NEWPORT BEACH, CA—KBS Real Estate Investment Trust III said Tuesday that it had closed on a three-year, $1.01-billion financing. It's the largest financing in the 25-year history of the KBS family of companies, which was launched in 1992 with the formation of KBS Realty Advisors.

The financing commitment consists of a $757.5-million term loan that was funded at close and a $252.5-million revolving loan of which $222.5 million remains unfunded. Proceeds from the new loan facility will be used to replace existing debt agreements and for other KBS REIT III liquidity needs including capital improvement and capital expenditures on office properties held by the non-traded REIT.

“This new financing facility, the largest single financing transaction in KBS history, allows us to take advantage of favorable conditions in the debt markets, while providing new capital to further enhance the properties in the portfolio,” says KBS CEO Chuck Schreiber, who co-founded KBS with chairman Peter Bren. “The 29 properties held by KBS REIT III are valued in excess of $3.5 billion and this loan encumbers eight of the 29 properties.