Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 91

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 15
Chunk 91
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INUED)December 31, 20248.      NOTES PAYABLE (CONTINUED)

The Accenture Tower Fourth Modification Agreement requires that 100% of excess cash flow (the “Accenture Tower Excess Cash Flow”) from Accenture Tower be deposited monthly into a cash collateral account maintained with the Accenture Tower Agent in the name of the Accenture Tower Borrower (the “Cash Sweep Collateral Account”).  Funds may not be withdrawn from the Cash Sweep Collateral Account without the prior written consent of the Accenture Tower Agent. So long as no default exists under the Accenture Tower Loan and subject to the terms and conditions in the Accenture Tower Fourth Modification Agreement, the Accenture Tower Borrower will be permitted to withdraw funds from the Cash Sweep Collateral Account for the payment or reimbursement of (i) approved tenant improvements, leasing commissions and capital improvement costs, (ii) monthly operating shortfall amounts at Accenture Tower, (iii) taxes and insurance attributable to Accenture Tower and (iv) certain other cash flow needs of the Accenture Tower Borrower.  Upon the occurrence and during the continuance of a default and on the maturity date, the Accenture Tower Agent has the right to withdraw funds from the Cash Sweep Collateral Account and/or other required accounts and apply such funds to any due and payable obligations of the Accenture Tower Borrower.  The Accenture Tower Fourth Modification Agreement restricts the Accenture Tower Borrower, REIT Properties III, the Operating Partnership and the Company from making Restricted Payments (as defined below) without the prior consent of the required Accenture Tower Lenders. Notwithstanding the foregoing, (i) the Company may pay the Advisor 90% of the asset management fees associated with Accenture Tower (“Permitted Asset Management Fees”) (with the remaining 10% of the asset management fees associated with Accenture Tower being deferred until the Accenture Tower Borrower has paid in full its obligations under the Accenture Tower Loan) and (ii) the Accenture Tower Borrower may distribute to the Company certain REIT-level general and administrative expenses allocated to Accenture Tower, provided that in each case no such payments may be made without the consent of the required Accenture Tower Lenders during the occurrence and continuance of a noticed default that has not been cured or waived, if the Accenture Tower Agent has delivered to the Accenture Tower Borrower a reservation of rights or similar letter relating to a default that has not be waived or if the Accenture Tower Agent determines a monthly operating shortfall exists