KBS REIT Sells West Palm Beach Office Tower for $150M
- Aug 25, 2014
KBS Real Estate Investment Trust II has sold CityPlace Tower, an 18-story, 295,900-square-foot Class A office building in the West Palm Beach, Fla., CBD, for $150 million, KBS announced late last week.
The buyer was not identified, and as of press time KBS had not responded to Commercial Property Executive’s request for further information.
The REIT had acquired the asset in April 2011 for $126.5 million.
“City Place Tower is a recently developed asset that benefits from its high-quality construction and its location in an established mixed-use project in West Palm Beach,” KBS senior vice president & market leader Allen Aldridge said in a release. “This was a solid asset in KBS REIT II’s portfolio.”
KBS REIT II is a public non-traded REIT based in Newport Beach, Calif.
Developed jointly by the Related Cos. and Crocker Partners L.L.C., the tower was designed by Elkus/Manfredi Architects, Boston. In April, the tower, which is managed and leased by JLL, won a TOBY Award from the Building Owners and Managers Association of Fort Lauderdale/Palm Beaches.
Given its location, the building features numerous disaster-mitigation features, including high-impact windows, multiple telecommunications providers and two 2,250 kW emergency generators, which run on redundant feeds of natural gas and fuel and can power all electronic systems within the building, including all tenant spaces.
The tower is part of the New Urbanist-styled CityPlace, an approximately 600,000-square-foot lifestyle center anchored by Macy’s, Muvico/IMAX Parisian 20, LA Fitness and Publix.
The West Palm Beach office market faces a steady rise in office-using employment and almost no new inventory, according to a third-quarter report from Marcus & Millichap. The countywide vacancy rate is projected to fall to 18.3 percent at year’s end, allowing owners to raise rents faster than inflation for the first time since the recession began.