Vanderbilt partnership buys West Palm office buildings for $40M

Two buildings are part of the 500-acre business park Vista Center

Emerald View at Vista Center

Emerald View at Vista Center

A partnership that includes Chicago-based Vanderbilt Office Properties paid $40 million for a pair of Class A office buildings in West Palm Beach.

KBS Real Estate Investment Trust II sold Emerald View at Vista Center, a 139,471 square-foot property within the 500-acre Vista Center business park, according to a release. Vista Center is made up of primarily office, flex and industrial space with some retail space and a hotel. It’s next to the Emerald Dunes Golf Club.

CBRE’s Christian Lee, Jose Lobon, Kevin Probel, Kevin McCarthy and Tyler Ploshnick represented KBS in the deal.

Property records show an affiliate of Newport Beach, California-based KBS acquired the buildings in two deals totaling $36 million in 2010. The seller made upgrades and improvements to the property, including building move-in ready spec suites and renovating the common areas and lobby. The buildings also have full backup power for up to 25 days in case of an emergency, such as a hurricane.

Tenants include Regus, Human and Oasis Staffing.

Last year, Kayne Anderson Real Estate paid $6.2 million for a 20-acre development site within the same business park with plans to build a roughly 250-unit senior housing facility.

Father east in downtown West Palm Beach, PNC Bank recently sold the office building at 205 Datura Street for $14.2 million to Boca Raton-based Morning Calm Management.

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KBS seals Israeli bond offering at $249M

From left: 110 William Street, Peter Bren and 424 Bedford Avenue
From the New York website: KBS Strategic Opportunity REIT closed its Israeli bond offering Monday after issuing nearly $33 million in debt through a public tender, bringing the first bond issuance by a U.S.-based REIT in Israel to roughly $249 million, sources said.
KBS secured 127.7 million shekels, or more than $32.6 million, through the second phase of its bond offering – a public tender open to a wide array of Israeli investors.
The public tender follows last week’s institutional tender, open only to qualified Israeli investment funds and financial institutions, that saw the REIT raise more than 842 million shekels, or nearly $216 million.
The public, non-traded REIT’s total issuance now stands at nearly $249 million, secured at an interest rate of 4.25 percent, according to sources with knowledge of the matter. This makes KBS the latest American real estate firm to capitalize on affordable Israeli debt deals available through public bond offerings on the Tel Aviv Stock Exchange, as well as the first U.S. REIT to do so.
While KBS – managed by Newport Beach, Calif.-based real estate investment firm KBS Capital Advisors – could have raised up to 1 billion shekels, or $256 million, sources close to the company described the issuance as a “huge success.”
The REIT is understood to have initially targeted a total raise of 600 million shekels, or just over $153 million, but saw the institutional phase of its offering receive more than $300 million in demand from institutional investors, as The Real Deal reported last week.
In addition to being one of the larger bond offerings by a U.S. company in Israel – the record is currently held by the Moinian Group, which closed on a $361 million issuance last May – the deal is also notable for the 4.25 percent interest rate on the debt issued by KBS.
For comparison, Moinian’s 4.2 percent interest rate on its $361 million offering was one of the lowest ever secured by a U.S. company in Israel, with only Joel Wiener’s Pinnacle Group raising debt at a lower cost.
KBS, whose assets include a 32-story, 928,000-square-foot office building at 110 William Street in the Financial District, is expected to use the proceeds from the deal to continue exercising its strategy of buying commercial assets and stabilizing them through increased leasing and occupancy.
The REIT was advised on its offering by Gal Amit and Rafael Lipa of Victory Consulting Group. Israeli financial services firms Poalim IBI and Leumi Partners were the underwriters on the issuance.

Source: The Real Deal Miami