KBS REIT II Nabs San Jose Office for $35M
- Dec 23, 2008
KBS REIT II has acquired a 142,000-square-foot office building in San Jose, Calif., for $35.7 million. The property, located at 350 East Plumeria Dr., is fully-leased to Netgear Inc., a designer and developer of networking software, which houses its headquarters in the building. KBS Realty Adivsors vice president Peter Mette represented KBS REIT in the deal. Eastdil Secured, the real estate investment firm and subsidiary of Wells Fargo, represented the seller, Equity Office Properties. “With the 10-year lease to a good company, we’re in a position to enjoy above average returns for the balance of our hold–historically well above average,” said Mette. “It’s a pretty fair deal for both buyer and seller.” The two-story building (pictured) was constructed in 1984, and enjoyed a $6 million renovation earlier this year. A parking lot with 503 spaces is one benefit, as well as the convenient access within one mile to the Montague Expressway interchange with Interstate-880. “We just love Silicon Valley. It has all the infrastructure to accommodate and facilitate innovation,” Mette noted. KBS Capital Markets Group is the dealer and manager of both KBS REIT I, KBS REIT II. KBS-affiliated companies already have a strong presence in the Silicon Valley with a portfolio of area properites including 370 San Aleso Avenue, Arques Business Park in Sunnyvale, 3200 North First Street in San Jose, and Bridgeway Tech Center in Newark. KBS REIT I closed last May, with $1.67 billion raised since its first shares were sold in July 2006. As of June 18, 2008, KBS REIT I had used the proceeds of the offering to acquire 61 properties offering more than 20 million square feet of office, industrial and retail space, primarily in large metropolitan areas of the United States. An additional $543 million of strategic debt real estate-related assets was purchased, bringing total acquisitions to more than $2.1 billion. On June 2, KBS REIT II opened a sale of 200 million shares of common stock in a primary offering at a price of up to $10 per share. KBS REIT II plans to use the proceeds of this offering to continue to acquire and operate commercial real estate assets and real estate-related assets, such as this deal announced today.