KBS Real Estate lifts portfolio loan to $255 million in two tranches

By Wendy Van Sickle

Columbus, Ohio, Sept. 22 – KBS Real Estate Investment Trust III, Inc. expanded its portfolio loan to $255 million on Thursday, according to an 8-K filed with the Securities and Exchange Commission.

The portfolio loan consists of $127.5 million of term debt, which was fully drawn at closing of Thursday’s amendment, and $127.5 million of revolving debt, $7.5 million of which was outstanding at closing.

Interest on borrowings is Libor plus 190 basis points.

The loan matures June 1, 2019 and has a one-year extension option.

In connection with the amendment, KBS added Village Center Station as collateral. The loan is also secured by Domain Gateway, the McEwen Building, Gateway Tech Center, the Tower on Lake Carolyn and Park Place Village.

With the addition of one or more collateral properties, the company may opt to further increase the loan amount up to a maximum of $350 million, which would be 50% term debt and 50% revolving debt.

KBS REIT Properties, LLC, the company’s indirect wholly owned subsidiary through which the company indirectly owns all of its real estate assets, is providing a guaranty of 25% of the outstanding principal amount.

The company may prepay the loan in whole at any time or in part from time to time.

The REIT is based in Newport Beach, Calif.

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