News RELEASE

KBS Acquires Signature Office Building at Washington, D.C.’s Dulles Station

Newport Beach, Calif. real estate advisor closes on high-profile Dulles Station East I

Herndon, Va., July 1, 2010: KBS Realty Advisors has purchased one of the centerpieces of Dulles Station, the 63-acre, mixed-use office, residential and retail complex taking shape in suburban Washington, D.C. The Newport Beach, Calif.-based real estate investment advisor closed on Dulles Station East I, a distinctive six-story office tower that serves as the icon of the Herndon, Va., development, thanks to its award-winning design prominently fronting the Dulles Toll Road.

Dulles Station will eventually offer approximately 1.5 million square feet of office space, 1,095 residential units, and 80,000 square feet of first-class retail space. Completed in 2008, Dulles Station East I, a NAIOP ”Best Suburban Office” recipient, is a 186,734-square-foot office tower located at the entrance to Dulles Station along the Dulles Toll Road.

The acquired property is situated at the pedestrian access point of the proposed Route 28 Metro Station Phase II Extension to Dulles International Airport planned for completion by the end of 2016 – a location which will afford strong rental rate appreciation, liquidity through high investor demand and significant upside potential once the Metro extension is completed. Currently, Dulles Station East I is 88 percent leased to two well-know tenants, with leasing prospects for the balance of the space.

The Washington, D.C., office of Cassidy Turley represented the seller in the acquisition, which closed on June 30, 2010.

“An iconic property like Dulles Station East I, located in a prime location that will only improve over time due to the extension of the Washington Metro to Dulles Airport, is an ideal asset for KBS,” explained Stephen Evans, KBS Realty Advisors senior vice president and director of acquisitions for the Mid-Atlantic Region. “Based on its timeless and efficient design, high parking ratio and proximity to a planned Metro station, it has all the attributes to outperform competing buildings.”

KBS-affiliated companies own five other Virginia properties in the greater Washington, D.C., area totaling more than 1.5 million square feet. In addition to Dulles Station East I, these other properties include Willow Oaks Corporate Center, 1945 Old Gallows Road, Tyson’s Dulles Plaza I, II and III, Redwood Plaza I, II and III and Patrick Henry Corporate Center in Newport News.

About KBS Realty Advisors
Headquartered in Newport Beach, Calif., KBS Realty Advisors, is a private equity real estate company and SEC-registered investment advisor founded in 1992 by Peter Bren and Chuck Schreiber. Since 1992, KBS has completed transactional activity of approximately $16.5 billion via 19 separate accounts, six commingled funds and two private equity REITs. KBS has offices in Newport Beach, San Francisco, Chicago, Boston, Dallas, New York, Washington, D.C., Atlanta and Los Angeles. For more information, visit www.kbsrealty.com.