January 3, 2014

KBS REIT pays $187M for Bellevue buildings

KBS Strategic Opportunities real estate investment trust is buying two office buildings in downtown Bellevue for $186.5 million, according to a filing with the Securities and Exchanges Commission.

The filing refers to the “Plaza Buildings,” which were built in 1978 and 1983, and contain 490,000 square feet of office space. This description matches Plaza Center, a 16-story, 345,000-square-foot structure at 10900 N.E. Eighth St. and US Bank Plaza, which is 10 stories and 145,000 square feet at 10800 N.E. Eighth St.

It is not clear if the purchase includes the parking garage between the buildings. Representatives of KBS did not return a request for comment.

The seller is listed as an entity related to Beacon Capital Partners of Boston. Beacon paid $156 million for the buildings in 2007.

Beacon has an active buyer and seller in Seattle over the past few years. It sold several buildings including 1201 Third Avenue, the second tallest building in Seattle for $549 million; the 47-story Wells Fargo Center in Seattle for $390 million; the 23-story Key Center in Bellevue for $215 million; and the 24-story Skyline Tower in Bellevue for $186 million.

Last year Beacon bought the Exchange Building in Seattle for $66 million.

The company is planning to build a 24-story, 513,000-square-foot office building at 10833 N.E. Eighth St. in Bellevue, across the street from the two buildings it sold to KBS.

According to the filing, the two buildings are 81 percent leased to 53 tenants. The average remaining lease term is approximately 4.3 years, and rents average $31.20 per square foot.

KBS Strategic Opportunity REIT is based in Newport Beach, Calif., and is a public non-traded investment trust related to KBS Realty Advisors. Last summer it bought the Central Building, an eight-story landmark office building at 810 Third Ave. in Seattle for $34.5 million.

When the sale of the Plaza Buildings is complete, KBS will own more than 1.5 million square feet of office space in Seattle, Bellevue and Bothell.