NEW YORK CITY–KBS Real Estate Investment Trust II, a Newport Beach, Calif.-based public, non-traded real estate investment trust, announced it has sold its first mortgage notes on One Liberty Plaza for $114.3 million, amounting to an economic gain of approximately $48.6 million after closing costs.
KBS REIT II's investment in the One Liberty Plaza notes represented a secured interest in a first mortgage on the 53-story, Class-A office building in the World Financial Center submarket. KBS REIT II bought the two promissory notes in February 2009 for $66.7 million—a 42% discount to the par value at the time of acquisition. The REIT received interest income over its holding period of $33 million. The combined economic gain and the income earned on this $66.7 million investment totaled $81.6 million.
The 2.1 million-square-foot One Liberty Plaza is located at 5 Church St., bounded by Broadway, Liberty street, Church street and Cortlandt street. The area contains the second largest inventory of Class-A office space in Manhattan.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
