KBS Real Estate Investment Trust III, Inc. is a publicly registered, non-traded real estate investment trust externally managed by KBS Capital Advisors LLC. The company is primarily invested in office real estate and also owns an investment in the equity securities of Prime US REIT, a Singapore-listed real estate investment trust.
As of March 31, 2026, KBS REIT III owned 11 office properties encompassing approximately 5.4 million rentable square feet. The portfolio was approximately 77.0% occupied at that date.
Because KBS REIT III shares are not listed on a national securities exchange and the company's former share redemption program has been terminated, shareholders generally cannot sell their shares through a conventional brokerage account at a continuously quoted public market price.
Potential liquidity may therefore depend on private buyer demand, transferability, ownership structure, account registration, issuer procedures, documentation, market conditions, and other factors affecting the specific shareholder position.
KBS Real Estate Investment Trust III, Inc.
KBS Capital Advisors LLC
Publicly Registered, Non-Traded REIT
Office Real Estate
$2.70 Per Share
Limited Secondary Market Liquidity
On December 18, 2025, the KBS REIT III board of directors approved an estimated value of $2.70 per share.
The valuation was based principally on the estimated value of the company's real estate assets, its investment in Prime US REIT, cash and other assets, less notes payable and other liabilities. The calculation generally reflected asset and liability values as of September 30, 2025, with an adjustment for the value of the Prime US REIT investment through November 14, 2025.
The $2.70 estimated value represented a decline from the company's previous estimated value of $3.89 per share approved in December 2024.
KBS has cautioned that its estimated value per share may not reflect the amount shareholders ultimately receive for their investment and does not represent a quoted trading price on a national securities exchange.
The reported estimated value should therefore be viewed as a valuation reference rather than the price necessarily available in a private secondary-market transaction. Private transaction pricing may differ materially based on buyer demand, expected holding period, portfolio performance, leverage, transferability, liquidity needs, and market conditions.
KBS REIT III's reported estimated value is $2.70 per share. That estimated value, however, does not necessarily represent the amount a shareholder can receive in a private transaction involving an illiquid, non-traded REIT.
$2.70 Per Share
Approximately $0.11 Per Share
Direct Private Purchase
Baron De Biltmore LLC
AIL Regularly Evaluates KBS REIT III Positions
Subject To Position And Documentation Review
AIL currently evaluates eligible KBS REIT III positions for potential direct purchase. Recent purchase indications have been approximately $0.11 per share, although pricing may change based on position size, account registration, documentation, transferability, market conditions, buyer requirements, and final review.
Any purchase indication is separate from KBS REIT III's reported estimated value and should not be interpreted as an appraisal, issuer redemption value, or representation of the value that may be available from another purchaser.
A direct purchase may provide an alternative for shareholders who prioritize liquidity rather than continuing to hold the investment while KBS manages its portfolio, debt obligations, asset sales, and other strategic considerations.
As of March 31, 2026, KBS REIT III owned 11 office properties encompassing approximately 5.4 million rentable square feet, together with an investment in the equity securities of Prime US REIT.
The company's office portfolio was approximately 77.0% occupied as of March 31, 2026. KBS REIT III remains substantially concentrated in office real estate, making leasing activity, tenant demand, property valuations, financing conditions, and office-market transaction activity important considerations for shareholders.
11 Properties
Approximately 5.4 Million
Approximately 77.0%
Office
Prime US REIT
March 31, 2026
The portfolio has contracted as KBS has sold properties and used proceeds in connection with its broader financial and debt-management strategy. During the three months ended March 31, 2026, KBS REIT III sold one office property for $50.0 million before closing costs, credits, and applicable disposition fees.
KBS also reported that its geographic concentration makes the portfolio particularly sensitive to economic and real estate conditions in several markets. As of March 31, 2026, net real estate investments in Illinois, California, and Texas represented significant portions of total company assets.
KBS REIT III's financial condition remains an important consideration when evaluating shareholder liquidity and potential secondary-market value.
In its Form 10-Q for the quarter ended March 31, 2026, the company reported approximately $1.2 billion of notes payable maturities and required principal paydowns during the 12-month period following issuance of the financial statements.
As of May 14, 2026, KBS reported approximately $1.2 billion of mortgage debt obligations with a weighted-average remaining term of approximately 0.5 years.
KBS stated that refinancing, restructuring, or extending certain debt obligations has required reductions in loan commitments, principal paydowns, and commitments to sell real estate assets. Additional reductions, paydowns, or asset sales may be required as the company addresses upcoming maturities.
The company also disclosed that certain loan agreements require property sales, including sales during 2026, and that additional property dispositions could be necessary to qualify for extensions of certain debt facilities.
Selling real estate in a challenged office and commercial real estate market may result in lower sale prices than could otherwise be achieved under different market conditions.
KBS REIT III's March 31, 2026 quarterly filing included a going-concern disclosure related primarily to upcoming debt maturities, required principal paydowns, commercial real estate lending conditions, and the company's liquidity requirements.
Management reported that approximately $1.2 billion of notes payable maturities and required principal paydowns during the following 12 months raised substantial doubt regarding the company's ability to continue as a going concern for at least one year from the issuance date of the financial statements.
A going-concern disclosure does not by itself determine the ultimate value of KBS REIT III shares or mean that a particular outcome will occur. It is, however, a material financial consideration for shareholders and potential purchasers evaluating the investment.
Future outcomes may depend on refinancing, loan extensions, principal reductions, asset sales, property-level performance, lender negotiations, and broader commercial real estate market conditions.
KBS REIT III does not currently have an active share redemption program. The company terminated its share redemption program on March 15, 2024.
KBS has stated that certain restrictions and covenants contained in its loan agreements affect its ability to redeem shares. In its March 31, 2026 quarterly filing, the company stated that it did not expect to redeem shares until certain loans are repaid or refinanced.
KBS REIT III did not redeem or repurchase any shares during the three months ended March 31, 2026.
Because the former issuer redemption program is no longer available, shareholders seeking liquidity generally must consider other alternatives, which may include a private secondary-market transaction, a third-party tender offer if one becomes available, a direct private purchase, or continued ownership.
KBS REIT III reported that it has not declared distributions since June 2023.
No distributions were declared for the three months ended March 31, 2026. The company has stated that restrictions and covenants associated with certain debt facilities currently affect its ability to pay dividends or distributions until specified loans are repaid or refinanced.
KBS has also stated that it cannot predict when or whether it will again be in a position to pay distributions to shareholders.
The absence of current distributions may be relevant to shareholders evaluating the potential benefits and risks of continuing to hold KBS REIT III shares compared with seeking liquidity through a private transaction.
KBS REIT III shares do not trade on a national securities exchange, and the company no longer maintains an active share redemption program.
Potential liquidity alternatives may include a private secondary-market sale, a direct purchase, a third-party tender offer if available, or continued ownership while the company manages its real estate portfolio and financial obligations.
The availability and attractiveness of each alternative can depend on the shareholder's timing objectives, number of shares, ownership structure, account registration, transfer requirements, documentation, current buyer demand, and expectations regarding future company performance.
There is no guarantee that a purchaser will be available or that shares can be sold at KBS REIT III's reported $2.70 estimated value per share.
Potentially. Certain KBS REIT III shareholder positions may be eligible for a private secondary-market transaction or direct purchase, subject to transfer requirements, documentation, account registration, and available buyer demand.
A potential transaction may require ownership verification, a recent account statement, transfer documentation, custodian involvement, signature requirements, or other procedures depending on how the shares are registered and held.
The fact that KBS REIT III shares may be transferable does not mean an active public market exists or that a purchaser will offer a particular price.
Investors evaluating a potential sale should consider the tradeoff between obtaining liquidity today and continuing to hold the investment while KBS manages its assets, financing obligations, property sales, and future strategic options.
Private secondary-market transactions may provide a potential source of liquidity for certain KBS REIT III shareholders when issuer-sponsored redemption liquidity is unavailable.
The secondary market for a non-traded REIT does not operate like a national securities exchange. There is generally no continuously quoted KBS REIT III share price, centralized order book, or guarantee that a buyer will be available.
Potential purchasers may consider KBS REIT III's reported estimated value, office portfolio performance, occupancy, leverage, upcoming debt maturities, required asset sales, Prime US REIT investment, transferability, expected holding period, and broader commercial real estate conditions.
Because a private buyer may be acquiring an illiquid investment with uncertain future liquidity, secondary-market pricing can be substantially below the company's reported estimated value.
Investors can learn more about how the non-traded REIT secondary market works, including buyer demand, pricing, transferability, and transaction considerations.
KBS REIT III's $2.70 estimated value per share provides one valuation reference, but it is not a guaranteed redemption price, liquidation value, or secondary-market transaction price.
KBS REIT III remains heavily exposed to office real estate. Occupancy, leasing activity, tenant demand, property valuations, capitalization rates, and transaction volume may therefore materially affect investor assessments of the portfolio.
The company's office portfolio was approximately 77.0% occupied as of March 31, 2026. Future leasing success, lease expirations, tenant retention, and market rental conditions may affect property-level cash flow and valuation.
Upcoming loan maturities, required principal paydowns, refinancing terms, lender requirements, and potential asset sales remain significant considerations when evaluating KBS REIT III.
KBS has sold properties and may be required to complete additional dispositions as part of its debt-management strategy. The timing and pricing of those sales may affect leverage, liquidity, portfolio size, and shareholder value.
The value and performance of KBS REIT III's investment in Prime US REIT may also affect the company's overall financial position and estimated share value.
KBS REIT III has not declared distributions since June 2023. The absence of current distributions may influence the expected return and holding-period assumptions used by potential purchasers.
Account registration, governing documents, issuer procedures, ownership structure, custodial requirements, and transfer documentation can affect whether and how a shareholder position may be transferred.
Private secondary-market pricing can vary depending on current buyer interest, position size, expected holding period, investor return requirements, documentation, and overall market conditions.
A recent account statement is generally the best starting point when evaluating a KBS REIT III shareholder position for potential liquidity.
The statement can help confirm the number of shares owned, account registration, custodian, ownership structure, and other information relevant to a potential transaction.
Additional documentation may be required for positions held in an IRA, trust, estate, partnership, corporation, LLC, or other entity.
If a potential transaction moves forward, transfer forms, signature documentation, custodian paperwork, entity documentation, and other records may also be required depending on the circumstances.
Not every KBS REIT III position will necessarily qualify for a private secondary-market transaction or direct purchase.
Potential marketability may depend on the number of shares, ownership registration, account type, available documentation, transferability, current buyer demand, company developments, position size, and the pricing expectations of both the shareholder and prospective purchaser.
KBS REIT III's current combination of no active repurchase program, limited secondary-market liquidity, office real estate exposure, significant upcoming debt obligations, and suspended distributions may be particularly relevant when evaluating potential liquidity alternatives.
Alternative Investment Liquidity reviews KBS REIT III positions for shareholders seeking information about potential liquidity, transferability, current buyer interest, and possible direct purchase opportunities.
AIL's review considers the specific shareholder position rather than relying solely on the issuer's reported estimated value. Factors may include the number of shares, account registration, documentation, transfer requirements, current company developments, and available buyer demand.
For eligible positions, AIL may be able to facilitate a direct private purchase through Baron De Biltmore LLC. Any potential purchase price or transaction remains subject to review and may change based on market conditions and the characteristics of the individual position.
Shareholders can request a Confidential Investment Review to determine whether their KBS REIT III position may currently qualify for further evaluation.
Information on this page was developed using publicly available KBS Real Estate Investment Trust III disclosures, including the company's Form 10-Q for the quarter ended March 31, 2026, filed May 14, 2026; its Annual Report on Form 10-K for the year ended December 31, 2025; and its December 18, 2025 Form 8-K reporting the board-approved estimated value per share.
Portfolio composition, debt obligations, occupancy, estimated value, distributions, redemption status, and other company information may change after the reporting dates described above. Investors should review the company's latest public filings when evaluating current conditions.
Secondary market interest depends on more than asset type. AIL evaluates each position based on investment structure, transferability, documentation, and current market conditions.
Ownership type, sponsor requirements, investment terms, and underlying asset characteristics all influence review.
Some positions may be subject to transfer restrictions, approval requirements, or limitations within governing documents.
Offering materials, account records, ownership documents, and sponsor information help determine whether review can proceed.
Potential liquidity depends on current buyer interest, asset category, pricing expectations, and transaction feasibility.
Every opportunity is reviewed individually. Our process is designed to provide clarity regarding transferability, marketability, and potential liquidity pathways before any transaction decisions are made.
Provide basic details regarding the investment position, ownership structure, and available documentation.
AIL evaluates the investment type, transfer restrictions, sponsor requirements, and available transfer pathways.
We determine whether a secondary market opportunity may exist based on current investor demand and transaction activity.
If a viable pathway exists, we discuss potential next steps, timing considerations, and transaction requirements.
Submit basic information for a confidential review. Opportunities are evaluated individually based on investment structure, available documentation, transferability, and potential market interest.
REQUEST A CONFIDENTIAL REVIEW