KBS Strategic Opportunity REIT Inc. has paid $83.4 million, or $166.80/sf, for Crown Pointe, a two-building office complex with 449,968 square feet in the Atlanta suburb of Dunwoody, Ga.
The Newport Beach, Calif., REIT, whose shares do not trade on any exchange, bought the property, at 1040 and 1050 Crown Pointe Center, from Cornerstone Real Estate Advisers Inc., which had acquired it in 2004 for $56 million, when it was 80 percent occupied.
The property now is 72 percent occupied by 59 tenants who have a weighted average 3.5 years left on their leases.
KBS Strategic funded its purchase by tapping proceeds of a $250 million bond sale in Israel and a $62.5 million mortgage, of which $50.5 million has been funded. The remainder will be funded to cover tenant improvement costs and leasing commissions. The mortgage matures in 2020 and can be extended for up to two additional years. It pays a rate pegged to Libor plus 260 basis points. The Israeli bonds mature in seven years and pay a fixed coupon of 4.25 percent.
The property, near a major state highway and a rapid-transit station, includes a fitness center, business center, garage and surface parking and courtyard with landscaped gardens and shaded seating areas.
KBS Strategic said it would invest in improvements to the property's lobby and restrooms. It also will upgrade the fitness center and other common areas.
KBS Strategic was launched in 2009 and has raised $561.7 million of equity through the sale of its common shares. It's parlayed that into 20 investments with a cost basis of $1.5 billion. It estimates those investments are now valued at $1.8 billion.
Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.
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