SOURCE: KBS Capital Advisors

KBS Capital Advisors

September 19, 2011 14:00 ET

KBS REIT II's 300 North LaSalle in Chicago Outperforms First-Year Operating Expectations

CHICAGO, IL--(Marketwire - Sep 19, 2011) - KBS Real Estate Investment Trust II (KBS REIT II), a non-traded real estate investment trust, announced that its high-profile 300 North LaSalle office tower in Chicago outperformed first-year operating expectations. As of June 30, 2011, after the first year of ownership by KBS REIT II, the Class A property was 98.6 percent leased.

In a market with below average occupancy, KBS REIT II signed new and expansion leases encompassing more than 45,000 square feet during the first 12 months it has owned the 60-story building. This resulted in KBS REIT II increasing its projected total return for the building over the REIT's anticipated hold period. Original pro-forma assumptions called for an increase of 5,888 square feet leased during this period.

"Our team is pleased that things have gone well for this asset in its first year," said Mark Brecheen, KBS Capital Advisors LLC senior vice president and asset manager. "As one of the larger trophy properties owned by KBS REIT II, we recognize its impact on the long-term performance of the portfolio."

300 North LaSalle is considered to be one of the most prestigious office properties in downtown Chicago, offering a 360-degree view of the city's skyline and Lake Michigan. The 1.3 million-square-foot building was completed in 2009 and provides proximity to major commuter options serving metropolitan Chicago, including the Chicago Transit Authority. 300 North LaSalle is supported by a rich amenity base and is situated within walking distance of entertainment, retail, residential and hotel space.

About KBS
KBS Capital Advisors, KBS REIT II's advisor, is an affiliate of KBS Realty Advisors, which is a private equity real estate company and SEC-registered investment advisor founded by Peter Bren and Charles Schreiber, Jr. Since 1992, KBS Realty Advisors and its affiliated companies have completed transactional activity of approximately $20.55 billion via 14 separate accounts, six commingled funds, five sovereign wealth funds and five non-traded REITs. For information, visit www.kbsrealty.com.

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including discussions regarding KBS REIT II's ability to pay distribution, acquire a diverse portfolio and certain other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include changes in general economic conditions, changes in real estate conditions, changes in interest rates, lease-up risks, lack of financing availability and lack of capital proceeds.

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