KBS Brings New Direct Investment
Option to Market


Chuck Schreiber

There are many ways to invest. Direct investment in commercial real estate has historically delivered higher returns compared to other fixed-income investment alternatives, and is a fan favorite among investors seeking diversification and stability, according to Wells Fargo Conversations. Solid employment figures, restored consumer confidence and expanding demographics have helped the sector improve for eight consecutive years. As we look to 2018, economic indicators suggest there is still plenty of room for growth with social, political and technological changes driving investment demand.

Traditionally, direct investment in commercial real estate presented many barriers and was only accessible to high-level investors like pension funds, sovereign wealth funds and other institutional partners. Individual investors could only penetrate this space through a Real Estate Investment Trust (REIT) or by purchasing individual assets.  Online investing has changed this, opening up new sources of capital and reducing the barriers for accredited investors to invest directly in commercial real estate.

We believe KBS is the largest institutional-quality commercial real estate operator to bring to market a direct investment option geared specifically toward high-net-worth investors and is leading the industry in this regard. KBS Direct (kbsdirect.com) is a direct-access online platform that allows accredited investors and advisors the ability to diversify their portfolios with trophy assets they didn’t previously have access to—with no up-front fees or commissions paid by investors. Its current offering, KBS Growth & Income Real Estate Investment Trust, targets core and core-plus office properties in urban and suburban locations, especially those that are in or near central business districts or have access to transportation. Core real estate assets are generally the highest-grade real estate properties, fully stabilized with creditworthy quality tenants—a hallmark of the KBS strategy and subsequent success.

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In November of this year, KBS Growth & Income Real Estate Investment Trust purchased its fourth asset—213 West Institute Place, a 157,166-square-foot converted loft office building with vintage brick and timber details located in the dynamic River North submarket of Chicago. The property recently underwent a complete renovation and is now best-in-class. 213 West Institute Place also offers an on-site 32-stall parking lot, a rare and highly-desired amenity within the submarket.  KBS is excited to acquire this asset that delivers what tenants and customers demand in their workspace: an energetic environment that will attract today’s workforce combined with abundant amenities, transportation and housing.

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KBS Direct leverages KBS’ extensive real estate expertise and connections to seek opportunities that add value to the portfolio, while preserving and returning stockholders’ capital contributions and providing stable cash distributions. 213 West Institute is a prime example of the investment caliber investors can expect on the KBS Direct platform.

KBS has completed approximately $35 billion in transactional volume since 1992, and has been ranked by National Real Estate Investor as the 11th largest office property owner globally.  With an eye for top quality real estate opportunities and a business network to match, KBS Direct gives investors the opportunity to partner with one of the industry’s most respected firms.

 

This article presents the author’s present opinion reflecting current market conditions, which are subject to change without notice. It has been written for informational and educational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product.   Investing in real estate includes substantial risks including, but are not limited to, the possibility of losing your entire investment.  A decision to invest in real estate should be made only after a careful review of any offering materials, including consideration of the risks related to the investment.  Past performance does not guarantee future results. Hyperlinks to third-party sites, or reproduction of third-party content, do not constitute an approval or endorsement by KBS of the linked or reproduced content.

 

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Mr. Schreiber serves as chief executive officer of KBS Realty Advisors and its affiliate KBS Capital Advisors. Both are nationally recognized real estate investment management firms with transactional volume in excess of $35.0 billion.