Company: KBSR
Filing Date: 2025-02-12
Form Type: 8-K
Source: 0001482430-25-000006
Chunk: 4

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-02-12
Form: 8-K
Item: Item 1.01
Chunk 4
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 Borrowers to pay a deferred arrangement fee, the deferred loan fee and an exit fee of approximately $4.0 million, which are due on the earliest to occur of the maturity date, the repayment of the loan in full and any date on which the outstanding amount of the Amended and Restated Portfolio Loan Facility becomes due and payable, whether by acceleration or otherwise.

REIT Properties III continues to provide a principal guaranty for up to 10% of the outstanding balance of the Amended and Restated Portfolio Loan Facility. In addition, REIT Properties III continues to provide a guaranty of (i) payment of, and agrees to protect, defend, indemnify and hold harmless each Portfolio Loan Lender for, from and against, any liability, obligation, deficiency, loss, damage, costs and expenses (including reasonable attorney’s fees), and any litigation which may at any time be imposed upon, incurred or suffered by the Portfolio Loan Lender because of (a) certain intentional acts committed by the Portfolio Loan Borrowers, (b) fraud or intentional misrepresentations by the Portfolio Loan Borrowers or REIT Properties III in connection with the loan documents as described in the guaranty agreement, and (c) certain bankruptcy or liquidation proceedings under state or federal law, and (ii) payment for liability that is incurred and related to certain environmental matters.

Amendment to Advisory Agreement

In connection with the Eighth Modification Agreement, on February 6, 2025, KBS REIT III and the Advisor entered into an amendment to the advisory agreement between the parties to (i) defer a portion of the asset management fee associated with the Properties as described above and (ii) subject to the further limitations contained in the advisory agreement and KBS REIT III’s charter, reduce the disposition fees associated with the sales of the Properties, Accenture Tower and The Almaden to 0.65% of the contract sales price of each property.

ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT