On July 29, 2010, KBS REIT II transacted the largest ever, single asset purchase by a non-traded REIT. They acquired 300 North LaSalle Street in Chicago, a 60 story office tower containing 1.3 million rentable square feet, for $655 million.
KBS REIT II recently announced that they have entered into a purchase and sale agreement with the Irvine Company, located in Southern California, for $850 million. The sale price is a $195 million gain over the initial purchase price and is $74 million over the appraised value of $776 million.
This sale has also set a new record for the highest sale price for a single building in Chicago, surpassing the sale of the Sears Tower ($844 million) in 2004. In a filing with the SEC, KBS intends to make a special distribution to stockholders in the third quarter for most of the proportionate principle and profits from the sale.Distribution payments are not guaranteed and may be modified. Further, they may include a return of principal or may be paid from borrowings, which may result lower returns due to less money to invest or unsustainable distribution rates, respectively.