News RELEASE

Shannon Hill to Oversee Mid-Atlantic Acquisitions for KBS Realty Advisors

New York, NY -- May 24, 2004: KBS Realty Advisors (www.kbsrealty.com) announced that Shannon Hill has joined the firm in its New York office to spearhead the acquisitions and disposition effort in the Mid Atlantic. In addition, Mr. Hill will be responsible for the performance of the current portfolio in the Mid Atlantic as well as for all new investments in the area. KBS Realty Advisors currently has a Mid Atlantic portfolio valued at well in excess of $150 million and has investments now in the documentation phase that will raise the total to $250 million upon closing.

Mr. Hill has 12 years of experience in the real estate investment field, combining a broad range of skills including acquisitions, dispositions, joint ventures, work outs, and asset management. He has been directly involved in over one billion dollars in acquisitions of assets and loans. Prior to joining KBS, Mr. Hill was a Vice President of ING Realty Partners. He is a graduate of The University of Connecticut with a Bachelor of Science in Business Administration, Magna Cum Laude.

Separately, KBS Realty Advisors has announced the promotion of Stephen Rogers to the position of Director of Acquisitions in its Boston office. Mr. Rogers, who has been a member of the KBS Realty Advisors acquisition team for six years will coordinate acquisitions and dispositions in the Northeast and Southeast.

Headquartered in Newport Beach, CA, KBS Realty Advisors is a premier investment management firm specializing in real estate investments on behalf of select private and public pension fund, endowment and foundation partners. Founded in 1992, KBS has invested approximately $5 billion on behalf of its clients. KBS specializes in purchasing and repositioning under-performing real estate and real-estate related assets in the United States.