Newport Beach-based KBS Realty Advisors plans to sell the remaining office portfolio of KBS REIT II, one of the firm’s nontraded investment trusts.
KBS REIT II has one property up for sale, and plans to sell the remaining five office assets now part of the REIT by the end of next year, the company disclosed in a quarterly conference call with investors last month.
“We are pleased to finalize our business plan for KBS REIT II,” said Chief Executive Chuck Schreiber during the call.
The REIT’s portfolio previously held a number of skyscrapers and other office properties, but KBS has sold off a number of assets over the past six or so years—it sold a Chicago skyscraper to Irvine Co. in 2014 for $850 million.
KBS REIT II now oversees 3.9 million square feet. The one property currently up for sale is a six-building New Jersey office complex totaling 1.2 million square feet.
The company expects to be under contract on that office property within four months, at which point the REIT will seek shareholder approval for the sale of the remaining five properties, said Schreiber.
One of those assets slated to hit the market is the 40-story Union Bank Plaza tower in Los Angeles, which recently began a nearly $20 million renovation.
Union Bank is the main tenant in the tower, but plans to downsize at the property, giving up 143,000 square feet by 2022. It will still lease about 165,000 square feet there.
KBS was under to contract to sell the L.A. tower nearly two years ago, but the deal fell through.
