News RELEASE

H-E-B Leases 44,565 Square Feet in Cypress Tower, 1222 N. Main Avenue

San Antonio - April 19, 2007:  H-E-B Grocery Company, a San Antonio-based grocery retailer operating in Texas and Mexico, has leased 44,565 square feet in Cypress Tower, 1222 N. Main Avenue, to relocate its accounting and finance personnel. Approximately 200 H-E-B employees will initially occupy three floors of the recently renovated office building. With the H-E-B lease, Cypress Tower is 63 percent leased.

H-E-B was represented in lease negotiations by Jeff Miller of Travis Commercial and Charles Blackburn, Director of Real Estate Law, H-E-B. Jeff Brown, formerly of Transwestern, and Lindsey Tucker of Transwestern, San Antonio, represented the landlord, KBS Realty Advisors. Walter Foster, Senior Vice-President, KBS Realty, handles the firm’s San Antonio, Austin and Dallas portfolio.

This year, KBS Realty Advisors will complete a $4 million renovation of the 156,657-square-foot Cypress Tower. The renovation includes remodeling of lobbies, rest rooms, elevators and mechanical systems of the ten-story building. The property also includes a café and 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 8 million square feet, including 800,000 square feet in the San Antonio area. KBS recently acquired 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. 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.