Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 152

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 152
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 reportable segment are the same as those described in the summary of significant accounting policies included in the Company’s Annual Report.

13.      COMMITMENTS AND CONTINGENCIES

Economic DependencyThe Company is dependent on the Advisor for certain services that are essential to the Company, including the disposition of investments; management of the daily operations of the Company’s investment portfolio; and other general and administrative responsibilities.  In the event that the Advisor is unable to provide the respective services, the Company will be required to obtain such services from other sources.  Legal MattersFrom time to time, the Company may be party to legal proceedings that arise in the ordinary course of its business.  Management is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on the Company’s results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss.  Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote.  Environmental

As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments.  Compliance with existing environmental laws is not expected to have a material adverse effect on the Company’s financial condition and results of operations as of June 30, 2025.  

14.    SUBSEQUENT EVENTS

The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Disposition of Sterling Plaza and Paydown of the Amended and Restated Portfolio Loan FacilityOn July 11, 2025, the Company completed the sale of Sterling Plaza, an office property containing an aggregate of 313,609 rentable square feet located on approximately 2.1 acres of land in Dallas, Texas, to a purchaser unaffiliated with the Company or the Advisor, for a gross sales price of $126.5 million, or $117.7 million of net sales proceeds, after credits given to the purchaser for outstanding tenant improvements and lease incentives, prorations, third-party closing costs and $0.8 million of disposition fees paid to the Advisor.

On July 11, 2025, pursuant to the Eighth Extension Agreement, the Amended and Restated Portfolio Loan Facility Borrowers used the net sales proceeds of $117.7 million from the sale of Sterling Plaza to (i) paydown the outstanding principal of the Amended and Restated Portfolio Loan Facility by $87.7 million and (ii