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KBS REIT sells 61 bank branch properties for $139.6M

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Capital Markets View – January 2021


KBS REIT sells 61 bank branch properties for $139.6M

KBS Real EstateInvestment Trust Inc. sold 61 bank branch properties, containing 245,843rentable square feet, to Pontus Net Lease Advisors LLC for an aggregate sales priceof $139.6 million, net of closing credits.

The company sold the properties April 11 through indirect whollyowned units First States Investors 6000A LP, First States Investors 6000B LP, FirstStates Investors 6000C LP and First States Investors 6000D LP, according to an April14 filing.

The carrying value of the properties was roughly $105.7 million,which is net of $27.1 million of accumulated depreciation and amortization. Thecompany recognized a gain of roughly $30.0 million, after fees and expenses, onthe sale of the properties.

In connection with the sale, KBS entered into a defeasance agreementwith each of the lenders under the FSI 6000A, FSI 6000B, FSI 6000C and FSI 6000Dmortgage loans to defease the entire aggregate outstanding principal balance of$102.3 million under the loans.

The FSI 6000A mortgage loan and FSI 6000C mortgage loan eachbore interest at a rate of 6.80% and were due to mature Oct. 5, 2017.

Meanwhile, the FSI 6000B mortgage loan and FSI 6000D mortgageloan each bore interest at a rate of 5.80% and were due to mature June 5, 2017.

According to KBS, the defeasance costs and write-off of an unamortizeddiscount resulted in an aggregate loss on extinguishment of debt of approximately$6.6 million.