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Chuck Schreiber
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NEWPORT BEACH, CA –
KBS, one of
the largest investors in premier commercial real estate in the nation, announced
it has completed three refinances totaling $527 million during the 4
th quarter
of 2020 for assets located in Chicago, Illinois; San Jose, California; and
Charlotte, North Carolina.
The transactions involved five different national and multinational
lending institutions.
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Tatyana Litovsky
|
The refinances demonstrate strong lender confidence in
high-caliber real estate assets located in prime markets throughout the country
despite the pandemic, according to
Chuck Schreiber, co-founder and CEO
of KBS.
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| Amanda Kennedy |
“KBS has a long-held reputation for identifying
opportunities to own and manage top-shelf real estate assets in key growth
markets throughout the U.S., as well as a deep understanding as to how the
right capital stack can influence a property’s performance,” says Schreiber.
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| Robert (Rob) Durand |
“In today’s real estate market, which has faced headwinds
from the COVID-19 pandemic, these sizable transactions are a testament to the
quality of these assets and KBS’ expertise in managing them efficiently and
effectively now and in the future.
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| Bruce Fischer |
"In addition,
our ability to understand and implement the right capital structure through our
in-house team adds considerable value to these holdings and our
investors.”
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| Martin J. Lee |
The recently closed refinancing transactions include:
$28,795,000 loan for Crossroads Distribution Center in
Charlotte, NC
In addition, KBS secured a $28,795,000 refinancing loan
for Crossroads Distribution
Center, a four-building 496,723-square-foot industrial distribution
center located in Charlotte, North Carolina.
The loan, issued by Citizens, consists of a three-year
initial term with two, one-year extension options, all floating over LIBOR.
“Crossroads Distribution Center represented a prime
opportunity for Citizens to refinance a highly desirable distribution property
in one of the top industrial markets in the nation,” says Rob Durand, EVP
of financing for KBS.
“Its location is close to several ports along the Eastern
seaboard – including Wilmington and Morehead City, North Carolina; Savannah,
Georgia; Charleston, South Carolina; Norfolk, Virginia; and Baltimore, Maryland
– as well as the property’s appealing features gave Citizens confidence in the
asset’s ability to continue to perform strongly well into the future.”
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| Crossroads Distribution Center, Charlotte, NC |
Developed between 1998 and 2007, Crossroads Distribution
Center features four concrete tilt-wall warehouse buildings with ceiling clear
heights ranging from 24 to 30 feet.
All of the buildings have 50-foot concrete aprons and truck
courts that range from 110 to 140 feet. Tenants include several companies that
sell and distribute products imported into the US, most of which are shipped
into the country via container ships.
Amenities at the property include a fitness center, tenant
lounge, onsite car wash/detail, loading docks, proximity to public
transportation, and nearby shopping, entertainment and
restaurants.
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| Ogilvie Transportation Center, Chicago, IL |
Crossroads Distribution Center is located at 11401, 11415,
11435, and 11445 Granite Street in Charlotte, North Carolina.
Attorneys Bruce Fischer (Orange County), Tatyana
Litovsky (Orange County) and Martin Lee (Chicago) and
paralegal, Amanda Kennedy (Orange County), of global law firm Greenberg
Traurig, LLP represented KBS as legal counsel in each of the
refinancings.
“We enjoyed working with KBS on the successful refinancing
of three amazing properties,” said Fischer, Greenberg Traurig’s Chair of the
West Coast Real Estate Practice and Co-Managing Shareholder of the Orange
County Office, who led the Greenberg Traurig team.
$375 million loan for Accenture Tower in Chicago,
Illinois
KBS secured a $375 million refinancing loan for Accenture Tower, a 40-story,
1.46-million-square-foot office tower owned by KBS REIT III and located in
Chicago, Illinois.
The loan consists of a 75% term loan and 25% revolving loan
with a three-year initial term with two, one-year extensions options, and
floats over LIBOR. U.S. Bank and Bank of America jointly led the loan’s
arrangement, with U.S. Bank serving as the administrative agent, and Deutsche
Pfandbriefbank joining the lender group at closing.
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| Accenture Tower, Chicago, IL |
“This was a successful large financing that reflects KBS’
experience as an owner-operator through all real estate and economic cycles,
even during the pandemic,” says Durand.
“This complex
financing was executed by KBS’ own internal team in a challenging capital
markets environment and demonstrates the depth and strength of the firm as an
asset manager, as well as the confidence that our capital partners have in KBS
and Accenture Tower.”
Durand adds that, “We are honored that KBS’ long-term
relationships with U.S. Bank and Bank of America led these highly reputable
financial institutions to become joint lead arrangers of the new Accenture
Tower loan. The firm is also excited to establish Deutsche Pfandbriefbank as a
new KBS lending partner.”
Built in 1987, Accenture Tower is a Class A LEED
Gold-certified building that has earned The Outstanding Building of the
Year (TOBY) Award Internationally by The Building Owner and Managers
Association.
The property sits above the Ogilvie Transportation Center,
one of two main train stations in Chicago’s west loop, which connects the
suburbs with Downtown Chicago.
Accenture Tower’s first two levels features
80,000 square feet of retail space. The second level connects directly
with the Ogilvie rail station providing direct access to city trains, buses and
expressways.
Accenture Tower is located at 500 West Madison in Chicago,
Illinois.
$123 million loan for The Almaden in San Jose,
California
KBS also secured a $123 million refinancing loan for The Almaden, a three-building,
416,126-square-foot office park owned by KBS REIT III and located in San Jose,
California.
The loan consists of a three-year initial fixed-rate term
with two, one-year floating rate extension options, and was issued by Equitable
Financial Life Insurance Company.
“The Almaden’s location in one of the top tech markets in
the country, with proximity to Silicon Valley and the Bay Area, made it a
desirable asset for Equitable to finance,” says Durand.
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| The Almaden development, San Jose, CA |
“This is a
well-amenitized property that helps tenants attract and retain top talent to
remain competitive in the market. The refinancing of this asset underscores
KBS’ ability to structure the right loan facility to enhance returns for our
investors.”
Developed between 1980 and 1981 and renovated in 2006, The
Almaden encompasses 416,126 square feet of office space and 1,264 parking
spaces.
Current tenant
amenities include multiple conference rooms with video conference capabilities;
an outdoor patio with BBQ, fireplace and seating; a fitness center; a locker
room with showers; and a tenant lounge with roll-up door, bar area, TVs and
games.
The Almaden is located at 1, 55, and 99 Almaden Boulevard in
San Jose, California.
CONTACT:
Micaela
Fehrenbach
mfehrenbach@brower-group.com
