"During our hold period we added significant value to the property by upgrading the physical character of the building, both interior and exterior, through a $3.5-million capital improvement program," says KBS SVP Charlie Valentino.

He explains that the capital improvement effort enabled KBS to "attract several office tenants to compliment the building's showroom tenancy." At the time of sale, 261 Fifth, which features floor plans ranging from 11,000 to 19,000 sf, was 92% occupied. Cushman & Wakefield was listed as the exclusive leasing agent. Tenants include Tigris Software, Cone Mills Corp. and Richloom Sales. Woody Heller, executive managing director and group head of Studley's Capital Transactions Group, represented KBS. KBS execs tell GlobeSt.com that a selling factor was that it generated a stable rent toll and a quality income stream.

Studley received a total of 33 bids, the buyers went hard in a week, and the sale closed six weeks later. "261 Fifth Ave. is a nice complement to other showroom space L & L owns in Manhattan," says Heller. The Newport Beach, CA-based KBS specializes in real estate investments on behalf of select private and public pension fund, endowment and foundation partners. Founded in 1992, KBS has invested in excess of $4.5 billion on behalf of its clients.