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

Thursday, 29 August 2019

KBS REIT II Takes Aim at Liquidating Office Portfolio

KBS REIT II Inc. is looking to sell off its remaining portfolio of six office properties with 3.9 million square feet in six states by the end of next year. It bought the properties between 2008 and 2013 for a total of $1 billion. It has hired CBRE to market for sale a 1.2 million-sf complex in Florham Park, N.J., that might be worth $300 million.

Commercial Real Estate Direct Staff Report

KBS REIT II Inc. is looking to sell off its remaining portfolio of six office properties with 3.9 million square feet in six states by the end of next year.

The Newport Beach, Calif., non-traded REIT, has one property in the sales market and plans to place the others up for sale soon after.

The company, sponsored by KBS Capital Advisors, is marketing for sale Park Avenue at Morris County, a six-building complex with 1.2 million sf in Florham Park, N.J. It expects to close a sales transaction by early November, after which it would adopt a formal plan of liquidation, which shareholders then would have to okay.

Chuck Schreiber, KBS' chief executive and co-founder, told investors on a conference call last week that the REIT would then put the rest of its portfolio up for sale.

KBS II was launched in 2007 and raised $1.8 billion by 2011, using that to make investments in 26 properties and eight debt instruments. It so far has generated $2.1 billion from the sale of 20 of its properties and $467.6 million from its debt investments.

Three years ago, the REIT had considered liquidation, but it decided to renovate its remaining properties and increase their occupancy rates in order to make them more valuable.

But it eventually got sales underway, selling five properties for $317.4 million, including two properties with 719,317 sf in Florida and Missouri in May for $131.5 million.

KBS II has hired CBRE to market Park Avenue at Morris County, which it bought in 2008 for $365 million. Jeff Waldvogel, chief financial officer of KBS Capital Advisors, told...





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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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shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
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