Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 21

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 Borrower will cause the sale of three of the Company’s properties and use 100% of the net sales proceeds to pay all remaining obligations of the Credit Facility Borrower under the Credit Facility.  For more information on this loan, see the Company’s Annual Report filed with the SEC.(10) See below, “– Recent Financing Transactions – Amended and Restated Portfolio Loan Facility.”(11) As of June 30, 2025, the Park Place Village Mortgage Loan has two 12-month extension options, subject to certain terms, conditions and fees as described in the loan documents.  Monthly payments are interest only during the initial term and the first extension option.  During the second extension option, certain future monthly payments due under the Park Place Village Mortgage Loan also include amortizing principal payments.  Subsequent to June 30, 2025, the maturity date of the Park Place Village Mortgage Loan was extended to November 30, 2025. 

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Table of ContentsPART I. FINANCIAL INFORMATION (CONTINUED)Item 1.  Financial Statements (continued)KBS REAL ESTATE INVESTMENT TRUST III, INC.CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)June 30, 2025(unaudited)8.       NOTES PAYABLE (CONTINUED)

Through the normal course of operations, the Company has $556.5 million of notes payable maturing and required principal paydowns during the 12-month period from the issuance of these financial statements.  Considering the current commercial real estate lending environment and the ongoing required loan paydowns and loan maturity schedule, this raises substantial doubt as to the Company’s ability to continue as a going concern for at least a year from the date of the issuance of these financial statements.  In order to refinance, restructure or extend the Company’s maturing debt obligations, the Company has been required to reduce the loan commitments and/or make paydowns on certain loans, and the Company may be required to make additional reductions to loan commitments and paydowns on the loans maturing during the next 12 months in order to refinance, restructure or extend those loans.  As a result of reductions in loan commitments and paydowns and the ongoing liquidity needs in the Company’s real estate portfolio, the Company may be required to sell assets into a challenged real estate market in an effort to manage its liquidity needs.  Selling real estate assets in the current market may result in