News RELEASE

Kaiser Permanente Expands by 35,000 SF at Waterpark II

Aurora, CO -- November 29, 2004: On October 5, 2004, healthcare services provider, Kaiser Permanente (www.kaiserpermanente.org) renewed 38,106 sq. ft. of space at Waterpark III in Aurora, CO. In addition to their renewal, the firm also expanded their space by 35,434 sq. ft. into neighboring building, Waterpark II. Both the Waterpark II and III buildings are owned and operated by investment advisory firm, KBS Realty Advisors (www.kbsrealty.com). Combined, the properties total 210,838 sq. ft. and are now 98% occupied.

Founded in 1945, Kaiser Permanente is the nation's largest nonprofit health plan, serving 8.2 million members. With headquarters in Oakland, California, the company is made up of Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their subsidiaries, The Permanente Medical Groups and affiliations with Group Health Cooperative based in Seattle.

"We are very pleased to continue to provide quality office space to Kaiser and to meet their needs for growth," commented Mark Brecheen, Senior Vice President for KBS Realty Advisors. "We were also pleased with the efforts of Kevin McKinnon and Jonathan Jones of Transwestern Commercial Services (www.transwestern.net) who brokered the transaction on behalf of KBS, as well as Mike Wafer with Grubb & Ellis (www.grubbandellis.com), who represented Kaiser."

Headquartered in Newport Beach, CA, KBS Realty Advisors is a premier investment management firm specializing in domestic real estate investments on behalf of select private and public pension fund, endowment and foundation partners. Founded in 1992, KBS has invested nearly $5 billion on behalf of its clients.