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 January 23, 2025, KBS Real Estate Investment Trust III, Inc. entered into a material definitive agreement and created a direct financial obligation. The filing does not specify the other parties involved or the exact nature of the agreement or obligation.

Why It Matters

This filing indicates a significant new financial commitment or contract for KBS REIT III, which could impact its financial health and future operations.

Risk Assessment

Risk Level: medium — The filing indicates a material definitive agreement and a direct financial obligation, suggesting potential financial risks or opportunities that are not yet fully disclosed.

Key Players & Entities

• KBS Real Estate Investment Trust III, Inc. (company) — Registrant
• January 23, 2025 (date) — Date of earliest event reported
• Maryland (jurisdiction) — State of incorporation
• 000-54687 (filing_number) — SEC File Number
• 27-1627696 (tax_id) — I.R.S. Employer Identification No.
• 800 Newport Center Drive, Suite 700, Newport Beach, California 92660 (address) — Principal executive offices
• (949) 417-6500 (phone_number) — Registrant's telephone number

FAQ

Key Financial Figures

• $4.97 million — to advance the Portfolio Loan Borrowers $4.97 million for the payment of real property taxes
• $465.9 m — rtfolio Loan Facility was approximately $465.9 million, inclusive of the advance for rea

Filing Documents

• kbsriii-20250123.htm (8-K) — 31KB
• 0001482430-25-000003.txt ( ) — 148KB
• kbsriii-20250123.xsd (EX-101.SCH) — 2KB
• kbsriii-20250123_lab.xml (EX-101.LAB) — 20KB
• kbsriii-20250123_pre.xml (EX-101.PRE) — 11KB
• kbsriii-20250123_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"). Effective as of January 23, 2025, KBS REIT III, through the Portfolio Loan Borrowers, entered into a short-term extension agreement with the Portfolio Loan Agent and the Portfolio Loan Lenders (the "January Extension Agreement"). (1) Pursuant to the terms of the January Extension Agreement, the maturity date of the facility was extended to February 6, 2025, and the Portfolio Loan Lenders agreed to advance the Portfolio Loan Borrowers $4.97 million for the payment of real property taxes related to two properties, subject to the conditions of the January Extension Agreement. As of January 27, 2025, the aggregate outstanding principal balance of the Amended and Restated Portfolio Loan Facility was approximately $465.9 million, inclusive of the advance for real estate taxes discussed above. The Amended and Restated Portfolio Loan Facility is secured by 60 South Sixth, Sterling Plaza, Towers at Emeryville, Ten Al

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, in Part II, Item 1A of KBS REIT III's Quarterly Reports on Form 10-Q and in KBS REIT III's Current Report on Form 8-K filed with the Securities and Exchange Commission on December 20, 2024. As a result of

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: January 29, 2025 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