KBS REIT III (KBSR) sells Park Place Village, pays down debt

Rhea-AI Filing Summary

KBS Real Estate Investment Trust III, Inc. completed the sale of its mixed-use Park Place Village property in Leawood, Kansas on September 23, 2025 for a gross price of $100.0 million, generating $95.5 million of net sales proceeds after closing adjustments and $0.8 million of disposition fees to its advisor.

KBS REIT III used these proceeds to fully repay the Park Place Village Mortgage Loan, including $65.2 million of outstanding principal and accrued interest, and to pay down its Credit Facility by $25.4 million, reducing the Credit Facility’s outstanding principal balance to $37.5 million. Remaining proceeds will be used to manage the company’s liquidity needs.

Positive

• Significant deleveraging and liquidity boost: Net proceeds of $95.5 million from the Park Place Village sale allowed KBS REIT III to fully repay a $65.2 million mortgage and reduce its Credit Facility by $25.4 million, cutting the facility balance to $37.5 million while retaining additional cash for liquidity.

Negative

• None.

Insights

REIT and balance sheet analyst

Asset sale funnels cash into debt reduction and added liquidity for KBS REIT III.

KBS REIT III sold Park Place Village for a gross $100.0 million, yielding $95.5 million of net proceeds after adjustments and $0.8 million of disposition fees to its advisor. The property had 484,980 rentable square feet on 17.1 acres in the Kansas City submarket.

The company applied $65.2 million of those proceeds to fully retire the Park Place Village Mortgage Loan and another $25.4 million to reduce its Credit Facility balance to $37.5 million. This materially lowers secured and revolving debt tied to the asset and frees capacity on the Credit Facility.

Remaining sale proceeds are earmarked to manage liquidity needs, giving KBS REIT III additional cash flexibility after eliminating the mortgage and trimming the Credit Facility. Future disclosures in company filings may detail how the retained cash supports operations, obligations, or potential capital actions.

8-K Event Classification

Item 8.01 — Other Events

1 item

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Understanding 8-K Material Events →

0001482430FALSE00014824302025-09-232025-09-23

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________

FORM 8-K

______________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 23, 2025

KBS REAL ESTATE INVESTMENT TRUST III, INC.

(Exact Name of Registrant as Specified in Its Charter)

______________________________________________________

Maryland

000-54687

27-1627696

(State or Other Jurisdiction of Incorporation or Organization)

(Commission File Number)

(I.R.S. Employer Identification No.)

800 Newport Center Drive, Suite 700

Newport Beach, California 92660

(Address of principal executive offices)

Registrant's telephone number, including area code: (949) 417-6500

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
None			N/A			N/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 8.01 OTHER INFORMATION

Disposition of the Park Place Village

On June 18, 2015, KBS Real Estate Investment Trust III, Inc. (“KBS REIT III”), through an indirect wholly owned subsidiary, acquired a mixed-use office/retail property containing 484,980 rentable square feet located on approximately 17.1 acres of land in the Kansas City submarket of Leawood, Kansas (“Park Place Village”). On September 23, 2025, KBS REIT III completed the sale of Park Place Village to a purchaser unaffiliated with KBS REIT III or KBS Capital Advisors LLC (the “Advisor”), for a gross sales price of $100.0 million, or $95.5 million of net sales proceeds, after credits for outstanding tenant improvements and lease incentives, prorations, security deposits, third-party closing costs and $0.8 million of disposition fees payable to the Advisor.

Payoff of the Park Place Village Mortgage Loan and Paydown of the Credit Facility

On September 1, 2022, KBS REIT III, through an indirect wholly owned subsidiary (the “PPV Borrower”), entered into a three-year loan agreement with a lender unaffiliated with KBS REIT III or the Advisor, for a committed amount of $65.0 million (the “Park Place Village Mortgage Loan”). The maturity date of the Park Place Village Mortgage Loan was August 31, 2025. On August 6, 2025, the maturity date of the Park Place Village Mortgage Loan was extended to November 30, 2025. The Park Place Village Mortgage Loan was secured by Park Place Village.

On September 23, 2025, the PPV Borrower used the net sales proceeds of $95.5 million from the sale of Park Place Village to (i) pay off the outstanding principal and accrued interest due under the Park Place Village Mortgage Loan of $65.2 million and (ii) pursuant to an amendment to the Credit Facility, pay down the outstanding principal balance of the Credit Facility by $25.4 million, reducing the outstanding principal balance of the Credit Facility to $37.5 million. The remaining net sales proceeds will be utilized to manage the liquidity needs of KBS REIT III.

1

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

KBS REAL ESTATE INVESTMENT TRUST III, INC.

Dated: September 29, 2025

BY:

/s/ Jeffrey K. Waldvogel

Jeffrey K. Waldvogel

Chief Financial Officer, Treasurer and Secretary

FAQ

What property did KBSRa0(KBS Real Estate Investment Trust III) sell?

KBS REIT III sold Park Place Village, a mixed-use office and retail property with 484,980 rentable square feet on approximately 17.1 acres in the Kansas City submarket of Leawood, Kansas, through an indirect wholly owned subsidiary acquired in 2015.

How much did KBSR receive from the Park Place Village sale?

The property sold for a gross price of $100.0 million, resulting in $95.5 million of net sales proceeds after credits for tenant improvements, lease incentives, prorations, security deposits, third-party closing costs and $0.8 million of disposition fees to the advisor.

How did KBSR use the Park Place Village sale proceeds?

KBS REIT III used the $95.5 million of net proceeds to fully repay $65.2 million of outstanding principal and accrued interest on the Park Place Village Mortgage Loan and to pay down its Credit Facility by $25.4 million, with remaining funds reserved for liquidity needs.

What happened to the Park Place Village Mortgage Loan after the sale?

On September 23, 2025, an indirect subsidiary of KBS REIT III used net sale proceeds to pay off the Park Place Village Mortgage Loan in full, including $65.2 million of outstanding principal and accrued interest, eliminating this secured debt that was collateralized by Park Place Village.

How did the transaction affect KBSRa0(KBS REIT III)'s Credit Facility?

Pursuant to an amendment to the Credit Facility, KBS REIT III used $25.4 million of the Park Place Village net sale proceeds to reduce the outstanding principal balance of the Credit Facility to $37.5 million, lowering its drawn revolving debt exposure.

Will KBSR keep any cash from the Park Place Village sale?

Yes. After repaying the $65.2 million Park Place Village Mortgage Loan and reducing the Credit Facility by $25.4 million, KBS REIT III plans to use the remaining net sale proceeds to manage its liquidity needs, providing additional financial flexibility.