Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 86

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 15
Chunk 86
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 the Credit Facility Borrower’s obligations under the Credit Facility.  Notwithstanding the foregoing, the pledges of equity interests in the subsidiaries that indirectly own Park Place Village will be released upon the Credit Facility Borrower’s $25.4 million pay down of the Credit Facility on or before December 31, 2025, pursuant to the milestones discussed above.  Additionally, pursuant to the Credit Facility Sixth Modification Agreement and 3001 & 3003 Washington Mortgage Loan Fifth Modification, the Company caused the pledge of the equity interests of certain of the Company’s subsidiaries (and all proceeds therefrom) that directly and indirectly own Carillon to be pledged to the Credit Facility Lenders and the 3001 & 3003 Washington Lender as security for all of the Credit Facility Borrower’s and 3001 & 3003 Washington Borrowers’ obligations under the Credit Facility and the 3001 & 3003 Washington Mortgage Loan, respectively.Each of the pledge agreements (a) contain restrictions on (1) the respective pledgor’s ability to pay asset management fees to the Advisor and (2) the amount of REIT-level general and administrative expenses that may be distributed by the pledgor to the Company and (b) require either all or a portion, as applicable, of the net sale proceeds from the sales of 515 Congress, 201 17th Street, Gateway Tech Center, Park Place Village and Carillon to be used to reduce the Credit Facility Borrower’s obligations under the Credit Facility (and with respect to the Carillon Pledge, a portion will also be used to reduce the 3001 & 3003 Washington Borrowers’ obligations under the 3001 & 3003 Washington Mortgage Loan). 

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Table of ContentsKBS REAL ESTATE INVESTMENT TRUST III, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)December 31, 20248.      NOTES PAYABLE (CONTINUED)

The Sixth Modification Agreement provides that (a) an event of default will occur under the Credit Facility upon the occurrence of an event of default under any credit facility for which the Credit Facility Borrower is a guarantor (other than non-recourse carveouts) and (b) the occurrence of a default or event of default (after any required notice or cure period, if applicable) under the Modified Portfolio Revolving Loan Facility, the Park Place Village Mortgage Loan or the Carillon Mortgage Loan will cause an event of default under the Credit Facility and the