Subsidiaries of KBS Real Estate Investment Trust III, Inc. have agreed to buy a portfolio of three office properties for $268.8 million plus closing costs.
The three properties are located in Gaithersburg, MD and Dallas, TX. The acquisition consists of:
– One Washingtonian Center, an office property built in 1990 and renovated from 2010 to 2012, containing 321,007 rentable square feet and located on approximately 5.1 acres of land in Gaithersburg, Maryland.
– Preston Commons in Dallas, Texas, an office property consisting of three buildings built in 1958, 1986 and 1986, respectively, and renovated from 2010 to 2013, containing an aggregate of 427,799 rentable square feet of office space and located on approximately 6.3 acres of land
– Sterling Plaza, an office property built in 1984 and renovated from 2010 to 2013, containing 313,609 rentable square feet of office space and located on approximately 2.1 acres of land in Dallas, Texas and (iii)
The sellers are all affiliates of CBRE Global Investors.
KBS made a total aggregate deposit of $6.3 million under the purchase and sale agreements, which stipulate that KBS’s obligation to acquire any property in the portfolio is contingent upon the closings of each of the other properties, unless the failure to close both of the other properties is a result of the Company’s failure to satisfy the seller’s conditions to closing.
As of May 1, 2013, the portfolio was 86 percent leased to more than 120 tenants. The current aggregate annual effective base rent for the tenants is approximately $23.5 million.