Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 97

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 15
Chunk 97
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Active Markets for Identical Assets(Level 1)Significant OtherObservable Inputs(Level 2)SignificantUnobservable Inputs(Level 3)Recurring Basis:Real estate equity securities$40,600 $40,600 $— $— Asset derivatives - interest rate swaps10,509 — 10,509 — During the year ended December 31, 2024, the Company measured the following asset at fair value on a nonrecurring basis (in thousands):  Fair Value Measurements Using TotalQuoted Prices inActive Markets for Identical Assets(Level 1)Significant OtherObservable Inputs(Level 2)SignificantUnobservable Inputs(Level 3)Nonrecurring Basis:Impaired real estate (1)$124,770 $— $— $124,770 _____________________(1) Amount represents the fair value for a real estate asset impacted by an impairment charge during the year ended December 31, 2024, as of the date that the fair value measurement was made, which was September 30, 2024.  The carrying value for the real estate asset measured at a reporting date other than September 30, 2024 may have subsequently increased or decreased from the fair value reflected due to activity that has occurred since the measurement date.  

During the year ended December 31, 2024, one of the Company’s real estate properties was measured at its estimated fair value based on a discounted cash flow approach.  The significant unobservable inputs the Company used in measuring the estimated fair value of this property included a discount rate of 9.25% and a terminal cap rate of 8.00%.  See Note 4, “Real Estate – Impairment of Real Estate” for further discussion of the impaired real estate property.  

F-39

Table of ContentsKBS REAL ESTATE INVESTMENT TRUST III, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)December 31, 202411.    RELATED PARTY TRANSACTIONS

The Company has entered into the Advisory Agreement with the Advisor.  The Company’s Dealer Manager Agreement with the Dealer Manager terminated on March 15, 2024 upon termination of the Company’s dividend reinvestment plan.  These agreements entitled the Advisor and/or the Dealer Manager to specified fees upon the provision of certain services with regard to the Offering and reimbursement of organization and offering costs incurred by the Advisor