KBS REIT III Enters Material Definitive Agreement

TL;DR

KBS REIT III just signed a big deal, creating new financial obligations. Details TBD.

AI Summary

On November 15, 2024, KBS Real Estate Investment Trust III, Inc. entered into a material definitive agreement. This agreement involves the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement for the registrant. The filing does not specify the nature of the agreement or the financial obligations involved.

Why It Matters

This filing indicates a significant new financial commitment or obligation for KBS Real Estate Investment Trust III, Inc., which could impact its financial structure and future operations.

Risk Assessment

Risk Level: medium — The filing indicates a material definitive agreement and financial obligation, but lacks specific details, creating uncertainty about the associated risks.

Key Players & Entities

• KBS Real Estate Investment Trust III, Inc. (company) — Registrant
• November 15, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $460.9 m — rtfolio Loan Facility was approximately $460.9 million, which reflects a pay down on Nov
• $140.4 million — ects a pay down on November 15, 2024 of $140.4 million from the net proceeds from the sale of
• $151.0 m — ed with KBS REIT III or the Advisor for $151.0 million, or $146.6 million net of credits
• $146.6 million — I or the Advisor for $151.0 million, or $146.6 million net of credits given to the purchaser p
• $0.9 million — rd-party closing costs of approximately $0.9 million. Pursuant to the Advisory Agreement, th
• $500,000 — sale of Preston Commons was reduced to $500,000 and the payment of the fee was deferred
• $4.3 m — s operating prorations of approximately $4.3 million, the remaining sales proceeds of
• $141.4 million — illion, the remaining sales proceeds of $141.4 million were used to pay down $140.4 million of
• $1.0 million — estated Portfolio Loan Facility and pay $1.0 million of lender exit fees. 2 Forward-Look

Filing Documents

• kbsriii-20241115.htm (8-K) — 38KB
• 0001482430-24-000069.txt ( ) — 156KB
• kbsriii-20241115.xsd (EX-101.SCH) — 2KB
• kbsriii-20241115_lab.xml (EX-101.LAB) — 20KB
• kbsriii-20241115_pre.xml (EX-101.PRE) — 11KB
• kbsriii-20241115_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 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 "Portfolio Loan 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"). As previously disclosed, on October 11, 2024, KBS REIT III, through the Portfolio Loan Borrowers, entered into a sixth loan modification and extension agreement with the Portfolio Loan Agent and the Portfolio Loan Lenders (the "Sixth Extension Agreement"). (1) Pursuant to the terms of the Sixth Extension Agreement, the maturity date of the facility was automatically extended to January 23, 2025. Additionally, on November 22, 2024, KBS REIT III, through the Portfolio Loan Borrowers, entered into a seventh loan modification agreement with the Portfolio Loan Agent and the Portfolio Loan Lenders (the "Seventh Extension Agreement"). The Seventh Extension Agreement requires that on or prior to December 19, 2024 (or such later date as the Portfolio Loan Agent may approve), the Portfolio Loan Borrowers and KBS REIT Properties III LLC, KBS REIT III's indirect wholly owned subsidiary ("REIT Properties III"), as guarant

01 OTHER INFORMATION

ITEM 8.01 OTHER INFORMATION Disposition of Preston Commons On June 19, 2013, KBS REIT III, through an indirect wholly owned subsidiary, acquired three office buildings containing 427,799 rentable square feet located on approximately 6.3 acres of land in Dallas, Texas ("Preston Commons"). On November 15, 2024, KBS REIT III completed the sale of Preston Commons to a purchaser unaffiliated with KBS REIT III or the Advisor for $151.0 million, or $146.6 million net of credits given to the purchaser primarily for outstanding leasing costs, before third-party closing costs of approximately $0.9 million. Pursuant to the Advisory Agreement, the disposition fee payable by KBS REIT III to the Advisor related to the sale of Preston Commons was reduced to $500,000 and the payment of the fee was deferred to December 1, 2025. After adjusting for various operating prorations of approximately $4.3 million, the remaining sales proceeds of $141.4 million were used to pay down $140.4 million of the outstanding principal of the Amended and Restated Portfolio Loan Facility and pay $1.0 million of lender exit fees. 2

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: November 26, 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