KBS Growth & Income REIT Makes Second Acquisition
July 15, 2016 | by Beth Glavosek | Blue Vault
KBS has announced that its Growth & Income REIT purchased the 219,742-square-foot Commonwealth Building in Portland, Oregon for $69 million. This is the second acquisition for KBS Growth and Income REIT; its first property was the Von Karman Tech Center in Irvine, California.
Constructed between 1946 and 1948 and designed by renowned architect Pietro Belluschi, Commonwealth has been recognized as one of the country’s first glass box, mid-century design towers. In recent years, more than $13.6 million was invested in tenant improvements, shared amenities, and capital expenditures. The property is among the oldest buildings in Portland to be awarded LEED-EB Gold by the U.S. Green Building Council.
Because of its location in Portland’s growing “Technology Triangle,” Commonwealth is appealing to creative and technology companies. Some of Commonwealth’s current tenants include Quantum Spatial, the Northwest Energy Efficiency Alliance (NEEA), and Galois, a computer science R&D firm.
As of the date of its last prospectus (April 28, 2016), KBS Growth & Income REIT was considered a blind pool, and KBS funded part of the purchase of Commonwealth with proceeds from its now-terminated private offering. KBS Growth & Income REIT elected to be taxed as a REIT beginning with the taxable year ended December 31, 2015.
Because of its previous status as a private offering, Blue Vault has not included KBS Growth & Income REIT in its research and reports. However, going forward, Blue Vault expects to include this REIT in its coverage.