---
schema_version: "secwatch.filing_event.v1"
accession: "0001482430-24-000003"
form_type: "8-K"
ticker: "KBSR"
cik: "0001482430"
company_name: "KBS Real Estate Investment Trust III, Inc."
filed_at: "2024-01-04T23:59:59+00:00"
generated_at: "2026-06-07T03:55:31.241928+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.9
calibrated_materiality_score: 0.9
confidence: "high"
source: SEC EDGAR
---

# KBS REIT III extends $601M portfolio loan to Feb 6, 2024; defaults on $125M Spear Street loan

## Summary
- Third extension agreement extended $601.3M portfolio loan to Feb 6, 2024; $5M paydown made, Excess Cash Flow swept.
- 201 Spear Street default on Nov 14, 2023; property valued below $125M debt; deed-in-lieu transaction entered Dec 29, 2023.
- Lender can transfer title within six months; agrees not to pursue KBS REIT III unless bankruptcy/insolvency before Nov 2025.
- Default on Spear Street may accelerate $649.5M of other debt obligations.
- Substantial doubt about going concern for at least one year from Nov 14, 2023.

## SEC filing metadata
- accession: 0001482430-24-000003
- form_type: 8-K
- ticker: KBSR
- cik: 0001482430
- company_name: KBS Real Estate Investment Trust III, Inc.
- filed_at: 2024-01-04T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.9
- calibrated_materiality_score: 0.9
- confidence: high
- sec_items: 1.01, 2.03, 2.04
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1482430/000148243024000003/0001482430-24-000003-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1482430/000148243024000003/kbsriii-20231114.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001482430-24-000003
- JSON: https://secwatch.observer/filing/0001482430-24-000003.json
- Plain text: https://secwatch.observer/filing/0001482430-24-000003.txt

## Key facts
- Debt Financings
  KBS Real Estate Investment Trust III, Inc. reported a default on loan of $125.0 million with 201 Spear Street Lender at 5.0% plus the greater of (a) one-month term SOFR plus 1.45% or (b) the Prime Rat.
  - Instrument: loan
  - Principal: $125.0 million
  - Counterparty: 201 Spear Street Lender
  - Rate: 5.0% plus the greater of (a) one-month term SOFR plus 1.45% or (b) the Prime Rat
  - Event: default
  source text: payment, resulting in an event of default on the loan on November 14, 2023. The 201 Spear Street property is currently valued at substantially less than the outstanding debt of $125.0 million. As of November 15, 2023, interest on the loan began to accrue at the default interest rate of the lesser of (i) the maximum rate allowed by law or (ii) 5.0% plus the greater of
  evidence_url: https://www.sec.gov/Archives/edgar/data/1482430/000148243024000003/0001482430-24-000003-index.htm
- Debt Financings
  KBS Real Estate Investment Trust III, Inc. incurred credit facility of $5.0 million with Bank of America, N.A., as administrative agent maturing February 6, 2024.
  - Instrument: credit facility
  - Principal: $5.0 million
  - Counterparty: Bank of America, N.A., as administrative agent
  - Maturity: February 6, 2024
  - Event: incurrence
  source text: In addition, the Third Extension Agreement required that the Amended and Restated Portfolio Loan Facility Borrowers make a principal paydown on the loan in the amount of $5.0 million, and the aggregate commitment under the Amended and Restated Portfolio Loan Facility was permanently reduced by that amount. The aggregate outstanding principal balance of the
  evidence_url: https://www.sec.gov/Archives/edgar/data/1482430/000148243024000003/0001482430-24-000003-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.