The prospectus says that KBS REIT II, which follows KBS REIT I,expects to allocate approximately 70% of its portfolio toinvestments in core properties with at least 80% occupancy andminimal near-term lease rollover. Approximately 30% of theportfolio will consist of other real estate-related investmentssuch as mortgage, mezzanine, bridge and other loans, debt andderivative securities related to real estate assets, includingmortgage-backed securities, and the equity securities of otherREITs and real estate companies.

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Both KBS REIT I and KBS REIT II are sponsored by KBS CapitalMarkets Group LLC, whichwas formed by Peter Bren, CharlesSchreiber, Peter McMillan and Keith Hall. KBS REIT I already has atrack record of acquiring numerous assets throughout the US,including one recently reported on GlobeSt.com, its $17.8 millionpurchase of a 205,645-sf industrial building on 16 acres atSuwanee Point Business Park, near Atlanta.

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KBS REIT II is the latest in a growing list of nontraded realestate investment trusts that are being offered to the publicthrough registered broker/dealers and investment advisers. Theshares of a nontraded REIT are offered publicly to qualifiedinvestors, but the stock is not listed or traded on anexchange.

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Investors in nontraded REITs typically expect to hold theirshares for a number of years until the REIT either disposes of theproperties, elects to become listed on a public exchange or mergeswith a publicly traded company. In the case of KBS REIT II, thecompany's prospectus says that if it does not list its shares ofcommon stock on a national securities exchange by March 31, 2018,its charter requires that the REIT seek stockholder approval of theliquidation of the company or pursue other courses outlined in theprospectus, depending upon stockholder approval.

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KBS REIT II plans to hold its properties for an extended period,typically five to seven years, but the actual period will depend onmarket conditions, interest rates and other factors.

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