KBS Real Estate Investment Trust II (KBS REIT II), a non-traded real estate investment trust, has agreed to acquire City Place Tower, a prestigious 18-story office building in West Palm Beach, Fla., for $126.5 million, plus closing costs. The deal represents the second West Palm Beach acquisition by KBS REIT II in the last four months.
In December 2010, Newport Beach, Calif.-based KBS REIT II acquired the 139,471 sq. ft., two-building Emerald View at Vista Center.
City Place Tower features 295,933 sq. ft., including 8,390 sq. ft. of retail space, and access to 870 parking spaces. The first six floors of the building contain 270 parking spaces, while the remaining 600 parking spaces are located in the adjacent Hibiscus Parking Garage, which is owned by the City Place Community Development District.
City Place Tower is currently 86% leased to tenants such as Intech (Janus Funds), Cleveland Clinic, Carlton Fields, Edwards Angell, Novak Druce, Shutts & Bowen and Regions Bank.
Douglas Harmon of Eastdil Secured’s New York office and Michael McDonald and Miles Theodore of Eastdil Secured’s Atlanta office represented the seller in the purchase, which closed April 6. KBS Capital Advisors, an affiliate of KBS Realty Advisors, represented KBS REIT II.
“City Place Tower is the newest office tower in the Central Business District (CBD) and the only one built to current ‘hurricane resistant’ code and to offer full back-up power capabilities,” said Shannon Hill, KBS Realty Advisors senior vice president, director of acquisitions and dispositions.
“The building sits within the greater City Place master plan, which offers the building’s tenancy unparalleled access to retail and restaurant amenities,” Hill added.
City Place Tower was constructed in 2008 and is the final component of the City Place mixed-used project that brings together 1.9 million sq. ft. of residential, retail and office space spanning two city blocks. City Place was started in 2000.
According to Hill, City Place Tower has attracted a high quality tenant base. “We anticipate the property will continue to attract quality tenants. We believe City Place Tower will continue as the CBD’s leading office asset for many years to come.”