News RELEASE

KBS Realty Advisors Sells Cypress Tower, 1222 N. Main Avenue, to H-E-B Grocery Company

San Antonio, TX - March 27, 2008: KBS Realty Advisors has sold the 156,657-square-foot Cypress Tower, 1222 N. Main Avenue, to H-E-B Grocery Company. The purchase price was not disclosed. Acquired by KBS in 1998, Cypress Tower is 54 percent leased. H-E-B Grocery Company, a San Antonio-based grocery retailer operating in Texas and Mexico, is the major tenant.

Bill Rogalla, Senior Vice President/Acquisition Officer, KBS Realty Advisors, represented his firm, in the transaction. Chuck King of Travis Commercial, San Antonio, represented the buyer. Walter Foster, Senior Vice-President, KBS Realty Advisors, manages the firm’s San Antonio, Dallas and Austin portfolio.

In 2007, KBS Realty Advisors completed a $5 million renovation of the ten-story Cypress Tower. The renovation included remodeling of lobbies, rest rooms, elevators and mechanical systems. The renovation also included 65,000 square feet of tenant areas, the remodeling of the building’s café and the construction of a tenant conference center. Cypress Tower is situated at the corner of Cypress and North Main in San Antonio’s North Central office market.

The KBS portfolio in Texas totals more than 10 million square feet, including 3.75 million square feet owned by KBS REIT. Of the total, 650,000 square feet is in the San Antonio area where KBS owns two Class A office buildings, Fountainhead Tower in the I-10 Corridor and City View Tower on I-10 at Huebner. KBS has been active in the San Antonio market since 1998.

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 headquartered in Newport Beach, Calif. KBS Realty Advisors and its affiliate, KBS Capital Advisors, invests, manages and sells high-quality U.S. commercial real estate assets for institutional, corporate and private investors. Since 1992, KBS has completed transactional activity of approximately $14 billion via 16 separate accounts, six commingled funds and a private equity REIT. For more information, visit www.kbsrealty.com.