Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 176

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 176
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 we may sell our properties by providing financing to purchasers.  When we provide financing to a purchaser, we will bear the risk that the purchaser may default, which would reduce net cash available from the disposition.  Even in the absence of a purchaser default, the net proceeds from the sale will be delayed until the promissory note or other property we may accept upon a sale is actually paid, sold, refinanced or otherwise disposed.  

Construction delays and resultant increased costs and risks may hinder our operating results and decrease our net income.  

We engage contractors for capital improvements to our properties.  Such capital improvements will be subject to the uncertainties associated with the construction of real property, including those related to re-zoning land for development, environmental concerns of governmental entities and/or community groups and our builders’ ability to build in conformity with plans, specifications, budgeted costs and timetables.  If a builder fails to perform, we may resort to legal action to rescind the construction contract or to compel performance.  A builder’s performance may also be affected or delayed by conditions beyond the builder’s control.  Delays in completing construction could also give tenants the right to terminate preconstruction leases.  We may incur additional risks when we make periodic progress payments or other advances to builders before they complete construction.  These and other factors can result in increased costs of a project or loss of our investment.  In addition, we will be subject to normal lease-up risks relating to newly-constructed projects.  

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Actions of our joint venture partners could reduce the returns on joint venture investments.  

We may enter into joint ventures to own properties and other assets.  Such joint ventures may involve risks not otherwise present with other methods of investment, including, for example, the following risks:

•that our co-venturer, co-tenant or partner in an investment could become insolvent or bankrupt;

•that such co-venturer, co-tenant or partner may at any time have economic or business interests or goals that are or that become inconsistent with our business interests or goals;

•that such co-venturer, co-tenant or partner may be in a position to take action contrary to our instructions or requests or contrary to our policies or objectives; or

•that disputes between us and our co-venturer, co-tenant or partner may result in litigation or arbitration that would increase our expenses and prevent our officers and directors from focusing their time and effort on our operations.

Any of the above might subject a property to liabilities in excess of