Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 117

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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 20.4% and 10.0% of the Company’s total assets, respectively.  As a result, the geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the Illinois, California and Texas real estate markets.  Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for office space resulting from the local business climate, could adversely affect the Company’s operating results.  Disposition Through Deed-in-Lieu of Foreclosure TransactionDuring the year ended December 31, 2023, the borrower under the 201 Spear Street Mortgage Loan (the “Spear Street Borrower”) entered into a deed-in-lieu of foreclosure transaction (the “Deed-in-Lieu Transaction”) with the lender of the 201 Spear Street Mortgage Loan (the “Spear Street Lender”).  On January 9, 2024, the Spear Street Lender transferred the title of the 201 Spear Street property to a third-party buyer of the 201 Spear Street Mortgage Loan.  As a result, during the six months ended June 30, 2024, the Company disposed of the 201 Spear Street property in connection with the Deed-in-Lieu Transaction and recognized a $56.4 million gain from extinguishment of debt for the six months ended June 30, 2024.  The results of operations for 201 Spear Street are included in continuing operations on the Company’s consolidated statements of operations.  The following table summarizes the revenue and expenses related to 201 Spear Street for the three and six months ended June 30, 2024 (in thousands).   For the Three Months EndedJune 30, 2024For the Six Months EndedJune 30, 2024RevenuesRental income$— $197 Other operating income— 9 Total revenues$— $206 ExpensesOperating, maintenance, and management$— $52 Real estate taxes and insurance— 69 Asset management fees to affiliate— 26 General and administrative expenses— 22 Interest expense— 419 Total expenses$— $588 

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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 CONSOLID