $1.8 billion through the sale of shares in its latest REIT.

The Newport Beach, Calif., investment manager aims to invest in a variety of real estate-related debt instruments, properties, CMBS and collateralized debt obligations through the non-traded REIT, KBS Strategic Opportunity REIT II Inc.

Its shares will sell for $10 each through KBS' primary offering.

The new vehicle is a successor to KBS's first Strategic Opportunity REIT Inc., which was registered in 2009 and had raised $561.7 million of gross proceeds from an offering that was completed last year. As of the end of September, it owned 4.1 million square feet of office and retail space, one apartment property with 317 units, 1,375 acres of undeveloped land and one CMBS investment with a $1.5 million face value. It also held $21.78 million of loans.

The first Strategic Opportunity REIT picked up its apartment property, the Eleven80, at 1180 Raymond Blvd. in Newark, N.J., by buying and then foreclosing on a $35 million mortgage against it.

The REIT's filing says that it will likely be selling shares in itself at the same time that it is trying to raise another $105 million through a private placement that KBS, its sponsor, launched in August as a prelude to the recent offering.

KBS' broker-dealer affiliate is slated to earn fees of up to 9.5 percent of the amount raised. In addition, KBS will earn fees for investing the REIT's capital and it will earn an annual management fee.

Comments? E-mail John Covaleski or call him at (267) 247-0112, Ext. 208.



weekly-call-to-action

“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Subject: REITS -general (REITS)
  • Private: No
Read 266 times

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

Top Bookrunners
Private-Label CMBS - FY2014
Inv Bank #Deals Bal $mln MktShr%
Deutsche Bank 27.1  23,479.37 26.3
JPMorgan 18.6  13,752.01 15.4
Wells Fargo 17.2  13,085.05 14.6
Goldman Sachs 9.0  7,896.25 8.8
Citigroup 9.1  7,526.97 8.4

 

 

MOODY'S/RCA CPPI

 

cppichart FP

 

 

cmbs2spreads

 

Top Loan Contributors
Private-Label CMBS FY2014
Lender Vol $mln MktShr%
Deutsche Bank 14,005.13 16.0
JPMorgan 11,440.63 13.0
Wells Fargo 5,849.16 6.7
CCRE 5,750.69 6.6
Citigroup 5,604.13 6.4

 

 

 

REITCafe

  • West Coast Port Slowdown and Industrial REITs
    After nine months of labor negotiations and worsening cargo congestion at West Coast Ports, U.S. Labor Secretary Thomas Perez stepped in this week to help broker a deal between the union and shippers. The work slowdown is affecting the nation’s supply chain. Honda has reported a production slowdown because of parts....
     
  • New REITs Increase Investor Choices in 2015
    Three REIT IPOs in as many weeks could indicate a strong year ahead for new REIT formation. Robust REIT returns during 2014 created momentum for IPO activity. In addition, the market’s favorable reception of the widely-watched Paramount REIT (PGRE) and STORE Capital (STOR) IPOs in late 2014 has encouraged companies to....

  • REITs Start 2015 Strong
    One month in to 2015, REITs continue to outperform the broader markets. During January, the FTSE NAREIT All REIT Index total return measured 5.59 percent, compared to -3.00 percent for the S&P 500, -3.69 percent for the DJIA, and -2.13 percent for the NASDAQ. REITs are attractive to investors for a...
warehouse-backstage