CHICAGO (Nov. 9, 2017) – KBS Growth & Income Real Estate Investment Trust, a professionally managed portfolio of institutional-quality commercial real estate properties, announced today the acquisition of 213 West Institute Place, a converted loft office building with vintage brick and timber details located in the River North submarket of Chicago.
The acquisition is the fourth well-located, Class A office building within the KBS Growth & Income Real Estate Investment Trust. The portfolio, valued at $193.9 million, sits on KBS' recently debuted direct-access online platform, KBSDirect.com allowing accredited investors and advisors direct access to institutional-quality commercial real estate properties with no load or upfront fees.
KBSDirect.com provides accredited investors in KBS Growth & Income Real Estate Investment Trust the opportunity to participate in the company's national real estate platform, which targets well-located assets in markets with strong population and job growth. In addition to Chicago with the closing of 213 West Institute Place, properties within the portfolio are located in Irvine, CA, Houston, Texas and Portland, OR, with additional properties in various stages of due diligence review.
"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 tenant and our investors," said KBS CEO Chuck Schrieber. "Through the KBSDirect.com portal we are offering these opportunities to accredited investors seeking a tax-efficient real estate portfolio with a national footprint."
“This acquisition is consistent with KBS’ strategy of targeting growth markets, particularly attractive to high value employees, which we believe 213 West Institute Place will allow us to do,” said Ken Robertson, regional president with KBS. "These growth trends also provide value for investors as companies continue to compete for top talent."
"Across almost every investment sector, online platforms have increased transparency and reduced transaction costs," shared KBS Chairman Peter Bren. "KBSDirect.com will save time for advisors and investors and opens a simplified user-friendly direct investment portal."
213 West Institute Place consists of 155,454 square feet of rentable space and recently underwent a complete renovation, including a roof replacement, lobby renovation, corridor upgrades, new fire panel, and the installation of freight elevators. Unlike most other office buildings in the area, 213 West Institute Place also has a 32-stall parking lot.
Situated within an attractive neighborhood, 213 West Institute Place offers tenants a dynamic live-work-play environment. River North offers a variety of entertainment venues, bars, restaurants and cafés, in addition to upscale and chain dining options. Tenants also have immediate access to multiple routes of transportation, including the CTA Brown and Purple Line station and the CTA Red Line Station. These amenities are reflective of KBS' national acquisition and asset management strategy, which focuses on creating value for investors.
“We are confident that the recent renovations at 213 West Institute Place provide added value to and a terrific opportunity for the KBS Growth & Income portfolio,” added Brett Merz, senior vice president at KBS and asset manager for the property. “We believe this property fits seamlessly with the character and demand of today’s workforce with its great location, walkability to amenities and access to transportation and housing.”
Tom Sitz and Cody Hundertmark of CBRE represented the seller.
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.
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including KBS Growth & Income REIT’s ability to invest in and manage a diverse portfolio, the performance of 213 West Institute Place and the performance of the Chicago real estate market. These statements are subject to known and unknown risks, uncertainties and other factors which may cause KBS Growth & Income REIT’s and 213 West Institute Place’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.