KBS has sold Anchor Centre, a 333,014 square-foot class-A office property in Phoenix, to TerraCap for $103 million. KBS owned the property under its KBS REIT III and executed an aggressive capital improvement business plan.

KBS acquired the property in 2014, and invested what the company describes as a "multi-million dollar" capital improvement program. The firm upgraded the lobby; common areas and restrooms, and expanded and modernized the property's amenity spaces. As a result of these improvements, Anchor Centre gained a local reputation as one of the most desirable office buildings in the submarket, according to Giovanni Cordoves, Western regional president for KBS. The property is Energy Star-rated with onsite dining, a deli, secured underground parking, a tenant lounge and game room, fitness center, conference facility, plaza area and outdoor patio.

The improvements also helped to drive strong leasing activity at the property—an even better sign of the asset's progress. Even despite the pandemic, the property continued to attract tenants and retain existing tenants. In addition to the improvements, KBS also believes the parking ratio helped to attract tenants. The property has a parking garage with a parking ratio of 3.2/1,000, which allows employees can drive themselves to during the pandemic, thereby avoiding public transit. Anchor Center had a 93.2% occupancy rating at the time of the sale.