KBS REIT III Agrees to Pay $116.7M for Ten Almaden in San Jose, CA

Photo: LoopNet

KBS Real Estate Investment Trust III, Inc. has agreed to acquire Ten Almaden, an office property containing 309,255 rentable square feet on 1.6 acres of land in San Jose, CA, for $116.7 million plus closing costs.

Ten Almaden was built in 1988 and renovated in 2010. As of November 19, 2014, Ten Almaden was approximately 89% leased to 15 tenants with a current weighted-average remaining lease term of 4.7 years.

A LEED Gold Certified building, Ten Almaden is near light rail and within walking distance of Caltrain, hotels, restaurants and retail amenities, according to Equity Office’s website for the property. The asset has amassed more than 185,000 square feet of leasing activity since 2012, according to a May report from Cassidy Turley.

California-based KBS REIT III says it will fund the purchase of Ten Almaden with proceeds from a mortgage loan from an unaffiliated lender and proceeds from its offering. It is currently negotiating the terms of the mortgage loan.