SOURCE: KBS Realty Advisors

November 01, 2011 08:00 ET

KBS REIT III Purchases Las Cimas IV in Austin, Texas

Non-Traded REIT Acquires Second Equity Asset in Austin

AUSTIN, TX--(Marketwire - Nov 1, 2011) - KBS Real Estate Investment Trust III (KBS REIT III), a publicly registered, non-traded real estate investment trust, has acquired Las Cimas IV, a Class A 138,008-square-foot office building at the prestigious Las Cimas office park in southwest Austin, eight miles from downtown. On Sept. 29, 2011, KBS REIT III purchased Domain Gateway, a five-story LEED-certified office building in northwest Austin.

"We are very pleased with the opportunity to acquire another well-located property in Austin," commented Bill Rogalla, KBS Central Region senior vice president and director of acquisitions and dispositions. "Austin's diversified economic base and strong projected population and job growth make it an attractive market for investment in commercial property."

Completed on approximately 9.7 acres, Las Cimas Office Park is located at the intersection of Capital of Texas Highway and Bee Caves Road. The five-story Cimas IV was built in 2008 and overlooks Lake Austin and the Central Business District. It is 94 percent leased to key tenants including Wilson Sonsini Goodrich & Rosati and Intersil Corporation.

Andrew Levy and Todd Savage in the Dallas office of Holliday, Fenoglio, Fowler represented the seller in the acquisition, while Rogalla handled the transaction on behalf of KBS.

KBS-affiliated companies own four other properties in Austin for a total of 930,350 square feet. These include Domain Gateway, SouthPark Commerce Center, SouthTech Business Center and Travis Oaks.

About KBS
KBS Capital Advisors is an affiliate of KBS Realty Advisors, which is a private equity real estate company and SEC-registered investment advisor founded by Peter Bren and Charles Schreiber, Jr. Since 1992, KBS Realty Advisors and its affiliated companies have completed transactional activity in excess of $20.55 billion via 14 separate accounts, six commingled funds, five sovereign wealth funds and five non-traded REITs. For information, visit www.kbsrealty.com.

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including discussions regarding KBS REIT III's use of proceeds and certain other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include changes in general economic conditions, changes in real estate conditions, construction delays, changes in interest rates, lease-up risks, lack of financing availability and lack of capital proceeds.

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