O.C. investors seize 2 business properties - Lansner on Real Estate

O.C. investors seize 2 business properties

August 22nd, 2011, 1:00 am ? 3 Comments ? posted by Jon Lansner

Iron Point

An ?opportunistic? real estate fund managed by ?Newport Beach property investors KBS gained ownership of two northern California business properties through foreclosure after buying the mortgages at deep discounts.

The KBS Strategic Opportunity Real Estate Investment Trust ? planning to have 20 percent of its portfolio in ?opportunistic? situations ? took over:

• Roseville Commerce Center in Roseville, with 113,342 square feet in five ?flex industrial? buildings and an six acres of partially developed land. KBS bought the non-performing $14.7 million loan, secured by the center, in September for $5.9 million. As of June 30, 2011, completed buildings in the center were 39% occupied.
• Iron Point Business Park, a 211,056-square-foot, five-building office complex in Folsom. KBS acquired the $25.6 million non-performing loan on the park for $19.8 million in March. As of June 21, Iron Point was 37% occupied.

KBS has initiated leasing efforts at each property.

Commercial real estate investing is on the way back. CoStar noted these trends in the industrial sector recently:

The U.S industrial vacancy rate fell to a two-year low of 9.8%, down significantly from 10.4% a year ago, while most other indicators improved marked in the second quarter, according to CoStar Group Inc.?s Mid-Year 2011 Industrial Outlook and Review. Although quarterly absorption numbers were modest, the warehouse market has now experienced five consecutive quarters of positive demand totaling 103 million square feet ? exceeding the 59 million square feet of net absorption in early 2002 to late 2003 following the previous downturn, which admittedly was much less severe. However, absorption of warehouse space remains roughly half what analysts would expect given the overall rebound economic growth since early 2010. ?Overall, this is a good, but not great, recovery,? said Jay Spivey, CoStar director of analytics.

For some real estate context ?
HOUSING TRENDS	INDUSTRY NEWS

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Source: http://lansner.ocregister.com/2011/08/22/o-c-investors-seize-2-business-properties/119081/

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