Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 210

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 5
Chunk 210
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 the current elevated interest rate environment, a decrease in the value of the property sold on November 15, 2024, which was valued at its contractual sales price, net of closing credits and disposition costs, and the disposition of the 201 Spear Street property in connection with the Deed-in-Lieu Transaction (see note 3 below).

(3) In December 2023, the borrower under the 201 Spear Street Mortgage Loan (the “Spear Street Borrower”) entered into a deed-in-lieu of foreclosure transaction (the “Deed-in-Lieu Transaction”) with the lender under 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.  To estimate the fair value of the 201 Spear Street Mortgage Loan for the December 12, 2023 estimated value per share, we wrote down the value of the debt to approximate the fair value of the real estate property, after giving consideration to other assets and liabilities. As such, there was no impact to our December 12, 2024 estimated value per share as a result of the Deed-in-Lieu Transaction as the change in notes payable per share related to the 201 Spear Mortgage Loan and change in real estate properties per share related to the 201 Spear Street property disposition net to zero.   

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Table of Contents

The decrease in our estimated value per share from the previous estimate was primarily due to the items noted in the table below, which reflect the significant contributors to the decrease in the estimated value per share from $5.60 to $3.89.  The changes are not equal to the change in values of each asset and liability group presented in the table above due to the Deed-in-Lieu Transaction related to 201 Spear Street (described in note 3 above), changes in the amount of shares outstanding, debt financings and other factors, which caused the value of certain asset or liability groups to change with no impact to our fair value of equity or the overall estimated value per share.  

Change in Estimated Value per ShareDecember 12, 2023 estimated value per share$5.60 Changes to estimated value per shareInvestmentsReal estate(1.12)Investment in SREIT units0.01 Capital expenditures on real estate(0.36)Total change related to investments(1