KBS Real Estate Investment Trust II, Inc. Sells Office Campus for $117.5 Million
October 7, 2021 | Margaret Armour | Blue Vault
KBS Real Estate Investment Trust II, Inc. (the “Company”) has sold Fountainhead Plaza, a campus of two office buildings located on just over 11 acres in Tempe, Arizona, for $117.5 million before closing credits, third-party closing costs, and disposition fees payable to the Advisor. In connection with the disposition of Fountainhead Plaza, the Company paid down $61.5 million of the principal balance due under the Portfolio Loan Facility. This sale follows the September sale of Granite Tower, an office complex located in Denver, Colorado.
Fourth Liquidating Distribution Authorized
Some proceeds from these sales will fund a fourth liquidating distribution, which was authorized by the Company’s Board of Directors on September 29, 2021, in the amount of $0.50 per share of common stock to the Company’s stockholders. The Company was scheduled to pay the distribution on October 5, 2021.
Because the Fourth Liquidating Distribution is pursuant to the Plan of Liquidation, it will reduce stockholders’ remaining investment in the Company and reduce the estimated future liquidating distributions per share by $0.50 per share.
Updated Estimated Value Per Share
The Company’s Board of Directors also approved an updated estimated value per share of the Company’s common stock of $1.57, which reflects the impact of the Fourth Liquidation Distribution. This estimate was effective as of October 5, 2021. The Company is providing the October 2021 Estimated Value Per Share to assist broker-dealers that participated in the Company’s now-terminated initial public offering in meeting their customer account statement reporting obligations under the Financial Industry Regulatory Authority Rule 2231.
The estimated value per share of the Company’s common stock was $2.07 as of March 11, 2021, based on net assets in liquidation, divided by the number of outstanding shares, all as of December 31, 2020. Net assets in liquidation represents the remaining estimated liquidation value available to stockholders upon liquidation. The current adjustment to the estimated value reflects the resulting reduction of the stockholders’ remaining investment in the Company.
Source: KBS Real Estate Investment Trust II, Inc. SEC 8-K Filing
