Company: KBSR
Filing Date: 2025-09-29
Form Type: 8-K
Source: 0001482430-25-000049
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Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-09-29
Form: 8-K
Item: Item 8.01
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ITEM 8.01 OTHER INFORMATION

Disposition of the Park Place Village

On June 18, 2015, KBS Real Estate Investment Trust III, Inc. (“ KBS REIT III”), through an indirect wholly owned subsidiary, acquired a mixed-use office/retail property containing 484,980 rentable square feet located on approximately 17.1 acres of land in the Kansas City submarket of Leawood, Kansas (“ Park Place Village”). On September 23, 2025, KBS REIT III completed the sale of Park Place Village to a purchaser unaffiliated with KBS REIT III or KBS Capital Advisors LLC (the “ Advisor”), for a gross sales price of $100.0 million, or $95.5 million of net sales proceeds, after credits for outstanding tenant improvements and lease incentives, prorations, security deposits, third-party closing costs and $0.8 million of disposition fees payable to the Advisor.

Payoff of the Park Place Village Mortgage Loan and Paydown of the Credit Facility

On September 1, 2022, KBS REIT III, through an indirect wholly owned subsidiary (the “ PPV Borrower”), entered into a three-year loan agreement with a lender unaffiliated with KBS REIT III or the Advisor, for a committed amount of $65.0 million (the “ Park Place Village Mortgage Loan”). The maturity date of the Park Place Village Mortgage Loan was August 31, 2025. On August 6, 2025, the maturity date of the Park Place Village Mortgage Loan was extended to November 30, 2025. The Park Place Village Mortgage Loan was secured by Park Place Village.

On September 23, 2025, the PPV Borrower used the net sales proceeds of $95.5 million from the sale of Park Place Village to (i) pay off the outstanding principal and accrued interest due under the Park Place Village Mortgage Loan of $65.2 million and (ii) pursuant to an amendment to the Credit Facility, pay down the outstanding principal balance of the Credit Facility by $25.4 million, reducing the outstanding principal balance of the Credit Facility to $37.5 million. The remaining net sales proceeds will be utilized to manage the liquidity needs of KBS REIT III.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.