KBS Growth & Income REIT Defaults on Commonwealth Building Loan

Posted on March 7th, 2023 at 3:03 PM
KBS Growth & Income REIT Defaults on Commonwealth Building Loan

KBS Growth & Income REIT Inc., a publicly registered non-traded real estate investment trust, announced that the company has defaulted on the Commonwealth Building mortgage loan after failing to repay outstanding debt that was due on February 1, 2023, according to a filing with the Securities and Exchange Commission (SEC). 

KBS originally purchased the Commonwealth office tower in Portland, Oregon, for $69 million in 2016. KBS entered into a $51.4 million loan agreement with the Metropolitan Life Insurance Company in 2018, which was secured by the Commonwealth Building. The company cited reductions in rent and occupancy by the building’s tenants as well as negative market conditions for its failure to repay its mortgage obligations. 

KBS additionally noted that the current value of the Commonwealth Building has fallen below $47.4 million, which constitutes the remaining outstanding debt. KBS does not anticipate any near-term recovery in value due to the “depressed office rental rates and the continued social unrest and increased crime” in downtown Portland. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

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