Newport Beach, California (February 14, 2025)— KBS, one of the largest owners and operators of premier commercial real estate in the nation, announces the completion of two major refinancings for KBS Real Estate Investment Trust III (REIT III). The new agreements have an aggregate commitment amount of $802.9 million, comprising $771.9 million of initial funded proceeds and $31 million in future advances. The REIT III portfolio consists of well-located, highly-amenitized assets across the country. KBS facilitated the closing of four additional credit facility refinancings and extensions for REIT III, in the last year, bringing the total to $1.33 billion in total loan transactions since February 2024.
The first loan facility is anchored by Accenture Tower, a 1.5 million square-foot building in Chicago, Illinois. The second facility is secured by five additional REIT III properties: 60 South Sixth in Minneapolis, Minnesota; Sterling Plaza in Dallas, Texas; Towers at Emeryville in Emeryville, California, Ten Almaden in San Jose, California; and Legacy Town Center in Plano, Texas. The ability to extend the loan financing structures for each of these facilities demonstrates the strength of the assets and KBS’ asset management expertise.
“Despite the high cost of debt creating challenges in the capital markets and many lenders pulling back on office financing, our team has been able to successfully refinance over $1.3 billion in the last year for REIT III alone, as well as multiple loans for other KBS funds. KBS’ ability to work with all stakeholders to reach mutually acceptable terms while adding liquidity was instrumental during the negotiation process,” says Marc DeLuca, CEO and Eastern regional president at KBS. “We are committed to providing an exceptional environment for our tenants while creating long-term value through thoughtful capital expenditures.”
Accenture Tower’s loan has been extended to November 2026 with an additional one-year extension option to November 2027. The new term increases the total loan commitment from $306 million to $322 million and provides $16 million in additional funds for tenant-related expenses, capital improvements and other property-specific costs.
The second loan facility secured by the five Class A office properties extends the $480.9 million loan commitment until January of 2027, with two additional 12-month extension options and provides for $15 million in new funding for leasing costs and related capital improvements and other property-level expenses.
These complex transactions highlight the importance of long-term trusted lending relationships, and KBS’ deep in-house knowledge in structuring commercial real estate financing facilities that benefit all stakeholders, according to Robert Durand, executive vice president, finance for KBS.
“KBS has over thirty years of experience in financing, owning and operating top-tier commercial properties in markets positioned for growth,” says Durand. “Our internal finance team understands how to manage an effective capital stack for strong asset performance even in a challenging economic landscape. Each of these transactions are examples of our ability to structure financing solutions that provide liquidity and stability for all stakeholders no matter the phase of the real estate cycle.”
