Black Creek Diversified Property Fund 10-Q 13 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 06, 2018
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
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		2,531,640
Class S
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		6,401,286
Class D
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		2,565,499
Class I
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		35,131,069
Class E
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		82,102,003

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
ASSETS
Net investment in real estate properties	$ 1,510,580	$ 1,540,270
Debt-related investments, net	10,917	11,147
Cash and cash equivalents	12,603	10,475
Restricted cash	7,436	8,541
Other assets	46,793	37,673
Total assets	1,588,329	1,608,106
Liabilities
Accounts payable and accrued expenses	25,290	22,334
Debt, net	1,022,168	1,012,108
Intangible lease liabilities, net	50,211	52,629
Other liabilities	53,665	28,309
Total liabilities	1,151,334	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	1,185,875	1,224,061
Distributions in excess of earnings	(841,233)	(818,608)
Accumulated other comprehensive income (loss)	6,936	(909)
Total stockholders’ equity	352,858	405,869
Noncontrolling interests	84,137	86,857
Total equity	436,995	492,726
Total liabilities and equity	1,588,329	1,608,106
Class E
Stockholders’ equity:
Common stock	841	937
Class T
Stockholders’ equity:
Common stock	23	21
Class S
Stockholders’ equity:
Common stock	41	1
Class D
Stockholders’ equity:
Common stock	25	25
Class I
Stockholders’ equity:
Common stock	$ 350	$ 341

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 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	84,105	93,695
Common stock, shares outstanding	84,105	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	2,308	2,062
Common stock, shares outstanding	2,308	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	4,115	64
Common stock, shares outstanding	4,115	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	2,457	2,510
Common stock, shares outstanding	2,457	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	34,994	34,135
Common stock, shares outstanding	34,994	34,135

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Rental revenues	$ 46,462	$ 50,036	$ 90,916	$ 102,544
Debt-related income	171	229	344	460
Total revenues	46,633	50,265	91,260	103,004
Operating expenses:
Rental expenses	15,293	16,561	31,123	34,004
Real estate-related depreciation and amortization	14,428	18,798	28,241	36,734
General and administrative expenses	2,278	2,024	4,812	4,274
Advisory fees, related party	3,576	3,451	7,255	6,941
Impairment of real estate property	0	1,116	6,800	1,116
Total operating expenses	35,575	41,950	78,231	83,069
Other (expenses) income:
Interest expense	(12,298)	(10,163)	(23,538)	(19,847)
Gain on sale of real property	12,434	10,352	12,434	10,352
Other expense	(192)	(89)	(314)	(198)
Total other (expenses) income	(56)	100	(11,418)	(9,693)
Net income	11,002	8,415	1,611	10,242
Net income attributable to noncontrolling interests	(887)	(1,610)	(131)	(1,776)
Net income attributable to common stockholders	$ 10,115	$ 6,805	$ 1,480	$ 8,466
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Weighted-average shares outstanding—basic (in shares)	127,362	145,288	128,149	147,577
Weighted-average shares outstanding—diluted (in shares)	138,485	157,209	139,337	159,551
Net income per common share—basic and diluted (usd per share)	$ 0.08	$ 0.05	$ 0.01	$ 0.06

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 11,002	$ 8,415	$ 1,611	$ 10,242
Other comprehensive income (loss):
Change from cash flow hedging derivatives	3,569	(677)	8,244	1,412
Comprehensive income	14,571	7,738	9,855	11,654
Comprehensive income attributable to noncontrolling interests	(1,137)	(1,557)	(743)	(1,833)
Comprehensive income attributable to common stockholders	$ 13,434	$ 6,181	$ 9,112	$ 9,821

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 6 months ended Jun. 30, 2018 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Distributions in Excess of Earnings	Accumulated Other Comprehensive Income	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 income	1,611			1,480		131
Unrealized gain on derivative instruments	8,244				7,632	612
Issuance of common stock, net of offering costs, shares		9,145
Issuance of common stock, net of offering costs	63,413	$ 92	63,321
Share-based compensation, net of forfeitures, shares		38
Share-based compensation, net of forfeitures	(117)	$ 0	(117)
Redemptions of common stock, shares		(13,670)
Redemptions of common stock	(101,841)	$ (137)	(101,704)
Amortization of share-based compensation	600		600
Distributions declared on common stock and noncontrolling interests	(26,075)			(23,892)		(2,183)
Redemptions of noncontrolling interests	(1,566)		(286)			(1,280)
Ending Balances, shares at Jun. 30, 2018		127,979
Ending Balances at Jun. 30, 2018	$ 436,995	$ 1,280	$ 1,185,875	(841,233)	$ 6,936	$ 84,137
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	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities:
Net income	$ 1,611	$ 10,242
Adjustments to reconcile net income to net cash provided by operating activities:
Real estate-related depreciation and amortization	28,241	36,734
Gain on disposition of real estate property	(12,434)	(10,352)
Lease termination fee	14,000	0
Impairment of real estate property	6,800	1,116
Other	(2,217)	3,134
Changes in operating assets and liabilities	2,015	(10,665)
Net cash provided by operating activities	38,016	30,209
Investing activities:
Real estate acquisitions	(36,853)	0
Capital expenditures	(14,788)	(9,268)
Proceeds from disposition of real estate property	64,075	29,893
Principal collections on debt-related investments	216	246
Other	(1,527)	(881)
Net cash provided by investing activities	11,123	19,990
Financing activities:
Proceeds from mortgage notes	0	201,886
Repayments of mortgage notes	(928)	(161,618)
Net proceeds from line of credit	10,000	17,000
Redemption of common shares	(101,841)	(101,939)
Distributions on common stock	(14,394)	(17,031)
Proceeds from issuance of common stock	59,167	11,172
Offering costs for issuance of common stock	(3,831)	(2,309)
Distributions to noncontrolling interest holders	(2,178)	(4,780)
Redemption of OP Unit holder interests	(1,567)	(1,518)
Other	7,456	314
Net cash used in financing activities	(48,116)	(58,823)
Net increase (decrease) in cash, cash equivalents and restricted cash	1,023	(8,624)
Cash, cash equivalents and restricted cash, at beginning of period	19,016	21,146
Cash, cash equivalents and restricted cash, at end of period	$ 20,039	$ 12,522

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 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 was 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 was effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption was 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 a decrease of $5.4 million in net cash provided by operating activities, an increase of $0.8 million in net cash provided by investing activities, and a decrease of $4.5 million in net cash used in financing activities on the condensed consolidated statements of cash flows for the six months ended June 30, 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, which resulted in the recognition of a $0.2 million adjustment to accumulated other comprehensive income with a corresponding adjustment to the January 1, 2018 retained earnings balance to recognize the cumulative effect of initially applying this guidance.

INVESTMENTS IN REAL ESTATE PROP

INVESTMENTS IN REAL ESTATE PROPERTIES	6 Months Ended
	Jun. 30, 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) June 30, December 31, Land $ 423,181 $ 422,564 Buildings and improvements 1,250,299 1,266,069 Intangible lease assets 315,573 340,273 Investment in real estate properties 1,989,053 2,028,906 Accumulated depreciation and amortization (478,473 ) (488,636 ) Net investment in real estate properties $ 1,510,580 $ 1,540,270 Intangible Lease Assets and Liabilities Intangible lease assets and liabilities as of June 30, 2018 and December 31, 2017 include the following: June 30, 2018 December 31, 2017 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible lease assets $ 283,160 $ (230,625 ) $ 52,535 $ 299,406 $ (240,844 ) $ 58,562 Above-market lease assets 32,413 (30,705 ) 1,708 40,867 (38,740 ) 2,127 Below-market lease liabilities (85,865 ) 35,654 (50,211 ) (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 June 30, For the Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Increase (Decrease) to Rental Revenue: Straight-line rent adjustments $ 3,086 $ (238 ) $ 5,448 $ (355 ) Above-market lease amortization (235 ) (648 ) (419 ) (1,514 ) Below-market lease amortization 1,167 1,358 2,418 2,783 Real Estate-Related Depreciation and Amortization: Depreciation expense $ 9,405 $ 9,919 $ 18,685 $ 19,835 Intangible lease asset amortization 5,023 8,879 9,556 16,899 Dispositions During the six months ended June 30, 2018 , we sold one office property located in Fayetteville, Arkansas and one building from a two -building office property located in Dublin, California for net proceeds of $64.1 million . We recorded a total net gain of $12.4 million . Real Estate Property Impairment During the six months ended June 30, 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 six months ended June 30, 2017 .

DEBT

DEBT	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
DEBT	DEBT A summary of our debt is as follows: Weighted-Average Balance as of ($ in thousands) June 30, December 31, Maturity Date June 30, December 31, Line of credit (1) 3.79 % 3.27 % January 2019 $ 152,000 $ 142,000 Term loan (2) 3.49 % 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) 3.88 % 3.89 % September 2021 - December 2029 122,866 123,794 Floating-rate mortgage notes (5) 4.41 % 3.88 % January 2020 - August 2023 278,100 278,100 Total principal amount/weighted average (6) 3.92 % 3.64 % $ 1,027,966 $ 1,018,894 Less unamortized debt issuance costs $ (6,263 ) $ (7,322 ) Add mark-to-market adjustment on assumed debt 465 536 Total debt, net $ 1,022,168 $ 1,012,108 Gross book value of properties encumbered by debt $ 593,094 $ 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 June 30, 2018 , the unused and available portions under the line of credit were approximately $248.0 million and $167.0 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. (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. (4) The amount outstanding as of June 30, 2018 includes a $32.8 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 June 30, 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 2.4 years as of June 30, 2018 . As of June 30, 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 $ — $ — $ 1,434 $ 1,434 2019 152,000 275,000 3,344 430,344 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 $ 152,000 $ 475,000 $ 400,966 $ 1,027,966 (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 June 30, 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 $2.8 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 $1.2 million will be reclassified as an increase to interest expense related to terminated hedges where the likelihood of the originally hedged interest payments remain probable. The following table summarizes the location and fair value of our derivative instruments on our condensed consolidated balance sheets: Fair Value ($ in thousands) Number of Contracts Notional Other Other June 30, 2018 Interest rate swaps (1) (2) 15 $ 635,275 $ 11,268 $ — Interest rate caps 4 338,450 22 — Total derivative instruments 19 $ 973,725 $ 11,290 $ — 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 became effective in July 2018. (2) Includes four interest rate swaps with a combined notional amount of $200.0 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 June 30, For the Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Derivative Instruments Designated as Cash Flow Hedges Gain (loss) recognized in AOCI $ 3,176 $ (1,928 ) $ 7,148 $ (1,332 ) Loss reclassified from AOCI into interest expense 393 1,251 1,096 2,744 Total interest expense on the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded 12,298 10,163 23,538 19,847 Derivative Instruments Not Designated as Cash Flow Hedges (Loss) Gain recognized in income $ (43 ) $ (21 ) $ 9 $ (101 )

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 30, 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 June 30, 2018 Assets Derivative instruments $ — $ 11,290 $ — $ 11,290 Total assets measured at fair value $ — $ 11,290 $ — $ 11,290 Liabilities Derivative instruments $ — $ — $ — $ — Total liabilities measured at fair value $ — $ — $ — $ — 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 June 30, 2018 and December 31, 2017, 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 June 30, 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 June 30, 2018 As of December 31, 2017 Carrying Fair Carrying Fair (in thousands) Value (1) Value Value (1) Value Assets: Debt-related investments $ 10,904 $ 10,932 $ 11,120 $ 11,250 Liabilities: Line of credit $ 152,000 $ 152,000 $ 142,000 $ 142,000 Term loans 475,000 475,000 475,000 475,000 Mortgage notes 400,966 399,289 401,894 401,574 (1) The carrying amount reflects the principal amount outstanding.

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	6 Months Ended
	Jun. 30, 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 June 30, 2018 , is as follows: (in thousands) Class T Class S Class D Class I Class E Total Amount of gross proceeds raised: Primary offering $ 9,232 $ 30,945 $ 11,515 $ 130,384 $ — $ 182,076 DRIP 1,070 102 1,169 17,459 38,810 58,610 Total offering $ 10,302 $ 31,047 $ 12,684 $ 147,843 $ 38,810 $ 240,686 Number of shares sold: Primary offering 1,202 4,101 1,546 17,510 — 24,359 DRIP 143 14 157 2,341 5,209 7,864 Total offering 1,345 4,115 1,703 19,851 5,209 32,223 Common Stock The following table describes the changes in each class of common shares during the six months ended June 30, 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 371 4,037 97 3,366 — 7,871 Distribution reinvestment plan 32 14 32 469 727 1,274 Stock-based compensation — — — 38 — 38 Redemptions of common stock (157 ) — (182 ) (3,014 ) (10,317 ) (13,670 ) Balances as of June 30, 2018 2,308 4,115 2,457 34,994 84,105 127,979 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 $ 0.09375 $ 7,240 $ 1,127 $ 4,789 $ 13,156 June 30 0.09375 7,137 $ 1,221 4,710 13,068 Total $ 0.18750 $ 14,377 $ 2,348 $ 9,499 $ 26,224 2017 March 31 $ 0.09000 $ 8,289 $ 1,250 $ 5,076 $ 14,615 June 30 0.09000 8,027 1,300 4,920 14,247 September 30 0.09000 7,549 1,195 4,937 13,681 December 31 0.09000 7,285 1,088 4,775 13,148 Total $ 0.36000 $ 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 for the six months ended June 30, 2018 and 2017. Also included in the summary below is the impact of stock repurchases pursuant to our two self-tender offers conducted during 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 Six Months Ended June 30, (in thousands, except for per share data) 2018 2017 Number of shares requested for redemption or repurchase 13,670 13,520 Number of shares redeemed or repurchased 13,670 13,520 % of shares requested that were redeemed or repurchased 100.0 % 100.0 % Average redemption or repurchase price per share $ 7.45 $ 7.50

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 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 June 30, For the Six Months Ended June 30, Payable as of (in thousands) 2018 2017 2018 2017 June 30, 2018 December 31, 2017 Upfront selling commissions $ 287 $ 5 $ 423 $ 25 $ — $ — Dealer manager fees — 116 — 228 — — Ongoing distribution fees 93 19 148 38 37 15 Advisory fees 3,524 3,451 7,164 6,941 2,328 954 Advisory fees related to the disposition of real properties — 286 — 286 — — Other expense reimbursements—Advisor 1,989 2,026 4,390 4,304 885 1,988 Other expense reimbursements—Dealer Manager 360 138 432 304 — — DST Program advisory fees 52 — 91 — — — DST Program selling commissions 329 63 437 177 — — DST Program dealer manager fees 99 19 131 53 — — DST Program other reimbursements—Dealer Manager 28 17 37 34 — — Total $ 6,761 $ 6,140 $ 13,253 $ 12,390 $ 3,250 $ 2,957 Company Restricted Stock Units (“Company RSUs”) The table below summarizes the unvested Company RSUs as of June 30, 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 Net Asset Value (“NAV”) per Class I Share Company RSUs 2/4/2016 4/15/2019 57 $ 7.41

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
NET INCOME PER COMMON SHARE	NET INCOME PER COMMON SHARE The computation of our basic and diluted net income per share attributable to common stockholders is as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, (in thousands, except per share data) 2018 2017 2018 2017 Net income attributable to common stockholders—basic $ 10,115 $ 6,805 $ 1,480 $ 8,466 Net income attributable to OP Units 887 1,610 131 1,776 Net income attributable to common stockholders—diluted $ 11,002 $ 8,415 $ 1,611 $ 10,242 Weighted-average shares outstanding—basic 127,362 145,288 128,149 147,577 Incremental weighted-average shares effect of conversion of OP Units 11,123 11,921 11,188 11,974 Weighted-average shares outstanding—diluted 138,485 157,209 139,337 159,551 Net income per share attributable to common stockholders: Basic $ 0.08 $ 0.05 $ 0.01 $ 0.06 Diluted $ 0.08 $ 0.05 $ 0.01 $ 0.06

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	6 Months Ended
	Jun. 30, 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 Six Months Ended June 30, (in thousands) 2018 2017 Distributions reinvested in common stock $ 9,493 $ 10,215 Restricted Cash Restricted cash consists of lender and property-related escrow accounts. The following table presents the components of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated statements of cash flows: For the Six Months Ended June 30, (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 $ 12,603 $ 5,362 Restricted cash 7,436 7,160 Cash, cash equivalents and restricted cash $ 20,039 $ 12,522

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 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 June 30, 2018 .

SEGMENT FINANCIAL INFORMATION

SEGMENT FINANCIAL INFORMATION	6 Months Ended
	Jun. 30, 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 June 30, 2018 and December 31, 2017 : As of (in thousands) June 30, 2018 December 31, 2017 Assets: Office $ 722,314 $ 775,917 Retail 693,549 705,696 Industrial 94,717 58,657 Corporate 77,749 67,836 Total assets $ 1,588,329 $ 1,608,106 The following table sets forth the financial results by segment for the three and six months ended June 30, 2018 and 2017 : ໿ (in thousands) Office Retail Industrial Consolidated Three Months Ended June 30, 2018 Rental revenues $ 26,261 $ 18,291 $ 1,910 $ 46,462 Rental expenses (10,718 ) (4,212 ) (363 ) (15,293 ) Net operating income $ 15,543 $ 14,079 $ 1,547 $ 31,169 Real estate-related depreciation and amortization $ 8,109 $ 5,384 $ 935 $ 14,428 Three Months Ended June 30, 2017 Rental revenues $ 27,624 21,082 1,330 50,036 Rental expenses (11,400 ) (4,806 ) (355 ) (16,561 ) Net operating income $ 16,224 $ 16,276 $ 975 $ 33,475 Real estate-related depreciation and amortization $ 11,799 $ 6,429 $ 570 $ 18,798 Six Months Ended June 30, 2018 Rental revenues $ 50,685 $ 36,890 $ 3,341 $ 90,916 Rental expenses (21,725 ) (8,810 ) (588 ) (31,123 ) Net operating income $ 28,960 $ 28,080 $ 2,753 $ 59,793 Real estate-related depreciation and amortization $ 15,994 $ 10,674 $ 1,573 $ 28,241 Six Months Ended June 30, 2017 Rental revenues $ 57,063 $ 42,580 $ 2,901 $ 102,544 Rental expenses (22,541 ) (10,540 ) (923 ) (34,004 ) Net operating income $ 34,522 $ 32,040 $ 1,978 $ 68,540 Real estate-related depreciation and amortization $ 22,796 $ 12,748 $ 1,190 $ 36,734 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 income attributable to common stockholders to our net operating income for the three and six months ended June 30, 2018 and 2017 : For the Three Months Ended June 30, For the Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Net income attributable to common stockholders $ 10,115 $ 6,805 $ 1,480 $ 8,466 Debt-related income (171 ) (229 ) (344 ) (460 ) Real estate-related depreciation and amortization 14,428 18,798 28,241 36,734 General and administrative expenses 2,278 2,024 4,812 4,274 Advisory fees, related party 3,576 3,451 7,255 6,941 Impairment of real estate property — 1,116 6,800 1,116 Interest expense 12,298 10,163 23,538 19,847 Gain on sale of real property (12,434 ) (10,352 ) (12,434 ) (10,352 ) Other expense 192 89 314 198 Net income attributable to noncontrolling interests 887 1,610 131 1,776 Net operating income $ 31,169 $ 33,475 $ 59,793 $ 68,540

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 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 was 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 was effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption was 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 a decrease of $5.4 million in net cash provided by operating activities, an increase of $0.8 million in net cash provided by investing activities, and a decrease of $4.5 million in net cash used in financing activities on the condensed consolidated statements of cash flows for the six months ended June 30, 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, which resulted in the recognition of a $0.2 million adjustment to accumulated other comprehensive income with a corresponding adjustment to the January 1, 2018 retained earnings balance to recognize the cumulative effect of initially applying this guidance.

INVESTMENTS IN REAL ESTATE PR19

INVESTMENTS IN REAL ESTATE PROPERTIES (Tables)	6 Months Ended
	Jun. 30, 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) June 30, December 31, Land $ 423,181 $ 422,564 Buildings and improvements 1,250,299 1,266,069 Intangible lease assets 315,573 340,273 Investment in real estate properties 1,989,053 2,028,906 Accumulated depreciation and amortization (478,473 ) (488,636 ) Net investment in real estate properties $ 1,510,580 $ 1,540,270
Schedule of Finite-Lived Intangible Assets	Intangible lease assets and liabilities as of June 30, 2018 and December 31, 2017 include the following: June 30, 2018 December 31, 2017 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible lease assets $ 283,160 $ (230,625 ) $ 52,535 $ 299,406 $ (240,844 ) $ 58,562 Above-market lease assets 32,413 (30,705 ) 1,708 40,867 (38,740 ) 2,127 Below-market lease liabilities (85,865 ) 35,654 (50,211 ) (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 June 30, For the Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Increase (Decrease) to Rental Revenue: Straight-line rent adjustments $ 3,086 $ (238 ) $ 5,448 $ (355 ) Above-market lease amortization (235 ) (648 ) (419 ) (1,514 ) Below-market lease amortization 1,167 1,358 2,418 2,783 Real Estate-Related Depreciation and Amortization: Depreciation expense $ 9,405 $ 9,919 $ 18,685 $ 19,835 Intangible lease asset amortization 5,023 8,879 9,556 16,899

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of Borrowings	A summary of our debt is as follows: Weighted-Average Balance as of ($ in thousands) June 30, December 31, Maturity Date June 30, December 31, Line of credit (1) 3.79 % 3.27 % January 2019 $ 152,000 $ 142,000 Term loan (2) 3.49 % 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) 3.88 % 3.89 % September 2021 - December 2029 122,866 123,794 Floating-rate mortgage notes (5) 4.41 % 3.88 % January 2020 - August 2023 278,100 278,100 Total principal amount/weighted average (6) 3.92 % 3.64 % $ 1,027,966 $ 1,018,894 Less unamortized debt issuance costs $ (6,263 ) $ (7,322 ) Add mark-to-market adjustment on assumed debt 465 536 Total debt, net $ 1,022,168 $ 1,012,108 Gross book value of properties encumbered by debt $ 593,094 $ 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 June 30, 2018 , the unused and available portions under the line of credit were approximately $248.0 million and $167.0 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. (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. (4) The amount outstanding as of June 30, 2018 includes a $32.8 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 June 30, 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 2.4 years as of June 30, 2018 .
Schedule of Borrowings Reflects Contractual Debt Maturities	As of June 30, 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 $ — $ — $ 1,434 $ 1,434 2019 152,000 275,000 3,344 430,344 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 $ 152,000 $ 475,000 $ 400,966 $ 1,027,966 (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 June 30, 2018 Interest rate swaps (1) (2) 15 $ 635,275 $ 11,268 $ — Interest rate caps 4 338,450 22 — Total derivative instruments 19 $ 973,725 $ 11,290 $ — 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 became effective in July 2018. (2) Includes four interest rate swaps with a combined notional amount of $200.0 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 June 30, For the Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Derivative Instruments Designated as Cash Flow Hedges Gain (loss) recognized in AOCI $ 3,176 $ (1,928 ) $ 7,148 $ (1,332 ) Loss reclassified from AOCI into interest expense 393 1,251 1,096 2,744 Total interest expense on the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded 12,298 10,163 23,538 19,847 Derivative Instruments Not Designated as Cash Flow Hedges (Loss) Gain recognized in income $ (43 ) $ (21 ) $ 9 $ (101 )

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2018 Assets Derivative instruments $ — $ 11,290 $ — $ 11,290 Total assets measured at fair value $ — $ 11,290 $ — $ 11,290 Liabilities Derivative instruments $ — $ — $ — $ — Total liabilities measured at fair value $ — $ — $ — $ — 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 June 30, 2018 As of December 31, 2017 Carrying Fair Carrying Fair (in thousands) Value (1) Value Value (1) Value Assets: Debt-related investments $ 10,904 $ 10,932 $ 11,120 $ 11,250 Liabilities: Line of credit $ 152,000 $ 152,000 $ 142,000 $ 142,000 Term loans 475,000 475,000 475,000 475,000 Mortgage notes 400,966 399,289 401,894 401,574 (1) The carrying amount reflects the principal amount outstanding.

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2018 , is as follows: (in thousands) Class T Class S Class D Class I Class E Total Amount of gross proceeds raised: Primary offering $ 9,232 $ 30,945 $ 11,515 $ 130,384 $ — $ 182,076 DRIP 1,070 102 1,169 17,459 38,810 58,610 Total offering $ 10,302 $ 31,047 $ 12,684 $ 147,843 $ 38,810 $ 240,686 Number of shares sold: Primary offering 1,202 4,101 1,546 17,510 — 24,359 DRIP 143 14 157 2,341 5,209 7,864 Total offering 1,345 4,115 1,703 19,851 5,209 32,223
Information of Share Transactions	The following table describes the changes in each class of common shares during the six months ended June 30, 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 371 4,037 97 3,366 — 7,871 Distribution reinvestment plan 32 14 32 469 727 1,274 Stock-based compensation — — — 38 — 38 Redemptions of common stock (157 ) — (182 ) (3,014 ) (10,317 ) (13,670 ) Balances as of June 30, 2018 2,308 4,115 2,457 34,994 84,105 127,979
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 $ 0.09375 $ 7,240 $ 1,127 $ 4,789 $ 13,156 June 30 0.09375 7,137 $ 1,221 4,710 13,068 Total $ 0.18750 $ 14,377 $ 2,348 $ 9,499 $ 26,224 2017 March 31 $ 0.09000 $ 8,289 $ 1,250 $ 5,076 $ 14,615 June 30 0.09000 8,027 1,300 4,920 14,247 September 30 0.09000 7,549 1,195 4,937 13,681 December 31 0.09000 7,285 1,088 4,775 13,148 Total $ 0.36000 $ 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 Six Months Ended June 30, (in thousands, except for per share data) 2018 2017 Number of shares requested for redemption or repurchase 13,670 13,520 Number of shares redeemed or repurchased 13,670 13,520 % of shares requested that were redeemed or repurchased 100.0 % 100.0 % Average redemption or repurchase price per share $ 7.45 $ 7.50

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 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 June 30, For the Six Months Ended June 30, Payable as of (in thousands) 2018 2017 2018 2017 June 30, 2018 December 31, 2017 Upfront selling commissions $ 287 $ 5 $ 423 $ 25 $ — $ — Dealer manager fees — 116 — 228 — — Ongoing distribution fees 93 19 148 38 37 15 Advisory fees 3,524 3,451 7,164 6,941 2,328 954 Advisory fees related to the disposition of real properties — 286 — 286 — — Other expense reimbursements—Advisor 1,989 2,026 4,390 4,304 885 1,988 Other expense reimbursements—Dealer Manager 360 138 432 304 — — DST Program advisory fees 52 — 91 — — — DST Program selling commissions 329 63 437 177 — — DST Program dealer manager fees 99 19 131 53 — — DST Program other reimbursements—Dealer Manager 28 17 37 34 — — Total $ 6,761 $ 6,140 $ 13,253 $ 12,390 $ 3,250 $ 2,957
Schedule of RSU Grants	The table below summarizes the unvested Company RSUs as of June 30, 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 Net Asset Value (“NAV”) per Class I Share Company RSUs 2/4/2016 4/15/2019 57 $ 7.41

NET INCOME PER COMMON SHARE (Ta

NET INCOME PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Details of Numerator and Denominator Used to Calculate Basic and Diluted Net Income Per Common Share	The computation of our basic and diluted net income per share attributable to common stockholders is as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, (in thousands, except per share data) 2018 2017 2018 2017 Net income attributable to common stockholders—basic $ 10,115 $ 6,805 $ 1,480 $ 8,466 Net income attributable to OP Units 887 1,610 131 1,776 Net income attributable to common stockholders—diluted $ 11,002 $ 8,415 $ 1,611 $ 10,242 Weighted-average shares outstanding—basic 127,362 145,288 128,149 147,577 Incremental weighted-average shares effect of conversion of OP Units 11,123 11,921 11,188 11,974 Weighted-average shares outstanding—diluted 138,485 157,209 139,337 159,551 Net income per share attributable to common stockholders: Basic $ 0.08 $ 0.05 $ 0.01 $ 0.06 Diluted $ 0.08 $ 0.05 $ 0.01 $ 0.06

SUPPLEMENTAL CASH FLOW INFORM25

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended June 30, (in thousands) 2018 2017 Distributions reinvested in common stock $ 9,493 $ 10,215
Schedule of restricted cash and cash equivalents	The following table presents the components of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated statements of cash flows: For the Six Months Ended June 30, (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 $ 12,603 $ 5,362 Restricted cash 7,436 7,160 Cash, cash equivalents and restricted cash $ 20,039 $ 12,522

SEGMENT FINANCIAL INFORMATION (

SEGMENT FINANCIAL INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Summary of Total Assets by Business Segment	The following table reflects our total assets by business segment as of June 30, 2018 and December 31, 2017 : As of (in thousands) June 30, 2018 December 31, 2017 Assets: Office $ 722,314 $ 775,917 Retail 693,549 705,696 Industrial 94,717 58,657 Corporate 77,749 67,836 Total assets $ 1,588,329 $ 1,608,106
Revenue and Components of Net Operating Income	The following table sets forth the financial results by segment for the three and six months ended June 30, 2018 and 2017 : ໿ (in thousands) Office Retail Industrial Consolidated Three Months Ended June 30, 2018 Rental revenues $ 26,261 $ 18,291 $ 1,910 $ 46,462 Rental expenses (10,718 ) (4,212 ) (363 ) (15,293 ) Net operating income $ 15,543 $ 14,079 $ 1,547 $ 31,169 Real estate-related depreciation and amortization $ 8,109 $ 5,384 $ 935 $ 14,428 Three Months Ended June 30, 2017 Rental revenues $ 27,624 21,082 1,330 50,036 Rental expenses (11,400 ) (4,806 ) (355 ) (16,561 ) Net operating income $ 16,224 $ 16,276 $ 975 $ 33,475 Real estate-related depreciation and amortization $ 11,799 $ 6,429 $ 570 $ 18,798 Six Months Ended June 30, 2018 Rental revenues $ 50,685 $ 36,890 $ 3,341 $ 90,916 Rental expenses (21,725 ) (8,810 ) (588 ) (31,123 ) Net operating income $ 28,960 $ 28,080 $ 2,753 $ 59,793 Real estate-related depreciation and amortization $ 15,994 $ 10,674 $ 1,573 $ 28,241 Six Months Ended June 30, 2017 Rental revenues $ 57,063 $ 42,580 $ 2,901 $ 102,544 Rental expenses (22,541 ) (10,540 ) (923 ) (34,004 ) Net operating income $ 34,522 $ 32,040 $ 1,978 $ 68,540 Real estate-related depreciation and amortization $ 22,796 $ 12,748 $ 1,190 $ 36,734
Reconciliation of Net Operating Income to Reported Net Income	The following table is a reconciliation of our reported net income attributable to common stockholders to our net operating income for the three and six months ended June 30, 2018 and 2017 : For the Three Months Ended June 30, For the Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Net income attributable to common stockholders $ 10,115 $ 6,805 $ 1,480 $ 8,466 Debt-related income (171 ) (229 ) (344 ) (460 ) Real estate-related depreciation and amortization 14,428 18,798 28,241 36,734 General and administrative expenses 2,278 2,024 4,812 4,274 Advisory fees, related party 3,576 3,451 7,255 6,941 Impairment of real estate property — 1,116 6,800 1,116 Interest expense 12,298 10,163 23,538 19,847 Gain on sale of real property (12,434 ) (10,352 ) (12,434 ) (10,352 ) Other expense 192 89 314 198 Net income attributable to noncontrolling interests 887 1,610 131 1,776 Net operating income $ 31,169 $ 33,475 $ 59,793 $ 68,540

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net cash provided by operating activities	$ 38,016	$ 30,209
Net cash provided by investing activities	11,123	19,990
Net cash used in financing activities	48,116	58,823
Accounting Standards Update 2016-18
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net cash provided by operating activities		5,400
Net cash provided by investing activities		800
Net cash used in financing activities		$ 4,500
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	$ 200		$ (213)

INVESTMENTS IN REAL ESTATE PR28

INVESTMENTS IN REAL ESTATE PROPERTIES (Narrative) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)property	Jun. 30, 2017USD ($)
Real Estate Properties [Line Items]
Proceeds from disposition of real estate property			$ 64,075,000	$ 29,893,000
Gain on sale of real property			12,434,000	10,352,000
Impairment charges	$ 0	$ 1,116,000	$ 6,800,000	1,116,000
Office Property, Fayetteville, Arkansas
Real Estate Properties [Line Items]
Number of real estate properties sold | property			1
Office Property, East Bay, California
Real Estate Properties [Line Items]
Number of real estate properties sold | property			1
Nonrecurring | Level 3
Real Estate Properties [Line Items]
Impairment charges				$ 0
Nonrecurring | Level 3 | Retail | Retail Property, Jacksonville, Florida
Real Estate Properties [Line Items]
Impairment charges			$ 6,800,000

INVESTMENTS IN REAL ESTATE PR29

INVESTMENTS IN REAL ESTATE PROPERTIES (Schedule of Consolidated Investments in Real Property) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Real Estate Properties [Line Items]
Investment in real estate properties	$ 1,989,053	$ 2,028,906
Accumulated depreciation and amortization	(478,473)	(488,636)
Net investment in real estate properties	1,510,580	1,540,270
Land
Real Estate Properties [Line Items]
Investment in real estate properties	423,181	422,564
Building and Improvements
Real Estate Properties [Line Items]
Investment in real estate properties	1,250,299	1,266,069
Intangible Lease Assets
Real Estate Properties [Line Items]
Investment in real estate properties	$ 315,573	$ 340,273

INVESTMENTS IN REAL ESTATE PR30

INVESTMENTS IN REAL ESTATE PROPERTIES (Intangible Leased Assets and Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Intangible Lease Assets
Finite-Lived Intangible Assets [Line Items]
Gross	$ 283,160	$ 299,406
Accumulated Amortization	(230,625)	(240,844)
Net	52,535	58,562
Above Market Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	32,413	40,867
Accumulated Amortization	(30,705)	(38,740)
Net	1,708	2,127
Below Market Lease Liabilities [Member]
Finite-Lived Intangible Assets [Line Items]
Gross, Liabilities	(85,865)	(86,085)
Accumulated Amortization, Liabilities	35,654	33,456
Net, Liabilities	$ (50,211)	$ (52,629)

INVESTMENTS IN REAL ESTATE PR31

INVESTMENTS IN REAL ESTATE PROPERTIES (Schedule of Adjustments to Rental Revenue Related to Amortization) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Straight-line rent adjustments	$ 3,086	$ (238)	$ 5,448	$ (355)
Depreciation expense	9,405	9,919	18,685	19,835
Intangible lease asset amortization	5,023	8,879	9,556	16,899
Above Market Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of above and below Market Leases	(235)	(648)	(419)	(1,514)
Below Market Lease [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of above and below Market Leases	$ 1,167	$ 1,358	$ 2,418	$ 2,783

DEBT (Narrative) (Details)

DEBT (Narrative) (Details) $ in Millions	Jun. 30, 2018USD ($)
Derivative [Line Items]
Estimated decrease to interest expense related to active effective hedges of floating rate debt	$ 2.8
Interest rate swap
Derivative [Line Items]
Estimated increase to interest expense related to termination of hedging instrument	$ 1.2

DEBT (Schedule of Borrowings) (

DEBT (Schedule of Borrowings) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total borrowings	$ 1,027,966	$ 1,018,894
Less unamortized debt issuance costs	(6,263)	(7,322)
Add mark-to-market adjustment on assumed debt	465	536
Total debt, net	1,022,168	1,012,108
Gross book value of properties encumbered by debt	$ 593,094	$ 590,542
Weighted-Average Effective Interest Rate as of	3.92%	3.64%
Derivative notional amount	$ 973,725	$ 773,950
Weighted average maturity of debt investments	2 years 4 months 18 days
Interest rate swap
Debt Instrument [Line Items]
Derivative notional amount	$ 635,275	435,500
Fixed-Rate Mortgage Notes
Debt Instrument [Line Items]
Total borrowings	$ 122,866	$ 123,794
Weighted-Average Effective Interest Rate as of	3.88%	3.89%
Floating-Rate Mortgage Notes
Debt Instrument [Line Items]
Total borrowings	$ 278,100	$ 278,100
Weighted-Average Effective Interest Rate as of	4.41%	3.88%
Line of Credit
Debt Instrument [Line Items]
Total borrowings	$ 152,000	$ 142,000
Weighted-Average Effective Interest Rate as of	3.79%	3.27%
Current borrowing capacity	$ 248,000
Available portions under the line of credit	167,000
Term Loan Due January 2019
Debt Instrument [Line Items]
Total borrowings	$ 275,000	$ 275,000
Weighted-Average Effective Interest Rate as of	3.49%	3.25%
Term Loan Due January 2019 | 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 2019 | 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 2019 | 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	$ 32,800
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 ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Remainder of 2018	$ 1,434,000
2,019	430,344,000
2,020	229,088,000
2,021	12,372,000
2,022	203,246,000
Thereafter	151,482,000
Total	1,027,966,000	$ 1,018,894,000
Line of Credit
Debt Instrument [Line Items]
Remainder of 2018	0
2,019	152,000,000
2,020	0
2,021	0
2,022	0
Thereafter	0
Total	$ 152,000,000	$ 142,000,000
Term of extension	1 year
Term Loan
Debt Instrument [Line Items]
Remainder of 2018	$ 0
2,019	275,000,000
2,020	0
2,021	0
2,022	200,000,000
Thereafter	0
Total	475,000,000
Mortgage Notes
Debt Instrument [Line Items]
Remainder of 2018	1,434,000
2,019	3,344,000
2,020	229,088,000
2,021	12,372,000
2,022	3,246,000
Thereafter	151,482,000
Total	400,966,000
$275 Million Term Loan | Term Loan
Debt Instrument [Line Items]
Face amount of debt	$ 275,000,000

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	Jun. 30, 2018USD ($)contract	Dec. 31, 2017USD ($)contract
Derivatives, Fair Value [Line Items]
Number of Interest Rate Derivatives Held | contract			19	15
Total notional amount			$ 973,725	$ 773,950
Other Assets
Derivatives, Fair Value [Line Items]
Derivative Asset			11,290	4,056
Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability			$ 0	$ 60
Interest rate swap
Derivatives, Fair Value [Line Items]
Number of Interest Rate Derivatives Held | contract			15	11
Total notional amount			$ 635,275	$ 435,500
Interest rate swap | Scenario, Forecast
Derivatives, Fair Value [Line Items]
Number of Interest Rate Derivatives Held | contract	4	1
Total notional amount	$ 200,000	$ 52,500
Interest rate swap | Other Assets
Derivatives, Fair Value [Line Items]
Derivative Asset			11,268	4,043
Interest rate swap | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability			$ 0	$ 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			22	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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 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	$ 12,298	$ 10,163	$ 23,538	$ 19,847
Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) Gain recognized in income	(43)	(21)	9	(101)
Cash Flow Hedging | Designated Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (loss) gain recognized in OCI	3,176	(1,928)	7,148	(1,332)
Amount of loss reclassified from accumulated OCI into income (effective portion)	393	1,251	1,096	2,744
Total interest expense on the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$ 12,298	$ 10,163	$ 23,538	$ 19,847

FAIR VALUE (Details)

FAIR VALUE (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets
Derivative instruments	$ 11,290	$ 4,056
Total assets measured at fair value	11,290	4,056
Liabilities
Derivative instruments	0	60
Total liabilities measured at fair value	0	60
Level 2
Assets
Derivative instruments	11,290	4,056
Total assets measured at fair value	11,290	4,056
Liabilities
Derivative instruments	0	60
Total liabilities measured at fair value	$ 0	$ 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	Jun. 30, 2018	Dec. 31, 2017
Carrying Amount
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Debt-related investments	$ 10,904	$ 11,120
Line of credit	152,000	142,000
Term loans	475,000	475,000
Mortgage notes	400,966	401,894
Estimated Fair Value
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Debt-related investments	10,932	11,250
Line of credit	152,000	142,000
Term loans	475,000	475,000
Mortgage notes	$ 399,289	$ 401,574

STOCKHOLDERS_ EQUITY (Summary o

STOCKHOLDERS’ EQUITY (Summary of Public Offering) (Details) shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)shares
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 240,686
Number of shares sold | shares	32,223
Class T
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 10,302
Number of shares sold | shares	1,345
Class S
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 31,047
Number of shares sold | shares	4,115
Class D
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 12,684
Number of shares sold | shares	1,703
Class I
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 147,843
Number of shares sold | shares	19,851
Class E
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 38,810
Number of shares sold | shares	5,209
Primary Offering
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 182,076
Number of shares sold | shares	24,359
Primary Offering | Class T
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 9,232
Number of shares sold | shares	1,202
Primary Offering | Class S
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 30,945
Number of shares sold | shares	4,101
Primary Offering | Class D
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 11,515
Number of shares sold | shares	1,546
Primary Offering | Class I
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 130,384
Number of shares sold | shares	17,510
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 | $	$ 58,610
Number of shares sold | shares	7,864
Drip Offering | Class T
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 1,070
Number of shares sold | shares	143
Drip Offering | Class S
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 102
Number of shares sold | shares	14
Drip Offering | Class D
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 1,169
Number of shares sold | shares	157
Drip Offering | Class I
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 17,459
Number of shares sold | shares	2,341
Drip Offering | Class E
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 38,810
Number of shares sold | shares	5,209

STOCKHOLDERS_ EQUITY (Informati

STOCKHOLDERS’ EQUITY (Information of Share Transactions) (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2018shares
Class T
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	2,062
Primary shares (in shares)	371
Distribution reinvestment plan (in shares)	32
Redemptions of common stock (in shares)	(157)
Ending balance (in shares)	2,308
Class S
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	64
Primary shares (in shares)	4,037
Distribution reinvestment plan (in shares)	14
Ending balance (in shares)	4,115
Class D
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	2,510
Primary shares (in shares)	97
Distribution reinvestment plan (in shares)	32
Redemptions of common stock (in shares)	(182)
Ending balance (in shares)	2,457
Class I
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	34,135
Primary shares (in shares)	3,366
Distribution reinvestment plan (in shares)	469
Stock-based compensation (in shares)	38
Redemptions of common stock (in shares)	(3,014)
Ending balance (in shares)	34,994
Class E
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	93,695
Distribution reinvestment plan (in shares)	727
Redemptions of common stock (in shares)	(10,317)
Ending balance (in shares)	84,105
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	132,466
Primary shares (in shares)	7,871
Distribution reinvestment plan (in shares)	1,274
Stock-based compensation (in shares)	38
Redemptions of common stock (in shares)	(13,670)
Ending balance (in shares)	127,979

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						6 Months Ended	12 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2018	Dec. 31, 2017
Equity [Abstract]
Declared per Common Share (usd per share)	$ 0.09375	$ 0.09375	$ 0.09000	$ 0.09000	$ 0.09000	$ 0.09000	$ 187.50000	$ 360
Common Stock Distributions Paid in Cash	$ 7,137	$ 7,240	$ 7,285	$ 7,549	$ 8,027	$ 8,289	$ 14,377	$ 31,150
Other Cash Distributions	1,221	1,127	1,088	1,195	1,300	1,250	2,348	4,833
Reinvested in Shares	4,710	4,789	4,775	4,937	4,920	5,076	9,499	19,708
Total Distributions	$ 13,068	$ 13,156	$ 13,148	$ 13,681	$ 14,247	$ 14,615	$ 26,224	$ 55,691

STOCKHOLDERS_ EQUITY (Redemptio

STOCKHOLDERS’ EQUITY (Redemption Table) (Details) - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Equity [Abstract]
Number of shares requested for redemption or repurchase	13,670	13,520
Number of shares redeemed or repurchased	13,670	13,520
% of shares requested that were redeemed or repurchased	100.00%	100.00%
Average redemption or repurchase price per share (usd per share)	$ 7.45	$ 7.50

RELATED PARTY TRANSACTIONS (Sum

RELATED PARTY TRANSACTIONS (Summary of Fees and Other Amounts Earned by Advisor) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Related Party Transaction [Line Items]
Related party transaction expense	$ 6,761	$ 6,140	$ 13,253	$ 12,390
Payable as of	3,250		3,250		$ 2,957
Upfront selling commissions
Related Party Transaction [Line Items]
Related party transaction expense	287	5	423	25
Payable as of	0		0		0
Dealer manager fees
Related Party Transaction [Line Items]
Related party transaction expense	0	116	0	228
Payable as of	0		0		0
Ongoing distribution fees
Related Party Transaction [Line Items]
Related party transaction expense	93	19	148	38
Payable as of	37		37		15
Advisory fees
Related Party Transaction [Line Items]
Related party transaction expense	3,524	3,451	7,164	6,941
Payable as of	2,328		2,328		954
Advisory fees related to the disposition of real properties
Related Party Transaction [Line Items]
Related party transaction expense	0	286	0	286
Payable as of	0		0		0
Other expense reimbursements—Advisor
Related Party Transaction [Line Items]
Related party transaction expense	1,989	2,026	4,390	4,304
Payable as of	885		885		1,988
Other expense reimbursements—Dealer Manager
Related Party Transaction [Line Items]
Related party transaction expense	360	138	432	304
Payable as of	0		0		0
DST Program advisory fees
Related Party Transaction [Line Items]
Related party transaction expense	52	0	91	0
Payable as of	0		0		0
DST Program selling commissions
Related Party Transaction [Line Items]
Related party transaction expense	329	63	437	177
Payable as of	0		0		0
DST Program dealer manager fees
Related Party Transaction [Line Items]
Related party transaction expense	99	19	131	53
Payable as of	0		0		0
DST Program other reimbursements—Dealer Manager
Related Party Transaction [Line Items]
Related party transaction expense	28	$ 17	37	$ 34
Payable as of	$ 0		$ 0		$ 0

RELATED PARTY TRANSACTIONS (Sch

RELATED PARTY TRANSACTIONS (Schedule of RSU Grants) (Details) - Class I - Company Advisor - Restricted Stock Units (RSUs) - Feb 4, 2016 Grant shares in Thousands	Jun. 30, 2018$ / sharesshares
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 INCOME PER COMMON SHARE (De

NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Net income attributable to common stockholders—basic	$ 10,115	$ 6,805	$ 1,480	$ 8,466
Net income attributable to OP Units	887	1,610	131	1,776
Net income attributable to common stockholders—diluted	$ 11,002	$ 8,415	$ 1,611	$ 10,242
Weighted-average shares outstanding—basic	127,362	145,288	128,149	147,577
Incremental weighted-average shares effect of conversion of OP Units	11,123	11,921	11,188	11,974
Weighted-average shares outstanding—diluted	138,485	157,209	139,337	159,551
Basic (usd per share)	$ 0.08	$ 0.05	$ 0.01	$ 0.06
Diluted (usd per share)	$ 0.08	$ 0.05	$ 0.01	$ 0.06

SUPPLEMENTAL CASH FLOW INFORM46

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Noncash Investing and Financing Items [Abstract]
Distributions reinvested in common stock	$ 9,493	$ 10,215
Supplemental Cash Flow Information [Abstract]
Cash and cash equivalents	12,603	5,362	$ 10,475	$ 13,864
Restricted cash	7,436	7,160	8,541	7,282
Cash, cash equivalents and restricted cash	$ 20,039	$ 12,522	$ 19,016	$ 21,146

SEGMENT FINANCIAL INFORMATION47

SEGMENT FINANCIAL INFORMATION (Schedule of Total Assets by Business Segment) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)segment	Dec. 31, 2017USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment	3
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 1,588,329	$ 1,608,106
Operating Segments | Office
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	722,314	775,917
Operating Segments | Retail
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	693,549	705,696
Operating Segments | Industrial
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	94,717	58,657
Corporate
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 77,749	$ 67,836

SEGMENT FINANCIAL INFORMATION48

SEGMENT FINANCIAL INFORMATION (Revenue and Components of Net Operating Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Rental revenues	$ 46,462	$ 50,036	$ 90,916	$ 102,544
Rental expenses	(15,293)	(16,561)	(31,123)	(34,004)
Net operating income	31,169	33,475	59,793	68,540
Real estate-related depreciation and amortization	14,428	18,798	28,241	36,734
Office
Segment Reporting Information [Line Items]
Rental revenues	26,261	27,624	50,685	57,063
Rental expenses	(10,718)	(11,400)	(21,725)	(22,541)
Net operating income	15,543	16,224	28,960	34,522
Real estate-related depreciation and amortization	8,109	11,799	15,994	22,796
Industrial
Segment Reporting Information [Line Items]
Rental revenues	1,910	1,330	3,341	2,901
Rental expenses	(363)	(355)	(588)	(923)
Net operating income	1,547	975	2,753	1,978
Real estate-related depreciation and amortization	935	570	1,573	1,190
Retail
Segment Reporting Information [Line Items]
Rental revenues	18,291	21,082	36,890	42,580
Rental expenses	(4,212)	(4,806)	(8,810)	(10,540)
Net operating income	14,079	16,276	28,080	32,040
Real estate-related depreciation and amortization	$ 5,384	$ 6,429	$ 10,674	$ 12,748

SEGMENT FINANCIAL INFORMATION49

SEGMENT FINANCIAL INFORMATION (Reconciliation of Net Operating Income to Reported Net Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Reconciliation of net operating income attributable to common shareholders
Net income attributable to common stockholders—basic	$ 10,115	$ 6,805	$ 1,480	$ 8,466
Debt-related income	(171)	(229)	(344)	(460)
Real estate-related depreciation and amortization	14,428	18,798	28,241	36,734
General and administrative expenses	2,278	2,024	4,812	4,274
Advisory fees, related party	3,576	3,451	7,255	6,941
Impairment of real estate property	0	1,116	6,800	1,116
Interest expense	12,298	10,163	23,538	19,847
Gain on sale of real property	(12,434)	(10,352)	(12,434)	(10,352)
Other expense	192	89	314	198
Net income attributable to noncontrolling interests	887	1,610	131	1,776
Net operating income	$ 31,169	$ 33,475	$ 59,793	$ 68,540

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
Noncontrolling Interest [Member] | Scenario, Adjustment [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	86,857,000
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)
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
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