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Tuesday, 14 February 2017

KBS Strategic Pays $83.4Mln for Crown Pointe Office Complex Near Atlanta

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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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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Atlanta
  • States: Georgia
  • Sector: Office
  • Subject: Property Acquisitions (ACQ)
  • Valuation: Between $50 million and $100 million
  • Private: No
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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 - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

MOODY'S/RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

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