KBS Acquires Opus Portfolio for $125M

(Read more on the industrial market.)

NEWPORT BEACH, CA-The KBS Real Estate Investment Trust has acquired a nine-building portfolio of class A industrial warehouse buildings totaling 2.3 million sf from Minneapolis-based Opus Corp. for $124.5 million. The properties are called the Opus National Industrial Portfolio and are located in eight markets throughout the country.

The properties, which are 97% leased to 15 tenants, were built between 1992 and 2006. They include both distribution and office/warehouse space.

Senior vice president Bill Rogalla of KBS Capital Advisors, the adviser for KBS REIT, says that the Newort Beach-based buyer chose the portfolio for its “strong occupancy and long-term credit tenancy,” as well as its locations in some of the country’s top industrial markets. According to a public filing by the REIT, the current aggregate annual base rent for the tenants of the Opus National Industrial Portfolio is approximately $8.6 million.

The public filing also says that, as of June 2007, the current weighted-average remaining lease term for the tenants of the Opus National Industrial Portfolio is approximately 5.9 years. KB “does not intend to make significant renovations or improvements to the Opus National Industrial Portfolio,” according to the filing.

The nine properties in the portfolio include the 427,920-sf Park 75 in suburban Cincinnati; the 337,283-sf Rickenbacker IV in suburban Columbus, OH; the 353,983-sf Hartman BC in suburban Atlanta; the 321,627-sf Plainfield BC VIII in Plainfield, IN; the 240,452-sf Crystal Park II in suburban Austin; the 221,750-sf Cardinal Health DC; the 81,329-sf Cedar Bluffs BC in suburban Minneapolis; the 160,464-sf ADVO/Valassis in Detroit and the 131,040-sf Corporate Express in Dallas/Fort Worth.

Major tenants in the properties acquired include Dell Products at Park 75, Medline Industries at Rickenbacker IV, Brightpoint North America at Plainfield BC VIII, Cardinal Health Inc. at the Cardinal Health property, ADVO/Valassis at the ADVO/Valassis property and Corporate Express of Texas at the Corporate Express property.

The sale of the Opus portfolio was brokered by a CB Richard Ellis team headed by Tom Holtz in the Minneapolis office of CBRE.