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KBS Realty Sells Mt. Diablo Plaza

WALNUT CREEK, CA-Rreef acquires the two-building, 317,000-sf development here on behalf of an institutional client for $91 million or $287 per sf, according to local sources. KBS acquired the property two years ago for $62 million or about $196 per sf.

By Brian K. Miller | Updated on May 09, 2005

WALNUT CREEK, CA-On behalf of an institutional client, Rreef has closed on its acquisition of Mt. Diablo Plaza. The Investment giant reportedly paid $91 million, or $287 per sf, for the 317,000-sf, two-building development. The seller, KBS Realty Advisors, KBS acquired the property two years ago for $62 million or about $196 per sf.The property is located in the 2000 block of North California Boulevard in Walnut Creek’s “Golden Triangle,” the premiere office district in Contra Costa County. One of the buildings has four floors totaling 117,000 sf of leasable area and the other has 10 floors and 200,000 sf of leasable area. Both were built in 1984 and sit on an elevated, landscaped plaza over three levels of parking.The office complex has a vacancy rate of 18.2%, according to property data on the KBS website. The larger building is 77.2% leased and the smaller building was 89.5% leased. Tenants include law firms, engineering companies and Virgin Mobile. The annualized asking rate for space in the buildings is $22.50 per sf.Robert Gilley and Steve Hermann of CB Richard Ellis brokered the transaction. Neither broker was available Monday afternoon for comment. KBS Realty’s San Francisco-based acquisitions executive Peter Mette also could not be reached Monday for comment.In late March, Rreef acquired an 81% interest in the seven building, 1.04-million-sf CarrAmerica Corporate Center in nearby Pleasanton for $160 million. The seller, CarrAmerica, retained the remaining 19% interest and will continue to manage and lease the property.

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