Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 68

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 15
Chunk 68
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 entered into a deed-in-lieu of foreclosure transaction (the “Deed-in-Lieu Transaction”) with the lender of the 201 Spear Street Mortgage Loan (the “Spear Street Lender”).  On January 9, 2024, the Spear Street Lender transferred the title of the 201 Spear Street property to a third-party buyer of the 201 Spear Street Mortgage Loan.  See below, “— Disposition Through Deed-in-Lieu Transaction.”The Company did not record any impairment charges on its real estate properties during the year ended December 31, 2022.  Disposition Through Deed-in-Lieu TransactionDuring the year ended December 31, 2024, the Company disposed of the 201 Spear Street property in connection with the Deed-in-Lieu Transaction and recognized a $56.4 million gain from extinguishment of debt for the year ended December 31, 2024.  As of December 31, 2023, the 201 Spear Street property was held for non-sale disposition.  The results of operations for 201 Spear Street are included in continuing operations on the Company’s consolidated statements of operations.  The following table summarizes the revenues and expenses related to 201 Spear Street for the years ended December 31, 2024, 2023 and 2022, respectively (in thousands).Years Ended December 31,202420232022RevenuesRental income (1)$197 $7,930 $20,999 Other operating income9 507 670 Total revenues$206 $8,437 $21,669 ExpensesOperating, maintenance, and management$52 $3,773 $4,140 Real estate taxes and insurance69 2,701 2,831 Asset management fees to affiliate26 789 1,054 General and administrative expenses93 113 67 Depreciation and amortization— 3,941 5,617 Interest expense419 10,001 4,256 Impairment charge— 45,459 — Total expenses$659 $66,777 $17,965 _____________________(1) For the year ended December 31, 2023, rental income includes a reserve for straight-line rent for a lease at 201 Spear Street.

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Table of ContentsKBS REAL ESTATE INVESTMENT TRUST III, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT