KBS Real Estate Investment Trust III has negotiated an extension until August of a $613M loan backed by a portfolio of six office assets encompassing more than 3M SF, a debt package that originally was scheduled to come due last November.
The California-based REIT must raise $100M in new equity, debt or a combination of both in order to recapitalize the debt package, according to an SEC filing. The new due date is August 6.
According to the filing, KBS is required to pay lenders, led by Bank of America, $1.9M in fees and to deposit $5M into a collateral account that can be used to cover expenses including tenant improvements, leasing commissions and capital improvements.
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