KBS created KBSDirect.com to provide accredited investors and advisors the opportunity to invest directly in KBS Growth & Income REIT, a tax-efficient vehicle with access to risk-adjusted return profiles similar to those enjoyed by KBS's institutional clients for more than 25 years. With its 100% no-load feature and investor-aligned structure, KBS Growth & Income REIT provides accredited investors and advisors with a real estate investment vehicle that seeks to comply with the U.S. Department of Labor's Fiduciary Rule.
"Across almost every investment sector, online platforms have increased transparency and reduced transaction costs," commented KBS Chairman Peter Bren. "KBSDirect.com will save time for advisors and investors and opens a simplified, user-friendly direct investment portal. This technology is a mega-shift in the investment universe and makes KBS's longstanding value proposition even more rapidly accessible and appealing to advisors and accredited investors with no upfront loads or commissions to investors."
The first investment opportunity on the KBSDirect.com portal is KBS Growth & Income REIT Inc., a public reporting, nontraded real estate investment trust with a targeted asset value of $1 billion to $1.2 billion.
KBS CEO Chuck Schreiber said KBSDirect.com has leading-edge technology to eliminate upfront fees and commissions to investors.
"The innovative structure of KBS Growth & Income REIT offered on KBSDirect.com ensures that 100% of the investor's capital will be invested directly into the REIT," Schreiber said. "KBSDirect.com is consistent with our 25-year commitment to deliver investment products that are aligned with the best interests of our investors and that capitalize on our deep expertise and established track record in local real estate markets nationwide. KBS, a national real estate News in Focus Business & Money Science & Tech Lifestyle & Health Policy & Public Interest People & Culture Advanced Search company, will be one of the first institutional-grade sponsors to offer investors and advisors the opportunity to invest directly, through KBS' online portal, in real estate investments similar to those that have been made available to KBS institutional investors for more than 25 years. These include public pension funds, corporate pension funds and sovereign wealth funds."
Through KBSDirect.com, accredited investors can invest in commercial real estate managed by KBS and its experienced national teams of investment and operational professionals. KBS is one of the largest commercial real estate companies in the United States – with transactional volume from the organization's inception of approximately $35 billion. KBS currently operates and manages 40.2 million square feet of office space with an aggregate value of approximately $11 billion.
Accredited investors in KBS Growth & Income REIT have the opportunity to participate in KBS' national real estate platform, which targets well-located assets in markets with strong population and job growth. To date, KBS Growth & Income REIT has acquired three well-located office buildings with an estimated value of $150.4 million – in Irvine, CA, Houston, TX and Portland, OR – with additional properties in various stages of due diligence review. KBS Growth & Income REIT is currently in the final stages of due diligence with respect to the purchase of a seven-story Class A office building located in Chicago, IL with a contract purchase price of $43.5 million. Upon closing this acquisition, the estimated value of KBS Growth & Income REIT's real estate portfolio would be $193.9 million.
"KBS has national acquisition and asset management teams focused on creating value for our investors," Schreiber said. "Through renovations, creative leasing programs, and outstanding brokerage relationships, our teams have been able to identify well-located properties and actively manage them in a way that seeks to benefit both our tenants and our investors. Through the KBSDirect.com portal we are offering these opportunities to accredited investors seeking a tax-efficient real estate portfolio with a national footprint."
Cautionary Note Regarding Forward-Looking Statements
The foregoing includes forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. The REIT intends that such forward-looking statements be subject to the safe harbors created by Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements regarding the intent, belief or current expectations of the REIT and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The REIT undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. Such statements are subject to known and unknown risks and uncertainties which could cause actual results to differ materially from those contemplated by such forward-looking statements. The REIT makes no representation or warranty (express or implied) about the accuracy of any such forward-looking statements. These statements are based on a number of assumptions involving the judgment of management.
There are no guarantees as to the ability of the REIT to raise its targeted offering proceeds of $500 million or the ability for the REIT to achieve its targeted $1 billion to $1.2 billion asset value and these targets may not reflect actual performance. Past performance is no guarantee of future results. Achieving such targets will depend on the ability of the REIT to raise money through KBSDirect.com and the real estate and financial markets. Although the REIT has structured an investment in its shares to help ERISA plan fiduciaries and IRA owners comply with the DOL Fiduciary Rule, the REIT makes no representations as to the appropriateness of an investment in the REIT's shares for such investors and the REIT is not providing investment advice. ERISA plan fiduciaries and IRA owners should consult with counsel before making an investment in the REIT's shares. The REIT does not provide tax advice and does not represent in any matter that an investment in the REIT's shares will result in any particular tax consequence. Prospective investors should consult with their personal tax advisors regarding the tax consequences based on their particular circumstances. The REIT does not assume responsibility for the tax consequences for any investors of an investment in the REIT's shares. The REIT can provide no assurance with respect to the closing of any properties currently under due diligence review. Forward-looking statements also depend on various factors, including those identified in Part I, Item 1A of the REIT's Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on March 9, 2017, and in Part II, Item 1A of the REIT's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, filed with the SEC on August 10, 2017.
Additional Information
In addition, KBS may sponsor a public offering, pursuant to Regulation A under the Securities Act of 1933, as amended. No money or other consideration is being solicited at this time with respect to such offering, and if sent in response to these materials for such an offering, it will not be accepted. No offer to buy securities can be accepted and no part of the purchase price can be received for an offering under Regulation A until an offering statement is qualified by the U. S. Securities and Exchange Commission, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date. An indication of interest made by a prospective investor in a Regulation A offering is non-binding and involves no obligation or commitment of any kind.