News RELEASE

KBS Acquires 55 Francisco Street Office Building in San Francisco’s North Waterfront for $58 Million

San Francisco, CA - July 1, 2008: KBS Realty Advisors, one of the nation’s leading commercial real estate investment advisors, announced today it has acquired 55 Francisco Street, an eight-story, view-oriented office building in the North Waterfront area of San Francisco. The jewel-box building near San Francisco’s Embarcadero contains 143,695 square feet of office space, and is supported by an adjoining four-story, 284-stall parking structure.

KBS represented itself in the purchase. Bob Gilley and Steve Hermann of CBRE represented the seller in the transaction which closed today for $58 million, or $403.63 per square foot.

The Class-A building is currently 95.5 percent leased to 19 tenants, among them the headquarters office of Jackson & Wallace, an 80-attorney law firm; Pacific Fertility Clinic; Fitzgerald Communications; and Video Arts. A prime location at the intersection of Francisco and Montgomery streets provides panoramic views of San Francisco Bay, the Golden Gate and Bay Bridges.

“55 Francisco Street has all the attributes KBS looks for in an urban investment property: a highly visible location, exceptional occupancy history, attractive parking ratio and extensive renovations, the most recent being an $8 million upgrade in 1999,” explained Peter Mette, KBS senior vice president. “Over the years, creative and service firms have appreciated the location proximate to the waterfront, the city’s financial core, North Beach shops and restaurants, and the residential neighborhoods of Telegraph and Russian Hills.”

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 Realty Advisors and its affiliate, KBS Capital Advisors, invests in, 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 $14.5 billion via 19 separate accounts, six commingled funds and two private equity REIT's. For more information, visit www.kbsrealty.com.