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News release

Los Angeles

Jones Lang LaSalle Assists in Securing $119M Loan for Union Bank Plaza in L.A.

KBS uses senior mortgage loan to purchase property from Hines

LOS ANGELES, Sept. 27, 2010 — Jones Lang LaSalle today announced the firm assisted KBS Real Estate Investment Trust II in securing $119.3 million of senior debt financing from Wells Fargo for the acquisition of the trophy-quality office tower known as Union Bank Plaza in downtown Los Angeles from Hines.  The initial dispersement of $105 million is a five-year, interest only loan with a fixed rate of 3.445 percent.  An additional $14.3 million is available for future dispersements.

Leading the Jones Lang LaSalle team on this transaction was Vice President Reid McGlamery with Jones Lang LaSalle’s Real Estate Investment Banking practice.  Executive Managing Director Mike Melody and Senior Vice President Jimmy Board also represented KBS in the financing.  Jones Lang LaSalle’s Investment Sales experts Michael Zietsman and Dave Doupe represented Hines in the $208 million sale of the property.

“The lender landscape vying for this loan was diverse and extremely competitive,” said McGlamery.  “We secured strong interest from domestic and foreign banks, as well as life insurance companies, all of whom hoped to secure this stable, high-profile financing.”

The 627,334-square-foot Class A tower known as Union Bank Plaza is 56 percent long-term leased to Union Bank N.A., with the rest nearly fully occupied (94.8 percent) by other high quality tenants.  The 40-story tower is located on Figueroa Street in the heart of LA’s Central Business District.  The property is surrounded by freeway exchanges providing access to the Harbor Freeway and the network of freeways that converge upon downtown. Sixteen passenger elevators service the property that also features an extensive outdoor plaza with reflecting pools, tree-shaded seating areas and a 1,250-square-foot pavilion available for meetings and conferences.  A two-story retail center provides al fresco dining, restaurants and convenience services.  Union Bank Plaza occupies an entire city block.  The property also includes a four-level parking structure and more than 1,000 parking spaces, both onsite and off.  The tower is a prominent fixture in the downtown skyline and also offers spectacular westward views of the Hollywood Hills and the Pacific Ocean.

Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for its clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In the last three years, Jones Lang LaSalle Capital Markets completed more than $143 billion transactions globally. The firm’s Capital Markets team comprises approximately 1,500 specialists, operating in 180 major markets worldwide.

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2009 global revenue of $2.5 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.6 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with approximately $40 billion of assets under management.

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