News RELEASE

KBS Realty Advisors Announces $53.3 Million Acquisition of Kierland I in Scottsdale, AZ

Scottsdale, AZ – February 26, 2007:  KBS Realty Advisors has announced its acquisition of Kierland I in Scottsdale, Arizona for $53.3 million. The 4-story suburban office building is located within the Kierland submarket of North Scottsdale at 16430 N. Scottsdale Road. Built in 1999, the Class A office property totals 175,191 square feet of rentable building area and is situated on 11.2 acres of land. Kierland I is 100% leased to Prudential Life Insurance Company. A portion of the building is subleased to DR Horton, one of the largest home builders in the U.S.

Robert Burnand, Steve Lindley, Bob Buckley, and Tracy Cartledge of Trammell Crow Company represented the seller, UBS, a pension fund advisor. KBS Realty Advisors represented itself in the transaction.

“As a fully-leased office property with direct access to the 101 freeway as well as nearby executive housing and amenities, Kierland I represents a great investment opportunity,” commented KBS Chairman of the Board and President, Peter Bren.

Pacific Life Insurance Company recently awarded KBS an investment allocation for the acquisition, asset management and disposition of commercial real estate investments located throughout the United States. . Kierland I marks the first acquisition completed by KBS Realty Advisors on behalf of Pacific Life Insurance Company, which retained the firm as a real estate investment advisor.

In addition to Kierland I, KBS owns five additional Scottsdale-based office assets for a total of 580,067 square feet. These include Scottsdale Airpark, Scottsdale Financial Center I, Scottsdale Financial Center III, Scottsdale Gateway I, and 92 Mountain View. The company recently sold the 146,000-square-foot Gainey Center II, also located in North Scottsdale. With the addition of Kierland I, KBS on behalf of its investors currently maintains investments in 13 buildings in the Phoenix metro area totaling 1,531,452 square feet.

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.