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 over $38 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.
Download Our White Paper:
Find out how the fiduciary rule is impacting RIAs, despite being postponed until 2019, and resulting in a greater degree of transparency in the industry.
Authored by Lewis G. Feldman, President of KBS Direct.
Click here for a glossary of commonly-used commercial real estate and investment terms found throughout the KBS Direct website.
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, 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.
KBS Growth & Income Real Estate Fund currently 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.
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. This building is a multi-tenant, creative workspace office building with established tenants
Historically, investing in 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 offerings expenses on behalf of the company, which means that 100% of investor's 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 pay receive less than your initial investment; fluctuation of the value of the assets owned by KBS Growth & Income Real Estate Fund; lack of public market for shares of KBS Growth & Income Real Estate Fund; limited liquidity; limited transferability; reliance on KBS Capital Advisors LLC, 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 risk factors therin, before investing.
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 ($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.
$10,000; investors may elect to invest above the minimum.
Over the last 25 years, KBS has developed an "active asset management philosphy" 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.
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 regionally aligned organization. This has provided a competitive advantage by allowing teams to hone local market knowledge that has helped KBS secure quality properties.
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 nontraded 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.
4There is no guarantee that the Company will be able to provide long-term growth and stable income to its stockholders.
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.