SOURCE: KBS Capital Advisors

KBS Capital Advisors

August 21, 2012 13:05 ET

KBS Strategic Opportunity REIT Receives Payoff of Discounted First Mortgage Acquisition

ORLANDO, FL--(Marketwire - Aug 21, 2012) -  KBS Strategic Opportunity REIT, a public non-traded real estate investment trust headquartered in Newport Beach, Calif., has announced the payoff of a non-performing first mortgage loan collateralized by Primera/University Court, a three-building office portfolio in Orlando, Fla.

On July 2, 2012, KBS Strategic Opportunity REIT acquired the Primera/University Court first mortgage loan at a discounted purchase price of $8 million plus closing costs. Prior to the acquisition, the borrowers under the loan entered into a discounted payoff agreement with the former owner of the loan for $8.4 million, plus any excess cash generated by the property securing the mortgage loan, which KBS Strategic Opportunity REIT assumed at time of closing. The borrowers, who are unaffiliated with KBS Strategic Opportunity REIT, met the terms of the agreement and paid the amount due under the discounted payoff agreement on Aug. 8, 2012.

The first mortgage was secured by Primera Court I and II, a two-building complex totaling 63,680 square feet in Lake Mary, Fla., 20 miles north of downtown Orlando, and University Court, a 42,992-square-foot building in Orlando.

KBS Strategic Opportunity REIT is a public non-traded real estate investment trust that intends to invest in and manage a diverse portfolio of real estate-related loans, opportunistic real estate, real estate-related debt securities and other real estate-related investments. KBS Strategic Opportunity REIT was sponsored indirectly by Charles J. Schreiber, Jr., Peter Bren, Keith Hall and Peter McMillan III and is advised by KBS Capital Advisors LLC, an affiliated entity which is indirectly owned and controlled by KBS Strategic Opportunity REIT's sponsors.

About KBS
KBS is a private equity real estate company and SEC-registered investment advisor founded in 1992. Since its inception, KBS and its affiliated companies have completed transactional of approximately $25 billion via 14 separate accounts, six commingled funds, five sovereign wealth funds and five non-traded REITs. For information, visit www.kbscapital.com.

This release may contain 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"), including KBS Strategic Opportunity REIT's ability to invest in and manage a diverse portfolio. These statements are subject to known and unknown risks, uncertainties and other factors which may cause KBS Strategic Opportunity REIT's or Primera/University Court'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.

Contact Information

  • Media Contacts:
    Cindy Tullues or Bob Ochsner
    DGWB for KBS Capital Advisors
    (714) 881-2310
    bochsner@dgwb.com