SOURCE: KBS REIT II

KBS REIT II

December 17, 2010 18:00 ET

KBS REIT II Purchases Denver's Landmark Granite Tower

Acquisition of 561,691-sq.-ft. Office Tower at Denver Place Constitutes One of Colorado's Largest Deals of the Year

DENVER, CO--(Marketwire - December 17, 2010) - KBS Real Estate Investment Trust II (KBS REIT II) continues its recent surge in high-profile acquisition activity with the purchase of Granite Tower, a signature, 31-story office tower in Denver's thriving Central Business District. The acquisition of the 561,691-square-foot, Class A tower by the Newport Beach, Calif.-based REIT constitutes one of Colorado's largest deals of the year according to total cost.

Situated on 18th Street between Arapahoe and Curtis streets, Granite Tower is at the gateway to Denver's Lower Downtown Historic District (LoDo), with close proximity to Coors Field and the redeveloped Union Station. Current leases by 20 tenants, including Anadarko Petroleum Corp., Bill Barrett Corp., and the law firms of Robinson Waters & D'Orsio PC and Jackson Kelly PLLC, bring occupancy to more than 95 percent. Building occupancy has remained above 90 percent over most of the past decade.

The acquisition price was $149,000,000, or $265 per square foot. Tim Richey, Mike Winn and Chad Flynn of the Denver office of Cushman & Wakefield represented the seller in the acquisition, which closed Dec. 16. KBS Capital Advisors represented KBS REIT II. The LEED-EB Gold-certified building becomes the ninth Colorado property owned by KBS-affiliated companies, for a total of more than 1 million square feet in the state.

In all, KBS-affiliated companies have added more than 5.5 million square feet of commercial real estate in 2010.

"Few properties in Denver can boast the same combination of location, amenities, tenant appeal and historic occupancy levels as Granite Tower," explained Christopher Aust, Southwest Region senior vice president and director of acquisitions for KBS Realty Advisors. "Our ability to add it to the KBS REIT II portfolio is exciting for the company, and we expect its blend of location and onsite features to result in strong long-term tenant retention."

Granite Tower was completed in 1983 as Plaza Tower, one of four signature towers of Denver Place, the state's largest mixed-use office complex. The property was renamed Granite Tower when it was acquired by Granite Properties in 2005, and includes an attached, subterranean, 676-space parking structure.

Other Denver Place highlights include the Ritz-Carlton Denver, FORZA Fitness and Performance Club and a street-level retail center featuring stores, restaurants and support services.

"Granite Tower is one of Denver's premier office buildings located in the heart of the Central Business District," explained Mark Brecheen, KBS Realty Advisors senior vice president for asset management. "Granite Properties has done a tremendous job repositioning the asset over the last five years and we are very excited to add a building of this quality to our portfolio."

About KBS Companies
KBS Realty Advisors is a private equity real estate company and SEC-registered investment advisor founded in 1992 by Peter Bren and Chuck Schreiber. Since 1992, KBS-affiliated companies have completed transactional activity exceeding $20 billion via 19 separate accounts, six commingled funds and five non-traded REITs. KBS has offices in Newport Beach, San Francisco, Chicago, Boston, Dallas, New York, Washington, D.C., Atlanta, and Los Angeles. For information, visit www.kbsrealty.com.

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements are subject to known and unknown risks, uncertainties and other factors which may cause KBS REIT II's or Granite Tower's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These include statements regarding the intent, belief or current expectations of KBS REIT II as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and KBS REIT II undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

The following are some of the risks and uncertainties, although not all risks and uncertainties, that could cause KBS REIT II's actual results to differ materially from those presented in KBS REIT II' s forward-looking statements: KBS REIT II can provide no guarantees regarding (i) its future performance or the performance of Granite Tower, (ii) the financial stability of the tenants leasing Granite Tower; or (iii) whether current or future disruptions in the national or local economy will materially adversely affect the operations of Granite Tower.

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