KBS REIT III Enters Material Agreement, Incurs Financial Obligation

TL;DR

KBS REIT III just signed a big deal and owes money - details TBD.

AI Summary

On October 11, 2024, KBS Real Estate Investment Trust III, Inc. entered into a material definitive agreement and incurred a direct financial obligation. The filing does not specify the counterparty or the exact nature of the agreement or obligation, but it is classified as a current report under the Securities Exchange Act of 1934.

Why It Matters

This filing indicates a significant financial event for KBS Real Estate Investment Trust III, Inc., potentially impacting its financial standing and future operations.

Risk Assessment

Risk Level: medium — The filing indicates a material definitive agreement and a direct financial obligation, which inherently carries financial risk, but specific details are not yet disclosed.

Key Numbers

• 000-54687 — SEC File Number (Identifies the specific SEC filing for KBS Real Estate Investment Trust III, Inc.)
• 27-1627696 — IRS Employer Identification No. (Tax identification number for the company.)

Key Players & Entities

• KBS Real Estate Investment Trust III, Inc. (company) — Registrant
• October 11, 2024 (date) — Date of earliest event reported
• Maryland (jurisdiction) — State of Incorporation
• Newport Beach, California (location) — Principal executive offices address

FAQ

Key Financial Figures

• $601.3 million — rtfolio Loan Facility was approximately $601.3 million as of October 11, 2024. The Sixth Exte
• $100,000,000 — for KBS REIT III to raise not less than $100,000,000 in new equity, debt or a combination of
• $250,000 — s a non-refundable fee in the amount of $250,000, and (b) to pay the Agent certain costs
• $1.0 million — ayment of the exit fee in the amount of $1.0 million due to the Portfolio Loan Lenders to th
• $0.5 million — pensation in an amount of approximately $0.5 million that may be payable to the Advisor. __

Filing Documents

• kbsriii-20241011.htm (8-K) — 33KB
• 0001482430-24-000055.txt ( ) — 150KB
• kbsriii-20241011.xsd (EX-101.SCH) — 2KB
• kbsriii-20241011_lab.xml (EX-101.LAB) — 20KB
• kbsriii-20241011_pre.xml (EX-101.PRE) — 11KB
• kbsriii-20241011_htm.xml (XML) — 3KB

01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT Amended and Restated Portfolio Loan Facility and Amendment of Advisory Agreement On November 3, 2021, certain of KBS Real Estate Investment Trust III, Inc.'s ("KBS REIT III") indirect wholly owned subsidiaries (the "Portfolio Loan Borrowers"), entered into a loan agreement with Bank of America, N.A., as administrative agent (the "Agent"); BofA Securities, Inc., Wells Fargo Securities, LLC and Capital One, National Association as joint lead arrangers and joint book runners; Wells Fargo Bank, N.A., as syndication agent; and each of the financial institutions signatory thereto as lenders (as subsequently modified and amended, the "Amended and Restated Portfolio Loan Facility"). The current lenders under the Amended and Restated Portfolio Loan Facility are Bank of America, N.A.; Wells Fargo Bank, National Association; U.S. Bank, National Association; Capital One, National Association; PNC Bank, National Association; Regions Bank; and Zions Bankcorporation, N.A., DBA California Bank & Trust (together, the "Portfolio Loan Lenders"). The Amended and Restated Portfolio Loan Facility is secured by 60 South Sixth, Preston Commons, Sterling Plaza, Towers at Emeryville, Ten Almaden and Town Center (the "Properties"). On October 11, 2024, KBS REIT III, through the Portfolio Loan Borrowers, entered into a sixth loan modification and extension agreement with the Agent and the Portfolio Loan Lenders (the "Sixth Extension Agreement"). Pursuant to the Sixth Extension Agreement, the maturity date of the facility was extended to November 20, 2024. The Sixth Extension Agreement requires KBS REIT III to satisfy certain conditions, some of which conditions are not in the sole control of KBS REIT III, including KBS REIT III taking identified actions relating to its portfolio. The failure of KBS REIT III to satisfy certain of these conditions will result in an immediate event of default under the loan documents. KBS REIT III will amend

Forward-Looking Statements

Forward-Looking Statements Certain statements included in this Current Report on Form 8-K are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of KBS REIT III and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. These include statements about KBS REIT III's plans, strategies and prospects, including its ability to comply with any terms, conditions, obligations or covenants contained in any agreements related to debt obligations. These statements are subject to known and unknown risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and KBS REIT III undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. Moreover, you should interpret many of the risks identified in this report, as well as the risks set forth below, as being heightened as a result of the continued disruptions in the financial markets impacting the U.S. commercial real estate industry, especially as it pertains to commercial office buildings. All forward-looking statements should be read in light of the risks identified in Part I, Item 1A of KBS REIT III's Annual Report on Form 10-K for the year ended December 31, 2023 and in Part II, Item 1A of KBS REIT III's Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission. As a result of KBS REIT III's upcoming loan maturities, the challenging c

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. KBS REAL ESTATE INVESTMENT TRUST III, INC. Dated: October 18, 2024 BY: /s/ Jeffrey K. Waldvogel Jeffrey K. Waldvogel Chief Financial Officer, Treasurer and Secretary

View Full Filing

View this 8-K filing on SEC EDGAR