Cashing Out: KBS Planning to Liquidate Post-Recession Home REIT

KBS Tradition Partners Apartment or condo REIT Cuts Deal to Offer First 4 of Remaining 10 Characteristics

Crystal Park at Waterford in Frederick, MD, is one of four properties being sold to Elite Capital.
Crystal Park at Waterford in Frederick, MD, is among 4 properties being sold to Elite Capital. KBS Legacy Partners Apartment REIT has decided it’s time to cash out and sell the staying multifamily properties it purchased through early 2014. The California-based non-traded REIT has currently cut separate agreements to sell four of them and is seeking approval of the sale from investors.

Funds affiliated with Houston-based Elite Street Capital consented to pay $218.9 million for the residential or commercial properties containing 1,273 units, representing a rate of $171,956/ system. The sale of the portfolio is likewise contingent on shareholder approval of the KBS REIT’s strategy of liquidation.

The homes to be offered as part of the Elite trade are Legacy at Valley Cattle ranch, 504 systems in Irving for $68.5 million purchase price; The Residence at Waterstone, a 255-unit complex in Pikesville, MD, for $60.1 million; Crystal Park at Waterford, a 314-unit complex in Frederick, MDselling for $45.9 million; and Lofts at the Highlands, a 200-unit complec in St. Louis costing $44.4 million.

KBS Tradition Partners Home REIT kept in mind that there are no constraints on it to negotiate with other prospective buyers and attempt to offer the residential or commercial properties for a higher rate.

The REIT likewise owns other apartment holdings in the Charlotte, Chicago, Minneapolis and Greenville, SC, markets.

The REIT’s sponsor, KBS Realty Advisors, may not be done seeking to reshape its post-recession period purchases. According to several news reports, KBS Realty Advisors is said to be in talks with the asset-management arm of Singapore-based Keppel Corp. to form a joint endeavor for listing as a REIT later this year on the Singapore stock exchange.

It was reported that the new company would have a preliminary portfolio of close to a dozen residential or commercial properties, including office complex in Seattle, Houston, Denver and other United States cities.


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