One of the Dallas area’s biggest office landlords – California-based KBS – has extended the debt on three of its North Texas properties.
A real estate investment trust managed by KBS owns the Preston Commons and Sterling Plaza buildings in North Dallas and the Legacy Town Center office complex in Plano.
The North Texas buildings, along with properties in California, are financed with more than $600 million in mortgages from a group of lenders. KBS recently received another extension on the debt, which was facing maturity.
“The new six-month extension provides a runway to engage with the lenders over a longer-term positioning of those assets,” a KBS representative said in an email.
KBS has hired international investment bank Moelis & Co. to raise $100 million in capital for the trust.
The KBS real estate trust owns more than $1.2 billion in office properties in the central U.S. stretching from Texas to Minneapolis. The investor previously said the value of its holdings has fallen by almost $350 million since 2002.
KBS Real Estate Investment Trust III has more than $1 billion in property loans that are coming due this year.
KBS owns more than 2 million square feet of offices in 11 Dallas-Fort Worth buildings. The office buildings are held by various KBS funds and a real estate investment trust.
The overall occupancy of KBS’ D-FW buildings is 86% and several of the offices are more than 90% leased.
Office building owners have struggled in the last year with weakened demand for building space and higher interest rates that make it tough to obtain financing.