March 01, 2016 04:35PM | By Rey Mashayekhi | The Real Deal
KBS Strategic Opportunity REIT is on the verge of becoming the first U.S. real estate investment trust to successfully issue bonds in Israel. The company closed a roughly $216 million debt tender to Israeli investment funds and financial institutions Tuesday, sources told The Real Deal.
The public, non-traded REIT — managed by Newport Beach, Calif.-based real estate investment firm KBS Capital Advisors – secured the $216 million institutional tender at an interest rate of 4.25 percent, according to sources with knowledge of the deal.
The bond issuance received more than $300 million in demand from Israeli institutional investors, these sources said, with the company’s debt offering now set for a public tender that will allow a broader pool of investors to invest in the REIT.