Black Creek Diversified Property Fund 10-Q 9 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 05, 2018
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
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		2,753,723.660
Class S
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		9,081,139.033
Class D
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		2,750,232.430
Class I
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		36,908,042.400
Class E
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		78,462,614.055

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Net investment in real estate properties	$ 1,500,358	$ 1,540,270
Debt-related investments, net	10,800	11,147
Cash and cash equivalents	8,914	10,475
Restricted cash	6,816	8,541
Other assets	54,342	37,673
Total assets	1,581,230	1,608,106
Liabilities
Accounts payable and accrued expenses	29,197	22,334
Debt, net	1,010,287	1,012,108
Intangible lease liabilities, net	48,866	52,629
Other liabilities	67,939	28,309
Total liabilities	1,156,289	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	1,190,003	1,224,061
Distributions in excess of earnings	(856,598)	(818,608)
Accumulated other comprehensive income (loss)	9,391	(909)
Total stockholders’ equity	344,085	405,869
Noncontrolling interests	80,856	86,857
Total equity	424,941	492,726
Total liabilities and equity	1,581,230	1,608,106
Class E
Stockholders’ equity:
Common stock	807	937
Class T
Stockholders’ equity:
Common stock	26	21
Class S
Stockholders’ equity:
Common stock	74	1
Class D
Stockholders’ equity:
Common stock	27	25
Class I
Stockholders’ equity:
Common stock	$ 355	$ 341

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Sep. 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	80,654	93,695
Common stock, shares outstanding	80,654	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	2,620	2,062
Common stock, shares outstanding	2,620	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	7,419	64
Common stock, shares outstanding	7,419	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	2,696	2,510
Common stock, shares outstanding	2,696	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	35,558	34,135
Common stock, shares outstanding	35,558

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Rental revenues	$ 49,505	$ 49,478	$ 140,421	$ 152,022
Debt-related income	170	194	514	654
Total revenues	49,675	49,672	140,935	152,676
Operating expenses:
Rental expenses	15,192	17,516	46,315	51,520
Real estate-related depreciation and amortization	14,961	16,927	43,202	53,661
General and administrative expenses	2,076	2,760	6,888	7,034
Advisory fees, related party	3,877	3,274	11,132	10,215
Impairment of real estate property	6,600	0	13,400	1,116
Total operating expenses	42,706	40,477	120,937	123,546
Other (expenses) income:
Interest expense	(12,166)	(11,346)	(35,704)	(31,193)
Gain on sale of real property	1,398	670	13,832	11,022
Other income (expense)	42	(664)	(272)	(862)
Total other expenses	(10,726)	(11,340)	(22,144)	(21,033)
Net (loss) income	(3,757)	(2,145)	(2,146)	8,097
Net loss (income) attributable to noncontrolling interests	292	185	161	(1,591)
Net (loss) income attributable to common stockholders	$ (3,465)	$ (1,960)	$ (1,985)	$ 6,506
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Weighted-average shares outstanding—basic (in shares)	128,506	139,925	128,269	144,998
Weighted-average shares outstanding—diluted (in shares)	139,345	151,739	139,340	156,918
Net (loss) income attributable to common stockholders per common share—basic and diluted (usd per share)	$ (0.03)	$ (0.01)	$ (0.02)	$ 0.04

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (3,757)	$ (2,145)	$ (2,146)	$ 8,097
Change from cash flow hedging derivatives	2,627	948	10,871	2,360
Comprehensive (loss) income	(1,130)	(1,197)	8,725	10,457
Comprehensive loss (income) attributable to noncontrolling interests	120	169	(623)	(1,664)
Comprehensive (loss) income attributable to common stockholders	$ (1,010)	$ (1,028)	$ 8,102	$ 8,793

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 9 months ended Sep. 30, 2018 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Distributions in Excess of Earnings	Accumulated Other Comprehensive (Loss) 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 loss	(2,146)			(1,985)		(161)
Unrealized gain on derivative instruments	10,871				10,087	784
Issuance of common stock, net of offering costs, shares		14,887
Issuance of common stock, net of offering costs	103,236	$ 149	103,087
Share-based compensation, net of forfeitures, shares		42
Share-based compensation, net of forfeitures	(85)	$ 0	(85)
Redemptions of common stock, shares		(18,448)
Redemptions of common stock	(137,585)	$ (185)	(137,400)
Amortization of share-based compensation	744		744
Distributions declared on common stock and noncontrolling interests	(38,994)			(35,792)		(3,202)
Redemptions of noncontrolling interests	(3,826)		(404)			(3,422)
Ending Balances, shares at Sep. 30, 2018		128,947
Ending Balances at Sep. 30, 2018	$ 424,941	$ 1,289	$ 1,190,003	(856,598)	$ 9,391	$ 80,856
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of ASU 2017-12 | Accounting Standards Updated 2017-12				$ 200

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating activities:
Net (loss) income	$ (2,146)	$ 8,097
Adjustments to reconcile net income to net cash provided by operating activities:
Real estate-related depreciation and amortization	43,202	53,661
Gain on disposition of real estate property	(13,832)	(11,022)
Lease termination fee	15,008	0
Impairment of real estate property	13,400	1,116
Other	(6,409)	5,241
Changes in operating assets and liabilities	3,356	(8,342)
Net cash provided by operating activities	52,579	48,751
Investing activities:
Real estate acquisitions	(36,853)	(39,538)
Capital expenditures	(27,532)	(18,801)
Proceeds from disposition of real estate property	66,269	37,054
Principal collections on debt-related investments	326	3,915
Other	(1,565)	(1,492)
Net cash provided by (used in) investing activities	645	(18,862)
Financing activities:
Proceeds from mortgage notes	0	300,469
Repayments of mortgage notes	(1,547)	(162,037)
Net repayments of line of credit	(2,000)	(34,000)
Redemptions of common stock	(137,585)	(110,665)
Distributions on common stock	(21,557)	(30,086)
Proceeds from issuance of common stock	97,816	12,486
Offering costs for issuance of common stock	(5,665)	(3,425)
Distributions to noncontrolling interest holders	(3,202)	(6,560)
Redemption of OP Unit holder interests	(3,826)	(3,427)
Other	21,056	319
Net cash used in financing activities	(56,510)	(36,926)
Net decrease in cash, cash equivalents and restricted cash	(3,286)	(7,037)
Cash, cash equivalents and restricted cash, at beginning of period	19,016	21,146
Cash, cash equivalents and restricted cash, at end of period	$ 15,730	$ 14,109

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 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 $5.1 million in net cash provided by operating activities, a decrease of $0.8 million in net cash used in investing activities, and a decrease of $5.3 million in net cash used in financing activities on the condensed consolidated statements of cash flows for the nine months ended September 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. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. While ASU 2018-13 is effective for all companies beginning after December 15, 2019 and for interim periods within those fiscal years, we early adopted this standard effective September 30, 2018, as permitted. Certain disclosures in ASU 2018-13 are required to be applied on a retrospective basis and others on a prospective basis. The adoption of ASU 2018-13 did not have a significant impact on our condensed consolidated financial statements. Recently Issued Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, “Leases (Subtopic 842)” (“ASU 2016-02”), which provides guidance for greater transparency in financial reporting by organizations that lease assets such as real estate, airplanes and manufacturing equipment by requiring such organizations to recognize lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The accounting for lessors will remain largely unchanged from current GAAP; however, the standard requires that lessors expense, on an as-incurred basis, certain initial direct costs that are not incremental in negotiating a lease. Under existing standards, certain of these costs are capitalizable and therefore this new standard will result in certain of these costs being expensed as incurred after adoption. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. We plan to adopt the standard when it becomes effective for us, as of the reporting period beginning January 1, 2019, and we expect to elect the practical expedients available for implementation under the standard. Under the practical expedients election, we would not be required to reassess: (i) whether an expired or existing contract meets the definition of a lease; (ii) the lease classification at the adoption date for expired or existing leases; and (iii) whether costs previously capitalized as initial direct costs would continue to be amortized. The standard also will require new disclosures within the notes accompanying the consolidated financial statements. Additionally, in January 2018, the FASB issued ASU No. 2018-01, “Leases (Subtopic 842): Land Easement Practical Expedient for Transition to Topic 842” (“ASU 2018-01”), which updates ASU 2016-02 to include land easements under the updated guidance, including the option to elect the practical expedient discussed above. We also plan to adopt ASU 2018-01 when it becomes effective for us, as of the reporting period beginning January 1, 2019, and we expect to elect the practical expedients available for implementation under the standard. Our initial analysis of our lease contracts indicates that the adoption of these standards will not have a material effect on our consolidated financial statements. We are still in the process of evaluating the impact of ASU 2016-02, primarily as it relates to the lease and non-lease components, as well as ASU 2018-01, and related amendments impacting the practical expedients.

INVESTMENTS IN REAL ESTATE PROP

INVESTMENTS IN REAL ESTATE PROPERTIES	9 Months Ended
	Sep. 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) September 30, December 31, Land $ 420,470 $ 422,564 Buildings and improvements 1,258,188 1,266,069 Intangible lease assets 314,829 340,273 Investment in real estate properties 1,993,487 2,028,906 Accumulated depreciation and amortization (493,129 ) (488,636 ) Net investment in real estate properties $ 1,500,358 $ 1,540,270 Intangible Lease Assets and Liabilities Intangible lease assets and liabilities as of September 30, 2018 and December 31, 2017 include the following: September 30, 2018 December 31, 2017 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible lease assets $ 282,416 $ (235,383 ) $ 47,033 $ 299,406 $ (240,844 ) $ 58,562 Above-market lease assets 32,413 (31,043 ) 1,370 40,867 (38,740 ) 2,127 Below-market lease liabilities (83,788 ) 34,922 (48,866 ) (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 September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Increase (decrease) to rental revenue: Straight-line rent adjustments $ 4,800 $ (109 ) $ 10,248 $ (464 ) Above-market lease amortization (338 ) (641 ) (757 ) (2,155 ) Below-market lease amortization 1,346 1,355 3,764 4,138 Real estate-related depreciation and amortization: Depreciation expense $ 9,560 $ 9,823 $ 28,245 $ 29,659 Intangible lease asset amortization 5,401 7,104 14,957 24,002 Dispositions During the nine months ended September 30, 2018 , we sold one office property located in Fayetteville, Arkansas, one building from a two -building office property located in Dublin, California, and one land parcel that was part of a retail property located in Apex, North Carolina for net proceeds of $66.3 million . We recorded a total net gain of $13.8 million . Real Estate Property Impairment During the nine months ended September 30, 2018 , we recorded a total of $13.4 million non-cash impairment charges related to two retail properties. The impairment was a result of: (i) the consideration of potential disposition options for a retail property located in the Jacksonville, Florida market; and (ii) the receipt of an unsolicited offer to purchase a retail property located in the Holbrook, Massachusetts market. Both ultimately resulted in the reduction of our estimated future cash flows below our net book value. During the nine months ended September 30, 2017 , we recorded a $1.1 million non-cash impairment charge related to a consolidated retail property located in the Greater Boston market. Prior to the disposition, we reevaluated the fair value of the property and determined that the net book value of the property exceeded the respective contract sales price less costs to sell the property, resulting in the impairment. The property was disposed of in May 2017.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
DEBT	DEBT A summary of our debt is as follows: Weighted-Average Balance as of ($ in thousands) September 30, December 31, Maturity Date September 30, December 31, Line of credit (1) 3.96 % 3.27 % January 2019 $ 140,000 $ 142,000 Term loan (2) 3.56 % 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) 3.57 % 3.89 % September 2021 - December 2029 174,747 123,794 Floating-rate mortgage notes (5) 4.72 % 3.88 % January 2020 - August 2023 225,600 278,100 Total principal amount / weighted-average (6) 3.95 % 3.64 % $ 1,015,347 $ 1,018,894 Less unamortized debt issuance costs $ (5,489 ) $ (7,322 ) Add mark-to-market adjustment on assumed debt 429 536 Total debt, net $ 1,010,287 $ 1,012,108 Gross book value of properties encumbered by debt $ 596,099 $ 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 September 30, 2018 , the unused and available portions under the line of credit were approximately $260.0 million and $213.0 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 September 30, 2018 includes a $32.6 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 and a $52.4 million floating-rate mortgage note that was subject to an interest rate spread of 1.65% over one-month LIBOR, which we have effectively fixed using an interest rate swap at 2.85% for the term of the borrowing. (5) The effective interest rate is calculated based on LIBOR plus a margin. As of September 30, 2018 and December 31, 2017, our floating-rate mortgage notes were subject to a weighted-average interest rate spread of 2.47% and 2.31% , respectively. (6) The weighted-average remaining term of our borrowings was approximately 2.2 years as of September 30, 2018 . As of September 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 $ — $ — $ 815 $ 815 2019 140,000 275,000 3,344 418,344 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 $ 140,000 $ 475,000 $ 400,347 $ 1,015,347 (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 our debt covenants as of September 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 $3.8 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 $0.8 million will be reclassified as an increase to interest expense related to terminated hedges where the likelihood of the originally hedged interest payments remain probable. The following table summarizes the location and fair value of our derivative instruments on our condensed consolidated balance sheets: Fair Value ($ in thousands) Number of Contracts Notional Other Other September 30, 2018 Interest rate swaps (1) 15 $ 635,015 $ 13,459 $ — Interest rate caps 4 338,450 18 — Total derivative instruments 19 $ 973,465 $ 13,477 $ — December 31, 2017 Interest rate swaps (1) (2) 11 $ 435,500 $ 4,043 $ 60 Interest rate caps 4 338,450 13 — Total derivative instruments 15 $ 773,950 $ 4,056 $ 60 (1) Includes four interest rate swaps with a combined notional amount of $200.0 million that will become effective in January 2020. (2) Includes one interest rate swap with a notional amount of $52.5 million that became effective in July 2018. The following table presents the effect of our derivative instruments on our condensed consolidated financial statements: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Derivative instruments designated as cash flow hedges: Gain (loss) recognized in AOCI $ 2,559 $ (123 ) $ 9,707 $ (1,455 ) Loss reclassified from AOCI into interest expense 68 1,071 1,164 3,815 Total interest expense on the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded 12,166 11,346 35,704 31,193 Derivative instruments not designated as cash flow hedges: (Loss) gain recognized in income $ (3 ) $ (14 ) $ 6 $ (114 )

FAIR VALUE

FAIR VALUE	9 Months Ended
	Sep. 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: (in thousands) Level 1 Level 2 Level 3 Total September 30, 2018 Assets: Derivative instruments $ — $ 13,477 $ — $ 13,477 Total assets measured at fair value $ — $ 13,477 $ — $ 13,477 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 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 September 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 September 30, 2018 As of December 31, 2017 (in thousands) Carrying Fair Carrying Fair Assets: Debt-related investments $ 10,794 $ 10,822 $ 11,120 $ 11,250 Liabilities: Line of credit $ 140,000 $ 140,000 $ 142,000 $ 142,000 Term loans 475,000 475,000 475,000 475,000 Mortgage notes 400,347 397,756 401,894 401,574 (1) The carrying amount reflects the principal amount outstanding.

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	9 Months Ended
	Sep. 30, 2018
Stockholders' Equity Attributable to Parent [Abstract]
STOCKHOLDERS’ EQUITY	STOCKHOLDERS’ EQUITY Public Offering A summary of our public offerings (including shares sold through the primary offering and distribution reinvestment plan (“DRIP”)) for the nine months ended September 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 $ 5,412 $ 55,322 $ 2,785 $ 34,297 $ — $ 97,816 DRIP 353 304 368 5,239 7,949 14,213 Total offering $ 5,765 $ 55,626 $ 3,153 $ 39,536 $ 7,949 $ 112,029 Number of shares sold: Primary offering 704 7,314 372 4,591 — 12,981 DRIP 47 41 49 703 1,066 1,906 Total offering 751 7,355 421 5,294 1,066 14,887 Common Stock The following table describes the changes in each class of common shares during the nine months ended September 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 704 7,314 372 4,591 — 12,981 Distribution reinvestment plan 47 41 49 703 1,066 1,906 Stock-based compensation — — — 42 — 42 Redemptions of common stock (193 ) — (235 ) (3,913 ) (14,107 ) (18,448 ) Balances as of September 30, 2018 2,620 7,419 2,696 35,558 80,654 128,947 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 September 30 0.09375 7,157 1,174 4,738 13,069 Total $ 0.28125 $ 21,534 $ 3,522 $ 14,237 $ 39,293 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 nine months ended September 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 Nine Months Ended September 30, (in thousands, except for per share data) 2018 2017 Number of shares requested for redemption or repurchase 18,448 14,712 Number of shares redeemed or repurchased 18,448 14,712 % of shares requested that were redeemed or repurchased 100.0 % 100.0 % Average redemption or repurchase price per share $ 7.46 $ 7.50

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 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 September 30, For the Nine Months Ended September 30, Payable as of (in thousands) 2018 2017 2018 2017 September 30, 2018 December 31, 2017 Upfront selling commissions $ 411 $ 4 $ 834 $ 29 $ — $ — Dealer manager fees — 79 — 306 — — Ongoing distribution fees 150 27 298 65 57 15 Advisory fees 3,795 3,212 10,959 10,153 3,255 954 Advisory fees related to the disposition of real properties — 1,477 — 1,763 — — Other expense reimbursements—Advisor 2,194 2,203 6,584 6,507 1,134 1,988 Other expense reimbursements—Dealer Manager 151 124 583 428 — — DST Program advisory fees 82 62 173 62 — — DST Program selling commissions 395 107 832 284 — — DST Program dealer manager fees 111 36 242 89 — — DST Program other reimbursements—Dealer Manager 27 27 65 61 — — DST Program facilitation and loan origination fees 94 — 94 — — — Total $ 7,410 $ 7,358 $ 20,664 $ 19,747 $ 4,446 $ 2,957 Company Restricted Stock Units (“Company RSUs”) The table below summarizes the unvested Company RSUs as of September 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 (LOSS) INCOME PER COMMON SH

NET (LOSS) INCOME PER COMMON SHARE	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
NET (LOSS) INCOME PER COMMON SHARE	NET (LOSS) INCOME PER COMMON SHARE The computation of our basic and diluted net (loss) income per share attributable to common stockholders is as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands, except per share data) 2018 2017 2018 2017 Net (loss) income attributable to common stockholders—basic $ (3,465 ) $ (1,960 ) $ (1,985 ) $ 6,506 Net (loss) income attributable to OP Units (292 ) (165 ) (166 ) 526 Net (loss) income attributable to common stockholders—diluted $ (3,757 ) $ (2,125 ) $ (2,151 ) $ 7,032 Weighted-average shares outstanding—basic 128,506 139,925 128,269 144,998 Incremental weighted-average shares effect of conversion of OP Units 10,839 11,814 11,071 11,920 Weighted-average shares outstanding—diluted 139,345 151,739 139,340 156,918 Net (loss) income per share attributable to common stockholders: Basic $ (0.03 ) $ (0.01 ) $ (0.02 ) $ 0.04 Diluted $ (0.03 ) $ (0.01 ) $ (0.02 ) $ 0.04

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	9 Months Ended
	Sep. 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 Nine Months Ended September 30, (in thousands) 2018 2017 Distributions reinvested in common stock $ 14,214 $ 18,433 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 Nine Months Ended September 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 $ 8,914 $ 5,841 Restricted cash 6,816 8,268 Cash, cash equivalents and restricted cash $ 15,730 $ 14,109

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 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 September 30, 2018 .

SEGMENT FINANCIAL INFORMATION

SEGMENT FINANCIAL INFORMATION	9 Months Ended
	Sep. 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 September 30, 2018 and December 31, 2017 : As of (in thousands) September 30, 2018 December 31, 2017 Assets: Office $ 721,424 $ 775,917 Retail 685,695 705,696 Industrial 93,239 58,657 Corporate 80,872 67,836 Total assets $ 1,581,230 $ 1,608,106 The following table sets forth the financial results by segment for the three and nine months ended September 30, 2018 and 2017 : ໿ (in thousands) Office Retail Industrial Consolidated Three Months Ended September 30, 2018 Rental revenues $ 28,795 $ 18,497 $ 2,213 $ 49,505 Rental expenses (10,622 ) (4,124 ) (446 ) (15,192 ) Net operating income $ 18,173 $ 14,373 $ 1,767 $ 34,313 Real estate-related depreciation and amortization $ 8,714 $ 4,935 $ 1,312 $ 14,961 Three Months Ended September 30, 2017 Rental revenues $ 27,099 $ 20,841 $ 1,538 $ 49,478 Rental expenses (11,369 ) (5,803 ) (344 ) (17,516 ) Net operating income $ 15,730 $ 15,038 $ 1,194 $ 31,962 Real estate-related depreciation and amortization $ 10,250 $ 6,022 $ 655 $ 16,927 Nine Months Ended September 30, 2018 Rental revenues $ 79,480 $ 55,387 $ 5,554 $ 140,421 Rental expenses (32,347 ) (12,934 ) (1,034 ) (46,315 ) Net operating income $ 47,133 $ 42,453 $ 4,520 $ 94,106 Real estate-related depreciation and amortization $ 24,709 $ 15,608 $ 2,885 $ 43,202 Nine Months Ended September 30, 2017 Rental revenues $ 84,163 $ 63,421 $ 4,438 $ 152,022 Rental expenses (33,910 ) (16,344 ) (1,266 ) (51,520 ) Net operating income $ 50,253 $ 47,077 $ 3,172 $ 100,502 Real estate-related depreciation and amortization $ 33,046 $ 18,771 $ 1,844 $ 53,661 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 (loss) attributable to common stockholders to our net operating income for the three and nine months ended September 30, 2018 and 2017 : For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Net (loss) income attributable to common stockholders $ (3,465 ) $ (1,960 ) $ (1,985 ) $ 6,506 Debt-related income (170 ) (194 ) (514 ) (654 ) Real estate-related depreciation and amortization 14,961 16,927 43,202 53,661 General and administrative expenses 2,076 2,760 6,888 7,034 Advisory fees, related party 3,877 3,274 11,132 10,215 Impairment of real estate property 6,600 — 13,400 1,116 Interest expense 12,166 11,346 35,704 31,193 Gain on sale of real property (1,398 ) (670 ) (13,832 ) (11,022 ) Other (income) expense (42 ) 664 272 862 Net (loss) income attributable to noncontrolling interests (292 ) (185 ) (161 ) 1,591 Net operating income $ 34,313 $ 31,962 $ 94,106 $ 100,502

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 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 $5.1 million in net cash provided by operating activities, a decrease of $0.8 million in net cash used in investing activities, and a decrease of $5.3 million in net cash used in financing activities on the condensed consolidated statements of cash flows for the nine months ended September 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. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. While ASU 2018-13 is effective for all companies beginning after December 15, 2019 and for interim periods within those fiscal years, we early adopted this standard effective September 30, 2018, as permitted. Certain disclosures in ASU 2018-13 are required to be applied on a retrospective basis and others on a prospective basis. The adoption of ASU 2018-13 did not have a significant impact on our condensed consolidated financial statements. Recently Issued Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, “Leases (Subtopic 842)” (“ASU 2016-02”), which provides guidance for greater transparency in financial reporting by organizations that lease assets such as real estate, airplanes and manufacturing equipment by requiring such organizations to recognize lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The accounting for lessors will remain largely unchanged from current GAAP; however, the standard requires that lessors expense, on an as-incurred basis, certain initial direct costs that are not incremental in negotiating a lease. Under existing standards, certain of these costs are capitalizable and therefore this new standard will result in certain of these costs being expensed as incurred after adoption. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. We plan to adopt the standard when it becomes effective for us, as of the reporting period beginning January 1, 2019, and we expect to elect the practical expedients available for implementation under the standard. Under the practical expedients election, we would not be required to reassess: (i) whether an expired or existing contract meets the definition of a lease; (ii) the lease classification at the adoption date for expired or existing leases; and (iii) whether costs previously capitalized as initial direct costs would continue to be amortized. The standard also will require new disclosures within the notes accompanying the consolidated financial statements. Additionally, in January 2018, the FASB issued ASU No. 2018-01, “Leases (Subtopic 842): Land Easement Practical Expedient for Transition to Topic 842” (“ASU 2018-01”), which updates ASU 2016-02 to include land easements under the updated guidance, including the option to elect the practical expedient discussed above. We also plan to adopt ASU 2018-01 when it becomes effective for us, as of the reporting period beginning January 1, 2019, and we expect to elect the practical expedients available for implementation under the standard. Our initial analysis of our lease contracts indicates that the adoption of these standards will not have a material effect on our consolidated financial statements. We are still in the process of evaluating the impact of ASU 2016-02, primarily as it relates to the lease and non-lease components, as well as ASU 2018-01, and related amendments impacting the practical expedients.

INVESTMENTS IN REAL ESTATE PR_2

INVESTMENTS IN REAL ESTATE PROPERTIES (Tables)	9 Months Ended
	Sep. 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) September 30, December 31, Land $ 420,470 $ 422,564 Buildings and improvements 1,258,188 1,266,069 Intangible lease assets 314,829 340,273 Investment in real estate properties 1,993,487 2,028,906 Accumulated depreciation and amortization (493,129 ) (488,636 ) Net investment in real estate properties $ 1,500,358 $ 1,540,270
Schedule of Finite-Lived Intangible Assets	Intangible lease assets and liabilities as of September 30, 2018 and December 31, 2017 include the following: September 30, 2018 December 31, 2017 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible lease assets $ 282,416 $ (235,383 ) $ 47,033 $ 299,406 $ (240,844 ) $ 58,562 Above-market lease assets 32,413 (31,043 ) 1,370 40,867 (38,740 ) 2,127 Below-market lease liabilities (83,788 ) 34,922 (48,866 ) (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 September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Increase (decrease) to rental revenue: Straight-line rent adjustments $ 4,800 $ (109 ) $ 10,248 $ (464 ) Above-market lease amortization (338 ) (641 ) (757 ) (2,155 ) Below-market lease amortization 1,346 1,355 3,764 4,138 Real estate-related depreciation and amortization: Depreciation expense $ 9,560 $ 9,823 $ 28,245 $ 29,659 Intangible lease asset amortization 5,401 7,104 14,957 24,002

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Schedule of Borrowings	A summary of our debt is as follows: Weighted-Average Balance as of ($ in thousands) September 30, December 31, Maturity Date September 30, December 31, Line of credit (1) 3.96 % 3.27 % January 2019 $ 140,000 $ 142,000 Term loan (2) 3.56 % 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) 3.57 % 3.89 % September 2021 - December 2029 174,747 123,794 Floating-rate mortgage notes (5) 4.72 % 3.88 % January 2020 - August 2023 225,600 278,100 Total principal amount / weighted-average (6) 3.95 % 3.64 % $ 1,015,347 $ 1,018,894 Less unamortized debt issuance costs $ (5,489 ) $ (7,322 ) Add mark-to-market adjustment on assumed debt 429 536 Total debt, net $ 1,010,287 $ 1,012,108 Gross book value of properties encumbered by debt $ 596,099 $ 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 September 30, 2018 , the unused and available portions under the line of credit were approximately $260.0 million and $213.0 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 September 30, 2018 includes a $32.6 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 and a $52.4 million floating-rate mortgage note that was subject to an interest rate spread of 1.65% over one-month LIBOR, which we have effectively fixed using an interest rate swap at 2.85% for the term of the borrowing. (5) The effective interest rate is calculated based on LIBOR plus a margin. As of September 30, 2018 and December 31, 2017, our floating-rate mortgage notes were subject to a weighted-average interest rate spread of 2.47% and 2.31% , respectively. (6) The weighted-average remaining term of our borrowings was approximately 2.2 years as of September 30, 2018 .
Schedule of Borrowings Reflects Contractual Debt Maturities	As of September 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 $ — $ — $ 815 $ 815 2019 140,000 275,000 3,344 418,344 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 $ 140,000 $ 475,000 $ 400,347 $ 1,015,347 (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 September 30, 2018 Interest rate swaps (1) 15 $ 635,015 $ 13,459 $ — Interest rate caps 4 338,450 18 — Total derivative instruments 19 $ 973,465 $ 13,477 $ — December 31, 2017 Interest rate swaps (1) (2) 11 $ 435,500 $ 4,043 $ 60 Interest rate caps 4 338,450 13 — Total derivative instruments 15 $ 773,950 $ 4,056 $ 60 (1) Includes four interest rate swaps with a combined notional amount of $200.0 million that will become effective in January 2020. (2) Includes one interest rate swap with a notional amount of $52.5 million that became effective in July 2018.
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 September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Derivative instruments designated as cash flow hedges: Gain (loss) recognized in AOCI $ 2,559 $ (123 ) $ 9,707 $ (1,455 ) Loss reclassified from AOCI into interest expense 68 1,071 1,164 3,815 Total interest expense on the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded 12,166 11,346 35,704 31,193 Derivative instruments not designated as cash flow hedges: (Loss) gain recognized in income $ (3 ) $ (14 ) $ 6 $ (114 )

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Sep. 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: (in thousands) Level 1 Level 2 Level 3 Total September 30, 2018 Assets: Derivative instruments $ — $ 13,477 $ — $ 13,477 Total assets measured at fair value $ — $ 13,477 $ — $ 13,477 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 September 30, 2018 As of December 31, 2017 (in thousands) Carrying Fair Carrying Fair Assets: Debt-related investments $ 10,794 $ 10,822 $ 11,120 $ 11,250 Liabilities: Line of credit $ 140,000 $ 140,000 $ 142,000 $ 142,000 Term loans 475,000 475,000 475,000 475,000 Mortgage notes 400,347 397,756 401,894 401,574 (1) The carrying amount reflects the principal amount outstanding.

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	9 Months Ended
	Sep. 30, 2018
Stockholders' Equity Attributable to Parent [Abstract]
Summary of Public Offering	Public Offering A summary of our public offerings (including shares sold through the primary offering and distribution reinvestment plan (“DRIP”)) for the nine months ended September 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 $ 5,412 $ 55,322 $ 2,785 $ 34,297 $ — $ 97,816 DRIP 353 304 368 5,239 7,949 14,213 Total offering $ 5,765 $ 55,626 $ 3,153 $ 39,536 $ 7,949 $ 112,029 Number of shares sold: Primary offering 704 7,314 372 4,591 — 12,981 DRIP 47 41 49 703 1,066 1,906 Total offering 751 7,355 421 5,294 1,066 14,887
Information of Share Transactions	The following table describes the changes in each class of common shares during the nine months ended September 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 704 7,314 372 4,591 — 12,981 Distribution reinvestment plan 47 41 49 703 1,066 1,906 Stock-based compensation — — — 42 — 42 Redemptions of common stock (193 ) — (235 ) (3,913 ) (14,107 ) (18,448 ) Balances as of September 30, 2018 2,620 7,419 2,696 35,558 80,654 128,947
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 September 30 0.09375 7,157 1,174 4,738 13,069 Total $ 0.28125 $ 21,534 $ 3,522 $ 14,237 $ 39,293 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 Nine Months Ended September 30, (in thousands, except for per share data) 2018 2017 Number of shares requested for redemption or repurchase 18,448 14,712 Number of shares redeemed or repurchased 18,448 14,712 % of shares requested that were redeemed or repurchased 100.0 % 100.0 % Average redemption or repurchase price per share $ 7.46 $ 7.50

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 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 September 30, For the Nine Months Ended September 30, Payable as of (in thousands) 2018 2017 2018 2017 September 30, 2018 December 31, 2017 Upfront selling commissions $ 411 $ 4 $ 834 $ 29 $ — $ — Dealer manager fees — 79 — 306 — — Ongoing distribution fees 150 27 298 65 57 15 Advisory fees 3,795 3,212 10,959 10,153 3,255 954 Advisory fees related to the disposition of real properties — 1,477 — 1,763 — — Other expense reimbursements—Advisor 2,194 2,203 6,584 6,507 1,134 1,988 Other expense reimbursements—Dealer Manager 151 124 583 428 — — DST Program advisory fees 82 62 173 62 — — DST Program selling commissions 395 107 832 284 — — DST Program dealer manager fees 111 36 242 89 — — DST Program other reimbursements—Dealer Manager 27 27 65 61 — — DST Program facilitation and loan origination fees 94 — 94 — — — Total $ 7,410 $ 7,358 $ 20,664 $ 19,747 $ 4,446 $ 2,957
Schedule of RSU Grants	The table below summarizes the unvested Company RSUs as of September 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 (LOSS) INCOME PER COMMON _2

NET (LOSS) INCOME PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 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 (loss) income per share attributable to common stockholders is as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands, except per share data) 2018 2017 2018 2017 Net (loss) income attributable to common stockholders—basic $ (3,465 ) $ (1,960 ) $ (1,985 ) $ 6,506 Net (loss) income attributable to OP Units (292 ) (165 ) (166 ) 526 Net (loss) income attributable to common stockholders—diluted $ (3,757 ) $ (2,125 ) $ (2,151 ) $ 7,032 Weighted-average shares outstanding—basic 128,506 139,925 128,269 144,998 Incremental weighted-average shares effect of conversion of OP Units 10,839 11,814 11,071 11,920 Weighted-average shares outstanding—diluted 139,345 151,739 139,340 156,918 Net (loss) income per share attributable to common stockholders: Basic $ (0.03 ) $ (0.01 ) $ (0.02 ) $ 0.04 Diluted $ (0.03 ) $ (0.01 ) $ (0.02 ) $ 0.04

SUPPLEMENTAL CASH FLOW INFORM_2

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	9 Months Ended
	Sep. 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 Nine Months Ended September 30, (in thousands) 2018 2017 Distributions reinvested in common stock $ 14,214 $ 18,433
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 Nine Months Ended September 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 $ 8,914 $ 5,841 Restricted cash 6,816 8,268 Cash, cash equivalents and restricted cash $ 15,730 $ 14,109

SEGMENT FINANCIAL INFORMATION (

SEGMENT FINANCIAL INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Summary of Total Assets by Business Segment	The following table reflects our total assets by business segment as of September 30, 2018 and December 31, 2017 : As of (in thousands) September 30, 2018 December 31, 2017 Assets: Office $ 721,424 $ 775,917 Retail 685,695 705,696 Industrial 93,239 58,657 Corporate 80,872 67,836 Total assets $ 1,581,230 $ 1,608,106
Revenue and Components of Net Operating Income	The following table sets forth the financial results by segment for the three and nine months ended September 30, 2018 and 2017 : ໿ (in thousands) Office Retail Industrial Consolidated Three Months Ended September 30, 2018 Rental revenues $ 28,795 $ 18,497 $ 2,213 $ 49,505 Rental expenses (10,622 ) (4,124 ) (446 ) (15,192 ) Net operating income $ 18,173 $ 14,373 $ 1,767 $ 34,313 Real estate-related depreciation and amortization $ 8,714 $ 4,935 $ 1,312 $ 14,961 Three Months Ended September 30, 2017 Rental revenues $ 27,099 $ 20,841 $ 1,538 $ 49,478 Rental expenses (11,369 ) (5,803 ) (344 ) (17,516 ) Net operating income $ 15,730 $ 15,038 $ 1,194 $ 31,962 Real estate-related depreciation and amortization $ 10,250 $ 6,022 $ 655 $ 16,927 Nine Months Ended September 30, 2018 Rental revenues $ 79,480 $ 55,387 $ 5,554 $ 140,421 Rental expenses (32,347 ) (12,934 ) (1,034 ) (46,315 ) Net operating income $ 47,133 $ 42,453 $ 4,520 $ 94,106 Real estate-related depreciation and amortization $ 24,709 $ 15,608 $ 2,885 $ 43,202 Nine Months Ended September 30, 2017 Rental revenues $ 84,163 $ 63,421 $ 4,438 $ 152,022 Rental expenses (33,910 ) (16,344 ) (1,266 ) (51,520 ) Net operating income $ 50,253 $ 47,077 $ 3,172 $ 100,502 Real estate-related depreciation and amortization $ 33,046 $ 18,771 $ 1,844 $ 53,661
Reconciliation of Net Operating Income to Reported Net Income	The following table is a reconciliation of our reported net income (loss) attributable to common stockholders to our net operating income for the three and nine months ended September 30, 2018 and 2017 : For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Net (loss) income attributable to common stockholders $ (3,465 ) $ (1,960 ) $ (1,985 ) $ 6,506 Debt-related income (170 ) (194 ) (514 ) (654 ) Real estate-related depreciation and amortization 14,961 16,927 43,202 53,661 General and administrative expenses 2,076 2,760 6,888 7,034 Advisory fees, related party 3,877 3,274 11,132 10,215 Impairment of real estate property 6,600 — 13,400 1,116 Interest expense 12,166 11,346 35,704 31,193 Gain on sale of real property (1,398 ) (670 ) (13,832 ) (11,022 ) Other (income) expense (42 ) 664 272 862 Net (loss) income attributable to noncontrolling interests (292 ) (185 ) (161 ) 1,591 Net operating income $ 34,313 $ 31,962 $ 94,106 $ 100,502

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net cash provided by operating activities	$ (52,579)	$ (48,751)
Net cash used in investing activities	(645)	18,862
Net cash used in financing activities	56,510	36,926
Accounting Standards Update 2016-18
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net cash provided by operating activities		5,100
Net cash used in investing activities		800
Net cash used in financing activities		$ 5,300
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 PR_3

INVESTMENTS IN REAL ESTATE PROPERTIES (Narrative) (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)property	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)property	Sep. 30, 2017USD ($)
Real Estate Properties [Line Items]
Proceeds from disposition of real estate property			$ 66,269	$ 37,054
Gain on disposition of real estate property			13,832	11,022
Gain on sale of real property	$ 1,398	$ 670	13,832	11,022
Impairment charges	$ 6,600	$ 0	$ 13,400	1,116
Office Property, Fayetteville, Arkansas
Real Estate Properties [Line Items]
Number of real estate properties sold | property			1
Office Property, Dublin, California
Real Estate Properties [Line Items]
Number of real estate properties sold | property			1
Retail Property, Apex, North Carolina
Real Estate Properties [Line Items]
Number of real estate properties sold | property			1
Nonrecurring | Level 3 | Retail | Retail Property, Jacksonville, Florida
Real Estate Properties [Line Items]
Impairment charges			$ 13,400
Number of real estate properties | property	2		2
Nonrecurring | Level 3 | Retail | Retail Property, Greater Boston Market
Real Estate Properties [Line Items]
Impairment charges				$ 1,100

INVESTMENTS IN REAL ESTATE PR_4

INVESTMENTS IN REAL ESTATE PROPERTIES (Schedule of Consolidated Investments in Real Property) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Real Estate Properties [Line Items]
Investment in real estate properties	$ 1,993,487	$ 2,028,906
Accumulated depreciation and amortization	(493,129)	(488,636)
Net investment in real estate properties	1,500,358	1,540,270
Land
Real Estate Properties [Line Items]
Investment in real estate properties	420,470	422,564
Building and Improvements
Real Estate Properties [Line Items]
Investment in real estate properties	1,258,188	1,266,069
Intangible Lease Assets
Real Estate Properties [Line Items]
Investment in real estate properties	$ 314,829	$ 340,273

INVESTMENTS IN REAL ESTATE PR_5

INVESTMENTS IN REAL ESTATE PROPERTIES (Intangible Leased Assets and Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Intangible Lease Assets
Finite-Lived Intangible Assets [Line Items]
Gross	$ 282,416	$ 299,406
Accumulated Amortization	(235,383)	(240,844)
Net	47,033	58,562
Above Market Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	32,413	40,867
Accumulated Amortization	(31,043)	(38,740)
Net	1,370	2,127
Below Market Lease Liabilities [Member]
Finite-Lived Intangible Assets [Line Items]
Gross, Liabilities	(83,788)	(86,085)
Accumulated Amortization, Liabilities	34,922	33,456
Net, Liabilities	$ (48,866)	$ (52,629)

INVESTMENTS IN REAL ESTATE PR_6

INVESTMENTS IN REAL ESTATE PROPERTIES (Schedule of Adjustments to Rental Revenue Related to Amortization) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Straight-line rent adjustments	$ 4,800	$ (109)	$ 10,248	$ (464)
Depreciation expense	9,560	9,823	28,245	29,659
Intangible lease asset amortization	5,401	7,104	14,957	24,002
Above Market Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of above and below Market Leases	(338)	(641)	(757)	(2,155)
Below Market Lease [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of above and below Market Leases	$ 1,346	$ 1,355	$ 3,764	$ 4,138

DEBT (Narrative) (Details)

DEBT (Narrative) (Details) $ in Millions	Sep. 30, 2018USD ($)
Derivative [Line Items]
Estimated decrease to interest expense related to active effective hedges of floating rate debt	$ 3.8
Interest rate swap
Derivative [Line Items]
Estimated increase to interest expense related to termination of hedging instrument	$ 0.8

DEBT (Schedule of Borrowings) (

DEBT (Schedule of Borrowings) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total borrowings	$ 1,015,347	$ 1,018,894
Less unamortized debt issuance costs	(5,489)	(7,322)
Add mark-to-market adjustment on assumed debt	429	536
Total debt, net	1,010,287	1,012,108
Gross book value of properties encumbered by debt	$ 596,099	$ 590,542
Weighted-Average Effective Interest Rate as of	3.95%	3.64%
Derivative notional amount	$ 973,465	$ 773,950
Weighted average maturity of debt investments	2 years 1 month 25 days
Interest rate swap
Debt Instrument [Line Items]
Derivative notional amount	$ 635,015	435,500
Line of Credit
Debt Instrument [Line Items]
Total borrowings	$ 140,000	$ 142,000
Weighted-Average Effective Interest Rate as of	3.96%	3.27%
Current borrowing capacity	$ 260,000
Available portions under the line of credit	213,000
Term Loan Due January 2019
Debt Instrument [Line Items]
Total borrowings	$ 275,000	$ 275,000
Weighted-Average Effective Interest Rate as of	3.56%	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%
Fixed-Rate Mortgage Notes
Debt Instrument [Line Items]
Total borrowings	$ 174,747	$ 123,794
Weighted-Average Effective Interest Rate as of	3.57%	3.89%
Fixed-Rate Mortgage Notes | Preston Sherry Plaza
Debt Instrument [Line Items]
Total borrowings	$ 32,600
Outstanding borrowings spread over LIBOR	1.60%
Effective interest rate on debt	3.05%
Fixed-Rate Mortgage Notes | 1300 Connecticut
Debt Instrument [Line Items]
Total borrowings	$ 52,400
Outstanding borrowings spread over LIBOR	1.65%
Effective interest rate on debt	2.85%
Floating-Rate Mortgage Notes
Debt Instrument [Line Items]
Total borrowings	$ 225,600	$ 278,100
Weighted-Average Effective Interest Rate as of	4.72%	3.88%
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%
Minimum | Fixed-Rate Mortgage Notes | LIBOR
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	1.65%
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%
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	2.47%	2.31%

DEBT (Summary of Borrowings Ref

DEBT (Summary of Borrowings Reflects Contractual Debt Maturities Footnote) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Remainder of 2018	$ 815,000
2,019	418,344,000
2,020	229,088,000
2,021	12,372,000
2,022	203,246,000
Thereafter	151,482,000
Total	1,015,347,000	$ 1,018,894,000
Line of Credit
Debt Instrument [Line Items]
Remainder of 2018	0
2,019	140,000,000
2,020	0
2,021	0
2,022	0
Thereafter	0
Total	$ 140,000,000	$ 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	815,000
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	$ 400,347,000
$275 Million Term Loan | Term Loan
Debt Instrument [Line Items]
Term of extension	1 year
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 ($)contract	Sep. 30, 2018USD ($)contract	Dec. 31, 2017USD ($)contract
Derivatives, Fair Value [Line Items]
Number of Interest Rate Derivatives Held | contract		19	15
Total notional amount		$ 973,465	$ 773,950
Other Assets
Derivatives, Fair Value [Line Items]
Derivative Asset		13,477	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		$ 635,015	$ 435,500
Interest rate swap | Scenario, Forecast
Derivatives, Fair Value [Line Items]
Number of Interest Rate Derivatives Held | contract	4
Total notional amount	$ 200,000
Interest rate swap | Other Assets
Derivatives, Fair Value [Line Items]
Derivative Asset		13,459	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		18	13
Interest Rate Cap | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability		$ 0	$ 0
Interest Rate Swap Effective July 2018 [Member]
Derivatives, Fair Value [Line Items]
Number of Interest Rate Derivatives Held | contract			1
Total notional amount			$ 52,500

DEBT (Effect of Derivative Fina

DEBT (Effect of Derivative Financial Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 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	$ 12,166	$ 11,346	$ 35,704	$ 31,193
Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) gain recognized in income	(3)	(14)	6	(114)
Cash Flow Hedging | Designated Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in AOCI	2,559	(123)	9,707	(1,455)
Loss reclassified from AOCI into interest expense	68	1,071	1,164	3,815
Total interest expense on the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$ 12,166	$ 11,346	$ 35,704	$ 31,193

FAIR VALUE (Details)

FAIR VALUE (Details) - Recurring - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets:
Derivative instruments	$ 13,477	$ 4,056
Total assets measured at fair value	13,477	4,056
Liabilities
Derivative instruments	0	60
Total liabilities measured at fair value	0	60
Level 2
Assets:
Derivative instruments	13,477	4,056
Total assets measured at fair value	13,477	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	Sep. 30, 2018	Dec. 31, 2017
Carrying Amount
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Debt-related investments	$ 10,794	$ 11,120
Line of credit	140,000	142,000
Term loans	475,000	475,000
Mortgage notes	400,347	401,894
Estimated Fair Value
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Debt-related investments	10,822	11,250
Line of credit	140,000	142,000
Term loans	475,000	475,000
Mortgage notes	$ 397,756	$ 401,574

STOCKHOLDERS_ EQUITY (Summary o

STOCKHOLDERS’ EQUITY (Summary of Public Offering) (Details) shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)shares
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 112,029
Number of shares sold | shares	14,887
Class T
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 5,765
Number of shares sold | shares	751
Class S
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 55,626
Number of shares sold | shares	7,355
Class D
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 3,153
Number of shares sold | shares	421
Class I
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 39,536
Number of shares sold | shares	5,294
Class E
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 7,949
Number of shares sold | shares	1,066
Primary Offering
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 97,816
Number of shares sold | shares	12,981
Primary Offering | Class T
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 5,412
Number of shares sold | shares	704
Primary Offering | Class S
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 55,322
Number of shares sold | shares	7,314
Primary Offering | Class D
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 2,785
Number of shares sold | shares	372
Primary Offering | Class I
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 34,297
Number of shares sold | shares	4,591
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 | $	$ 14,213
Number of shares sold | shares	1,906
Drip Offering | Class T
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 353
Number of shares sold | shares	47
Drip Offering | Class S
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 304
Number of shares sold | shares	41
Drip Offering | Class D
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 368
Number of shares sold | shares	49
Drip Offering | Class I
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 5,239
Number of shares sold | shares	703
Drip Offering | Class E
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 7,949
Number of shares sold | shares	1,066

STOCKHOLDERS_ EQUITY (Informati

STOCKHOLDERS’ EQUITY (Information of Share Transactions) (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2018shares
Class T
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	2,062
Primary shares (in shares)	704
Distribution reinvestment plan (in shares)	47
Redemptions of common stock (in shares)	(193)
Ending balance (in shares)	2,620
Class S
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	64
Primary shares (in shares)	7,314
Distribution reinvestment plan (in shares)	41
Ending balance (in shares)	7,419
Class D
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	2,510
Primary shares (in shares)	372
Distribution reinvestment plan (in shares)	49
Redemptions of common stock (in shares)	(235)
Ending balance (in shares)	2,696
Class I
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	34,135
Primary shares (in shares)	4,591
Distribution reinvestment plan (in shares)	703
Stock-based compensation (in shares)	42
Redemptions of common stock (in shares)	(3,913)
Ending balance (in shares)	35,558
Class E
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	93,695
Distribution reinvestment plan (in shares)	1,066
Redemptions of common stock (in shares)	(14,107)
Ending balance (in shares)	80,654
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	132,466
Primary shares (in shares)	12,981
Distribution reinvestment plan (in shares)	1,906
Stock-based compensation (in shares)	42
Redemptions of common stock (in shares)	(18,448)
Ending balance (in shares)	128,947

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							9 Months Ended	12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2018	Dec. 31, 2017
Equity [Abstract]
Declared per Common Share (usd per share)	$ 0.09375	$ 0.09375	$ 0.09375	$ 0.09000	$ 0.09000	$ 0.09000	$ 0.09000	$ 0.28125	$ 0.36000
Common Stock Distributions Paid in Cash	$ 7,157	$ 7,137	$ 7,240	$ 7,285	$ 7,549	$ 8,027	$ 8,289	$ 21,534	$ 31,150
Other Cash Distributions	1,174	1,221	1,127	1,088	1,195	1,300	1,250	3,522	4,833
Reinvested in Shares	4,738	4,710	4,789	4,775	4,937	4,920	5,076	14,237	19,708
Total Distributions	$ 13,069	$ 13,068	$ 13,156	$ 13,148	$ 13,681	$ 14,247	$ 14,615	$ 39,293	$ 55,691

STOCKHOLDERS_ EQUITY (Redemptio

STOCKHOLDERS’ EQUITY (Redemption Table) (Details) - $ / shares shares in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Equity [Abstract]
Number of shares requested for redemption or repurchase	18,448	14,712
Number of shares redeemed or repurchased	18,448	14,712
% of shares requested that were redeemed or repurchased	100.00%	100.00%
Average redemption or repurchase price per share (usd per share)	$ 7.46	$ 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		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Related Party Transaction [Line Items]
Related party transaction expense	$ 7,410	$ 7,358	$ 20,664	$ 19,747
Payable as of	4,446		4,446		$ 2,957
Upfront selling commissions
Related Party Transaction [Line Items]
Related party transaction expense	411	4	834	29
Payable as of	0		0		0
Dealer manager fees
Related Party Transaction [Line Items]
Related party transaction expense	0	79	0	306
Payable as of	0		0		0
Ongoing distribution fees
Related Party Transaction [Line Items]
Related party transaction expense	150	27	298	65
Payable as of	57		57		15
Advisory fees
Related Party Transaction [Line Items]
Related party transaction expense	3,795	3,212	10,959	10,153
Payable as of	3,255		3,255		954
Advisory fees related to the disposition of real properties
Related Party Transaction [Line Items]
Related party transaction expense	0	1,477	0	1,763
Payable as of	0		0		0
Other expense reimbursements—Advisor
Related Party Transaction [Line Items]
Related party transaction expense	2,194	2,203	6,584	6,507
Payable as of	1,134		1,134		1,988
Other expense reimbursements—Dealer Manager
Related Party Transaction [Line Items]
Related party transaction expense	151	124	583	428
Payable as of	0		0		0
DST Program advisory fees
Related Party Transaction [Line Items]
Related party transaction expense	82	62	173	62
Payable as of	0		0		0
DST Program selling commissions
Related Party Transaction [Line Items]
Related party transaction expense	395	107	832	284
Payable as of	0		0		0
DST Program dealer manager fees
Related Party Transaction [Line Items]
Related party transaction expense	111	36	242	89
Payable as of	0		0		0
DST Program other reimbursements—Dealer Manager
Related Party Transaction [Line Items]
Related party transaction expense	27	27	65	61
Payable as of	0		0		0
DST Program facilitation and loan origination fees
Related Party Transaction [Line Items]
Related party transaction expense	94	$ 0	94	$ 0
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	Sep. 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 (LOSS) INCOME PER COMMON _3

NET (LOSS) INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Net (loss) income attributable to common stockholders—basic	$ (3,465)	$ (1,960)	$ (1,985)	$ 6,506
Net (loss) income attributable to OP Units	(292)	(165)	(166)	526
Net (loss) income attributable to common stockholders—diluted	$ (3,757)	$ (2,125)	$ (2,151)	$ 7,032
Weighted-average shares outstanding—basic	128,506	139,925	128,269	144,998
Incremental weighted-average shares effect of conversion of OP Units	10,839	11,814	11,071	11,920
Weighted-average shares outstanding—diluted	139,345	151,739	139,340	156,918
Basic (usd per share)	$ (0.03)	$ (0.01)	$ (0.02)	$ 0.04
Diluted (usd per share)	$ (0.03)	$ (0.01)	$ (0.02)	$ 0.04

SUPPLEMENTAL CASH FLOW INFORM_3

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Noncash Investing and Financing Items [Abstract]
Distributions reinvested in common stock	$ 14,214	$ 18,433
Supplemental Cash Flow Information [Abstract]
Cash and cash equivalents	8,914	5,841	$ 10,475	$ 13,864
Restricted cash	6,816	8,268	8,541	7,282
Cash, cash equivalents and restricted cash	$ 15,730	$ 14,109	$ 19,016	$ 21,146

SEGMENT FINANCIAL INFORMATION_2

SEGMENT FINANCIAL INFORMATION (Schedule of Total Assets by Business Segment) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)segment	Dec. 31, 2017USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment	3
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 1,581,230	$ 1,608,106
Operating Segments | Office
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	721,424	775,917
Operating Segments | Retail
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	685,695	705,696
Operating Segments | Industrial
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	93,239	58,657
Corporate
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 80,872	$ 67,836

SEGMENT FINANCIAL INFORMATION_3

SEGMENT FINANCIAL INFORMATION (Revenue and Components of Net Operating Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Rental revenues	$ 49,505	$ 49,478	$ 140,421	$ 152,022
Rental expenses	(15,192)	(17,516)	(46,315)	(51,520)
Net operating income	34,313	31,962	94,106	100,502
Real estate-related depreciation and amortization	14,961	16,927	43,202	53,661
Office
Segment Reporting Information [Line Items]
Rental revenues	28,795	27,099	79,480	84,163
Rental expenses	(10,622)	(11,369)	(32,347)	(33,910)
Net operating income	18,173	15,730	47,133	50,253
Real estate-related depreciation and amortization	8,714	10,250	24,709	33,046
Industrial
Segment Reporting Information [Line Items]
Rental revenues	2,213	1,538	5,554	4,438
Rental expenses	(446)	(344)	(1,034)	(1,266)
Net operating income	1,767	1,194	4,520	3,172
Real estate-related depreciation and amortization	1,312	655	2,885	1,844
Retail
Segment Reporting Information [Line Items]
Rental revenues	18,497	20,841	55,387	63,421
Rental expenses	(4,124)	(5,803)	(12,934)	(16,344)
Net operating income	14,373	15,038	42,453	47,077
Real estate-related depreciation and amortization	$ 4,935	$ 6,022	$ 15,608	$ 18,771

SEGMENT FINANCIAL INFORMATION_4

SEGMENT FINANCIAL INFORMATION (Reconciliation of Net Operating Income to Reported Net Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Reconciliation of net operating income attributable to common shareholders
Net (loss) income attributable to common stockholders—basic	$ (3,465)	$ (1,960)	$ (1,985)	$ 6,506
Debt-related income	(170)	(194)	(514)	(654)
Real estate-related depreciation and amortization	14,961	16,927	43,202	53,661
General and administrative expenses	2,076	2,760	6,888	7,034
Advisory fees, related party	3,877	3,274	11,132	10,215
Impairment of real estate property	6,600	0	13,400	1,116
Interest expense	12,166	11,346	35,704	31,193
Gain on sale of real property	(1,398)	(670)	(13,832)	(11,022)
Other (income) expense	(42)	664	272	862
Net (loss) income attributable to noncontrolling interests	(292)	(185)	(161)	1,591
Net operating income	$ 34,313	$ 31,962	$ 94,106	$ 100,502

Uncategorized Items - ck0001327

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