News RELEASE

National City Mortgage Signs 12,940 SF Lease at Parkway III

Virginia Beach, VA -- January 20, 2005: On December 21, 2004, nationally recognized mortgage lender, National City Mortgage signed a 12,940 sq. ft. new lease at Parkway III, a two-story office building located on Lynnhaven Parkway in Virginia Beach, VA. The 50,747 sq. ft. property is owned and operated by investment advisory firm, KBS Realty Advisors (www.kbsrealty.com); the property is now 90% occupied.

National City Mortgage (www.nationalcitymortgage.com) is a division of National City Bank of Indiana.  Founded in 1955, the company is the 9th largest mortgage lender in the nation and in 2003, the company funded over $105 billion. The company specializes in originating residential mortgage loans through retail, wholesale and telemarketing channels.

"We are excited to assist in meeting the expanding space requirements of National City Mortgage," commented KBS Senior Vice President, Peter Potrykus. "We were also pleased with the efforts of Thomas Milton and Gray Randolph of CB Richard Ellis (www.cbre.com) who negotiated on our behalf." Representing the tenant in this transaction was Wendell White of Professional Realty Group.

Headquartered in Newport Beach, CA, KBS Realty Advisors is a premier investment management firm specializing in domestic real estate investments on behalf of select private and public pension fund, endowment and foundation partners. Founded in 1992, KBS has invested nearly $5 billion on behalf of its clients.