News RELEASE

KBS Realty Advisors Acquires Interest in Exclusive Paseo Del Mar Development in San Diego

San Diego, CA – December 20, 2006:  KBS Realty Advisors has announced its acquisition of a majority interest in Paseo Del Mar, a 232,307 sq. ft. suburban office property located east of the I-5 freeway in the Del Mar Heights submarket. KBS acquired its interest in the property from Crescent Real Estate Equities Company (NYSE:CEI). JMI Realty, the developer of Paseo Del Mar retains a minority interest in the property.

Paseo Del Mar consists of three, three-story office buildings; each offering one level of below grade reserved executive parking. The Property is currently over 72% leased and is anchored by a strong roster of notable tenants including the law firms of Jones Day, Pillsbury Winthrop Shaw Pittman, LLP, Sheppard Mullin Richter and Hampton, LLP and is headquarters to JMI Inc. and JMI Realty, who developed the property in conjunction with Cruzan/Monroe.

Representing the seller in the transaction were Lynn LaChapelle and Bob Prendergast of Burnham Real Estate. The Burnham leasing team of Dan Runyon, Mark Wayne and Steve Wolf will be retained.

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.

About JMI Realty
JMI Realty is a private real estate investment and development company located in San Diego, California. The company was organized in 1992 as the real estate subsidiary of JMI, Inc., the investment management company of the John Moores family. In 1998, JMI Realty was appointed by the City of San Diego and the San Diego Padres to act as the Master Developer of the Ballpark District. At that time JMI Realty began the implementation of what today is $1.4 billion of redevelopment in the Ballpark District.

JMI Realty seeks investments and development opportunities across all product sectors with a specialization in the lodging and multifamily areas and an expertise in processing complicated urban development projects. JMI Realty has a proven track record for achieving superior risk-adjusted returns for its investors and partners.