KBS REIT’s $18.3 Million Sale of Houston Office Building Falls Through

KBS Growth & Income REIT Inc. – a publicly registered non-traded real estate investment trust – announced that the planned sale of The Offices at Greenhouse to New Jersey-based firm Red River Asset Management LLC has been terminated.

The KBS REIT had entered into an agreement for the $18.3 million sale in April 2024.

Originally acquired by the REIT in November 2016 for $47 million, The Offices at Greenhouse is a five-story Class A office building containing more than 203,000 rentable square feet located on approximately 4.6 acres of land in Houston, Texas.

The REIT borrowed $72 million from JP Morgan Chase Bank, N.A., at the time of purchase.

The REIT reports that Red River defaulted on its obligation to purchase The Offices at Greenhouse when it failed to remit the balance of the purchase price required for closing on May 22, 2024. Accordingly, the sale agreement was terminated, and Red River forfeited approximately $0.8 million deposited in connection with the sale.

On May 31, the REIT entered into a fifth modification agreement with JP Morgan to the term loan secured by The Offices at Greenhouse. The modification agreement extends the maturity date of the loan to Aug. 31; confirms that the discounted payoff agreement is terminated on its terms as the sale of The Offices at Greenhouse failed to close by the end of May; and the earnest money received by the owner following the termination of the sale agreement shall be remitted to JP Morgan, less certain costs and expenses incurred by the owner.

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