---
schema_version: "secwatch.filing_event.v1"
accession: "0001482430-24-000011"
form_type: "8-K"
ticker: "KBSR"
cik: "0001482430"
company_name: "KBS Real Estate Investment Trust III, Inc."
filed_at: "2024-02-15T23:59:59+00:00"
generated_at: "2026-06-06T01:07:20.978072+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.8
calibrated_materiality_score: 0.8
confidence: "high"
source: SEC EDGAR
---

# KBS REIT III extends loan maturity, restricts dividends; substantial doubt about going concern

## Summary
- Existing $249.2M facility ($124.6M term + $124.6M revolving all drawn) extended to April 15, 2024 via Third Modification Agreement.
- If McEwen Building sells (expected Feb 2024, $1M deposit), maturity may extend to March 1, 2026; interest rate set at SOFR+300bps with $880,900 quarterly principal payments.
- Dividends and redemptions restricted except for required REIT distributions; no distributions expected during loan term.
- Upon McEwen sale, borrower must prepay greater of $45M or net proceeds; holdbacks up to $17M for tenant improvements and capital expenditures.
- Filing notes substantial doubt about KBS REIT III's ability to continue as a going concern due to upcoming maturities, market instability, and leasing challenges.

## SEC filing metadata
- accession: 0001482430-24-000011
- form_type: 8-K
- ticker: KBSR
- cik: 0001482430
- company_name: KBS Real Estate Investment Trust III, Inc.
- filed_at: 2024-02-15T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.8
- calibrated_materiality_score: 0.8
- confidence: high
- sec_items: 1.01, 2.03
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1482430/000148243024000011/0001482430-24-000011-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1482430/000148243024000011/kbsriii-20240209.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001482430-24-000011
- JSON: https://secwatch.observer/filing/0001482430-24-000011.json
- Plain text: https://secwatch.observer/filing/0001482430-24-000011.txt

## Key facts
- Debt Financings
  KBS Real Estate Investment Trust III, Inc. amended credit facility of $249.2 million with U.S. Bank National Association, Regions Bank, Citizens Bank, City National Bank, Associated Bank at one-month Term SOFR plus 300 basis points maturing April 15, 2024.
  - Instrument: credit facility
  - Principal: $249.2 million
  - Counterparty: U.S. Bank National Association, Regions Bank, Citizens Bank, City National Bank, Associated Bank
  - Rate: one-month Term SOFR plus 300 basis points
  - Maturity: April 15, 2024
  - Event: amendment
  source text: that KBS REIT III will complete the sale of the McEwen Building. As of February 9, 2024, the borrowing capacity under the Modified Portfolio Revolving Loan Facility was $249.2 million, of which $124.6 million was term debt and $124.6 million was revolving debt, all of which was outstanding. The Modified Portfolio Revolving Loan Facility had a maturity date of
  evidence_url: https://www.sec.gov/Archives/edgar/data/1482430/000148243024000011/0001482430-24-000011-index.htm

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