Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 85

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 15
Chunk 85
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 and pay down the outstanding principal balance of the Credit Facility in an amount equal to the net sales proceeds therefrom up to $25.4 million and reduce the outstanding principal balance of the Credit Facility to no greater than $37.5 million;(b)  on or prior to September 30, 2026, the Credit Facility Borrower will cause the sale of one of the Company’s properties and use 50% of the net sales proceeds therefrom to pay down the Credit Facility Borrower’s obligations under the Credit Facility and reduce the outstanding principal balance of the Credit Facility to no greater than $27.5 million; and(c)  on or prior to September 30, 2027, the Credit Facility 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.The Credit Facility Sixth Modification Agreement restricts the timing and amount of asset management fees and disposition fees that may be paid to the Advisor with respect to certain properties.  See the discussion of the Subordination Agreement under Note 3, “Summary of Significant Accounting Policies – Related Party Transactions.”  The Credit Facility Sixth Modification Agreement also limits the amount of REIT-level general and administrative expenses that can be paid from the following properties: Carillon, 515 Congress, Gateway Tech Center, 201 17th Street and Accenture Tower.  Other than payments for these permitted fees and expenses, no dividends or distributions may be made from these properties up to the Company without the prior written consent of the Credit Facility Lenders.  Notwithstanding the foregoing, during the existence of any event of default under the Credit Facility, the Credit Facility Borrower will not and will not permit any of its subsidiaries to make any payments of dividends or distributions up to the Company other than, and with the consent of the Credit Facility Agent, as necessary for the Company to maintain its status as a REIT for federal income tax purposes and to avoid any liability for federal and state income or excise taxes. The Credit Facility Sixth Modification Agreement modified the required pledges under the Credit Facility.  The Credit Facility Sixth Modification Agreement required the Company to cause the equity interests of certain of the Company’s subsidiaries (and all proceeds therefrom) that (i) directly and indirectly own 515 Congress, 201 17th Street and Gateway Tech Center and (ii) indirectly own Park Place Village, to be pledged to the Credit Facility Lenders as security for all of