KBS REIT III Loan Modification and Fee Deferral Agreement

KBS Real Estate Investment Trust III, Inc. entered into a Fifth Modification Agreement on April 2, 2026, extending the maturity date of its Modified Portfolio Revolving Loan Facility to December 15, 2026, with potential extension to March 31, 2027 subject to certain conditions. The agreement follows the sale of Gateway Tech Center for $50 million, with $47.5 million used to pay down the loan balance. The outstanding principal is now $160.4 million. Key modifications include elimination of principal amortization payments, deferral of REIT-level expenses and asset management fees, establishment of a tax escrow account, and changes to financial covenants. The company also amended its advisory agreement to defer payment of certain fees to its external advisor. The filing highlights ongoing challenges in the commercial real estate market and expresses substantial doubt about the company's ability to continue as a going concern due to upcoming loan maturities and market conditions.