KBS Growth & Income Real Estate Fund | KBS Direct

        

KBS Direct Webinars

KBS Direct: Providing Direct Access to Institutional Quality Real Estate

  • Why KBS Direct is leading the charge on offering individual investors and advisors direct access to institutional-grade CRE.
  • Top line details on the current offering, like the return objective and the transparent fee structure.
  • Information on the portfolio of office buildings.
  • How KBSDirect.com has simplified the online investment process.
  • Common questions from investors and professional advisors.

 

Keep in mind there are risks to investing, including loss of capital, so be sure to review the full offering materials.*

KBS Growth & Income Fund First Quarter 2018 Portfolio Update

  • KBS Overview
  • Portfolio Highlights as of March 31, 2018
  • Distribution History
  • Portfolio Summary
  • Capital Management Update
  • Leasing Update
  • Property Updates

 

Keep in mind there are risks to investing, including loss of capital, so be sure to review the full offering materials.*

KBS Direct Strategy

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Core-Plus Real Estate

Expert regional teams underwrite, acquire, and improve properties in high U.S. job growth markets.

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Institutional Quality

Investors enjoy direct access to institutional-grade growth and income properties and KBS’ active asset management style, without paying upfront fees or commissions.

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Industry Leadership

Backed by a sponsor with nearly $35 billion of experience in commercial and residential real estate transactions across a total of 1600+ properties.

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Aligned Interests

KBS Capital Advisors does not receive any performance-based fee until investors, together as a collective group, have received 100% return of their invested capital, and a 6% per year cumulative, non-compounded return.

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KBS Growth & Income Real Estate Fund

KBS Growth & Income Real Estate Fund’s portfolio of properties can benefit from the experience of over $37 billion in commercial and residential real estate acquisitions and dispositions across more than 1,600 properties. KBS is one of the nation’s largest and most respected commercial real estate companies and ranked by National Real Estate Investor as the 6th largest office owner globally, based on volume of office space as of December 31, 2017. KBS Growth & Income Real Estate Investment Trust has $83 million in equity and four office buildings for a gross value of $197.8 million in major cities including Houston, TX, Irvine, CA, Chicago, IL and Portland, OR.

KBS Growth & Income Real Estate Fund

  • MAXIMUM OFFERING: $1,000,000,000 of Common Stock
  • TARGETED PORTFOLIO PROFILE: Core-Plus Institutional Quality Commercial Real Estate
  • INVESTOR PROFILE: Accredited Investors
  • NO UPFRONT FEES OR COMMISSIONS PAID BY INVESTORS
  • CURRENT DIVIDEND YIELD: 6.0% Annualized (Distributed Monthly)
  • SHARE PRICE: $8.79
  • MINIMUM INVESTMENT: $10,000
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KBS Growth & Income Real Estate Fund generally intends to hold its real estate properties for three to seven years.
Economic and market conditions may influence us to hold our properties for different periods of time. Please see the Private Placement Memorandum for more details.

  • Strong Probability
  • Moderate Probability
  • Low Probability
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RISK FACTORS

Neither the Securities and Exchange Commission (the “SEC”) nor any state securities authority, has approved or disapproved of these securities or passed on the adequacy or accuracy of the KBS Growth & Income Real Estate Fund’s Private Placement Memorandum (the “PPM”). Any representation to the contrary is a criminal offense.

Investing in KBS Growth & Income Real Estate Fund includes substantial risks. These risks include, but are not limited to: the possibility of losing your entire investment; no guarantees regarding performance; upon sale or distribution of assets you may receive less than your initial investment; fluctuation of the value of the assets owned by KBS Growth & Income Real Estate Fund; lack of a public market for shares of KBS Growth & Income Real Estate Fund; limited liquidity; limited transferability; reliance on KBS Capital Advisors LLC, the REIT’s adviser, to select, manage and dispose of assets; and various economic factors that may include changes in interest rates, laws, operating expenses, insurance costs and tenant turnover. Shares of KBS Growth & Income Real Estate Fund are not suitable for all investors. Investors should read and consider the PPM carefully before investing.

KBS Growth & Income Real Estate Fund may fund distributions from any source including, without limitation, from offering proceeds or borrowings. Distributions paid through September 30, 2017 have been funded in part with cash flow from operating activities and part with debt financing, including advances from the REIT’s adviser. Distributions funded from sources other than the REIT’s cash flow from operations will result in dilution to subsequent investors, reduce funds available to make real estate investments and may reduce the overall return to the REIT’s stockholders. There are no guarantees that KBS Growth & Income Real Estate Fund will pay distributions.

KBS Growth & Income Real Estate Fund pays fees to KBS Capital Advisors and its affiliates in connection with the management of the REIT’s investments that are based on the cost of the investment, not on the quality of the investment or the services rendered to the REIT. These fees reduce the amount of cash available for distribution to stockholders. The REIT may also pay fees during its liquidation stage. KBS Capital Advisors and its affiliates, and KBS Growth & Income Real Estate Fund’s executive officers, its affiliated directors and other key professionals face conflicts of interest, including significant conflicts created by the adviser’s compensation arrangements with the REIT and other KBS-sponsored programs and KBS advised investors. Although the REIT has adopted corporate governance measures to ameliorate some of the risks posed by these conflicts, these conflicts could result in action or inaction that is not in the best interest of stockholders.

KBS Growth & Income Real Estate Fund may make adjustments to its target portfolio at any time without the consent of its stockholders, which could result in the REIT making investments that are different from, and possibly riskier than, the investments described in the PPM.

KBS Growth & Income Real Estate Fund uses debt in connection with its investments, which increases the risk of loss associated with these investments and could hinder its ability to pay distributions to its stockholders or could decrease the value of its stockholders’ investments if income generated by, or the value of, the property securing the debt declines.

If KBS Growth & Income Real Estate Fund does not raise significant proceeds in this offering it will be limited in the number of investments it makes; the value of an investment in the REIT will fluctuate with the performance of the specific assets the REIT acquires; and the REIT’s general and administrative expenses will constitute a greater percentage of its revenue.

KBS Growth & Income Real Estate Fund elected to be taxed as a REIT beginning with the taxable year ended December 31, 2015. Should KBS Growth & Income Real Estate Fund not qualify as a REIT, it may be subject to adverse tax consequences. Please refer to the PPM for more detailed information regarding these consequences.

KBS Growth & Income Real Estate Fund has a limited operating history and as of December 11, 2017 owns four office buildings with an aggregate cost basis of approximately $193.9 million.

KBS Growth & Income Real Estate Fund’s primary offering price per share may not be indicative of the price at which its shares would trade if they were listed on a national securities exchange or actively traded. The offering price is equal to the estimated net asset value per share of the REIT’s common stock established by its board of directors and was determined by dividing the REIT’s estimated net asset value by the number of shares outstanding as of a particular point in time. See the PPM for a full description of the methodologies used to value KBS Growth & Income Real Estate Fund’s assets and liabilities in connection with the calculation of the estimated value per share and the limitations related thereto.

Track Record of KBS Affiliated Entities

Since 1992, KBS and its affiliated companies have invested in and sold over $37 billion in commercial and residential real estate transactions on behalf of large institutions, including public and private pension funds, endowments, foundations, institutional and sovereign wealth funds, and seven public non-traded real estate investment trusts.

KBS By THE Numbers 1,2,3

1Information on this page as of March 31, 2018, for all equity and debt assets for all KBS-affiliated entities and not specific to any KBS-advised investor or KBS-sponsored program.

2These figures include those from five KBS-advised investors where, pursuant to management agreements and partnership agreements, the KBS-advised investors were permitted to reject acquisitions recommended by the KBS- affiliated adviser. Since inception, for these five investors, $4.3 billion of real estate properties has been invested, managed or owned, and 236 asset acquisitions (encompassing 30.5 million square feet) and 232 asset dispositions (encompassing 29.2 square feet).

3Transactional volume includes purchase price of assets acquired plus sales price, transfer price or payoff proceeds of asset dispositions through March 31, 2018.

4For the four discretionary investors, funds containing 12.4 million square feet had gone full-cycle.

5The ranking by National Real Estate Investor is based on volume of office space owned globally, as of December 31, 2017. The results were generated from a survey conducted by National Real Estate Investor based on a combination of advertising and website promotion of the survey, direct solicitation of responses from participants, direct email to National Real Estate Investor subscribers and other identified office owners and daily newsletter promotion of the survey, all supplemented with a review of public company SEC filings.

The Investment

The Company expects to invest in core office properties in urban and suburban locations, especially those that are in or near central business districts or have access to transportation.

The Advisor will not receive any of its net cash flow-based incentive fee until the Company's stockholders together as a collective group have received aggregate distributions sufficient to provide the following:

  • A 100% return of their gross investment amount; and
  • A 6% per year cumulative, non-compounded return on such gross investment amount. In other words, the Advisor doesn’t receive additional funds until the Company's stockholders generally receive additional funds.

For more information on the incentive fee, see the Private Placement Memorandum.

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Office: Top Choice of Institutional Investors1

When it comes to investing in office properties, KBS is in good company. An annual survey2 of the largest managers of U.S. tax-exempt real estate assets, such as pension funds and endowments, revealed that office/commercial assets are attracting the most institutional investment dollars.3

1Institutional-quality real estate investments are properties that merit the attention of institutional investors because of the quality of their design and construction and the stability of their tenant base. These properties are generally owned by institutional investors.

2Jacobius, Arleen. “Worldwide real estate asset growth spectacular again.” Pensions & Investments. October 19, 2015.

3Endowments and pension plans are tax-exempt and managed very differently than non-traded REITs. Managers of these institutional portfolios may not always consider office properties as the most attractive asset type for their real estate holdings. The managers of these institutional portfolios have different goals and objectives than those of non-traded REITs and typically allocate only a small percentage of their overall portfolio to diverse real estate holdings. The fees and expenses paid by these institutional portfolios to their managers are substantially less than those paid by non-traded REITs to their advisors and other entities. Non-traded REITs also differ from endowments and pension plans as they are illiquid. Institutional investors do not typically invest in non-traded REITs.

Investing for Growth and Income 1

Some real estate assets have predictable cash flows but offer the opportunity for value enhancement. For example, a property may be mostly leased with favorable terms to high-quality tenants, but it might also benefit from some moderate upgrades or moderate renovations. These types of real estate assets can provide an opportunity to achieve more significant capital appreciation by increasing occupancy, negotiating new leases with higher rental rates and/or executing enhancement projects. Through this value-creating process, the property can be converted to a “core real estate asset” as described in the “Investing for Income” section below. Characteristics of properties with value-creating opportunities include the following (see blue chart to the direct right):

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Investing for Income 1

Core real estate assets are generally the highest-grade real estate properties, fully stabilized with creditworthy quality tenants.2 These properties are often newly constructed or renovated, energy-efficient Class A3 properties that require few, if any, improvements. They are usually located in major metropolitan markets and stabilized employment centers. The majority of total return with these properties stems from the operating cash flow rather than terminal value (or cash flow from sale). Characteristics include the following (see gray chart to the direct left):

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1There is no guarantee that the Company will be able to provide long-term growth and stable income to its stockholders.

2According to Institutional Real Estate, Inc., core properties tend to have been built within the past five years or have been recently renovated. They are substantially leased (90% or better) with higher-credit tenants and well-structured long-term leases with the majority fairly early in the term of the lease. Core assets generate stable income with the potential for appreciation.

3According to Building Owners and Managers Association International, Class A office buildings are the most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high-quality standard finishes, state-of-the-art systems, exceptional accessibility and a definite market presence.

Office Supply and Demand

Confidence is a critically important economic indicator for the CRE industry. When consumers are confident, they spend more. That, in turn, boosts business profits, which creates jobs, ultimately translating into demand for CRE space. Greater consumer spending could, result in stronger real GDP growth. In general, when GDP is strengthening, so too are property markets.

Demographics

LIVE/WORK/PLAY. Millennials are a growing segment of the work force, and their cultural preferences are shaping many factors of the office market. Millennials seek mixed-use developments offering walkability to nearby restaurants, shops, entertainment venues, and accessibility to alternative transportation.1 Over the next 10–15 years, some of the most desirable office properties will be those with the right set of amenities, such as fitness centers, conference facilities, and food service.2

1PWC and Urban Land Institute. “Emerging Trends in Real Estate® 2016.” September 2015.

2Ponsen, Adrian and Schwieger, Charles. “Aging to Perfection: How U.S. Office Investors Can Survive and Thrive During the Coming Demographic Cliff.” CoStar Portfolio Strategy. August 2014.

KBS Capital Advisors was formed to build out a retail platform of public non-traded REITs and is the adviser for all KBS-sponsored non-traded REITs.

KBS is a regionally aligned organization. This structure provides operating efficiencies and a local market knowledge that helps KBS to secure the very best properties for its investors. Highlights of this structure include the following:

  • Three regional presidents whose compensation is tied directly to the performance of their regions.
  • Local acquisition officers and asset managers, each knowledgeable in their respective markets.
  • KBS professionals who know the dealmakers in their markets. These established relationships often allow KBS first choice at premier assets.
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KBS Growth & Income Fund Properties

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The Offices at Greenhouse
Houston, TX
  • Property Type
    Class A1 Office
  • ACQUISITION DATE
    November 14, 2016
  • PURCHASE PRICE
    $46,489,000
  • SQUARE FOOTAGE
    203,284 SF
Click Here For Details
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The Offices at Greenhouse
19219 Katy Freeway, Houston, TX 77094
LOCATION: Houston, TX
  • Property Type
    Class A1 Office
  • ACQUISITION DATE
    November 14, 2016
  • PURCHASE PRICE
    $46,489,000
  • SQUARE FOOTAGE
    203,284 SF
  • NO. OF BUILDINGS:
    1
  • NO. OF STORIES:
    5
  • SITE SIZE:
    4.6 Acres
  • YEAR BUILT:
    2014
  • LEASED PERCENTAGE AT ACQUISITION:
    95%
  • SUBMARKET:
    Energy Corridor
  • KEY TENANTS:
    % of Bldg.
    • Aecom:
      69.2%
    • J. Connor Consulting:
      15.8%
    • World Fuel Services:
      4.5%

Property

The Offices at Greenhouse is a newly constructed, five-story Class A1 office building strategically located at the western entrance of Houston’s Energy Corridor submarket. The 203,221-square-foot building is LEED Silver2 certified and features a two-story lobby with marble and travertine finishes and abundant natural light. Amenities include a landscaped tenant courtyard, 50-person learning center, a 10-person board room, on-site management office and security guard and an attached four-level parking garage. The Offices at Greenhouse is located adjacent to the vibrant Katy Green retail development, which provides tenants with walkable access to a wide range of stores, restaurants and additional amenities.

The property was 95% leased at acquisition with an anchor tenant whose lease will not expire until 2024, with the exception of 5,195 square feet, which will expire in 2019.

Location

Houston is America’s fourth-largest city and is home to the second-most Fortune 500 headquarters in the nation. The city has the leading import/export port and earned the title of “Energy Capital of the World.”3, 4 The Offices at Greenhouse is located at the western entrance to Houston’s Energy Corridor, which is the third-largest employment center in the region.5 The Energy Corridor has historically been one of the strongest submarkets in Houston, and it is expected to remain that way due to the growing population in the area, Houston’s economic diversification over the last 10 years and the recent addition of the Grand Parkway, Houston’s newest highway loop to the west of the property.

1According to Building Owners and Managers Association International, Class A office buildings are the most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high-quality standard finishes, state-of-the-art systems, exceptional accessibility and definite market presence.

2Leadership in Energy & Environmental Design (LEED) is a green building certification program that recognizes best-in-class building strategies and practices. There are four LEED certification levels (Certified, Silver, Gold and Platinum) that correspond to the number of credits that a building owner can accrue in five design categories. Leed-EB rates the operations and maintenance of the building.

3portofhouston.com

4sikich.com

5liquisearch.com/houston_energy

Amenities

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    Conference Center
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    Covered Parking
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    Dining / Shopping Nearby
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    Hospital / Medical Center Nearby
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    Key Card Access
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    On-Site Management Office
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    Outdoor Patio or Courtyard
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    Reserved Parking
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    Security Guards
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    U.S. Postal Service Nearby

Accolades

*Logos shown represent awards or honors attributable to KBS properties in the last five years. LEED and Energy Star designations may reflect certifications received prior to the current year. Some properties may reflect multiple buildings where some of the buildings at the property do not possess LEED or Energy Star certifications. Awards shown may represent a specific event and do not constitute an endorsement of KBS by any of the entities shown.

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Commonwealth
Portland, OR
  • Property Type
    Class A1 Office
  • ACQUISITION DATE
    June 30, 2016
  • PURCHASE PRICE
    $68,545,000
  • SQUARE FOOTAGE
    224,122 SF
Click Here For Details
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Commonwealth
421 SW 6th Ave, Portland, OR 97204
LOCATION: Portland, OR
  • Property Type
    Class A1 Office
  • ACQUISITION DATE
    June 30, 2016
  • PURCHASE PRICE
    $68,545,000
  • SQUARE FOOTAGE
    224,122 SF
  • NO. OF BUILDINGS:
    1
  • NO. OF STORIES:
    14
  • SITE SIZE:
    0.46 Acres
  • YEAR BUILT:
    1948/2013–2015
  • LEASED PERCENTAGE AT ACQUISITION:
    96%
  • SUBMARKET:
    Portland CBD
  • KEY TENANTS:
    % of Bldg.
    • Quantum Spatial:
      11.0%
    • City of Portland:
      9.4%
    • NEEA:
      9.4%

Property

Designed by renowned architect Pietro Belluschi and constructed between 1946 and 1948, Commonwealth is recognized as one of the first glass box, mid-century design towers ever built. Since its creative repositioning beginning in 2008, the building has become one of the dominant locations for Portland’s technology, advertising, media and information tenants. More than $13.6 million was invested in tenant improvements, shared amenities and capital expenditures in recent years, allowing Commonwealth to offer a best-in-class tenant experience. Amenities include a rooftop deck, building conference room, tenant lounge, bicycle storage, a fitness center and locker rooms. The building fronts the Sixth Avenue transit mall providing tenants with convenient access to mass transit.

The property is among the oldest buildings in Portland to be awarded LEED-EB Gold by the U.S. Green Building Council2.

Location

Portland has consistently ranked as one of the most stable office markets in the nation and is currently among the best-performing markets on the West Coast. Located along the Willamette River, downtown Portland is Oregon’s economic center and is home to a dense concentration of mature and growing technology companies. Portland has a world-class public transit system, affordable quality of life and a robust demand for creative Class A office space. Commonwealth is located in the heart of Portland’s “Technology Triangle,” a cluster of creative/technology tenant demand in downtown Portland.

1According to Building Owners and Managers Association International, Class A office buildings are the most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high-quality standard finishes, state-of-the-art systems, exceptional accessibility and a definite market presence.

2Leadership in Energy & Environmental Design (LEED) is a green building certification program that recognizes best-in-class building strategies and practices. There are four LEED certification levels (Certified, Silver, Gold and Platinum) that correspond to the number of credits that a building owner can accrue in five design categories. Leed-EB rates the operations and maintenance of the building.

Amenities

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    24/7 Security
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    Airport Nearby
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    Bike Storage
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    Conference Center
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    Dining / Shopping Nearby
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    Energy Management System
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    Entertainment Nearby
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    Fitness Center
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    Key Card Access
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    Locker Rooms with Showers
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    Lodging Nearby
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    Major University Nearby
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    Public Transportation Nearby
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    Rooftop View Terrace
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    Security Guards
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    Tenant Lounge
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    Transit Centers

Accolades

*Logos shown represent awards or honors attributable to KBS properties in the last five years. LEED and Energy Star designations may reflect certifications received prior to the current year. Some properties may reflect multiple buildings where some of the buildings at the property do not possess LEED or Energy Star certifications. Awards shown may represent a specific event and do not constitute an endorsement of KBS by any of the entities shown.

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213 West Institute
Chicago, IL
  • Property Type
    Class B
  • ACQUISITION DATE
    November 9, 2017
  • PURCHASE PRICE
    $43,155,000
  • SQUARE FOOTAGE
    155,385 SF
Click Here For Details
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213 West Institute
213 West Institute Place, Chicago IL
LOCATION: Chicago, IL
  • Property Type
    Class B
  • ACQUISITION DATE
    November 9, 2017
  • PURCHASE PRICE
    $43,155,000
  • SQUARE FOOTAGE
    155,385 SF
  • NO. OF BUILDINGS:
    1
  • NO. OF STORIES:
    7
  • SITE SIZE:
    .67 Acres
  • YEAR BUILT:
    1908/2017
  • LEASED PERCENTAGE AT ACQUISITION:
    92%
  • SUBMARKET:
    River North
  • KEY TENANTS:
    % of Bldg.
    • Cushing:
      12%
    • Headquarters Beercade:
      11%
    • Chicago Portfolio School:
      9%

Property

The 213 West Institute building is a vintage, brick and timber loft office building, once home to Gormully & Jeffery Mfg. Co., a bike manufacturing facility. The historic property recently underwent a full renovation, with over $6.3 million worth of capital improvements.

Since 2015, the property has undergone a roof replacement, lobby renovation, corridor upgrades, new fire panel and freight elevator, along with replacement of tenant specific HVAC units and coils. These upgrades have been accretive in improving the building to a best-in-class brick and timber building, but also in the retention of existing tenants and marking rents to market. In addition to the renovation, the property also offers an on-site 32-stall parking lot, a rare amenity within the submarket.

Location

The River North submarket of Chicago is insulated by high-end, walkable amenities (98 walk score)1, direct access to brown, purple and red line CTA stops, and a burgeoning apartment development scene, with over 5,300 units expected to be developed in the next three years within a 0.75-mile radius of the property. These factors have led to a demand for loft office product evidenced by the 96.5% occupancy for repositioned loft buildings and average annual rent growth of 5.9% since 2010.

¹Walk Score ranks the largest 3,000 cities and over 10,000 neighborhoods based on walkability to nearby amenities. Points are awarded based on the distance to amenities in each category. Amenities within a five-minute walk (.25 miles) are given maximum points.

Amenities

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    Dining / Shopping Nearby
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    Freeway Access
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    Lodging Nearby
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    Transit Nearby
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    Entertainment Nearby
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    Public Transportation Nearby
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Von Karman Tech Center
Irvine, CA
  • Property Type
    Class B Office
  • ACQUISITION DATE
    August 12, 2015
  • PURCHASE PRICE
    $21,277,000
  • SQUARE FOOTAGE
    101,161 SF
Click Here For Details
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Von Karman Tech Center
16842 Von Karman Ave, Irvine, CA 92606
LOCATION: Irvine, CA
  • Property Type
    Class B Office
  • ACQUISITION DATE
    August 12, 2015
  • PURCHASE PRICE
    $21,277,000
  • SQUARE FOOTAGE
    101,161 SF
  • NO. OF BUILDINGS:
    1
  • NO. OF STORIES:
    2
  • SITE SIZE:
    4.61 Acres
  • YEAR BUILT:
    1980/2013–2014
  • LEASED PERCENTAGE AT ACQUISITION:
    100%
  • SUBMARKET:
    Irvine Airport Area
  • KEY TENANTS:
    % of Bldg.
    • Hosting:
      44.3%
    • Combatant Gentlemen:
      9.2%
    • Lee & Sakahara Architects:
      7.2%

Property

Von Karman Tech Center is a 101,161-square-foot multi-tenant office building featuring creative workspace that is attractive to today’s tech tenants. The two-story building was developed in 1980 and fully renovated throughout 2013–2014.

Its recent $2 million renovation included new landscaping, hardscaping, outside meeting areas with umbrellas, awnings and Wi-Fi throughout the property. The building was 100% leased at acquisition (50% of the space is leased through 2023 and beyond).

Von Karman Tech Center sits on 4.61 acres in a prime “live, work, play” environment in Irvine, California. The property is adjacent to The District at Tustin Legacy, which boasts some of the city’s most popular dining establishments, boutiques and specialty shops. Situated along the prominent thoroughfare of Von Karman Avenue, the building provides tenants with high corporate visibility and ease of access to numerous retail and service amenities.

Location

Von Karman Tech Center is located in the center of the Irvine Business Complex in Orange County, California, which is only a short drive to some of Southern California’s best beaches as well as world-renowned entertainment and shopping venues. Well known as one of the nation’s most desirable places to live, work and play, Irvine offers a highly educated labor pool and unparalleled amenities for corporate tenants and employees featuring 25 shopping centers, 546 restaurants, 52 hotels, 41 health clubs and 39 grocery stores within a three-mile radius.

Orange County is home to one of the nation’s most diverse technology sectors with firm headquarters that include Blizzard Entertainment, Western Digital Corporation, Toshiba America, Broadcom and Vizio.1

1Firms listed above are not tenants of Von Karman Tech Center.

Amenities

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    Airport Nearby
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    Dining / Shopping Nearby
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    Entertainment Nearby
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    Executive Housing Nearby
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    Freeway Visibility
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    Gym
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    Lodging Nearby
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    Major University Nearby
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    Outdoor Patio or Courtyard
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    Transit Nearby
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    Wi-Fi Service

Tenant Testimonials

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Shawn Karande

CEO, ObjectWin Technology, Inc. Tenant, The Offices at Greenhouse, Houston, TX

The right kind of amenities at the KBS building has helped our company attract the best and brightest talent. The facility management here has exceeded our expectations and the professional staff is always helpful, pleasant to deal with and ready to assist.

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Eric Merten

Director of Professional Services, Quantum Spatial Anchor Tenant, Commonwealth Building, Portland, OR

What do I like about the Commonwealth building? Well first of all, it’s a beautiful building so it’s almost a piece of art. It’s really amazing to come work here every day. The other thing I like about the Commonwealth building is the facilities. KBS has done an amazing job in the renovation, keeping the original architectural integrity of the building, but at the same time making these amazing improvements and modernizing the facilities.

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Taffy Johnson

Office Manager, Jack W. Olds & Co LLP Tenant, Commonwealth Building, Portland, OR

We are so pleased with the final outcome of the transition of the Commonwealth building, provided by KBS. It was so important to us that the integrity of the Pietro Belluschi design be maintained and, in fact, highlighted by the changes. We appreciate the thoughtful yet practical upgrade to the lobby design, as well.

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Amado Bermudez-McLaud

Office Manager, Quantum Spatial Anchor Tenant Commonwealth Building, Portland, OR

KBS has been driving improvement since taking ownership of the Commonwealth building. Their efforts have demonstrated care for the tenants and this historic structure alike.

*These testimonials may not be representative of the experience of other customers and are no guarantee of future performance or success.
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The KBS Team

  • Charles J. Schreiber, Jr.
    Chief Executive Officer and Co-Founder, KBS Realty Advisors and KBS Capital Advisors
  • Peter M. Bren
    Chairman, President, and Co-Founder, KBS Realty Advisors and KBS Capital Advisors
  • George R. Bravante, Jr.*
    Independent Director
  • Jon D. Kline*
    Independent Director
  • Keith P. Russell*$
    Independent Director
  • *
    Independent Director
  • $
    Financial Expert
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Mr. Schreiber serves as Chief Executive Officer and co-founder of KBS Realty Advisors and its affiliate, KBS Capital Advisors. Both are nationally recognized real estate investment firms. He is based in Newport Beach, CA.

Mr. Schreiber oversees all aspects of KBS Capital Advisors’ and KBS Realty Advisors’ operations, including the acquisition, management, and disposition of individual investments and portfolios of income-producing real estate assets. He is a member of the KBS Investment Committee, which evaluates and authorizes new investment opportunities for KBS-affiliated entities.

Mr. Schreiber has been involved exclusively in real estate development, management, acquisition, disposition, and financing for more than 40 years. Prior to forming the first KBS-affiliated entity with Mr. Bren in 1992, he served as the Executive Vice President of Koll Investment Management Services, and Executive Vice President of Acquisitions/Dispositions for The Koll Company.

Mr. Schreiber has served as a member of the Board of Directors and Executive Committee of The Irvine Company since August 2016, and as a member of the Board of Trustees since December 2016.

Mr. Schreiber graduated from the University of Southern California with a Bachelor’s Degree in Finance with an emphasis in Real Estate. He is currently an Executive Board Member for the USC Lusk Center for Real Estate at the Marshall School of Business/School of Policy, Planning and Development. Mr. Schreiber is also a member of the Executive Committee for the Public Non-Listed REIT Council of National Association of Real Estate Investment Trusts (NAREIT). He is also a member of the National Council of Real Estate Investment Fiduciaries (NCREIF).

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Mr. Bren serves as Chairman of the Board, President, and co-founder of KBS Realty Advisors and KBS Capital Advisors. He is based in New York, NY.

Mr. Bren oversees all aspects of KBS Capital Advisors’ and KBS Realty Advisors’ operations, including the acquisition, management, and disposition of individual investments and portfolios of income-producing real estate assets. He is a member of the KBS Investment Committee, which evaluates and authorizes new investment opportunities for KBS-affiliated entities.

Mr. Bren has been involved exclusively in real estate development, management, acquisition, disposition, and financing for more than 40 years. Prior to his roles at KBS Realty Advisors and KBS Capital Advisors, he served as Senior Partner of Lincoln Property Company, and President of Lincoln Property Company, Europe.

Mr. Bren is a member of the UCLA Anderson School of Management Board of Advisors, and is a founding member of The Richard S. Ziman Center for Real Estate at the UCLA Anderson School of Management, where he has also created and funded The Peter Bren Real Estate Entrepreneurship Studies Initiative at UCLA.

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George R. Bravante, Jr. has served on the KBS Growth & Income REIT’s Board of Directors since March of 2016.

In 1996, Mr. Bravante founded Biltmore Advisors, LLC, the general partner of Bravante-Curci Investors, L.P., focusing on real estate and agricultural investments. He also currently serves as the managing member of Biltmore Advisors, LLC. Since 2005, Mr. Bravante has been the owner of Bravante Produce, which oversees agricultural land. Since July 2013, he has served as the Chief Executive Officer of Pacific Agriculture Realty, LP, an agricultural real estate fund.

Mr. Bravante has been in the real estate industry for over 30 years. Prior to founding Bravante-Curci Investors, Mr. Bravante served as President and Chief Operating Officer of Colony Advisors, overseeing all aspects of the firm’s operations, including financial and asset management and property management and dispositions. He also served as President and Chief Operating Officer of the American Realty Group, where he was responsible for the strategic management, restructuring and disposition of more than $20 billion in real estate-related assets.

Mr. Bravante received a Bachelor of Arts in Accounting from the University of South Carolina in 1982.

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Jon D. Kline has served on the KBS Growth & Income REIT’s Board of Directors since 2016.

Mr. Kline is the founder and Chief Executive Officer of Clearview Hotel Capital, LLC, a privately-held hotel investment and advisery company focused on acquiring and providing asset management for hotels in urban and unique locations. Mr. Kline has led Clearview Hotel Capital since its founding in 2007.

From 2006 through 2007, he served as President and, from 2003 to 2006, as Chief Financial Officer of Sunstone Hotel Investors, Inc., a public hotel REIT (NYSE: SHO). Prior to joining Sunstone in 2003, Mr. Kline oversaw the U.S. hospitality and leisure investment banking practice at Merrill Lynch & Co., with responsibility for lodging, gaming, restaurants and other leisure industries.

Mr. Kline has served on the Board of Directors of CareTrust REIT, Inc. (NASDAQ: CTRE), a public REIT, since June 2014, and is currently the Chair of the Audit Committee and a member of the Nominating and Corporate Governance and Compensation Committees. Mr. Kline holds a Bachelor of Arts in Economics from Emory University and a J.D. from New York University School of Law.

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Keith P. Russell is a member of the KBS Growth & Income REIT’s Board of Directors, since March of 2016.

Since June 2001, Mr. Russell has been President of Russell Financial, Inc., a strategic and financial consulting firm serving businesses and high net worth individuals.

Mr. Russell has served on the Board of Directors of Sunstone Hotel Investors, Inc. (NYSE: SHO), a public REIT, since 2004, and is currently the Chair of the Audit Committee and a member of the Nominating and Corporate Governance Committee. Mr. Russell has served on the Board of Directors of Hawaiian Electric Industries, Inc. (NYSE: HEI) since May 2011, and is currently a member of the Audit Committee.

Mr. Russell has been a panelist at various conferences and seminars, addressing topics such as corporate governance and the audit committee’s role. He holds a Bachelor of Arts in Economics from the University of Washington and a Master of Arts in Economics from Northwestern University.

  • Peter M. Bren
    Chairman, President, and Co-Founder, KBS Realty Advisors and KBS Capital Advisors
  • Charles J. Schreiber, Jr
    Chief Executive Officer and Co-Founder, KBS Realty Advisors and KBS Capital Advisors
  • Rodney G. Richerson
    Director of Asset Management, Western United States, KBS Capital Advisors and KBS Realty Advisors
  • Kenneth Robertson
    Regional President, Central United States, KBS Capital Advisors and KBS Realty Advisors
  • Marc DeLuca
    Regional President, Eastern United States, KBS Capital Advisors and KBS Realty Advisors
  • Lewis G. Feldman
    President, KBS Direct
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Mr. Bren serves as Chairman of the Board, President, and co-founder of KBS Realty Advisors and KBS Capital Advisors. He is based in New York, NY.

Mr. Bren oversees all aspects of KBS Capital Advisors’ and KBS Realty Advisors’ operations, including the acquisition, management, and disposition of individual investments and portfolios of income-producing real estate assets. He is a member of the KBS Investment Committee, which evaluates and authorizes new investment opportunities for KBS-affiliated entities.

Mr. Bren has been involved exclusively in real estate development, management, acquisition, disposition, and financing for more than 40 years. Prior to his roles at KBS Realty Advisors and KBS Capital Advisors, he served as Senior Partner of Lincoln Property Company, and President of Lincoln Property Company, Europe.

Mr. Bren is a member of the UCLA Anderson School of Management Board of Advisors, and is a founding member of The Richard S. Ziman Center for Real Estate at the UCLA Anderson School of Management, where he has also created and funded The Peter Bren Real Estate Entrepreneurship Studies Initiative at UCLA.

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Mr. Schreiber serves as Chief Executive Officer and co-founder of KBS Realty Advisors and its affiliate, KBS Capital Advisors. Both are nationally recognized real estate investment firms. He is based in Newport Beach, CA.

Mr. Schreiber oversees all aspects of KBS Capital Advisors’ and KBS Realty Advisors’ operations, including the acquisition, management and disposition of individual investments and portfolios of income-producing real estate assets. He is a member of the KBS Investment Committee, which evaluates and authorizes new investment opportunities for KBS-affiliated entities.

Mr. Schreiber has been involved exclusively in real estate development, management, acquisition, disposition and financing for more than 40 years. Prior to forming the first KBS-affiliated entity with Mr. Bren in 1992, he served as the Executive Vice President of Koll Investment Management Services, and Executive Vice President of Acquisitions/Dispositions for The Koll Company.

Mr. Schreiber has served as a member of the Board of Directors and Executive Committee of The Irvine Company since August 2016, and as a member of the Board of Trustees since December 2016.

Mr. Schreiber graduated from the University of Southern California with a Bachelor’s Degree in Finance with an emphasis in Real Estate. He is currently an Executive Board Member for the USC Lusk Center for Real Estate at the Marshall School of Business/School of Policy, Planning and Development. Mr. Schreiber is also a member of the Executive Committee for the Public Non-Listed REIT Council of National Association of Real Estate Investment Trusts (NAREIT). He is also a member of the National Council of Real Estate Investment Fiduciaries (NCREIF).

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Rodney Richerson is both the Regional President, Western United States and Director of Asset Management for KBS Capital Advisors and KBS Realty Advisors.

He has served as a Regional President since May 1, 2010 and he is directly involved in all acquisitions within the Western United States. As the Director of Asset Management, Mr. Richerson oversees asset management and disposition activities on behalf of KBS-sponsored programs and KBS-advised investors. In this role, Mr. Richerson contributes to the development of leasing operational strategies and objectives throughout the United States. He has served in this role since 2005.

Mr. Richerson joined a KBS-affiliated investment adviser in February 1994 as an asset manager; he has managed office, industrial, single and multi-family residential equity and debt assets. Prior to joining KBS, Mr. Richerson was director of finance in the Mexico City office of Koll/Cushman Realty Mexico. Mr. Richerson also worked for Koll Development Company’s Southern California Development Group. Mr. Richerson graduated from California State University at Fullerton with a bachelor’s degree in real estate finance.

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Ken Robertson is Regional President, Central United States of KBS Capital Advisors and KBS Realty Advisors.

As Regional President, Mr. Robertson oversees asset management and directs acquisition and disposition operations within the Central United States on behalf of KBS-sponsored programs and KBS-advised investors. He has served as Regional President, Central United States since October 2013.

Prior to joining a KBS-affiliated investment adviser in 2010, Mr. Robertson served for nine years as president of TR Realty Partners, a real estate investment and advisery firm specializing in identifying development and value-add investment opportunities. Mr. Robertson also spent eleven years working as a tenant representation broker, primarily for The Staubach Company. Mr. Robertson graduated from the California State University, Long Beach with a bachelor of science degree in business administration with an emphasis in real estate and finance.

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As Regional President for KBS, Mr. DeLuca is responsible for all acquisitions, dispositions and asset management activities in the Northeast, Mid-Atlantic, Southeast Region, and Ohio.

Mr. DeLuca began his real estate career in 1994 when he joined a Virginia-based American Property Services where he managed the operations of a multi-million dollar commercial and residential real estate portfolio. In 1999, he joined Clarion Partners in Washington, D.C., serving as Managing Director and responsible for leading the acquisitions, dispositions and asset management team for the Mid-Atlantic Region, from Delaware to South Florida.

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Lew Feldman serves as KBS Direct’s President.

Over the past 35 years, Mr. Feldman has helped raise and deploy more than $100 billion in debt and equity for housing, infrastructure, and technology companies. His advice has resulted in the successful launch and scaling of many of the top online debt and equity platforms, including ArborCrowd, ClearCapital, CrowdStreet, Fundrise, PatchofLand, RealtyMogul, RealCrowd, and Wealthforge.

Mr. Feldman has numerous media appearances to his credit on CNBC, CBS, Bloomberg Television, ABC, Fox, NPR, and Sirius XM. His ideas and opinions on capital raising and real estate have been featured in Barron’s, Bloomberg, Forbes, Fortune, The Los Angeles Times, The New York Times, and The Wall Street Journal.

Mr. Feldman founded Goodwin Procter LLP’s California offices and led the establishment of Goodwin’s Fintech and online capital markets practices. He is a graduate of the University of California, Davis, School of Law, where he served as Executive Editor of the UCD Law Review. Mr. Feldman serves as Chairman of the Board of the UCLA Ziman Center for Real Estate at the John Anderson School of Business, where he lectures on real estate capital formation and online technologies.

All of the offerings available through KBSDirect.com are made by issuers sponsored by KBS Holdings LLC, the owner of KBS Capital Advisors LLC. KBS Capital Advisors LLC is the owner of KBSDirect.com. KBS Capital Advisors LLC and its affiliate, KBS Realty Advisors, LLC, are registered investment advisers with the Securities and Exchange Commission. The first KBS investment adviser was founded by Peter M. Bren and Charles J. Schreiber Jr. in 1992 and established the basis for today’s family of KBS-affiliated real estate companies. Messrs. Bren and Schreiber have each been involved in real estate development, management, acquisition, disposition and financing for more than 40 years. Since 1992, KBS-affiliated entities have invested in and managed commercial real estate assets on behalf of clients that include large institutions, such as public and private pension plans, endowments, foundations, sovereign wealth funds and seven public non-traded real estate investment trusts (REITs). Large institutional investors have selected KBS-affiliated companies because the senior staff is comprised of real estate professionals with extensive, hands-on real estate experience.

The information above, including the video in the header, relates to all KBS-affiliated companies and is not specific to the Company. An investor cannot acquire stock in “KBS” or the sponsor as described above. See the Company’s Private Placement Memorandum (the “PPM”) for more information.

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FAQ

Frequently Asked Questions

What is the KBS Growth & Income Real Estate Fund?

KBS Growth & Income Real Estate Fund is a public-reporting company that has elected to qualify as a real estate investment trust for tax purposes. It intends to acquire and manage a diverse portfolio of premium commercial real estate properties across the U.S. Its portfolio currently features four institutional-quality office buildings.

KBS Growth & Income Real Estate Fund has no paid employees and its external advisor, KBS Capital Advisors, LLC conducts its operations and manages its portfolio of real estate investments. KBS Capital Advisors will not receive any of its net cash flow-based incentive fee until KBS Growth & Income Real Estate Fund’s stockholders as a collective group have received aggregate distributions sufficient to provide 100% of their gross investment amount, and a 6% per year cumulative non-compounded return on their gross investment amount. Further, KBS Capital Advisors has agreed to pay any organization and offering expenses in connection with KBS Growth & Income Real Estate Fund’s offering so no upfront fees are charged to investors. In addition to the incentive fee, KBS Capital Advisors receives other fees in connection with its role as the company’s advisor.

For more details on the fees payable in the KBS Growth & Income Real Estate Fund, please read the Private Placement Memorandum.

Please note, investing in KBS Growth & Income Real Estate Fund involves risk and we can provide no guarantees on whether the company will meet its investment objectives and return objectives related to an investment in the company.

What is KBS Direct?

KBS Direct officially launched in October 2017, and is a new investment platform backed by KBS, offering “direct access” commercial real estate investment opportunities to individual accredited investors and their advisors, with no upfront fees or commissions charged to investors (investors do not pay any upfront fees in connection with their investment), a transparent fee structure, and no need for a third-party such as a broker-dealer to facilitate the investment.

KBS Direct’s sponsor, KBS Holdings, is part of the family of KBS-affiliated real estate companies, the first of which was founded in 1992 by Charles Schreiber and Peter Bren. KBS-affiliated companies have a track record of approximately $37 billion in transactional volume since inception, and KBS is ranked by National Real Estate Investor as one of the largest office owners globally as of December 31, 2017.

KBS Direct currently features one offering, KBS Growth & Income Real Estate Investment Trust.

What are the current buildings in the KBS Growth & Income Real Estate Fund?

KBS Growth & Income Real Estate Fund owns four properties.

 

  • 213 West Institute, Chicago, IL
  • Type: Class B. This building is a fully renovated, vintage, brick and timber office building surrounded by amenities and anticipated development projects.
  • The Offices at Greenhouse, Houston, TX
  • Type: Class A. This building is a newly constructed, five-story office building in Houston’s Energy Corridor employment center with a variety of amenities.
  • Commonwealth, Portland, OR
  • Type: Class A. This building is a “glass box”, mid-century design tower in downtown Portland’s “Technology Triangle”.
  • Von Karman Tech Center, Irvine, CA
  • Type: Class B Office. This building is a multi-tenant, creative workspace office building with established tenants.
What exactly does “no upfront load” mean?

Historically, investing in a non-traded REIT such as KBS Growth & Income Real Estate Fund involved the payment of upfront fees and expenses—also known as “load”— by an investor. In some offerings, this “load” was up to 15% of the total investment and reduced the amount of proceeds the company could use to invest in real estate.

KBS Growth & Income Real Estate Fund does not charge upfront offering fees to investors and further, KBS Capital Advisors has agreed to pay any offering expenses on behalf of the company, which means that 100% of investors’ capital is available to invest in real estate.*

*Investing in KBS Growth & Income Real Estate Fund includes substantial risks. These risks include, but are not limited to: the possibility of losing your entire investment; no guarantees regarding performance, including the payment of distributions; upon sale or distribution of assets you may receive less than your initial investment; fluctuation of the value of the assets owned by KBS Growth & Income Real Estate Fund; lack of a public market for shares of KBS Growth & Income Real Estate Fund; limited liquidity; limited transferability; reliance on KBS Capital Advisors LLC, the REIT’s advisor, to select, manage and dispose of assets; payment of fees to KBS Capital Advisors; and various economic factors that may include changes in interest rates, laws, operating expenses, insurance costs and tenant turnover. Shares of KBS Growth & Income Real Estate Fund are not suitable for all investors. Investors should read and consider the private placement memorandum carefully, including the risk factors therein, before investing.

Who is Eligible to Invest In KBS Growth & Income Real Estate Fund?

Accredited investors and their advisors.

Accredited investors are individuals or entities that have demonstrated financial means or knowledge to take risks in unregistered securities. For individuals, the threshold is $1,000,000 net worth or annual income of $200,000 per year ($300,000 jointly) for the last two years and an expectation to maintain that income through the current year. Additional information regarding accredited investors is available here.

What is the minimum investment amount for the KBS Growth & Income Real Estate Fund?

$10,000; investors may elect to invest above the minimum.

How does KBS approach investment opportunities?

Over the last 25 years, KBS has developed an “active asset management philosophy” that guides its experienced teams on acquiring and underwriting quality commercial properties in historically high-job growth U.S. markets with stable tenants. In some cases, KBS undertakes moderate renovations to improve a property’s value.

What markets does KBS invest in?

KBS invests in office building properties nationwide. Many of these properties are based in high-demand geographies with historically high job growth, and feature live/work/play amenities on site.

Though it operates nationwide, KBS is a regionally aligned organization. This has provided a competitive advantage by allowing teams to hone local market knowledge that has helped KBS secure quality properties.

KBS Holdings LLC intends to sponsor an offering pursuant to Regulation A under the Securities Act of 1933, as amended. No money or other consideration is being solicited at this time with respect to such offering, and if sent in response to these materials for such an offering, it will not be accepted. No offer to buy securities can be accepted and no part of the purchase price can be received for an offering under Regulation A until an offering statement is qualified by the U. S. Securities and Exchange Commission, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date. An indication of interest made by a prospective investor in a Regulation A offering is non-binding and involves no obligation or commitment of any kind. There are no guarantees regarding future performance. See Risk Factors. Securities offered through North Capital Private Securities (NCPS). Investment risk - liquidity, risk of loss; not tax, investment, accounting advice; past performance not indicative of future results; consult with a professional (attorney, advisor, accountant); conduct your own research and due diligence; forward looking statements; information believed to be correct but don't rely upon it / no warranty; not an offer to sell securities; information may not be complete; investments not suitable for all investors; not a recommendation; platforms are not brokers; member FINRA and SIPC.
The ranking by National Real Estate Investor is based on volume of office space owned globally, as of December 31, 2017. The results were generated from a survey conducted by National Real Estate Investor.
KBS was ranked by Pensions & Investments among the Top 53 Largest Real Estate Investment Managers, October 16, 2017.

Pensions and Investments - 2017 Largest Investment Managers