Bank of America provided a $76.6m loan backing KBS REIT III’s acquisition of the Ten Almaden office building in downtown San Jose, California.
The three-year, floating-rate loan represents a 66% loan-to-value ratio on the reported $116.7m December purchase of the 309,255 sq ft, Class A building from seller Equity Office.
Considered one of downtown San Jose’s premier buildings, the 17-story, LEED Certified Gold tower is 89 percent leased to tenants including Citibank, Comcast, Robert Half International, Rosetta Marketing Group and Turner Construction Company.
Equity Office pulled out of the downtown San Jose market with the sale; about one year ago the firm sold a neighboring 350,000 sq ft property at 225 West Santa Clara Street to Principal Real Estate Investors for a reported $138m.
KBS REIT III is externally advised by affiliate KBS Realty Advisors, a private equity real estate company and SEC-registered investment adviser founded by Peter Bren and Charles Schreiber in 1992. KBS and its affiliates have completed more than $31bn in transactions via 14 separate accounts, six commingled funds, five sovereign wealth funds and six non-traded REITs.
HFF arranged the sale of Ten Almaden and placed the debt on the deal.