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.

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.

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.