News RELEASE

KBS Realty Advisors Acquires 3355 West Alabama

Houston, TX - August 27, 2007: KBS Realty Advisors has purchased 3355 West Alabama, a 12-story, 234,231-square-foot office building in the Greenway Plaza submarket of Houston. The seller was School Employees’ Holding Corp., Dallas. The purchase price was not disclosed.

Bill Rogalla, Senior Vice President/Acquisition Officer, represented his firm, KBS Realty Advisors, in the transaction. Danny Miller, Marty Hogan and Rusty Tamlyn of HFF (Holliday Fenoglio Fowler, LP), Houston, represented the seller.

“3355 W. Alabama is the location of choice for this niche market,” Rogalla notes. “With two floors vacant and continued high demand in the area, this investment offers significant upside potential.”

Rodney Richerson, Senior Vice-President/Director of Asset Management, KBS, oversees the firms’ 25-million-square-foot portfolio, including 4.1 million square feet in Houston. Richerson says, “This acquisition is a great turn-around opportunity. KBS will invest an additional $2.5 million to upgrade the property, including a new circle driveway, landscape renovations, lobby renovations and adding fire sprinklers to 100 percent of the building.”

Mike Hackett and John Spafford of PM Realty Group, Houston, will handle leasing at 3355 W. Alabama. PM Realty Group will also manage the property.

With the acquisition of 3355 W. Alabama, the KBS portfolio in the Houston area now totals 4.1 million square feet in 27 office, retail and office/warehouse properties.

3355 W. Alabama is located between the 4.25-million-square-foot, mixed-use Greenway Plaza development and River Oaks, Houston’s premier residential neighborhood. Occupancy in the Greenway Plaza submarket is 89 percent. The building has unobstructed views of River Oaks, Memorial Park, the Galleria and Downtown. 3355 W. Alabama is situated on 2.63 acres on West Alabama, between Kirby and Buffalo Speedway. The Class A office building has an attached seven-story garage. The property is 80 percent leased.

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 real estate investment advisor. KBS invests, 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.

Contact:
Sara McDaniel
McDaniel & Co.
800/628-6028