KBS REIT Purchases Las Cimas IV in Austin for $35.9M
- Nov 03, 2011
November 3, 2011
By Barbra Murray, Contributing Editor
Keen on Austin, Tex., KBS Real Estate Investment Trust III has made its second acquisition within a month. The REIT just purchased Las Cimas IV, a 138,000-square-foot Class A office asset in the Las Cimas Office Park for $35.9 million.
Developed by Lincoln Property Co. in 2008, Las Cimas IV carries the address of 900 S. Capital of Texas Highway and sits within eight miles of downtown Austin. In addition to the five-story office building, the 9.7-acre property features a 340-space parking structure attached to the office segment via a covered walkway. Las Cimas IV is 94 percent occupied, with a tenant roster featuring 13 tenants, including law firm Wilson Sonsini Goodrich & Rosati and semiconductor designer and manufacturer Intersil Corp.
KBS REIT III relied on $18 million in proceeds from its portfolio bridge loan and proceeds from its ongoing initial public offering to finance the purchase of Las Cimas IV. Real estate services firm Holliday Fenoglio Fowler L.P. represented the seller in the transaction, while Bill Rogalla, Central Region senior vice president and director of acquisitions and dispositions with KBS Realty Advisors, represented the REIT. “Austin’s diversified economic base and strong projected population and job growth make it an attractive market for investment in commercial property,” Rogalla said. That sentiment explains why KBS REIT III snapped up the fully leased, 174,000-square-foot Domain Gateway office building at The Domain mixed-use development in northwest Austin for $48 million just four weeks ago. The purchase marked KBS REIT III’s first equity asset acquisition.
While the REIT has managed to get its hands on two assets within 30 days, sales volume in Austin’s office market has not been exceptionally brisk lately. The third quarter produced only one significant transaction beyond KBS’s Domain purchase: investor Mark Mcallister’s acquisition of the 68,600-square-foot Colina West.