News RELEASE

Lutheran Family Services Signs New Lease at Hampton III

Hampton, VA -- July 1, 2005:  KBS Realty Advisors (www.kbsrealty.com) announced recently it had signed a new 10,306 sq. ft. lease with Lutheran Family Services at Hampton III, a 44,153 sq. ft. office property that it owns and operates in Hampton, VA. The new lease was signed on June 22, and brings the occupancy of the property to approximately 95%.

Lutheran Family Services of Virginia (www.lfsva.org) is an organization dedicated to creating and supporting family life.  The organization helps create families with adoption and foster care services and helps to preserve families with counseling and training. Lutheran Family Services also supports families by educating students with special needs in unique learning environments.

"We are pleased to welcome Lutheran Family Services to our Hampton Virginia office property," commented Peter Potrykus, Senior Vice President for KBS Realty Advisors.  "We would like to express our appreciation to Thomas Minton and Gray Randolph with CB Richard Ellis (www.cbre.com), who represented KBS in this transaction.  We would also like to thank Mary Ellen Woolfolk and Mike Mausteller of Advantis Real Estate  (www.advantisgva.com), who represented the tenant."

Headquartered in Newport Beach, CA, KBS Realty Advisors (www.kbsrealty.com) is a premier real estate investment firm that has invested over $5 billion since the company’s inception in 1992. KBS was founded and is operated by Peter Bren, President and Chairman and Charles J. Schreiber, Jr., CEO. KBS has offices in Newport Beach, San Francisco, Chicago, Boston, New York and Washington, DC.