KBS REIT III Purchases Downtown Minneapolis Office Building

KBS REIT III Purchases Downtown Minneapolis Office Building 
KBS Planning to Revitalize Visible CBD Office Tower 
MINNEAPOLIS, MN -- (Marketwire) -- 02/04/13 --  Newport Beach,
Calif.,-based public non-traded real estate investment trust KBS Real
Estate Investment Trust III (KBS REIT III) today announced the
acquisition of RBC Plaza, a 678,045-square-foot mixed-use office
building in downtown Minneapolis, for a purchase price (net of
closing credits) of $118.1 million. At closing, the trophy-quality
tower was 83-percent occupied. KBS REIT III plans to reconfigure some
of the existing retail space.  
RBC Plaza is a 40-story building that contains 609,368 square feet of
office space and 68,677 square feet of retail and amenity space above
an underground parking structure. The building is strategically
located in Minneapolis' financial district along Nicollet Mall,
downtown's most popular and well-known shopping district. The first
four floors of RBC Plaza make up the retail component and, via
skywalk connections, are part of a multi-building retail complex that
spans two city blocks.  
"Brookfield, the seller, has done a wonderful job of running the
asset, however the pending closing of one of the anchor retailers
provides an exciting opportunity to rethink the four-story retail
section of this project," said Rodney Richerson, KBS regional
president. "We believe we have a great opportunity to convert some of
the upper-level retail floors into creative office space, along with
creating a primary entrance off of Nicollet Mall and improving the
overall retail mix. In addition to these improvements, we anticipate
adding stronger office amenities, conference rooms, a fitness
facility and some lobby renovations that will cost approximately $3
million dollars."  
Brookfield Office Properties was represented by Tom O'Brian and Terry
Kingston with Cushman & Wakefield/NorthMarq and Mike Winn and Tim
Richey with Cushman & Wakefield/Denver. 
"This transaction illustrates KBS REIT III's ability to utilize its
various areas of expertise to take advantage of an exceptional
investment opportunity in a top performing market," said Giovanni
Cordoves, vice president of asset management of KBS Capital Advisors,
the REIT's advisor who will oversee management of this property. "The
property's footprint on Nicollet Mall and its proximity to Light Rail
Transit the Minneapolis-Saint Paul International Airport makes it a
desirable place for companies to do business."  
KBS has hired Cushman & Wakefield/NorthMarq to manage and lease the
asset effective, February 1, 2013. Sonja Dusil will lead the leasing
efforts and Theresa Elveru will lead the property management team.  
Companies affiliated with KBS own two other properties in the greater
Minneapolis area: the 288,458-square-foot 601 Tower at Carlson in
Minnetonka, Minn., eight miles west of Minneapolis, and Watertower
Apartments, a 228-unit mixed-use apartment community in Eden Prairie,
Minn. KBS REIT III does not hold any interest in these properties.  
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. in 1992. Since its inception, KBS Realty Advisors and
its affiliated companies have completed transactional activity of
approximately $25 billion via 14 separate accounts, six commingled
funds, five sovereign wealth funds and five non-traded REITs. For
information, visit www.kbscapital.com. 
This release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended (the
"Securities Act"), and Section 21E of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), including KBS REIT III's
ability to invest in and manage a diverse portfolio, the performance
of the RBC Plaza and the performance of the Minneapolis real estate
market. These statements are subject to known and unknown risks,
uncertainties and other factors which may cause KBS REIT III's or the
RBC Plaza's actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. 
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Media Contact:
Cindy Tullues or Bob Ochsner
DGWB for KBS Capital Advisors
(714) 881-2310
ctullues@dgwb.com
bochsner@dgwb.com 
 
 
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