KBS Launches Apartment, Opportunity REITs

NEWPORT BEACH, CA-KBS Capital Markets Group has commenced its initial public offerings on two new nontraded REITs, one called KBS Strategic Opportunity REIT Inc. and the other Legacy Partners Apartment REIT Inc. KBS is launching the apartment REIT in partnership with Legacy Partners Residential Realty as its co-sponsor of the REIT.

KBS Strategic Opportunity REIT, which is being marketed through registered broker/dealers and investment advisers, will offer up to 100 million shares of common stock in a primary offering at a maximum price of $10 per share. The REIT will use the proceeds to invest in and manage a diverse portfolio of real estate-related loans, real estate-related debt The KBS Legacy Partners Apartment REIT will offer up to 200 million shares at a maximum price of $10 per share. It will use the proceeds to acquire and operate well-positioned apartment real estate that is producing rental income, as well as opportunity-oriented properties at various phases of leasing, development, redevelopment and repositioning, the sponsors say.

KBS Capital Advisors is owned and controlled by Charles Schreiber, Peter Bren, Peter McMillan and Keith Hall. Legacy Partners Residential Realty is owned and controlled by C. Preston Butcher, W. Dean Henry and Guy K. Hays.

The KBS sponsors have launched previous nontraded REITs, including KBS REIT I and KBS REIT II, both of which have executed a number of transactions reported on GlobeSt.com. For example, KBS REIT II recently acquired the 315,133-square-foot, 20-story One Main Place office tower in Portland’s central business district from Rreef for an estimated $57 million.