News RELEASE

KBS Realty Advisors Announces $30 Million Acquisition of 555 Washington Avenue in Miami Beach, FL

Miami Beach, FL – January 11, 2007:  KBS Realty Advisors has announced its acquisition of 555 Washington for $30 million. Featuring an Art Deco-style design by Arcquitectonica, the Class A office/retail property is located on the northeast corner of Fifth Street and Washington Avenue in the South Beach section of Miami Beach. In four stories, it incorporates a total of 64,617 rentable square feet, including 43,886 square feet of office space and a 260-space parking garage over 20,478 square feet of retail space. It was built in 2001 and is currently 79 percent leased. The property’s anchor tenant is Warner Music.

In addition to 555 Washington, KBS owns three other Florida assets totaling 407,605 sq. ft. These include Sabal Pavilion in Tampa, Bay Tec Center in St. Petersburg and Baywood Center in Jacksonville.

Christian Lee of CB Richard Ellis represented the seller. KBS Realty Advisors represented itself.

555 Washington is the only modern commercial building in the area with ample parking of four per 1,000. During 2007 a new Outback Steakhouse and FedEx/Kinkos will open to anchor the retail along with an existing Wachovia Bank. The office space is well sized and in many cases in pre-built condition. Much leasing was completed during 2006 and the current deal pipeline ensures full occupancy by mid-2007. Warner Music occupies the top floor of the building, while the other floors are multi-tenanted.

“Office and retail demand on the beach is very strong; 555 Washington is well positioned to benefit from the tightening of this market” commented KBS Senior Vice President, Shannon W. Hill. “It is not often that a fee simple interest in a recent vintage office building with a high parking ratio is made available for sale. This is a great investment to kick start our reemergence in the South Florida market.”

About KBS Realty Advisors
Founded by Peter Bren and Chuck Schreiber in 1992 as a private equity real estate company, KBS Realty Advisors is a SEC registered investment advisor. KBS invests in, manages and sells high quality U.S. commercial real estate assets for institutional, corporate and private investors. Since the company was formed, KBS has created 18 separate accounts and six commingled funds. In addition, KBS has formed a publicly offered, non-traded real estate investment trust. For more information, visit www.kbsrealty.com.