Loan & DebtApr 8, 2026, 02:16 PM
KBS REIT III Sells Gateway Tech Center for $50M, Applies $48.1M Net Proceeds to Revolving Loan Facility
AI Summary
KBS Real Estate Investment Trust III, Inc. (KBS REIT III) has executed a Fifth Modification Agreement for its Modified Portfolio Revolving Loan Facility, effective April 2, 2026. This agreement follows the sale of the Gateway Tech Center property on March 31, 2026, for $50.0 million. The company utilized the $48.1 million in net sales proceeds to pay down the revolving loan facility, demonstrating a strategic move to manage its debt obligations. Additionally, an amendment to the advisory agreement with KBS Capital Advisors LLC defers payment of certain fees to the Advisor, further supporting the company's financial flexibility.
Key Highlights
- KBS REIT III sold its Gateway Tech Center property to an unaffiliated purchaser for $50.0 million on March 31, 2026.
- The net sales proceeds from the Gateway Tech Center disposition amounted to $48.1 million, after accounting for credits, prorations, security deposits, and third-party closing costs.
- A disposition fee of $0.3 million is payable to KBS Capital Advisors LLC, the external advisor, from the sale proceeds.
- The $48.1 million in net proceeds was used to pay down the Modified Portfolio Revolving Loan Facility.
- KBS REIT III and KBS Capital Advisors LLC amended their advisory agreement to defer payment of certain fees to the Advisor.
- The Modified Portfolio Revolving Loan Facility's current lenders include U.S. Bank National Association, Regions Bank, Citizens Bank, City National Bank, and Associated Bank, National Association.