KBS Completes Refinancing of $800 Million Loan Facilities
Deal News | Feb 14, 2025 | KBS Realty Advisors Inc
KBS Realty Advisors, a significant player in the US commercial real estate market, has completed two major refinancing transactions for their Real Estate Investment Trust III (REIT III). The refinancing agreements amount to $802.9 million, consisting of $771.9 million in initial funds and $31 million in prospective advances. This achievement is part of a broader strategy by KBS to refinance or extend over $1.3 billion worth of maturing loans since February 2024, notwithstanding the challenging financial environment characterized by high debt costs and lenders retreating from office property investments. The refinanced facilities include Accenture Tower in Chicago, among others, and underscore KBS's adeptness in navigating complex refinancing processes and maintaining key stakeholder relationships.
Sectors
- Commercial Real Estate
- Financial Services
Geography
- United States – KBS Realty Advisors operates within the US, and the refinancing involves properties spread across multiple US states including Illinois, Minnesota, Texas, and California.
Industry
- Commercial Real Estate – The article focuses on the refinancing of commercial real estate properties, a key aspect of the industry.
- Financial Services – The refinancing and negotiation of loan facilities is a core activity in financial services, particularly in commercial lending and real estate finance.
Financials
- 802.9 million – Total amount of the new refinancing agreements for KBS REIT III.
- 1.3 billion – The total amount KBS has refinanced or extended since February 2024.
- 306 to 322 million – The increase in total loan commitment for Accenture Tower.
- 16 million – Additional funding provided for tenant-related expenses, capital improvements, and other costs at Accenture Tower.
- 480.9 million – Loan commitment secured by five Class A office properties, extendable until January 2027.
- 15 million – New funding allocated for leasing costs and property-level expenses for the second loan facility.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| KBS Realty Advisors Inc. | PE Firm | Company | An established owner and operator of commercial real estate in the United States, actively engaged in refinancing deals for its investment trusts. |
| KBS Real Estate Investment Trust III (REIT III) | Target | Company | A real estate investment trust under KBS, involved in the refinancing transactions. |
| Accenture Tower | Secured Property | Property | A significant commercial property in Chicago, Illinois, serving as collateral for one of the refinancing agreements. |
| Marc DeLuca | Executive | Person | CEO and Eastern regional president at KBS overseeing the refinancing initiatives. |
| Robert Durand | Finance Executive | Person | Executive Vice President, Finance for KBS, involved in the structuring of the refinancing transactions. |