Jones Lang LaSalle


KBS Forms REIT to Capitalize at $2B
By Bob Howard
Last updated: March 13, 2006 09:25pm
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NEWPORT BEACH, CA-KBS Realty Advisors has launched the KBS Real Estate Investment Trust as a non-traded REIT concurrently with forming a new entity called KBS Capital Markets Group LLC as an affiliate to get the new REIT rolling. Greg Brakovich, CEO of KBS Capital Markets Group, describes it as the company's first product available for sale to individual investors through registered broker/dealers.

With KBS Capital Markets Group as its dealer manager, KBS REIT will offer up to 200 million shares of common stock in a primary offering at a price of $10 per share. The REIT will use the proceeds of the offering to acquire and operate commercial real estate assets, which it says will primarily be office, industrial and retail properties in large metropolitan US markets.

KBS plans to market the new real estate investment trust through national and regional broker/dealers as well as independent financial planners, according to Charles Schreiber, CEO of KBS Realty Advisors. He says that the new venture is designed to leverage its experience as a full-service real estate operating company. Schreiber adds that forming the new entity is part of a KBS strategy designed to "growing our private client business."

Brakovich is a financial services executive with more than 30 years of experience in building distribution franchises for Fidelity Investments, Equitable Life, MetLife and other companies. Others on the KBS Capital Markets team include Patrick Miller, president; Kenneth Jaffe, COO; Mark Brandenberger, CFO; Hans Henselman, chief compliance officer; Mike McDaniel, national sales manager; Megan Condron, national accounts manager; and Michael Crimmins, divisional sales manager.

Miller has been a distribution executive for more than 19 years with a number of companies including American Funds, Fidelity Investments and Equitable Life. Most recently, he served as CEO of Equitable Distributors Inc., the wholesale distribution subsidiary of AXA Financial.
Jaffe is an 18-year veteran of systems development and operations. He has held posts with a variety of financial services organizations including JP Morgan, Pimco Advisors, Equitable Life and MetLife, as well as extensive consulting work with companies such as Manulife/John Hancock.

Brandenberger’s career includes more than 15 years of finance and accounting experience with a number of organizations including Deloitte & Touche, Equitable Distributors and MetLife. Henselman has been involved in the banking and investment arena for more than 16 years and, before joining KBS Capital Markets Group, was with WM Financial Services, Washington Mutual's retail broker/dealer.

McDaniel has been involved in sales, marketing and sales management of financial services for more than 16 years with companies such as Mainstay Funds and AXA Distributors LLC, where he served most recently as the national sales manager in the financial planner channel. Condron has a background in relationship and account management with Fidelity Investments as well as AXA Distributors over the past 10 years. Crimmins brings more than 15 years of asset management sales and marketing experience with the Guardian, Alliance Capital and AXA Distributors.