KBS Realty Advisors has recently completed two major refinancings for KBS Real Estate Investment Trust III (REIT III), totaling $802.9 million in commitments. This includes an initial funding of $771.9 million and future advances of $31 million.
The first loan facility is backed by Accenture Tower, a 1.5 million-square-foot property located at 500 West Madison in Chicago. The second facility is secured by five additional REIT III properties situated in Minneapolis, Dallas, Emeryville, San Jose, and Plano.
The loan for Accenture Tower has been extended until November 2026 with the option to extend it further until November 2027. This new term increases the total commitment from $306 million to $322 million and provides an extra $16million for tenant-related expenses, capital improvements,and other property-specific costs.
Despite facing challenges due to high debt costs and lenders pulling back on office financing in the current market conditions,KBS’ team successfully refinanced over$1.3 billion for REIT III alone within the last year.Additionally,the team also managed multiple loansfor other KBS funds.Marc DeLuca,Ceoand Eastern Regional President at KBS,stated that this achievement showcases their expertisein navigatingthe challenging capital marketsand securing favorable termsfor their clients.”
