MINNEAPOLIS—KBS Real Estate Investment Trust III Inc. has agreed to pay $126.5 million for the 678,045-sq.-ft. RBS Plaza office building here.

Brookfield Office Properties Inc. is the seller. KBS said in a recent SEC filing that it has entered into a purchase and sale agreement for the building. KBS said in the filing that it intends to fund the purchase of the RBC Plaza with proceeds from an existing portfolio loan credit facility, proceeds from a mortgage loan from an unaffiliated lender and proceeds from a recent offering. If the deal is not completed, the trust may forfeit up to $5 million.

RBC Wealth Management is the main anchor, taking up more than 270,000 sq. ft. of the 22-year-old building. The annualized base rent (net of rental abatements) for this tenant is approximately $4 million, the remaining lease term is approximately 8.9 years and the average annual rental rate (net of rental abatements) over the remaining lease term is $16.82 per sq. ft.

The building is 83-percent leased to 34 tenants. The building also includes almost 70,000 sq. ft. of retail known as Gaviidae Common II, though KBS said it plans to spend $26.6 million on renovations that will include the conversion of about 32,000 sq. ft. of the retail into office space.

The current aggregate annual effective base rent, which is calculated as the annualized contractual base rental income (net of rental abatements), for the tenants of the RBC Plaza is approximately $8.6 million. The current weighted-average remaining lease term for the tenants is approximately 6.9 years. The current weighted-average rental rate (net of rental abatements) over the remaining lease term is $16.08 per sq. ft.