News RELEASE

KBS Realty Advisors Announces $23.6 Million Acquisition of Fountainhead One in San Antonio, Texas

San Antonio, TX – October 12, 2006:  KBS Realty Advisors has announced its acquisition of Fountainhead One, a 174,108-square-foot Class A multi-tenant office building located at 8200 IH-10 West in San Antonio, Texas. Purchased for $23.6 million, the ten-story property features a high profile, strategic office market location between Medical Drive and Callaghan Road, minutes from downtown. It offers easy accessibility to all of San Antonio via IH-10, Loop 1604 and Loop 410. The San Antonio International Airport is a short ten-minute drive. 

Rudy Hubbard and Leah Gallagher, with Transwestern Commercial Services, represented the Seller, American Realty Advisors.

“The acquisition of Fountainhead One provided an excellent opportunity to expand our presence in the San Antonio market. The strong underlying fundamentals in the Northwest submarket attracted us to the I-10 corridor and to this asset,” said Bill Rogalla, Senior Vice President-Director of Acquisitions-Central U.S. Division for KBS Realty Advisors.  “We appreciate all of Rudy and Leah’s efforts during this transaction.”

Built in 1985 and refurbished with a new roof and penthouse in 2003, Fountainhead One is 95% occupied with major tenants that include New Horizons Computer Learning Centers, one of the world’s largest independent IT training companies; The University of Phoenix, the nation’s largest private university; and Health Care Service Corporation (Blue Cross/Blue Shield).

Distinguished by spandrel granite exterior panels and polished granite interior lobby walls, the property overlooks San Antonio and the downtown skyline in the desirable Northwest submarket, one of the city’s premier commercial hubs. Building amenities include Class A finishes throughout, state-of-the-art telecommunications service and an adjacent five-level parking garage connected to the office building via a second floor covered walkway. Numerous upscale retail centers, hotels, restaurants, health clubs, golf courses, entertainment and business service amenities are nearby.

KBS Realty owns and operates a 7,562,537 million-square-foot portfolio in Texas.

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.