KBS REIT III Sells Kansas Property to Reduce Debt

KBS REIT III Sells Park Place Village and Strengthens Balance Sheet

KBS REIT III has closed the sale of Park Place Village for $100 million, redirecting the proceeds to reduce debt and build financial flexibility. The sale closed on September 23, 2025, and is part of a broader strategy to manage upcoming loan maturities and improve liquidity.

Park Place Village is a mixed-use property in Leawood, Kansas, totaling just under 485,000 rentable square feet across 17 acres. KBS REIT III acquired the asset in 2015 and held it for over a decade before completing the disposition to an unaffiliated buyer. After adjustments for tenant improvement costs, lease incentives, prorations, and closing fees—including $0.8 million paid to KBS Capital Advisors—the deal delivered $95.5 million in net proceeds.

Those proceeds were put to work immediately. The company used $65.2 million to fully pay off a mortgage loan tied to the property, which had recently been extended through November 2025. That early payoff clears a near-term maturity off the balance sheet and simplifies the capital structure.

Another $25.4 million was applied to reduce the principal on the company’s corporate credit facility, bringing the outstanding balance down to $37.5 million. The remaining proceeds are being held for general liquidity needs, giving KBS REIT III the ability to respond to future capital requirements as they emerge.

With this transaction, the company took a direct approach to managing risk—using asset-level gains to address debt head-on. It’s a move that reduces near-term pressure while giving the REIT more room to maneuver going forward.