KBS Strategic Opportunity REIT, Inc. has acquired the 284,751 square foot office building at 353 Sacramento in San Francisco, CA for $169.5 million plus closing costs.
The seller was Pacific EIH Sacramento, LLC, an affiliate of investment manager Pacific Eagle Holdings.
353 Sacramento was built on 0.35 acres in 1982 and is currently 85 percent leased to 25 tenants. The current aggregate annual effective base rent, which is calculated as the annualized contractual base rental income (excluding rental abatements), is approximately $9.6 million. The current weighted-average remaining lease term for the tenants is approximately 2.0 years and the current weighted-average annual rental rate over the remaining lease term is $45.19 per square foot.
The Newport Beach, Calif., REIT funded the purchase of 353 Sacramento with proceeds from its offering of Series A debentures to Israeli investors and cash on hand.