KBS Realty Advisors Fund Faces Uncertainty Amidst Commercial Real Estate Challenges

Posted on March 14th, 2024 at 10:46 AM
KBS Realty Advisors Fund Faces Uncertainty Amidst Commercial Real Estate Challenges

From the desk of Jim Eccleston at Eccleston Law 

According to a regulatory filing cited by the Dallas Morning News, KBS Real Estate Investment Trust III has raised concerns about its future viability.

The fund, which owns over $1.2 billion in office properties across several states, including significant holdings in Dallas, indicated that the current commercial real lending environment raises doubts about its ability to continue as a going concern.

As reported by DI Wire, the value of its properties reportedly has dropped by nearly $350 million since September of the previous year. In part, the fund attributed the decline to the impact of the pandemic-induced shift to remote work, particularly affecting its office towers in San Francisco.

KBS REIT III recently faced a write-down of $51 million on a San Francisco office building, with reports indicating that Strada is set to acquire the property for $60 million. The fund also is confronting $1.7 billion in loan maturities over the next 12 months, prompting considerations of relinquishing ownership of certain secured properties to mortgage lenders.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

July 15, 2025
Former Advisor Sues Prime Capital Again Over Unpaid Equity Redemption

A former San Diego-based advisor has filed a second lawsuit against Prime Capital Financial, alleging breach of contract after the firm failed to honor agreed-upon terms related to his equity buyout.

July 14, 2025
Wisconsin Man Charged in $15.8 Million Ponzi Scheme Disguised as Investment Advisory Business

Federal authorities have charged a Wisconsin man with orchestrating a multimillion-dollar Ponzi scheme that defrauded more than 120 investors over six years.

July 11, 2025
FINRA Advances Proposal to Allow Limited Use of Performance Projections

The Financial Industry Regulatory Authority (“FINRA”) is moving forward with a proposal that would give broker-dealers limited ability to market performance projections and targeted returns under specific conditions.