ROCKLIN, Calif. (June 1, 2018) – KBS Real Estate Investment Trust III (“KBS REIT III”), a non-traded real estate investment trust based in Newport Beach, announced today the sale of Rocklin Corporate Center, a Class A, two-building office park located in Rocklin for approximately $42.9 million. KBS acquired the property in November 2014 for $33.75 million.
“We are very pleased with this investment. Quickly stabilizing the asset and maintaining an average leased percentage of 96.24 percent during our hold period, the asset has generated an annual property level return to our investors of 17.73 percent¹ over our 3.5-year hold period,” said Rod Richerson, Western regional president of KBS.
Built in 2007, the property comprises 220,080 square feet of rentable space and offers tenants floor-to-ceiling windows that provide panoramic views of the Sierra Nevada Mountains. Rocklin Corporate Center is located on nearly 14 acres of land and offers over 1,000 parking spaces for tenants. Its proximity to Highway 65, Interstate 80 and public transportation provides tenants with easy access in and out of the top retail establishments in the Sacramento area.
“Rocklin Corporate Center is a well-located property in a high-performing market,” said Clint Copulos, senior vice president at KBS and asset manager for the property. “With world-class, sustainable amenities, the property will continue to be a strong investment for its new owners.”
Rocklin Corporate Center earned an Energy Star label for its operating efficiency with sustainable elements, including low-flow fixtures and recycled content in carpet and ceiling tiles.
Grant Lammersen of Newmark Knight Frank represented KBS in the transaction.
KBS is a private equity real estate company and an SEC-registered investment adviser. Founded in 1992 by Peter Bren and Chuck Schreiber, it is recognized as one of the largest commercial office owners globally. Since inception, KBS-affiliated companies have completed transactional activity in excess of $38 billion via 16 separate accounts and six commingled funds, for government and corporate pension funds. Additionally, KBS has sponsored five sovereign wealth funds and seven SEC-registered, non-traded REITs. For information, visit www.kbs.com.
¹The shareholder non-compounded return is calculated by taking net proceeds divided into the average basis annualized over the hold period of the asset and before fees.
Investing in real estate investments involves risks including the potential loss of principal. Real estate equities are subject to risks similar to those associated with the direct ownership of real estate, as these companies are sensitive to factors such as changes to real estate values and property taxes, interest rates, cash flow of underlying real estate assets, supply and demand, and the management skill and credit worthiness of the issuer. Additionally, real estate investment trusts (REITs) may also be affected by tax and regulatory requirements. Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there is no assurance that a portfolio will match or outperform any particular benchmark. There is no guarantee that investment objectives will be achieved. Past performance is not indicative of future results.