SAN DIEGO—KBS Real Estate Investment Trust II, Inc. has sold its Torrey Reserve West property to the California State Teachers’ Retirement System, (CSTRS) for $39.2 million.

The property, which KBS purchased for its KBSII Torrey Reserve West, LLC in 2010, includes three two-story office buildings containing 118,030 rentable square feet located on approximately 7.1 acres of land.

The sale to CSTRS closed on Thursday. At closing, KBS repaid $16.8 million of the outstanding principal balance due under a portfolio mortgage loan, which was partially secured by Torrey Reserve West, according to regulatory filings.