KBS REIT III executed a Fifth Modification Agreement to its secured portfolio revolving loan facility, extending maturity to December 15, 2026 with an option to March 31, 2027 subject to conditions, eliminating scheduled principal amortization, and revising performance covenants. Cash management now sweeps excess property cash to fund tenant improvements, leasing commissions and capital expenditures, alongside a new real estate tax escrow. Following holdback disbursements, the facility balance stood at $160.4 million, secured by 515 Congress and 201 17th Street; the company drew $1.8 million for TI/LC and $1.0 million for taxes. In a related step, KBS REIT III amended its advisory agreement to defer fees and certain expenses tied to the properties, payable only from sale proceeds above release prices and after loan obligations are satisfied.
Agreement 1: KBS REIT III Modifies Portfolio Revolver, Extends Maturity to Dec 2026; $160.4 Million Outstanding
- Agreement type: Fifth modification to secured portfolio revolving loan facility
- Counterparty: U.S. Bank, as Administrative Agent, and Regions Bank, Citizens Bank, City National Bank, Associated Bank
- Signed / Effective: Apr 02 2026 / same
- Duration / Termination: Maturity to Dec 15 2026; optional to Mar 31 2027
- Reason: Extend runway and align covenants amid challenging office market
Agreement 2: KBS REIT III Amends Advisory Agreement to Defer Fees Tied to Portfolio Loan
- Agreement type: Amendment to advisory agreement to defer fees
- Counterparty: KBS Capital Advisors
- Signed / Effective: Apr 02 2026 / same
- Duration / Termination: Until facility obligations are repaid or sale proceeds permit payment
- Reason: Preserve liquidity and comply with facility cash management
Original SEC Filing:
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