KBS Realty Advisors has completed 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 first loan facility is anchored by Accenture Tower, a 1.5 million-square-foot building in Chicago, located at 500 West Madison. The second facility is secured by five additional REIT III properties in Minneapolis, Dallas, Emeryville, San Jose, and Plano.
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.
“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,” said Marc DeLuca, CEO and Eastern regional president at KBS
Story first published in Connect CRE