News RELEASE

KBS Realty Advisors Signs Two Leases Totaling 104,348 Square Feet at Bergstrom Technology Center in Austin, Texas

Austin, TX -- September 19, 2006 :  KBS Realty Advisors has secured two leases totaling 104,348 square feet of space at Bergstrom Technology Center, a 275,000-square-foot flex/office property located at 6800 Burleson Rd. in Austin, TX.   The leases are valued at $7.57 million and were signed with a new tenant, Capital Area Council of Governments, and Lower Colorado River Authority, who is extending their current lease at the property. 

“As the Austin office and industrial market continues to strengthen, we are pleased to see new companies entering the area as well as existing businesses expanding into new space,” said Walter Foster, Senior Vice President for KBS Realty Advisors.  “KBS will continue to aggressively market Bergstrom Technology Center in order to maximize occupancy at market rates, which in turn means strong returns to our investors.”

Capital Area Council of Governments (CAPCOG) will occupy 34,000 square feet of space.  The organization is an advocate, planner and coordinator of initiatives that, when undertaken on a regional basis, can be more effective and efficient.  These include emergency services, elderly assistance, law enforcement training, criminal justice planning, solid waste reduction, infrastructure development and housing and economic development.  The organization and its 80 employees is  consolidating its operations from several area offices.

Greg Johnson of Transwestern Commercial Services represented KBS.  W. Gaines Bagby of CB Richard Ellis represented the tenant.

Lower Colorado River Authority (LCRA) is an existing tenant with approximately 200 employees who extended its lease term for three additional years through June 2011.  The organization provides energy, water and community services for central Texas and occupies 71,000 square feet at the property.  The lease extension is valued at $3.48 million.

Greg Johnson of Transwestern Commercial Services represented KBS and LCRA represented itself in the transaction.

Bergstrom Technology Center, which is now 78 percent occupied, has been owned and managed by KBS Realty since 1997.  The unique two-story triangular building features open atriums and two newly designed two-story grand lobbies and closed-circuit camera and security card access for after hours. The property is being re-developed and is located in a 700-acre campus environment in a well-developed business park adjacent to Austin’s Bergstrom International Airport.

The strategically located property has access to major thoroughfares such as Highways 183 and 71, and Interstate 35.  Bergstrom Technology Center is ideal with ample power and fiber optics to accommodate the high tech user.  The building has raised floors throughout and ground level and dock-high loading. Adjacent land is available for future expansion or additional parking.

KBS Realty owns and operates a 7,562,537-million-square-foot portfolio in Texas, with 1,145,658 square feet of that located in the greater Austin region.

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.