News RELEASE

KBS Acquires Austin Industrial Portfolio

Austin, TX -- October 31, 2005:  KBS Realty Advisors (www.kbsrealty.com), one of the nation’s leading buyers of commercial real estate, announced it recently acquired an eight-building office/flex portfolio totaling 632,237 sq. ft. and located in Austin, Texas.  The properties were sold to KBS on October 25, by Prudential Insurance Company, for a gross sale price of $57 million.  Built in 2001, the portfolio is currently 90% leased to 32 tenants, the largest of which are Rockford Business Interiors, The Internal Revenue Service, New Era Publishing, Hughes MRO and Capitol Chevrolet.

Situated on 26.8 acres, the KBS acquisition included the four-building, SouthTech Business Center and adjacent four-building, SouthPark Commerce Center.  The properties are well located at the intersection of Friedrich Lane and St. Elmo Road with excellent access to Austin Bergstrom International Airport, I-35, Highway 71 and US 290.  Additionally, the portfolio is in close proximity to executive housing in Tarrytown, Westlake Hills and Barton Creek.

"We are pleased with the opportunity to acquire a high quality office/flex portfolio in a prime location within the Austin market " commented KBS Senior Vice President, Bill Rogalla.  "We also wish to thank Jack Fraker, Randy Baird and John Robinson of CBRE (www.cbre.com) who represented the Seller."

Headquartered in Newport Beach, CA, KBS Realty Advisors (www.kbsrealty.com) is a premier real estate investment firm that has invested over $5.4 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.