KBS REIT III Lands $1B Financing

The Towers at Emeryville, in the San Francisco Bay Area, is among the 29 properties held by KBS REIT III.

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.