Black Creek Diversified Property Fund 10-Q 11 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 04, 2018
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Entity Registrant Name	Black Creek Diversified Property Fund Inc.
Entity Central Index Key	1,327,978
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Class T
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		2,118,561
Class S
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		3,027,992
Class D
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		2,445,565
Class I
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		33,928,330
Class E
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		85,427,750

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Net investment in real estate properties	$ 1,526,903	$ 1,540,270
Debt-related investments, net	11,033	11,147
Cash and cash equivalents	13,989	10,475
Restricted cash	7,341	8,541
Other assets	45,002	37,673
Total assets	1,604,268	1,608,106
Liabilities
Accounts payable and accrued expenses	21,001	22,334
Debt, net	1,055,965	1,012,108
Intangible lease liabilities, net	51,378	52,629
Other liabilities	33,377	28,309
Total liabilities	1,161,721	1,115,380
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.01 par value—200,000 shares authorized, none issued and outstanding	0	0
Additional paid-in capital	1,192,262	1,224,061
Distributions in excess of earnings	(839,497)	(818,608)
Accumulated other comprehensive income (loss)	3,617	(909)
Total stockholders’ equity	357,667	405,869
Noncontrolling interests	84,880	86,857
Total equity	442,547	492,726
Total liabilities and equity	1,604,268	1,608,106
Class E
Stockholders’ equity:
Common stock	885	937
Class T
Stockholders’ equity:
Common stock	21	21
Class S
Stockholders’ equity:
Common stock	16	1
Class D
Stockholders’ equity:
Common stock	25	25
Class I
Stockholders’ equity:
Common stock	$ 338	$ 341

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2018	Dec. 31, 2017
Preferred stock, par value (usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	200,000	200,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Class E
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000	500,000
Common stock, shares issued	88,452	93,695
Common stock, shares outstanding	88,452	93,695
Class T
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000	500,000
Common stock, shares issued	2,108	2,062
Common stock, shares outstanding	2,108	2,062
Class S
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000	500,000
Common stock, shares issued	1,590	64
Common stock, shares outstanding	1,590	64
Class D
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000	500,000
Common stock, shares issued	2,493	2,510
Common stock, shares outstanding	2,493	2,510
Class I
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000	500,000
Common stock, shares issued	33,817	34,135
Common stock, shares outstanding	33,817	34,135

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Rental revenues	$ 44,454	$ 52,508
Debt-related income	173	231
Total revenues	44,627	52,739
Operating expenses:
Rental expenses	15,830	17,443
Real estate-related depreciation and amortization	13,813	17,936
General and administrative expenses	2,534	2,250
Advisory fees, related party	3,679	3,490
Impairment of real estate property	6,800	0
Total operating expenses	42,656	41,119
Other expenses:
Interest expense	(11,240)	(9,684)
Other expense	(122)	(109)
Total other expenses	(11,362)	(9,793)
Net (loss) income	(9,391)	1,827
Net loss (income) attributable to noncontrolling interests	756	(166)
Net (loss) income attributable to common stockholders	$ (8,635)	$ 1,661
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Weighted-average shares outstanding—basic	128,946	149,891
Weighted-average shares outstanding—diluted	140,252	161,919
Net (loss) income per common share—basic and diluted (usd per share)	$ (0.07)	$ 0.01

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (9,391)	$ 1,827
Other comprehensive (loss) income:
Change from cash flow hedging derivatives	4,675	2,089
Comprehensive (loss) income	(4,716)	3,916
Comprehensive loss (income) attributable to noncontrolling interests	394	(276)
Comprehensive (loss) income attributable to common stockholders	$ (4,322)	$ 3,640

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 3 months ended Mar. 31, 2018 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Distributions in Excess of Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests
Beginning Balances, shares at Dec. 31, 2017		132,466
Beginning Balances at Dec. 31, 2017	$ 492,726	$ 1,325	$ 1,224,061	$ (818,608)	$ (909)	$ 86,857
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(9,391)			(8,635)		(756)
Unrealized gain on derivative instruments	4,675				4,313	362
Issuance of common stock, net of offering costs, shares		3,271
Issuance of common stock, net of offering costs	22,318	$ 33	22,285
Share-based compensation, net of forfeitures, shares		38
Share-based compensation, net of forfeitures	281	$ 0	281
Redemptions of common stock, shares		(7,315)
Redemptions of common stock	(54,366)	$ (73)	(54,293)
Amortization of share-based compensation	18		18
Distributions declared on common stock and noncontrolling interests	(13,101)			(12,041)		(1,060)
Redemptions of noncontrolling interests	(613)		(90)			(523)
Ending Balances, shares at Mar. 31, 2018		128,460
Ending Balances at Mar. 31, 2018	$ 442,547	$ 1,285	$ 1,192,262	(839,497)	$ 3,617	$ 84,880
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of ASU 2017-12 | Accounting Standards Updated 2017-12				$ 200

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating activities:
Net (loss) income	$ (9,391)	$ 1,827
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Real estate-related depreciation and amortization	13,813	17,936
Impairment of real estate property	6,800	0
Other	(1,347)	1,839
Changes in operating assets and liabilities	(593)	(4,180)
Net cash provided by operating activities	9,282	17,422
Investing activities:
Capital expenditures	(6,509)	(4,227)
Principal collections on debt-related investments	0	122
Other	104	(9)
Net cash used in investing activities	(6,405)	(4,114)
Financing activities:
Proceeds from mortgage notes	0	126,907
Repayments of mortgage notes	(405)	(110,407)
Net proceeds from line of credit	44,000	24,000
Redemption of common shares	(54,366)	(47,752)
Distributions on common stock	(7,233)	(8,706)
Proceeds from issuance of common stock	19,711	4,721
Offering costs for issuance of common stock	(2,159)	(1,206)
Distributions to noncontrolling interest holders	(1,048)	(1,138)
Redemption of OP Unit holder interests	(614)	(993)
Other	1,551	(221)
Net cash used in financing activities	(563)	(14,795)
Net increase (decrease) in cash, cash equivalents and restricted cash	2,314	(1,487)
Cash, cash equivalents and restricted cash, at beginning of period	19,016	21,146
Cash, cash equivalents and restricted cash, at end of period	$ 21,330	$ 19,659

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION Unless the context otherwise requires, the “Company,” “we,” “our,” or “us” refers to Black Creek Diversified Property Fund, Inc. and its consolidated subsidiaries. The accompanying unaudited condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain disclosures normally included in the annual audited financial statements prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) have been omitted. As such, the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 7, 2018 (“2017 Form 10-K”). Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which provides guidance for revenue recognition and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition.” The standard is based on the principle that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The guidance specifically excludes revenue derived from lease contracts from its scope. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The effective date for the standard is for annual reporting periods beginning after December 15, 2017 and interim periods therein. We adopted the standard when it became effective for us, as of the reporting period beginning January 1, 2018. We elected the package of practical expedients, and accordingly did not reallocate contract consideration to lease components within the scope of the existing lease guidance when we adopted ASU 2014-09. The adoption of ASU 2014-09 did not have a significant impact on our condensed consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which requires: (i) all equity investments to be measured at fair value with changes in fair value recognized in net income; (ii) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; and (iii) eliminates the requirement for public entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. ASU 2016-01 is effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption is permitted for the accounting guidance on financial liabilities under the fair value option. We adopted this guidance effective January 1, 2018. The adoption of this guidance did not have a significant impact on our condensed consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 “Statement of Cash Flows (Topic 230)” (“ASU 2016-15”), which provided guidance on eight cash flow classification issues and on reducing diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Current GAAP does not include specific guidance on these eight cash flow classification issues. In November 2016, the FASB issued ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash,” (“ASU 2016-18”) which requires companies to include restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 requires a disclosure of a reconciliation between the statement of financial position and the statement of cash flows when the statement of financial position includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. Entities with material restricted cash and restricted cash equivalents balances are required to disclose the nature of the restrictions. ASU 2016-15 and ASU 2016-18 became effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. We adopted these standards as of January 1, 2018 and as required, retrospectively applied the guidance in ASU 2016-18 to the prior periods presented, which resulted in an increase of $0.1 million in net cash provided by operating activities and a decrease of $1.4 million in net cash used in financing activities on the condensed consolidated statements of cash flows for the three months ended March 31, 2017. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. The transition guidance provides companies with the option of early adopting the new standard using a modified retrospective transition method in any interim period after issuance of the update, or alternatively requires adoption for fiscal years beginning after December 15, 2018. We adopted ASU 2017-12 as of the reporting period beginning on January 1, 2018. This adoption method required us to recognize the cumulative effect of initially applying this guidance as an adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the update, which resulted in the recognition of a $0.2 million adjustment during the three months ended March 31, 2018 .

INVESTMENTS IN REAL ESTATE PROP

INVESTMENTS IN REAL ESTATE PROPERTIES	3 Months Ended
	Mar. 31, 2018
Real Estate [Abstract]
INVESTMENTS IN REAL ESTATE PROPERTIES	INVESTMENTS IN REAL ESTATE PROPERTIES The following tables summarize our consolidated investments in real estate properties: As of (in thousands) March 31, December 31, Land $ 421,192 $ 422,564 Buildings and improvements 1,268,070 1,266,069 Intangible lease assets 340,275 340,273 Investment in real estate properties 2,029,537 2,028,906 Accumulated depreciation and amortization (502,634 ) (488,636 ) Net investment in real estate properties $ 1,526,903 $ 1,540,270 Intangible Lease Assets and Liabilities Intangible lease assets and liabilities as of March 31, 2018 and December 31, 2017 include the following: March 31, 2018 December 31, 2017 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible lease assets $ 299,408 $ (245,377 ) $ 54,031 $ 299,406 $ (240,844 ) $ 58,562 Above-market lease assets 40,867 (38,924 ) 1,943 40,867 (38,740 ) 2,127 Below-market lease liabilities (85,865 ) 34,487 (51,378 ) (86,085 ) 33,456 (52,629 ) Rental Revenue and Depreciation and Amortization Expense The following table summarizes straight-line rent adjustments, amortization recognized as an increase (decrease) to rental revenues from above- and below-market lease assets and liabilities, and real estate-related depreciation and amortization expense: For the Three Months Ended March 31, (in thousands) 2018 2017 Increase (Decrease) to Rental Revenue: Straight-line rent adjustments $ 2,362 $ (117 ) Above-market lease amortization (184 ) (866 ) Below-market lease amortization 1,251 1,425 Real Estate-Related Depreciation and Amortization: Depreciation expense $ 9,280 $ 9,916 Intangible lease asset amortization 4,533 8,020 Real Estate Property Impairment During the three months ended March 31, 2018 , we considered potential disposition options for a retail property located in the Jacksonville, Florida market, which ultimately resulted in the reduction of our estimated future cash flows below our net book value. Accordingly, we recorded a $6.8 million non-cash impairment charge related to this property. We did not record an impairment related to any of our consolidated real estate properties during the three months ended March 31, 2017 .

DEBT

DEBT	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
DEBT	DEBT A summary of our debt is as follows: Weighted-Average Balance as of ($ in thousands) March 31, December 31, Maturity Date March 31, December 31, Line of credit (1) 3.58 % 3.27 % January 2019 $ 186,000 $ 142,000 Term loan (2) 3.39 % 3.25 % January 2019 275,000 275,000 Term loan (3) 3.94 % 3.94 % February 2022 200,000 200,000 Fixed-rate mortgage notes (4) 3.89 % 3.89 % September 2021 - December 2029 123,389 123,794 Floating-rate mortgage notes (5) 4.20 % 3.88 % January 2020 - August 2023 278,100 278,100 Total principal amount/weighted average (6) 3.80 % 3.64 % $ 1,062,489 $ 1,018,894 Less unamortized debt issuance costs $ (7,025 ) $ (7,322 ) Add mark-to-market adjustment on assumed debt 501 536 Total debt, net $ 1,055,965 $ 1,012,108 Gross book value of properties encumbered by debt $ 591,668 $ 590,542 (1) The effective interest rate is calculated based on the London Interbank Offered Rate (“LIBOR”), plus a margin ranging from 1.40% to 2.30% , depending on our consolidated leverage ratio. As of March 31, 2018 , the unused and available portions under the line of credit were approximately $214.0 million and $114.6 million , respectively. The line of credit is available for general business purposes including, but not limited to, refinancing of existing indebtedness and financing the acquisition of permitted investments, including commercial properties. (2) The effective interest rate is calculated based on LIBOR, plus a margin ranging from 1.35% to 2.20% , depending on our consolidated leverage ratio. The weighted-average interest rate is the all-in interest rate, including the effects of interest swap agreements relating to approximately $150.0 million in borrowings under this term loan. This term loan is available for general business purposes including, but not limited to, refinancing of existing indebtedness and financing the acquisition of permitted investments, including commercial properties. (3) The effective interest rate is calculated based on LIBOR, plus a margin ranging from 1.65% to 2.55% , depending on our consolidated leverage ratio. The weighted-average interest rate is the all-in interest rate and is fixed through interest swap agreements. This term loan is available for general business purposes including, but not limited to, refinancing of existing indebtedness and financing the acquisition of permitted investments, including commercial properties. (4) Amount as of March 31, 2018 includes a $32.9 million floating-rate mortgage note that was subject to an interest rate spread of 1.60% over one-month LIBOR, which we have effectively fixed using an interest rate swap at 3.05% for the term of the borrowing. (5) The effective interest rate is calculated based on LIBOR plus a margin. As of both March 31, 2018 and December 31, 2017, our floating rate mortgage notes were subject to a weighted-average interest rate spread of 2.31% . (6) The weighted-average remaining term of our borrowings was approximately 2.6 years as of March 31, 2018 . As of March 31, 2018 , the principal payments due on our debt during each of the next five years and thereafter were as follows: (in thousands) Line of Credit (1) Term Loans (2) Mortgage Notes Total Remainder of 2018 $ — $ — $ 1,957 $ 1,957 2019 186,000 275,000 3,344 464,344 2020 — — 229,088 229,088 2021 — — 12,372 12,372 2022 — 200,000 3,246 203,246 Thereafter — — 151,482 151,482 Total principal payments $ 186,000 $ 475,000 $ 401,489 $ 1,062,489 (1) The term of the line of credit may be extended pursuant to a one -year extension option, subject to certain conditions. (2) The term of the $275.0 million term loan may be extended pursuant to a one -year extension option, subject to certain conditions. Debt Covenants Our line of credit, term loans and mortgage note agreements contain various property-level covenants, including customary affirmative and negative covenants. In addition, the line of credit and term loan agreements contain certain corporate level financial covenants, including leverage ratio, fixed charge coverage ratio, and tangible net worth thresholds. We were in compliance with all debt covenants as of March 31, 2018 . Derivative Instruments To manage interest rate risk for certain of our variable-rate debt, we use interest rate derivative instruments as part of our risk management strategy. These derivatives are designed to mitigate the risk of future interest rate increases by either providing a fixed interest rate or capping the variable interest rate for a limited, pre-determined period of time. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the interest rate swap agreements without exchange of the underlying notional amount. Interest rate caps involve the receipt of variable amounts from a counterparty at the end of each period in which the interest rate exceeds the agreed fixed price. Interest rate caps are not designated as hedges. Certain of our variable-rate borrowings are not hedged, and therefore, to an extent, we have on-going exposure to interest rate movements. The change in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) (“AOCI”) on the condensed consolidated balance sheets and is subsequently reclassified into earnings as interest expense for the period that the hedged forecasted transaction affects earnings, which is when the interest expense is recognized on the related debt. During the next 12 months, we estimate that approximately $1.6 million will be reclassified as a decrease to interest expense related to active effective hedges of existing floating-rate debt, and we estimate that approximately $1.7 million will be reclassified as an increase to interest expense related to effective interest rate swaps where the hedging instrument has been terminated. The following table summarizes the location and fair value of our derivative instruments on our condensed consolidated balance sheets: Fair Value ($ in thousands) Number of Contracts Notional Other Other March 31, 2018 Interest rate swaps (1) (2) 14 $ 585,444 $ 8,871 $ 691 Interest rate caps 4 338,450 65 — Total derivative instruments 18 $ 923,894 $ 8,936 $ 691 December 31, 2017 Interest rate swaps (1) 11 $ 435,500 $ 4,043 $ 60 Interest rate caps 4 338,450 13 — Total derivative instruments 15 $ 773,950 $ 4,056 $ 60 (1) Includes one interest rate swap with a notional amount of $52.5 million that will become effective in July 2018. (2) Includes three interest rate swaps with a combined notional amount of $150.0 million that will become effective in January 2020. The following table presents the effect of our derivative instruments on our condensed consolidated financial statements: For the Three Months Ended March 31, (in thousands) 2018 2017 Derivative Instruments Designated as Cash Flow Hedges Gain recognized in AOCI $ 3,971 $ 1,493 Loss reclassified from AOCI into interest expense 704 596 Total interest expense on the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded 11,240 9,684 Derivative Instruments Not Designated as Cash Flow Hedges Gain (loss) recognized in income $ 53 $ (80 )

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2018
Financial Instruments, Owned, at Fair Value [Abstract]
FAIR VALUE	FAIR VALUE We estimate the fair value of our financial instruments using available market information and valuation methodologies we believe to be appropriate for these purposes. Considerable judgment and a high degree of subjectivity are involved in developing these estimates and, accordingly, they are not necessarily indicative of the amounts that we would realize upon disposition. Fair Value Measurements on a Recurring Basis The following table presents our financial instruments measured at fair value on a recurring basis: Total (in thousands) Level 1 Level 2 Level 3 Fair Value March 31, 2018 Assets Derivative instruments $ — $ 8,936 $ — $ 8,936 Total assets measured at fair value $ — $ 8,936 $ — $ 8,936 Liabilities Derivative instruments $ — $ 691 $ — $ 691 Total liabilities measured at fair value $ — $ 691 $ — $ 691 December 31, 2017 Assets Derivative instruments $ — $ 4,056 $ — $ 4,056 Total assets measured at fair value $ — $ 4,056 $ — $ 4,056 Liabilities Derivative instruments $ — $ 60 $ — $ 60 Total liabilities measured at fair value $ — $ 60 $ — $ 60 As of March 31, 2018 , we had no financial instruments that were transferred among the fair value hierarchy levels. We also had no non-financial assets or liabilities that were required to be measured at fair value on a recurring basis. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Derivative Instruments. The derivative instruments are interest rate swaps and interest rate caps whose fair value is estimated using market-standard valuation models. Such models involve using market-based observable inputs, including interest rate curves. We incorporate credit valuation adjustments to appropriately reflect both our nonperformance risk and respective counterparty’s nonperformance risk in the fair value measurements, which we have concluded are not material to the valuation. Due to these derivative instruments being unique and not actively traded, the fair value is classified as Level 2. See “Note 3” above for further discussion of our derivative instruments. Nonrecurring Fair Value Measurements As of March 31, 2018 and December 31, 2017 , the fair values of cash and cash equivalents, tenant receivables, due from/to affiliates, accounts payable and accrued liabilities, and distributions payable approximate their carrying values because of the short-term nature of these instruments. The table below includes fair values for certain of our financial instruments for which it is practicable to estimate fair value. The carrying values and fair values of these financial instruments were as follows: ໿ As of March 31, 2018 As of December 31, 2017 Carrying Fair Carrying Fair (in thousands) Value (1) Value Value (1) Value Assets: Debt related investments $ 11,013 $ 11,042 $ 11,120 $ 11,250 Liabilities: Line of credit $ 186,000 $ 186,000 $ 142,000 $ 142,000 Term loans 475,000 475,000 475,000 475,000 Mortgage notes 401,489 401,175 401,894 401,574 (1) The carrying amount reflects the principal amount outstanding.

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Attributable to Parent [Abstract]
STOCKHOLDERS’ EQUITY	STOCKHOLDERS’ EQUITY Public Offering A summary of our current public offering registered with the SEC (File No. 333-197767) (including shares sold through the primary offering and distribution reinvestment plan (“DRIP”), sales of which commenced on September 16, 2015), as of March 31, 2018 , is as follows: (in thousands) Class T Class S Class D Class I Class E Total Amount of gross proceeds raised: Primary offering $ 6,898 $ 11,942 $ 10,960 $ 112,820 $ — $ 142,620 DRIP 952 19 1,046 15,715 36,160 53,892 Total offering $ 7,850 $ 11,961 $ 12,006 $ 128,535 $ 36,160 $ 196,512 Number of shares sold: Primary offering 899 1,588 1,472 15,160 — 19,119 DRIP 128 2 141 2,107 4,854 7,232 Total offering 1,027 1,590 1,613 17,267 4,854 26,351 Common Stock The following table describes the changes in each class of common shares during the three months ended March 31, 2018: (in thousands) Class T Shares Class S Shares Class D Shares Class I Shares Class E Shares Total Shares Balances as of December 31, 2017 2,062 64 2,510 34,135 93,695 132,466 Issuance of common stock: Primary shares 67 1,524 23 1,016 — 2,630 Distribution reinvestment plan 16 2 16 235 372 641 Stock-based compensation — — — 38 — 38 Redemptions of common stock (37 ) — (56 ) (1,607 ) (5,615 ) (7,315 ) Balances as of March 31, 2018 2,108 1,590 2,493 33,817 88,452 128,460 Distributions The following table summarizes our distribution activity (including distributions to noncontrolling interests and distributions reinvested in shares of our common stock) for the quarters ended below: Amount (in thousands, except per share data) Declared per Common Stock Distributions Paid in Cash Other Cash Distributions (2) Reinvested Total 2018 March 31 $ 0.0938 $ 7,240 $ 1,127 $ 4,789 $ 13,156 Total $ 7,240 $ 1,127 $ 4,789 $ 13,156 2017 March 31 $ 0.0900 $ 8,289 $ 1,250 $ 5,076 $ 14,615 June 30 0.0900 8,027 1,300 4,920 14,247 September 30 0.0900 7,549 1,195 4,937 13,681 December 31 0.0900 7,285 1,088 4,775 13,148 Total $ 31,150 $ 4,833 $ 19,708 $ 55,691 (1) Amount reflects the total quarterly distribution rate, subject to adjustment for class-specific fees. (2) Includes other cash distributions consisting of: (i) distributions paid to holders of partnership units (“OP Units”) in Black Creek Diversified Property Operating Partnership LP (the “Operating Partnership”); (ii) regular distributions made to our former joint venture partners; and (iii) ongoing distribution fees paid to Black Creek Capital Markets, LLC (the “Dealer Manager”) with respect to Class T, Class S and Class D shares. See “Note 6” for further detail regarding the ongoing distribution fees. Redemptions and Repurchases Below is a summary of redemptions and repurchases pursuant to our share redemption program and self-tender offers for the three months ended March 31, 2018 and 2017. Our board of directors may modify, suspend or terminate our current share redemption programs if it deems such action to be in the best interest of our stockholders. For the Three Months Ended March 31, (in thousands, except for per share data) 2018 2017 Number of shares requested for redemption or repurchase 7,315 6,348 Number of shares redeemed or repurchased 7,315 6,348 % of shares requested that were redeemed or repurchased 100.0 % 100.0 % Average redemption or repurchase price per share $ 7.43 $ 7.51

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS Summary of Fees and Expenses The following table summarizes fees and expenses incurred by us for services provided by Black Creek Diversified Property Advisors LLC (the “Advisor”) and its affiliates, and any related amounts payable: For the Three Months Ended March 31, Payable as of (in thousands) 2018 2017 March 31, 2018 December 31, 2017 Upfront selling commissions $ 136 $ 20 $ — $ — Dealer manager fees — 112 — — Ongoing distribution fees 55 19 23 15 Advisory fees 3,640 3,490 1,664 954 Other expense reimbursements—Advisor 2,401 2,278 407 1,988 Other expense reimbursements—Dealer Manager 72 167 — — DST Program advisory fees 39 — — — DST Program selling commissions 108 113 — — DST Program dealer manager fees 32 34 — — DST Program other reimbursements—Dealer Manager 10 16 — — Total $ 6,493 $ 6,249 $ 2,094 $ 2,957 Company RSUs The table below summarizes the unvested restricted stock units (“Company RSUs”), as of March 31, 2018, that we have granted to the Advisor in exchange for certain advisory fee and expense reimbursement offsets. (in thousands, except per share data) Grant Date Vesting Date Number of Unvested Shares Grant Date NAV per Class I Share Company RSUs 2/25/2015 4/13/2018 66 $ 7.18 Company RSUs 2/4/2016 4/15/2019 57 7.41 Total/ weighted average 123 $ 7.29

NET (LOSS) INCOME PER COMMON SH

NET (LOSS) INCOME PER COMMON SHARE	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
NET (LOSS) INCOME PER COMMON SHARE	NET (LOSS) INCOME PER COMMON SHARE The computation of our basic and diluted net (loss) income per share attributable to common stockholders is as follows: For the Three Months Ended March 31, (in thousands, except per share data) 2018 2017 Net (loss) income attributable to common stockholders—basic $ (8,635 ) $ 1,661 Net (loss) income attributable to OP Units (756 ) 133 Net (loss) income attributable to common stockholders—diluted $ (9,391 ) $ 1,794 Weighted-average shares outstanding—basic 128,946 149,891 Incremental weighted-average shares effect of conversion of OP Units 11,306 12,028 Weighted-average shares outstanding—diluted 140,252 161,919 Net (loss) income per share attributable to common stockholders: Basic $ (0.07 ) $ 0.01 Diluted $ (0.07 ) $ 0.01

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	3 Months Ended
	Mar. 31, 2018
Cash and Cash Equivalents [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information and disclosure of non-cash investing and financing activities is as follows: For the Three Months Ended March 31, (in thousands) 2018 2017 Distributions reinvested in common stock $ 4,774 $ 5,138 Restricted Cash Restricted cash consists of lender and property-related escrow accounts. The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals shown in the condensed consolidated statements of cash flows: For the Three Months Ended March 31, (in thousands) 2018 2017 Beginning of period: Cash and cash equivalents $ 10,475 $ 13,864 Restricted cash 8,541 7,282 Cash, cash equivalents and restricted cash $ 19,016 $ 21,146 End of period: Cash and cash equivalents $ 13,989 $ 10,894 Restricted cash 7,341 8,765 Cash, cash equivalents and restricted cash $ 21,330 $ 19,659

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES We and the Operating Partnership are not presently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us or our investments. Environmental Matters A majority of the properties we acquire are subject to environmental reviews either by us or the previous owners. In addition, we may incur environmental remediation costs associated with certain land parcels we may acquire in connection with the development of the land. We have acquired certain properties in urban and industrial areas that may have been leased to or previously owned by commercial and industrial companies that discharged hazardous materials. We may purchase various environmental insurance policies to mitigate our exposure to environmental liabilities. We are not aware of any environmental liabilities that we believe would have a material adverse effect on our business, financial condition, or results of operations as of March 31, 2018 .

SEGMENT FINANCIAL INFORMATION

SEGMENT FINANCIAL INFORMATION	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
SEGMENT FINANCIAL INFORMATION	SEGMENT FINANCIAL INFORMATION Our three reportable segments are office, retail and industrial. Factors used to determine our reportable segments include the physical and economic characteristics of our properties and the related operating activities. Our chief operating decision makers rely primarily on net operating income to make decisions about allocating resources and assessing segment performance. Net operating income is the key performance metric that captures the unique operating characteristics of each segment. Items that are not directly assignable to a segment, such as certain corporate items, are not allocated but reflected as reconciling items. The following table reflects our total assets by business segment as of March 31, 2018 and December 31, 2017 : As of (in thousands) March 31, 2018 December 31, 2017 Assets: Office $ 772,901 $ 775,917 Retail 695,970 705,696 Industrial 58,032 58,657 Corporate 77,365 67,836 Total assets $ 1,604,268 $ 1,608,106 The following table sets forth the financial results by segment for the three months ended March 31, 2018 and 2017 : ໿ (in thousands) Office Retail Industrial Consolidated Three Months Ended March 31, 2018 Rental revenues $ 24,425 $ 18,599 $ 1,430 $ 44,454 Rental expenses (11,007 ) (4,598 ) (225 ) (15,830 ) Net operating income $ 13,418 $ 14,001 $ 1,205 $ 28,624 Real estate-related depreciation and amortization $ 7,885 $ 5,290 $ 638 $ 13,813 Three Months Ended March 31, 2017 Rental revenues $ 29,439 21,498 1,571 52,508 Rental expenses (11,141 ) (5,734 ) (568 ) (17,443 ) Net operating income $ 18,298 15,764 $ 1,003 $ 35,065 Real estate-related depreciation and amortization $ 10,997 $ 6,319 $ 620 $ 17,936 We consider net operating income to be an appropriate supplemental performance measure and believe net operating income provides useful information to our investors regarding our financial condition and results of operations because net operating income reflects the operating performance of our properties and excludes certain items that are not considered to be controllable in connection with the management of the properties, such as real estate-related depreciation and amortization, general and administrative expenses, advisory fees, acquisition expenses, impairment charges, interest expense, gains on sale of properties, other income and expense, gains and losses on the extinguishment of debt and noncontrolling interests. However, net operating income should not be viewed as an alternative measure of our financial performance since it excludes such items, which could materially impact our results of operations. Further, our net operating income may not be comparable to that of other real estate companies, as they may use different methodologies for calculating net operating income. Therefore, we believe net income, as defined by GAAP, to be the most appropriate measure to evaluate our overall financial performance. The following table is a reconciliation of our reported net (loss) income attributable to common stockholders to our net operating income for the three months ended March 31, 2018 and 2017 : For the Three Months Ended March 31, (in thousands) 2018 2017 Net (loss) income attributable to common stockholders $ (8,635 ) $ 1,661 Debt-related income (173 ) (231 ) Real estate-related depreciation and amortization 13,813 17,936 General and administrative expenses 2,534 2,250 Advisory fees, related party 3,679 3,490 Impairment of real estate property 6,800 — Interest expense 11,240 9,684 Other expense 122 109 Net (loss) income attributable to noncontrolling interests (756 ) 166 Net operating income $ 28,624 $ 35,065

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Completed Acquisitions On April 9, 2018, we acquired three industrial buildings located in the Houston, Texas market (“Stafford Grove Industrial Park”). The total purchase price was approximately $37.5 million .

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interim Financial Statements	The accompanying unaudited condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain disclosures normally included in the annual audited financial statements prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) have been omitted. As such, the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 7, 2018 (“2017 Form 10-K”)
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which provides guidance for revenue recognition and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition.” The standard is based on the principle that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The guidance specifically excludes revenue derived from lease contracts from its scope. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The effective date for the standard is for annual reporting periods beginning after December 15, 2017 and interim periods therein. We adopted the standard when it became effective for us, as of the reporting period beginning January 1, 2018. We elected the package of practical expedients, and accordingly did not reallocate contract consideration to lease components within the scope of the existing lease guidance when we adopted ASU 2014-09. The adoption of ASU 2014-09 did not have a significant impact on our condensed consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which requires: (i) all equity investments to be measured at fair value with changes in fair value recognized in net income; (ii) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; and (iii) eliminates the requirement for public entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. ASU 2016-01 is effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption is permitted for the accounting guidance on financial liabilities under the fair value option. We adopted this guidance effective January 1, 2018. The adoption of this guidance did not have a significant impact on our condensed consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 “Statement of Cash Flows (Topic 230)” (“ASU 2016-15”), which provided guidance on eight cash flow classification issues and on reducing diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Current GAAP does not include specific guidance on these eight cash flow classification issues. In November 2016, the FASB issued ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash,” (“ASU 2016-18”) which requires companies to include restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 requires a disclosure of a reconciliation between the statement of financial position and the statement of cash flows when the statement of financial position includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. Entities with material restricted cash and restricted cash equivalents balances are required to disclose the nature of the restrictions. ASU 2016-15 and ASU 2016-18 became effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. We adopted these standards as of January 1, 2018 and as required, retrospectively applied the guidance in ASU 2016-18 to the prior periods presented, which resulted in an increase of $0.1 million in net cash provided by operating activities and a decrease of $1.4 million in net cash used in financing activities on the condensed consolidated statements of cash flows for the three months ended March 31, 2017. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. The transition guidance provides companies with the option of early adopting the new standard using a modified retrospective transition method in any interim period after issuance of the update, or alternatively requires adoption for fiscal years beginning after December 15, 2018. We adopted ASU 2017-12 as of the reporting period beginning on January 1, 2018. This adoption method required us to recognize the cumulative effect of initially applying this guidance as an adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the update, which resulted in the recognition of a $0.2 million adjustment during the three months ended March 31, 2018 .

INVESTMENTS IN REAL ESTATE PR20

INVESTMENTS IN REAL ESTATE PROPERTIES (Tables)	3 Months Ended
	Mar. 31, 2018
Real Estate [Abstract]
Schedule of Consolidated Investments in Real Property	The following tables summarize our consolidated investments in real estate properties: As of (in thousands) March 31, December 31, Land $ 421,192 $ 422,564 Buildings and improvements 1,268,070 1,266,069 Intangible lease assets 340,275 340,273 Investment in real estate properties 2,029,537 2,028,906 Accumulated depreciation and amortization (502,634 ) (488,636 ) Net investment in real estate properties $ 1,526,903 $ 1,540,270
Schedule of Finite-Lived Intangible Assets	Intangible lease assets and liabilities as of March 31, 2018 and December 31, 2017 include the following: March 31, 2018 December 31, 2017 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible lease assets $ 299,408 $ (245,377 ) $ 54,031 $ 299,406 $ (240,844 ) $ 58,562 Above-market lease assets 40,867 (38,924 ) 1,943 40,867 (38,740 ) 2,127 Below-market lease liabilities (85,865 ) 34,487 (51,378 ) (86,085 ) 33,456 (52,629 )
Schedule of Adjustments to Rental Revenue Related to Amortization of Above-Market Lease Assets, Below-Market Lease Liabilities, and for Straight-Line Rental Adjustments	The following table summarizes straight-line rent adjustments, amortization recognized as an increase (decrease) to rental revenues from above- and below-market lease assets and liabilities, and real estate-related depreciation and amortization expense: For the Three Months Ended March 31, (in thousands) 2018 2017 Increase (Decrease) to Rental Revenue: Straight-line rent adjustments $ 2,362 $ (117 ) Above-market lease amortization (184 ) (866 ) Below-market lease amortization 1,251 1,425 Real Estate-Related Depreciation and Amortization: Depreciation expense $ 9,280 $ 9,916 Intangible lease asset amortization 4,533 8,020

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of Borrowings	A summary of our debt is as follows: Weighted-Average Balance as of ($ in thousands) March 31, December 31, Maturity Date March 31, December 31, Line of credit (1) 3.58 % 3.27 % January 2019 $ 186,000 $ 142,000 Term loan (2) 3.39 % 3.25 % January 2019 275,000 275,000 Term loan (3) 3.94 % 3.94 % February 2022 200,000 200,000 Fixed-rate mortgage notes (4) 3.89 % 3.89 % September 2021 - December 2029 123,389 123,794 Floating-rate mortgage notes (5) 4.20 % 3.88 % January 2020 - August 2023 278,100 278,100 Total principal amount/weighted average (6) 3.80 % 3.64 % $ 1,062,489 $ 1,018,894 Less unamortized debt issuance costs $ (7,025 ) $ (7,322 ) Add mark-to-market adjustment on assumed debt 501 536 Total debt, net $ 1,055,965 $ 1,012,108 Gross book value of properties encumbered by debt $ 591,668 $ 590,542 (1) The effective interest rate is calculated based on the London Interbank Offered Rate (“LIBOR”), plus a margin ranging from 1.40% to 2.30% , depending on our consolidated leverage ratio. As of March 31, 2018 , the unused and available portions under the line of credit were approximately $214.0 million and $114.6 million , respectively. The line of credit is available for general business purposes including, but not limited to, refinancing of existing indebtedness and financing the acquisition of permitted investments, including commercial properties. (2) The effective interest rate is calculated based on LIBOR, plus a margin ranging from 1.35% to 2.20% , depending on our consolidated leverage ratio. The weighted-average interest rate is the all-in interest rate, including the effects of interest swap agreements relating to approximately $150.0 million in borrowings under this term loan. This term loan is available for general business purposes including, but not limited to, refinancing of existing indebtedness and financing the acquisition of permitted investments, including commercial properties. (3) The effective interest rate is calculated based on LIBOR, plus a margin ranging from 1.65% to 2.55% , depending on our consolidated leverage ratio. The weighted-average interest rate is the all-in interest rate and is fixed through interest swap agreements. This term loan is available for general business purposes including, but not limited to, refinancing of existing indebtedness and financing the acquisition of permitted investments, including commercial properties. (4) Amount as of March 31, 2018 includes a $32.9 million floating-rate mortgage note that was subject to an interest rate spread of 1.60% over one-month LIBOR, which we have effectively fixed using an interest rate swap at 3.05% for the term of the borrowing. (5) The effective interest rate is calculated based on LIBOR plus a margin. As of both March 31, 2018 and December 31, 2017, our floating rate mortgage notes were subject to a weighted-average interest rate spread of 2.31% . (6) The weighted-average remaining term of our borrowings was approximately 2.6 years as of March 31, 2018 .
Schedule of Borrowings Reflects Contractual Debt Maturities	As of March 31, 2018 , the principal payments due on our debt during each of the next five years and thereafter were as follows: (in thousands) Line of Credit (1) Term Loans (2) Mortgage Notes Total Remainder of 2018 $ — $ — $ 1,957 $ 1,957 2019 186,000 275,000 3,344 464,344 2020 — — 229,088 229,088 2021 — — 12,372 12,372 2022 — 200,000 3,246 203,246 Thereafter — — 151,482 151,482 Total principal payments $ 186,000 $ 475,000 $ 401,489 $ 1,062,489 (1) The term of the line of credit may be extended pursuant to a one -year extension option, subject to certain conditions. (2) The term of the $275.0 million term loan may be extended pursuant to a one -year extension option, subject to certain conditions.
Gross Fair Value of Derivative Financial Instruments as Well as Their Classification	The following table summarizes the location and fair value of our derivative instruments on our condensed consolidated balance sheets: Fair Value ($ in thousands) Number of Contracts Notional Other Other March 31, 2018 Interest rate swaps (1) (2) 14 $ 585,444 $ 8,871 $ 691 Interest rate caps 4 338,450 65 — Total derivative instruments 18 $ 923,894 $ 8,936 $ 691 December 31, 2017 Interest rate swaps (1) 11 $ 435,500 $ 4,043 $ 60 Interest rate caps 4 338,450 13 — Total derivative instruments 15 $ 773,950 $ 4,056 $ 60 (1) Includes one interest rate swap with a notional amount of $52.5 million that will become effective in July 2018. (2) Includes three interest rate swaps with a combined notional amount of $150.0 million that will become effective in January 2020.
Effect of Derivative Financial Instruments on Financial Statements	The following table presents the effect of our derivative instruments on our condensed consolidated financial statements: For the Three Months Ended March 31, (in thousands) 2018 2017 Derivative Instruments Designated as Cash Flow Hedges Gain recognized in AOCI $ 3,971 $ 1,493 Loss reclassified from AOCI into interest expense 704 596 Total interest expense on the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded 11,240 9,684 Derivative Instruments Not Designated as Cash Flow Hedges Gain (loss) recognized in income $ 53 $ (80 )

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2018
Financial Instruments, Owned, at Fair Value [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table presents our financial instruments measured at fair value on a recurring basis: Total (in thousands) Level 1 Level 2 Level 3 Fair Value March 31, 2018 Assets Derivative instruments $ — $ 8,936 $ — $ 8,936 Total assets measured at fair value $ — $ 8,936 $ — $ 8,936 Liabilities Derivative instruments $ — $ 691 $ — $ 691 Total liabilities measured at fair value $ — $ 691 $ — $ 691 December 31, 2017 Assets Derivative instruments $ — $ 4,056 $ — $ 4,056 Total assets measured at fair value $ — $ 4,056 $ — $ 4,056 Liabilities Derivative instruments $ — $ 60 $ — $ 60 Total liabilities measured at fair value $ — $ 60 $ — $ 60
Nonrecurring Fair Value Measurements	The carrying values and fair values of these financial instruments were as follows: ໿ As of March 31, 2018 As of December 31, 2017 Carrying Fair Carrying Fair (in thousands) Value (1) Value Value (1) Value Assets: Debt related investments $ 11,013 $ 11,042 $ 11,120 $ 11,250 Liabilities: Line of credit $ 186,000 $ 186,000 $ 142,000 $ 142,000 Term loans 475,000 475,000 475,000 475,000 Mortgage notes 401,489 401,175 401,894 401,574 (1) The carrying amount reflects the principal amount outstanding.

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Attributable to Parent [Abstract]
Summary of Public Offering	A summary of our current public offering registered with the SEC (File No. 333-197767) (including shares sold through the primary offering and distribution reinvestment plan (“DRIP”), sales of which commenced on September 16, 2015), as of March 31, 2018 , is as follows: (in thousands) Class T Class S Class D Class I Class E Total Amount of gross proceeds raised: Primary offering $ 6,898 $ 11,942 $ 10,960 $ 112,820 $ — $ 142,620 DRIP 952 19 1,046 15,715 36,160 53,892 Total offering $ 7,850 $ 11,961 $ 12,006 $ 128,535 $ 36,160 $ 196,512 Number of shares sold: Primary offering 899 1,588 1,472 15,160 — 19,119 DRIP 128 2 141 2,107 4,854 7,232 Total offering 1,027 1,590 1,613 17,267 4,854 26,351
Information of Share Transactions	The following table describes the changes in each class of common shares during the three months ended March 31, 2018: (in thousands) Class T Shares Class S Shares Class D Shares Class I Shares Class E Shares Total Shares Balances as of December 31, 2017 2,062 64 2,510 34,135 93,695 132,466 Issuance of common stock: Primary shares 67 1,524 23 1,016 — 2,630 Distribution reinvestment plan 16 2 16 235 372 641 Stock-based compensation — — — 38 — 38 Redemptions of common stock (37 ) — (56 ) (1,607 ) (5,615 ) (7,315 ) Balances as of March 31, 2018 2,108 1,590 2,493 33,817 88,452 128,460
Summary of distribution activity	The following table summarizes our distribution activity (including distributions to noncontrolling interests and distributions reinvested in shares of our common stock) for the quarters ended below: Amount (in thousands, except per share data) Declared per Common Stock Distributions Paid in Cash Other Cash Distributions (2) Reinvested Total 2018 March 31 $ 0.0938 $ 7,240 $ 1,127 $ 4,789 $ 13,156 Total $ 7,240 $ 1,127 $ 4,789 $ 13,156 2017 March 31 $ 0.0900 $ 8,289 $ 1,250 $ 5,076 $ 14,615 June 30 0.0900 8,027 1,300 4,920 14,247 September 30 0.0900 7,549 1,195 4,937 13,681 December 31 0.0900 7,285 1,088 4,775 13,148 Total $ 31,150 $ 4,833 $ 19,708 $ 55,691 (1) Amount reflects the total quarterly distribution rate, subject to adjustment for class-specific fees. (2) Includes other cash distributions consisting of: (i) distributions paid to holders of partnership units (“OP Units”) in Black Creek Diversified Property Operating Partnership LP (the “Operating Partnership”); (ii) regular distributions made to our former joint venture partners; and (iii) ongoing distribution fees paid to Black Creek Capital Markets, LLC (the “Dealer Manager”) with respect to Class T, Class S and Class D shares. See “Note 6” for further detail regarding the ongoing distribution fees.
Redemption Activity	Our board of directors may modify, suspend or terminate our current share redemption programs if it deems such action to be in the best interest of our stockholders. For the Three Months Ended March 31, (in thousands, except for per share data) 2018 2017 Number of shares requested for redemption or repurchase 7,315 6,348 Number of shares redeemed or repurchased 7,315 6,348 % of shares requested that were redeemed or repurchased 100.0 % 100.0 % Average redemption or repurchase price per share $ 7.43 $ 7.51

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Schedule of Fees and Other Amounts Earned by Advisor	The following table summarizes fees and expenses incurred by us for services provided by Black Creek Diversified Property Advisors LLC (the “Advisor”) and its affiliates, and any related amounts payable: For the Three Months Ended March 31, Payable as of (in thousands) 2018 2017 March 31, 2018 December 31, 2017 Upfront selling commissions $ 136 $ 20 $ — $ — Dealer manager fees — 112 — — Ongoing distribution fees 55 19 23 15 Advisory fees 3,640 3,490 1,664 954 Other expense reimbursements—Advisor 2,401 2,278 407 1,988 Other expense reimbursements—Dealer Manager 72 167 — — DST Program advisory fees 39 — — — DST Program selling commissions 108 113 — — DST Program dealer manager fees 32 34 — — DST Program other reimbursements—Dealer Manager 10 16 — — Total $ 6,493 $ 6,249 $ 2,094 $ 2,957
Schedule of RSU Grants	The table below summarizes the unvested restricted stock units (“Company RSUs”), as of March 31, 2018, that we have granted to the Advisor in exchange for certain advisory fee and expense reimbursement offsets. (in thousands, except per share data) Grant Date Vesting Date Number of Unvested Shares Grant Date NAV per Class I Share Company RSUs 2/25/2015 4/13/2018 66 $ 7.18 Company RSUs 2/4/2016 4/15/2019 57 7.41 Total/ weighted average 123 $ 7.29

NET (LOSS) INCOME PER COMMON 25

NET (LOSS) INCOME PER COMMON SHARE (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Details of Numerator and Denominator Used to Calculate Basic and Diluted Net Income (Loss) Per Common Share	The computation of our basic and diluted net (loss) income per share attributable to common stockholders is as follows: For the Three Months Ended March 31, (in thousands, except per share data) 2018 2017 Net (loss) income attributable to common stockholders—basic $ (8,635 ) $ 1,661 Net (loss) income attributable to OP Units (756 ) 133 Net (loss) income attributable to common stockholders—diluted $ (9,391 ) $ 1,794 Weighted-average shares outstanding—basic 128,946 149,891 Incremental weighted-average shares effect of conversion of OP Units 11,306 12,028 Weighted-average shares outstanding—diluted 140,252 161,919 Net (loss) income per share attributable to common stockholders: Basic $ (0.07 ) $ 0.01 Diluted $ (0.07 ) $ 0.01

SUPPLEMENTAL CASH FLOW INFORM26

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2018
Cash and Cash Equivalents [Abstract]
Supplemental cash flow information	Supplemental cash flow information and disclosure of non-cash investing and financing activities is as follows: For the Three Months Ended March 31, (in thousands) 2018 2017 Distributions reinvested in common stock $ 4,774 $ 5,138
Schedule of restricted cash and cash equivalents	The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals shown in the condensed consolidated statements of cash flows: For the Three Months Ended March 31, (in thousands) 2018 2017 Beginning of period: Cash and cash equivalents $ 10,475 $ 13,864 Restricted cash 8,541 7,282 Cash, cash equivalents and restricted cash $ 19,016 $ 21,146 End of period: Cash and cash equivalents $ 13,989 $ 10,894 Restricted cash 7,341 8,765 Cash, cash equivalents and restricted cash $ 21,330 $ 19,659

SEGMENT FINANCIAL INFORMATION (

SEGMENT FINANCIAL INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Summary of Total Assets by Business Segment	The following table reflects our total assets by business segment as of March 31, 2018 and December 31, 2017 : As of (in thousands) March 31, 2018 December 31, 2017 Assets: Office $ 772,901 $ 775,917 Retail 695,970 705,696 Industrial 58,032 58,657 Corporate 77,365 67,836 Total assets $ 1,604,268 $ 1,608,106
Revenue and Components of Net Operating Income	The following table sets forth the financial results by segment for the three months ended March 31, 2018 and 2017 : ໿ (in thousands) Office Retail Industrial Consolidated Three Months Ended March 31, 2018 Rental revenues $ 24,425 $ 18,599 $ 1,430 $ 44,454 Rental expenses (11,007 ) (4,598 ) (225 ) (15,830 ) Net operating income $ 13,418 $ 14,001 $ 1,205 $ 28,624 Real estate-related depreciation and amortization $ 7,885 $ 5,290 $ 638 $ 13,813 Three Months Ended March 31, 2017 Rental revenues $ 29,439 21,498 1,571 52,508 Rental expenses (11,141 ) (5,734 ) (568 ) (17,443 ) Net operating income $ 18,298 15,764 $ 1,003 $ 35,065 Real estate-related depreciation and amortization $ 10,997 $ 6,319 $ 620 $ 17,936
Reconciliation of Net Operating Income to Reported Net Income	The following table is a reconciliation of our reported net (loss) income attributable to common stockholders to our net operating income for the three months ended March 31, 2018 and 2017 : For the Three Months Ended March 31, (in thousands) 2018 2017 Net (loss) income attributable to common stockholders $ (8,635 ) $ 1,661 Debt-related income (173 ) (231 ) Real estate-related depreciation and amortization 13,813 17,936 General and administrative expenses 2,534 2,250 Advisory fees, related party 3,679 3,490 Impairment of real estate property 6,800 — Interest expense 11,240 9,684 Other expense 122 109 Net (loss) income attributable to noncontrolling interests (756 ) 166 Net operating income $ 28,624 $ 35,065

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Mar. 31, 2018	Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net cash provided by operating activities		$ 9,282	$ 17,422
Net cash used in financing activities		563	$ 14,795
Accounting Standards Update 2016-18
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net cash provided by operating activities	$ 100
Net cash used in financing activities	1,400
Distributions in Excess of Earnings | Accounting Standards Updated 2017-12
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle in period of adoption	$ (213)	$ 200

INVESTMENTS IN REAL ESTATE PR29

INVESTMENTS IN REAL ESTATE PROPERTIES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Real Estate Properties [Line Items]
Impairment charges	$ 6,800	$ 0
Nonrecurring | Level 3 | Retail | Retail Property, Jacksonville, Florida
Real Estate Properties [Line Items]
Impairment charges	$ 6,800

INVESTMENTS IN REAL ESTATE PR30

INVESTMENTS IN REAL ESTATE PROPERTIES (Schedule of Consolidated Investments in Real Property) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Real Estate Properties [Line Items]
Investment in real estate properties	$ 2,029,537	$ 2,028,906
Accumulated depreciation and amortization	(502,634)	(488,636)
Net investment in real estate properties	1,526,903	1,540,270
Land
Real Estate Properties [Line Items]
Investment in real estate properties	421,192	422,564
Building and Improvements
Real Estate Properties [Line Items]
Investment in real estate properties	1,268,070	1,266,069
Intangible Lease Assets
Real Estate Properties [Line Items]
Investment in real estate properties	$ 340,275	$ 340,273

INVESTMENTS IN REAL ESTATE PR31

INVESTMENTS IN REAL ESTATE PROPERTIES (Intangible Leased Assets and Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Intangible Lease Assets
Finite-Lived Intangible Assets [Line Items]
Gross	$ 299,408	$ 299,406
Accumulated Amortization	(245,377)	(240,844)
Net	54,031	58,562
Above Market Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	40,867	40,867
Accumulated Amortization	(38,924)	(38,740)
Net	1,943	2,127
Below Market Lease Liabilities [Member]
Finite-Lived Intangible Assets [Line Items]
Gross, Liabilities	(85,865)	(86,085)
Accumulated Amortization, Liabilities	34,487	33,456
Net, Liabilities	$ (51,378)	$ (52,629)

INVESTMENTS IN REAL ESTATE PR32

INVESTMENTS IN REAL ESTATE PROPERTIES (Schedule of Adjustments to Rental Revenue Related to Amortization) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Straight-line rent adjustments	$ 2,362	$ (117)
Depreciation expense	9,280	9,916
Intangible lease asset amortization	4,533	8,020
Above Market Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of above and below Market Leases	(184)	(866)
Below Market Lease [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of above and below Market Leases	$ 1,251	$ 1,425

DEBT (Narrative) (Details)

DEBT (Narrative) (Details) $ in Millions	Mar. 31, 2018USD ($)
Derivative [Line Items]
Estimated decrease to interest expense related to active effective hedges of floating rate debt	$ 1.6
Interest rate swap
Derivative [Line Items]
Estimated increase to interest expense related to termination of hedging instrument	$ 1.7

DEBT (Schedule of Borrowings) (

DEBT (Schedule of Borrowings) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total borrowings	$ 1,062,489	$ 1,018,894
Less unamortized debt issuance costs	(7,025)	(7,322)
Add mark-to-market adjustment on assumed debt	501	536
Total debt, net	1,055,965	1,012,108
Gross book value of properties encumbered by debt	$ 591,668	$ 590,542
Weighted-Average Effective Interest Rate as of	3.80%	3.64%
Derivative notional amount	$ 923,894	$ 773,950
Weighted average maturity of debt investments	2 years 6 months 29 days
Interest rate swap
Debt Instrument [Line Items]
Derivative notional amount	$ 585,444	435,500
Fixed-Rate Mortgage Notes
Debt Instrument [Line Items]
Total borrowings	$ 123,389	$ 123,794
Weighted-Average Effective Interest Rate as of	3.89%	3.89%
Floating-Rate Mortgage Notes
Debt Instrument [Line Items]
Total borrowings	$ 278,100	$ 278,100
Weighted-Average Effective Interest Rate as of	4.20%	3.88%
Line of Credit
Debt Instrument [Line Items]
Total borrowings	$ 186,000	$ 142,000
Weighted-Average Effective Interest Rate as of	3.58%	3.27%
Current borrowing capacity	$ 214,000
Available portions under the line of credit	114,600
Term Loan Due January 2018
Debt Instrument [Line Items]
Total borrowings	$ 275,000	$ 275,000
Weighted-Average Effective Interest Rate as of	3.39%	3.25%
Term Loan Due January 2018 | Interest rate swap
Debt Instrument [Line Items]
Derivative notional amount	$ 150,000
Term Loan Due February 2022
Debt Instrument [Line Items]
Total borrowings	$ 200,000	$ 200,000
Weighted-Average Effective Interest Rate as of	3.94%	3.94%
Minimum | Fixed-Rate Mortgage Notes | LIBOR
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	1.65%
Minimum | Line of Credit | LIBOR
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	1.40%
Minimum | Term Loan Due January 2018 | LIBOR
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	1.35%
Maximum | Fixed-Rate Mortgage Notes | LIBOR
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	2.55%
Maximum | Floating-Rate Mortgage Notes | LIBOR
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	2.31%	2.31%
Maximum | Line of Credit | LIBOR
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	2.30%
Maximum | Term Loan Due January 2018 | LIBOR
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	2.20%
Preston Sherry Plaza | Fixed-Rate Mortgage Notes
Debt Instrument [Line Items]
Total borrowings	$ 32,900
Outstanding borrowings spread over LIBOR	1.60%
Effective interest rate on debt	3.05%

DEBT (Summary of Borrowings Ref

DEBT (Summary of Borrowings Reflects Contractual Debt Maturities Footnote) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Remainder of 2018	$ 1,957
2,019	464,344
2,020	229,088
2,021	12,372
2,022	203,246
Thereafter	151,482
Total	1,062,489	$ 1,018,894
Line of Credit
Debt Instrument [Line Items]
Remainder of 2018	0
2,019	186,000
2,020	0
2,021	0
2,022	0
Thereafter	0
Total	$ 186,000	$ 142,000
Term of extension	1 year
Term Loan
Debt Instrument [Line Items]
Remainder of 2018	$ 0
2,019	275,000
2,020	0
2,021	0
2,022	200,000
Thereafter	0
Total	475,000
Mortgage Notes
Debt Instrument [Line Items]
Remainder of 2018	1,957
2,019	3,344
2,020	229,088
2,021	12,372
2,022	3,246
Thereafter	151,482
Total	401,489
$275 Million Term Loan | Term Loan
Debt Instrument [Line Items]
Face amount of debt	$ 275,000

DEBT (Gross Fair Value of Deriv

DEBT (Gross Fair Value of Derivative Financial Instruments) (Details) $ in Thousands	Jan. 31, 2020USD ($)contract	Jul. 31, 2018USD ($)contract	Mar. 31, 2018USD ($)contract	Dec. 31, 2017USD ($)contract
Derivatives, Fair Value [Line Items]
Number of Interest Rate Derivatives Held | contract			18	15
Total notional amount			$ 923,894	$ 773,950
Other Assets
Derivatives, Fair Value [Line Items]
Derivative Asset			8,936	4,056
Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability			$ 691	$ 60
Interest rate swap
Derivatives, Fair Value [Line Items]
Number of Interest Rate Derivatives Held | contract			14	11
Total notional amount			$ 585,444	$ 435,500
Interest rate swap | Scenario, Forecast
Derivatives, Fair Value [Line Items]
Number of Interest Rate Derivatives Held | contract	3	1
Total notional amount	$ 150,000	$ 52,500
Interest rate swap | Other Assets
Derivatives, Fair Value [Line Items]
Derivative Asset			8,871	4,043
Interest rate swap | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability			$ 691	$ 60
Interest Rate Cap
Derivatives, Fair Value [Line Items]
Number of Interest Rate Derivatives Held | contract			4	4
Total notional amount			$ 338,450	$ 338,450
Interest Rate Cap | Other Assets
Derivatives, Fair Value [Line Items]
Derivative Asset			65	13
Interest Rate Cap | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability			$ 0	$ 0

DEBT (Effect of Derivative Fina

DEBT (Effect of Derivative Financial Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Total interest expense on the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$ 11,240	$ 9,684
Change from cash flow hedging derivatives	4,675	2,089
Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Amount of loss recognized in income	53	(80)
Cash Flow Hedging | Designated Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (loss) gain recognized in OCI (effective portion)	3,971	1,493
Amount of loss reclassified from accumulated OCI into income (effective portion)	704	596
Total interest expense on the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$ 11,240	$ 9,684

FAIR VALUE (Details)

FAIR VALUE (Details) - Recurring - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Derivative instruments	$ 8,936	$ 4,056
Total assets measured at fair value	8,936	4,056
Liabilities
Derivative instruments	691	60
Total liabilities measured at fair value	691	60
Level 2
Assets
Derivative instruments	8,936	4,056
Total assets measured at fair value	8,936	4,056
Liabilities
Derivative instruments	691	60
Total liabilities measured at fair value	$ 691	$ 60

FAIR VALUE Schedule of Fair Val

FAIR VALUE Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - Level 3 - Nonrecurring - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Carrying Amount
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Debt related investments	$ 11,013	$ 11,120
Line of credit	186,000	142,000
Term loans	475,000	475,000
Mortgage notes	401,489	401,894
Estimated Fair Value
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Debt related investments	11,042	11,250
Line of credit	186,000	142,000
Term loans	475,000	475,000
Mortgage notes	$ 401,175	$ 401,574

STOCKHOLDERS_ EQUITY (Summary o

STOCKHOLDERS’ EQUITY (Summary of Public Offering) (Details) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)shares
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 196,512
Number of shares sold | shares	26,351
Class T
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 7,850
Number of shares sold | shares	1,027
Class S
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 11,961
Number of shares sold | shares	1,590
Class D
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 12,006
Number of shares sold | shares	1,613
Class I
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 128,535
Number of shares sold | shares	17,267
Class E
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 36,160
Number of shares sold | shares	4,854
Primary Offering
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 142,620
Number of shares sold | shares	19,119
Primary Offering | Class T
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 6,898
Number of shares sold | shares	899
Primary Offering | Class S
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 11,942
Number of shares sold | shares	1,588
Primary Offering | Class D
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 10,960
Number of shares sold | shares	1,472
Primary Offering | Class I
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 112,820
Number of shares sold | shares	15,160
Primary Offering | Class E
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 0
Number of shares sold | shares	0
Drip Offering
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 53,892
Number of shares sold | shares	7,232
Drip Offering | Class T
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 952
Number of shares sold | shares	128
Drip Offering | Class S
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 19
Number of shares sold | shares	2
Drip Offering | Class D
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 1,046
Number of shares sold | shares	141
Drip Offering | Class I
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 15,715
Number of shares sold | shares	2,107
Drip Offering | Class E
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 36,160
Number of shares sold | shares	4,854

STOCKHOLDERS_ EQUITY (Informati

STOCKHOLDERS’ EQUITY (Information of Share Transactions) (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2018shares
Class T
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	2,062
Primary shares (in shares)	67
Distribution reinvestment plan (in shares)	16
Redemptions of common stock (in shares)	(37)
Ending balance (in shares)	2,108
Class S
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	64
Primary shares (in shares)	1,524
Distribution reinvestment plan (in shares)	2
Ending balance (in shares)	1,590
Class D
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	2,510
Primary shares (in shares)	23
Distribution reinvestment plan (in shares)	16
Redemptions of common stock (in shares)	(56)
Ending balance (in shares)	2,493
Class I
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	34,135
Primary shares (in shares)	1,016
Distribution reinvestment plan (in shares)	235
Stock-based compensation (in shares)	38
Redemptions of common stock (in shares)	(1,607)
Ending balance (in shares)	33,817
Class E
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	93,695
Distribution reinvestment plan (in shares)	372
Redemptions of common stock (in shares)	(5,615)
Ending balance (in shares)	88,452
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	132,466
Primary shares (in shares)	2,630
Distribution reinvestment plan (in shares)	641
Stock-based compensation (in shares)	38
Redemptions of common stock (in shares)	(7,315)
Ending balance (in shares)	128,460

STOCKHOLDERS_ EQUITY (Total Dis

STOCKHOLDERS’ EQUITY (Total Distributions Declared and Portion of Each Contribution Paid in Cash and Reinvested) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended					12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2017
Equity [Abstract]
Declared per Common Share (usd per share)	$ 0.0938	$ 0.0900	$ 0.0900	$ 0.0900	$ 0.0900
Common Stock Distributions Paid in Cash	$ 7,240	$ 7,285	$ 7,549	$ 8,027	$ 8,289	$ 31,150
Other Cash Distributions	1,127	1,088	1,195	1,300	1,250	4,833
Reinvested in Shares	4,789	4,775	4,937	4,920	5,076	19,708
Total Distributions	$ 13,156	$ 13,148	$ 13,681	$ 14,247	$ 14,615	$ 55,691

STOCKHOLDERS_ EQUITY (Redemptio

STOCKHOLDERS’ EQUITY (Redemption Table) (Details) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Equity [Abstract]
Number of shares requested for redemption or repurchase	7,315	6,348
Number of shares redeemed or repurchased	7,315	6,348
% of shares requested that were redeemed or repurchased	100.00%	100.00%
Average redemption or repurchase price per share (usd per share)	$ 7.43	$ 7.51

RELATED PARTY TRANSACTIONS (Sum

RELATED PARTY TRANSACTIONS (Summary of Fees and Other Amounts Earned by Advisor) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Related Party Transaction [Line Items]
Related party transaction expense	$ 6,493	$ 6,249
Payable as of	2,094		$ 2,957
Upfront selling commissions
Related Party Transaction [Line Items]
Related party transaction expense	136	20
Payable as of	0		0
Dealer manager fees
Related Party Transaction [Line Items]
Related party transaction expense	0	112
Payable as of	0		0
Ongoing distribution fees
Related Party Transaction [Line Items]
Related party transaction expense	55	19
Payable as of	23		15
Advisory fees
Related Party Transaction [Line Items]
Related party transaction expense	3,640	3,490
Payable as of	1,664		954
Other expense reimbursements—Advisor
Related Party Transaction [Line Items]
Related party transaction expense	2,401	2,278
Payable as of	407		1,988
Other expense reimbursements—Dealer Manager
Related Party Transaction [Line Items]
Related party transaction expense	72	167
Payable as of	0		0
DST Program advisory fees
Related Party Transaction [Line Items]
Related party transaction expense	39	0
Payable as of	0		0
DST Program selling commissions
Related Party Transaction [Line Items]
Related party transaction expense	108	113
Payable as of	0		0
DST Program dealer manager fees
Related Party Transaction [Line Items]
Related party transaction expense	32	34
Payable as of	0		0
DST Program other reimbursements—Dealer Manager
Related Party Transaction [Line Items]
Related party transaction expense	10	$ 16
Payable as of	$ 0		$ 0

RELATED PARTY TRANSACTIONS (Sch

RELATED PARTY TRANSACTIONS (Schedule of RSU Grants) (Details) - Class I - Company Advisor - Restricted Stock Units (RSUs) shares in Thousands	Mar. 31, 2018$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Unvested Shares (shares) | shares	123
Grant Date NAV per Class I share (usd per share) | $ / shares	$ 7.29
Feb 25, 2015 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Unvested Shares (shares) | shares	66
Grant Date NAV per Class I share (usd per share) | $ / shares	$ 7.18
Feb 4, 2016 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Unvested Shares (shares) | shares	57
Grant Date NAV per Class I share (usd per share) | $ / shares	$ 7.41

NET (LOSS) INCOME PER COMMON 46

NET (LOSS) INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net (loss) income attributable to common stockholders—basic	$ (8,635)	$ 1,661
Net (loss) income attributable to OP Units	(756)	133
Net (loss) income attributable to common stockholders—diluted	$ (9,391)	$ 1,794
Weighted-average shares outstanding—basic	128,946	149,891
Incremental weighted-average shares effect of conversion of OP Units	11,306	12,028
Weighted-average shares outstanding—diluted	140,252	161,919
Basic (usd per share)	$ (0.07)	$ 0.01
Diluted (usd per share)	$ (0.07)	$ 0.01

SUPPLEMENTAL CASH FLOW INFORM47

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Noncash Investing and Financing Items [Abstract]
Distributions reinvested in common stock	$ 4,774	$ 5,138
Supplemental Cash Flow Information [Abstract]
Cash and cash equivalents	13,989	10,894	$ 10,475	$ 13,864
Restricted cash	7,341	8,765	8,541	7,282
Cash, cash equivalents and restricted cash	$ 21,330	$ 19,659	$ 19,016	$ 21,146

SEGMENT FINANCIAL INFORMATION48

SEGMENT FINANCIAL INFORMATION (Schedule of Total Assets by Business Segment) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)segment	Dec. 31, 2017USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment	3
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 1,604,268	$ 1,608,106
Operating Segments | Office
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	772,901	775,917
Operating Segments | Retail
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	695,970	705,696
Operating Segments | Industrial
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	58,032	58,657
Corporate
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 77,365	$ 67,836

SEGMENT FINANCIAL INFORMATION49

SEGMENT FINANCIAL INFORMATION (Revenue and Components of Net Operating Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Rental revenues	$ 44,454	$ 52,508
Rental expenses	(15,830)	(17,443)
Net operating income	28,624	35,065
Real estate-related depreciation and amortization	13,813	17,936
Office
Segment Reporting Information [Line Items]
Rental revenues	24,425	29,439
Rental expenses	(11,007)	(11,141)
Net operating income	13,418	18,298
Real estate-related depreciation and amortization	7,885	10,997
Industrial
Segment Reporting Information [Line Items]
Rental revenues	1,430	1,571
Rental expenses	(225)	(568)
Net operating income	1,205	1,003
Real estate-related depreciation and amortization	638	620
Retail
Segment Reporting Information [Line Items]
Rental revenues	18,599	21,498
Rental expenses	(4,598)	(5,734)
Net operating income	14,001	15,764
Real estate-related depreciation and amortization	$ 5,290	$ 6,319

SEGMENT FINANCIAL INFORMATION50

SEGMENT FINANCIAL INFORMATION (Reconciliation of Net Operating Income to Reported Net Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Reconciliation of net operating income attributable to common shareholders
Net (loss) income attributable to common stockholders—basic	$ (8,635)	$ 1,661
Debt-related income	(173)	(231)
Real estate-related depreciation and amortization	13,813	17,936
General and administrative expenses	2,534	2,250
Advisory fees, related party	3,679	3,490
Impairment of real estate property	6,800	0
Interest expense	11,240	9,684
Other expense	122	109
Net (loss) income attributable to noncontrolling interests	(756)	166
Net operating income	$ 28,624	$ 35,065

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event - Stafford Grove Industrial Park - Industrial Property $ in Millions	Apr. 09, 2018USD ($)property
Subsequent Event [Line Items]
Number of industrial buildings | property	3
Total purchase price | $	$ 37.5

Uncategorized Items - ck0001327

Label	Element	Value
Scenario, Adjustment [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 492,726,000
Common Stock [Member] | Scenario, Adjustment [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 1,325,000
Common Stock, Shares, Outstanding	us-gaap_CommonStockSharesOutstanding	132,466,000
Retained Earnings [Member] | Scenario, Adjustment [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ (818,821,000)
Additional Paid-in Capital [Member] | Scenario, Adjustment [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	1,224,061,000
AOCI Attributable to Parent [Member] | Scenario, Adjustment [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	(696,000)
Noncontrolling Interest [Member] | Scenario, Adjustment [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	86,857,000
Accounting Standards Updated 2017-12 [Member] | AOCI Attributable to Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 213,000