KBS Strategic Opportunity REIT Purchases Landmark Building

SEATTLE-KBS Strategic Opportunity REIT, a public non-traded real estate investment trust based in Newport Beach, CA, has acquired the Central Building, a landmark, eight-story office building in the city's central business district. The 191,784-square-foot asset sold for $34.5 million plus closing costs.

Built in 1907 and renovated in 2002 through 2007, the Central Building features an architecturally distinct brick and terra cotta façade that highlights its strategic location in the heart of Seattle's CBD, four blocks east of the waterfront and only blocks away from Highway 99 and Interstate-5.

The class-B-plus asset was designated a historic landmark in 2008 and has undergone consistent improvements that helped it maintain institutional quality standards, including the complete restoration of its marble-clad lobby with 18.6-foot ceilings and two grand stairways. It includes a ground-floor retail component and was 82% leased at the time of purchase.

The Central Building benefits from a core location, modern building systems, flexible floor plans and an abundance of natural light, as well as convenient access to transportation options, a strong on-site amenity base and solid current leasing fundamentals in the Seattle area. The asset also has a very diverse list of tenants, ranging from food services to municipal organizations. Currently, more than 40% of the net rentable area at the Central Building is leased to investment-grade tenants, such as the City of Seattle and the Office of the Insurance Commissioner.

Along with the Central Building, KBS-affiliated companies own Seattle area assets including the 326,384-square-foot Bellevue Technology Center and 240,518 Ridgewood Corporate Square in Bellevue, Wash.

KBS Capital Advisors is an affiliate of KBS Realty Advisors, a private equity real estate company and SEC-registered investment advisor founded in 1992. Since its inception, KBS-affiliated companies have completed transactional activity of approximately $26 billion via 14 separate accounts, six commingled funds, five sovereign wealth funds and five non-traded REITs.