A California REIT has locked up a major Atlantic Station office tower—at a potential loss for its institutional seller.
KBS Real Estate Investment Trust III is under contract to pick up the 509k SF 171 17th St for $132.5M, sharply lower than the $163M ($320/SF) JPMorgan paid AIG Global Real Estate in 2005. We reported in May that JPMorgan listed 171 17th St—home to WellsFargo in Atlanta—at $132M. Eastil Secured brokered the sale. While reasons for JPMorgan selling at a loss were unclear, the price—if it closes—is still some $100/SF below replacement cost.
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