Black Creek Diversified Property Fund 10-Q 14 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 08, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Registrant Name	Black Creek Diversified Property Fund Inc.
Entity Central Index Key	0001327978
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Class T
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		3,755,427
Class S
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		16,661,967
Class D
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		3,053,699
Class I
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		40,165,777
Class E
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		73,229,364

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Net investment in real estate properties	$ 1,380,868	$ 1,507,112
Debt-related investments, net	2,697	10,680
Cash and cash equivalents	13,058	10,008
Restricted cash	6,607	7,030
Other assets	43,404	46,272
Assets held for sale	144,561	0
Total assets	1,591,195	1,581,102
Liabilities
Accounts payable and accrued expenses	21,782	31,580
Debt, net	896,896	1,001,298
Intangible lease liabilities, net	46,014	47,196
Financing obligations, net	78,213	52,336
Other liabilities	32,083	37,679
Liabilities related to assets held for sale	102,737	0
Total liabilities	1,177,725	1,170,089
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock, $0.01 par value—200,000 shares authorized, none issued and outstanding	0	0
Additional paid-in capital	1,217,952	1,199,736
Distributions in excess of earnings	(876,446)	(867,849)
Accumulated other comprehensive (loss) income	(5,495)	522
Total stockholders’ equity	337,349	333,718
Noncontrolling interests	76,121	77,295
Total equity	413,470	411,013
Total liabilities and equity	1,591,195	1,581,102
Class E
Stockholders’ equity:
Common stock	752	774
Class T
Stockholders’ equity:
Common stock	33	28
Class S
Stockholders’ equity:
Common stock	138	105
Class D
Stockholders’ equity:
Common stock	30	28
Class I
Stockholders’ equity:
Common stock	$ 385	$ 374

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2019	Dec. 31, 2018
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	75,191	77,390
Common stock, shares outstanding	75,191	77,390
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	3,261	2,783
Common stock, shares outstanding	3,261	2,783
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	13,815	10,516
Common stock, shares outstanding	13,815	10,516
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	2,986	2,778
Common stock, shares outstanding	2,986	2,778
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	38,501	37,385
Common stock, shares outstanding	38,501	37,385

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues:
Rental revenues	$ 50,571	$ 44,454
Debt-related income	123	173
Total revenues	50,694	44,627
Operating expenses:
Rental expenses	16,069	15,830
Real estate-related depreciation and amortization	14,243	13,813
General and administrative expenses	2,044	2,534
Advisory fees, related party	3,128	3,679
Impairment of real estate property	0	6,800
Total operating expenses	35,484	42,656
Other (expenses) income:
Interest expense	(13,374)	(11,240)
Gain on sale of real estate property	1,191	0
Gain on extinguishment of debt and financing commitments, net	1,002	0
Other expenses	(143)	(122)
Total other expenses	(11,324)	(11,362)
Net income (loss)	3,886	(9,391)
Net (income) loss attributable to noncontrolling interests	(284)	756
Net income (loss) attributable to common stockholders	$ 3,602	$ (8,635)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Weighted-average shares outstanding—basic (in shares)	132,847	128,946
Weighted-average shares outstanding—diluted (in shares)	143,329	140,252
Net income (loss) attributable to common stockholders per common share—basic and diluted (usd per share)	$ 0.03	$ (0.07)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 3,886	$ (9,391)
Change from cash flow hedging derivatives	(6,493)	4,675
Comprehensive loss	(2,607)	(4,716)
Comprehensive loss attributable to noncontrolling interests	192	394
Comprehensive loss attributable to common stockholders	$ (2,415)	$ (4,322)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 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 income (loss)	(9,391)			(8,635)		(756)
Unrealized gain (loss) from derivative instruments	4,675				4,313	362
Issuance of common stock, net of offering costs, shares		3,271
Issuance of common stock, net of offering costs	22,318	$ 33	22,285
Share-based compensation, net of forfeitures, shares		38
Share-based compensation, net of forfeitures	281		281
Redemptions of common stock, shares		(7,315)
Redemptions of common stock	(54,366)	$ (73)	(54,293)
Amortization of share-based compensation	18		18
Distributions declared on common stock and noncontrolling interests	(13,101)			(12,041)		(1,060)
Redemptions of noncontrolling interests	(613)		(90)			(523)
Ending Balances, shares at Mar. 31, 2018		128,460
Ending Balances at Mar. 31, 2018	442,547	$ 1,285	1,192,262	(839,497)	3,617	84,880
Beginning Balances, shares at Dec. 31, 2018		130,852
Beginning Balances at Dec. 31, 2018	411,013	$ 1,309	1,199,736	(867,849)	522	77,295
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	3,886			3,602		284
Unrealized gain (loss) from derivative instruments	(6,493)				(6,017)	(476)
Issuance of common stock, net of offering costs, shares		5,827
Issuance of common stock, net of offering costs	40,059	$ 59	40,000
Share-based compensation, net of forfeitures, shares		26
Share-based compensation, net of forfeitures	188	$ 0	188
Redemptions of common stock, shares		(2,951)
Redemptions of common stock	(21,983)	$ (30)	(21,953)
Amortization of share-based compensation	(19)		(19)
Distributions declared on common stock and noncontrolling interests	(13,181)			(12,199)		(982)
Ending Balances, shares at Mar. 31, 2019		133,754
Ending Balances at Mar. 31, 2019	$ 413,470	$ 1,338	$ 1,217,952	$ (876,446)	$ (5,495)	$ 76,121

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities:
Net income (loss)	$ 3,886	$ (9,391)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Real estate-related depreciation and amortization	14,243	13,813
Gain on sale of real estate property	(1,191)	0
Impairment of real estate property	0	6,800
Gain on extinguishment of debt and financing commitments, net	(1,002)	0
Other	(2,567)	(1,347)
Changes in operating assets and liabilities	(7,745)	(593)
Net cash provided by operating activities	5,624	9,282
Investing activities:
Real estate acquisitions	(20,351)	0
Capital expenditures	(14,507)	(6,509)
Proceeds from disposition of real estate property	2,338	0
Principal collections on debt-related investments	7,979	0
Other	10	104
Net cash used in investing activities	(24,531)	(6,405)
Financing activities:
Repayments of mortgage notes	(33,086)	(405)
Net proceeds from line of credit	156,000	44,000
Repayment of term loan	(125,000)	0
Redemptions of common stock	(21,983)	(54,366)
Distributions on common stock	(7,197)	(7,233)
Proceeds from issuance of common stock	38,970	19,711
Proceeds from financing obligations	23,369	2,160
Offering costs for issuance of common stock and private placements	(2,623)	(2,159)
Distributions to noncontrolling interest holders	(982)	(1,048)
Redemption of OP Unit holder interests	0	(614)
Other	(5,934)	(609)
Net cash provided by (used in) financing activities	21,534	(563)
Net increase in cash, cash equivalents and restricted cash	2,627	2,314
Cash, cash equivalents and restricted cash, at beginning of period	17,038	19,016
Cash, cash equivalents and restricted cash, at end of period	$ 19,665	$ 21,330

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2019
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, 2018, filed with the SEC on March 6, 2019 (“2018 Form 10-K”). Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 standard also requires new disclosures within the notes accompanying the consolidated financial statements. Additional guidance and targeted improvements to ASU 2016-02 were made through the issuance of supplemental ASUs. 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 updated ASU 2016-02 to include land easements under the updated guidance, including the option to elect the practical expedient discussed above. In December 2018, the FASB issued ASU No. 2018-20, “Narrow—Scope Improvements for Lessors” (“ASU 2018-20”), which updated 2016-02 by providing the option to elect a practical expedient for lessors to exclude sales and other similar taxes from the transaction price of the contract, allows lessors to exclude from revenue and expense lessor costs paid directly to a third party by lessees, and clarifies lessors’ accounting for variable payments related to both lease and non-lease components. In March 2019, the FASB issued ASU No. 2019-01, “Leases (Topic 842): Codification Improvements” (“ASU 2019-01”), which updates ASU 2016-02 to clarify that entities are not required to provide interim disclosures related to their adoption of ASU 2016-02 as required for other accounting changes and error corrections. We adopted ASU 2016-02 and its supplemental ASUs when they became effective for us, as of the reporting period beginning January 1, 2019, and we elected the practical expedients available for implementation under the standards. Under the practical expedients election, we were not required to reassess: (i) whether an expired or existing contract met the definition of a lease; (ii) the lease classification at January 1, 2019 for existing leases; and (iii) whether costs previously capitalized as initial direct costs would continue to be amortized. We also adopted the practical expedient that allowed us to not separate tenant reimbursement revenue from rental revenue if certain criteria were met. We assessed the criteria and concluded that the timing and pattern of transfer for rental revenue and the related tenant reimbursement revenue are the same and the lease component, if accounted for separately, would be classified as an operating lease. As such, we account for and presented rental revenue and tenant reimbursement revenue as a single component in the condensed consolidated statements of operations. The adoption of these standards did not have a material effect on our condensed consolidated financial statements.

INVESTMENTS IN REAL ESTATE PROP

INVESTMENTS IN REAL ESTATE PROPERTIES	3 Months Ended
	Mar. 31, 2019
Real Estate [Abstract]
INVESTMENTS IN REAL ESTATE PROPERTIES	INVESTMENTS IN REAL ESTATE PROPERTIES The following table summarizes our consolidated investments in real estate properties and excludes properties classified as held for sale. Refer to “Note 3” for detail relating to our real estate properties held for sale. As of (in thousands) March 31, 2019 December 31, 2018 Land $ 385,187 $ 421,531 Buildings and improvements 1,180,568 1,271,773 Intangible lease assets 301,054 315,429 Investment in real estate properties 1,866,809 2,008,733 Accumulated depreciation and amortization (485,941 ) (501,621 ) Net investment in real estate properties $ 1,380,868 $ 1,507,112 Intangible Lease Assets and Liabilities Intangible lease assets and liabilities, excluding properties classified as held for sale, as of March 31, 2019 and December 31, 2018 include the following: March 31, 2019 December 31, 2018 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible lease assets $ 268,708 $ (229,561 ) $ 39,147 $ 282,961 $ (238,768 ) $ 44,193 Above-market lease assets 32,346 (31,595 ) 751 32,468 (31,382 ) 1,086 Below-market lease liabilities (80,162 ) 34,148 (46,014 ) (82,060 ) 34,864 (47,196 ) Rental Revenue and Depreciation and Amortization Expense The following table summarizes straight-line rent adjustments, amortization recognized as an increase (decrease) to rental revenues from above- and below-market lease assets and liabilities, and real estate-related depreciation and amortization expense: For the Three Months Ended March 31, (in thousands) 2019 2018 Increase (decrease) to rental revenue: Straight-line rent adjustments $ 4,182 $ 2,362 Above-market lease amortization (336 ) (184 ) Below-market lease amortization 1,047 1,251 Real estate-related depreciation and amortization: Depreciation expense $ 9,561 $ 9,280 Intangible lease asset amortization 4,682 4,533 Future Minimum Rentals Future minimum base rental payments, which equal the cash basis of monthly contractual rent, owed to us from our tenants under the terms of non-cancelable operating and ground leases in effect as of March 31, 2019, excluding rental revenues from the potential renewal or replacement of existing leases, were as follows for the next five years and thereafter: As of (in thousands) March 31, 2019 December 31, 2018 2019 $ 99,380 $ 133,999 2020 123,946 116,145 2021 112,505 104,997 2022 94,009 88,136 2023 79,913 74,661 Thereafter 317,684 323,040 Total $ 827,437 $ 840,978 Real Estate Property Impairment We did not record an impairment related to any of our consolidated real estate properties during the three months ended March 31, 2019. During the three months ended March 31, 2018, we recorded a $6.8 million non-cash impairment charge related to a retail property located in the Jacksonville, Florida market, which was disposed of in October 2018. The impairment was a result of a shortened hold period based on the consideration of potential disposition options for the property, which ultimately resulted in the reduction of our estimated future cash flows below our net book value.

ASSETS HELD FOR SALE

ASSETS HELD FOR SALE	3 Months Ended
	Mar. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
ASSETS HELD FOR SALE	ASSETS HELD FOR SALE We classify a property as held for sale when certain criteria are met, in accordance with GAAP. Assets classified as held for sale are expected to be sold to a third party. At such time the property meets the held for sale criteria, the respective assets and liabilities are presented separately in the condensed consolidated balance sheets and depreciation is no longer recognized. Assets held for sale are reported at the lower of their carrying amount or their estimated fair value less the costs to sell the assets. As of March 31, 2019, we had two office properties that met the criteria to be classified as held for sale. The following table summarizes the amounts held for sale as of March 31, 2019. We subsequently sold both office properties. See “Note 12” for additional information regarding these dispositions. As of (in thousands) March 31, 2019 December 31, 2018 Net investment in real estate properties $ 141,689 $ — Other assets 2,872 — Assets held for sale $ 144,561 $ — Accounts payable and accrued expenses $ 578 $ — Debt, net 97,686 — Intangible lease liabilities, net 152 — Other liabilities 4,321 — Liabilities related to assets held for sale $ 102,737 $ —

DEBT

DEBT	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
DEBT	DEBT A summary of our debt is as follows: Weighted-Average Balance as of ($ in thousands) March 31, December 31, Maturity Date March 31, December 31, Line of credit (1) 3.99 % 4.05 % January 2023 $ 287,000 $ 131,000 Term loan (2) 3.11 % 3.52 % January 2024 150,000 275,000 Term loan (3) 3.39 % 3.79 % February 2022 200,000 200,000 Fixed-rate mortgage notes (4) 3.68 % 3.57 % September 2021 - December 2029 140,846 173,932 Floating-rate mortgage notes (5) 4.74 % 4.97 % January 2020 127,000 225,600 Total principal amount / weighted-average 3.77 % 3.98 % $ 904,846 $ 1,005,532 Less unamortized debt issuance costs $ (8,307 ) $ (4,627 ) Add mark-to-market adjustment on assumed debt 357 393 Total debt, net (excluding debt related to assets held for sale) $ 896,896 $ 1,001,298 Floating-rate mortgage notes related to assets held for sale (6) 5.24 % — % September 2020 $ 98,600 $ — Total principal amount / weighted-average (including debt related to assets held for sale) (7) 3.91 % 3.98 % $ 1,003,446 $ 1,005,532 Gross book value of properties encumbered by debt (8) $ 562,809 $ 598,978 (1) The effective interest rate is calculated based on the London Interbank Offered Rate (“LIBOR”), plus a margin ranging from 1.30% to 2.10% , depending on our consolidated leverage ratio. As of March 31, 2019 , the unused and available portions under the line of credit were approximately $163.0 million and $63.1 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 1.25% to 2.05% , depending on our consolidated leverage ratio. The Company has the ability to increase borrowings under this term loan by an additional $175.0 million for total commitments of $325.0 million . As of March 31, 2019 , both the unused and available portions under the term loan were approximately $175.0 million . The weighted-average interest rate is the all-in interest rate and is fixed through interest swap agreements with respect to the funded portion only. (3) The effective interest rate is calculated based on LIBOR, plus a margin ranging from 1.25% to 2.05% , 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 March 31, 2019 includes a $51.8 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% until the designated cash flow hedge expires in July 2021. This mortgage note matures in August 2023. (5) The effective interest rate is calculated based on LIBOR plus a margin. As of March 31, 2019 and December 31, 2018, our floating-rate mortgage notes were subject to a weighted-average interest rate spread of 2.25% and 2.47% , respectively. (6) Amount represents principal balance outstanding. Refer to “Note 3” for further detail relating to our assets held for sale. (7) The weighted-average remaining term of our borrowings (including borrowings related to assets held for sale) was approximately 3.4 years as of March 31, 2019 , excluding the impact of certain extension options. (8) Amount includes the gross book value of properties classified as held for sale that are encumbered by debt. As of March 31, 2019 , the principal payments due on our debt (including debt related to assets held for sale) during each of the next five years and thereafter were as follows: (in thousands) Line of Credit Term Loans Mortgage Notes (1) Total Remainder of 2019 $ — $ — $ 1,989 $ 1,989 2020 — — 228,366 228,366 2021 — — 11,627 11,627 2022 (2) — 200,000 2,478 202,478 2023 (3) 287,000 — 47,967 334,967 Thereafter — 150,000 74,019 224,019 Total principal payments $ 287,000 $ 350,000 $ 366,446 $ 1,003,446 (1) Includes a $127.0 million floating-rate mortgage note expiring in January 2020, which may be extended pursuant to two one -year extension options, subject to certain conditions. (2) The term of this term loan may be extended pursuant to two one -year extension options, subject to certain conditions. (3) The term of the line of credit may be extended pursuant to two six -month extension options, 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 March 31, 2019 . 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 ongoing exposure to interest rate movements. During the next 12 months, we estimate that approximately $2.1 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 $0.1 million will be reclassified as an increase to interest expense related to terminated hedges where the likelihood of the originally hedged interest payments remains probable. The following table summarizes the location and fair value of our derivative instruments on our condensed consolidated balance sheets: Fair Value ($ in thousands) Number of Contracts Notional Other Other March 31, 2019 Interest rate swaps (1) 14 $ 601,849 $ 3,019 $ 6,177 Interest rate caps 4 338,450 1 — Total derivative instruments 18 $ 940,299 $ 3,020 $ 6,177 December 31, 2018 Interest rate swaps 15 $ 634,565 $ 6,692 $ 3,220 Interest rate caps 4 338,450 25 — Total derivative instruments 19 $ 973,015 $ 6,717 $ 3,220 (1) Includes four interest rate swaps with a combined notional amount of $200.0 million that will become effective in January 2020. The following table presents the effect of our derivative instruments on our condensed consolidated financial statements: For the Three Months Ended March 31, (in thousands) 2019 2018 Derivative instruments designated as cash flow hedges: (Loss) gain recognized in AOCI $ (4,707 ) $ 3,971 (Gain) loss reclassified from AOCI into interest expense (412 ) 704 Gain reclassified from AOCI due to hedged transactions becoming probable of not occurring (1,374 ) — Total interest expense on the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded 13,374 11,240 Derivative instruments not designated as cash flow hedges: (Loss) gain recognized in income $ (24 ) $ 53

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 Assets: Derivative instruments $ — $ 3,020 $ — $ 3,020 Total assets measured at fair value $ — $ 3,020 $ — $ 3,020 Liabilities: Derivative instruments $ — $ 6,177 $ — $ 6,177 Total liabilities measured at fair value $ — $ 6,177 $ — $ 6,177 December 31, 2018 Assets: Derivative instruments $ — $ 6,717 $ — $ 6,717 Total assets measured at fair value $ — $ 6,717 $ — $ 6,717 Liabilities: Derivative instruments $ — $ 3,220 $ — $ 3,220 Total liabilities measured at fair value $ — $ 3,220 $ — $ 3,220 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 4” above for further discussion of our derivative instruments. Nonrecurring Fair Value Measurements As of March 31, 2019 and December 31, 2018 , the fair values of cash and cash equivalents, tenant receivables, due from/to affiliates, accounts payable and accrued liabilities, and distributions payable approximate their carrying values because of the short-term nature of these instruments. The table below includes fair values for certain of our financial instruments for which it is practicable to estimate fair value. The carrying values and fair values of these financial instruments were as follows: ໿ As of March 31, 2019 As of December 31, 2018 (in thousands) Carrying Fair Carrying Fair Assets: Debt-related investments $ 2,702 $ 2,729 $ 10,682 $ 10,709 Liabilities: Line of credit $ 287,000 $ 287,000 $ 131,000 $ 131,000 Term loans 350,000 350,000 475,000 475,000 Mortgage notes 366,446 365,326 399,532 398,117 (1) The carrying amount reflects the principal amount outstanding.

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	3 Months Ended
	Mar. 31, 2019
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 three months ended March 31, 2019 , is as follows: (in thousands) Class T Class S Class D Class I Class E Total Amount of gross proceeds raised: Primary offering $ 3,637 $ 24,517 $ 1,810 $ 9,006 $ — $ 38,970 DRIP 135 479 143 1,866 2,318 4,941 Total offering $ 3,772 $ 24,996 $ 1,953 $ 10,872 $ 2,318 $ 43,911 Number of shares sold: Primary offering 474 3,239 244 1,208 — 5,165 DRIP 18 64 19 249 312 662 Total offering 492 3,303 263 1,457 312 5,827 Common Stock The following table describes the changes in each class of common shares during the three months ended March 31, 2019 : (in thousands) Class T Shares Class S Shares Class D Shares Class I Shares Class E Shares Total Shares Balances, December 31, 2017 2,062 64 2,510 34,135 93,695 132,466 Issuance of common stock: Primary shares 67 1,524 23 1,016 — 2,630 Distribution reinvestment plan 16 2 16 235 372 641 Share-based compensation — — — 38 — 38 Redemptions of common stock (37 ) — (56 ) (1,607 ) (5,615 ) (7,315 ) Balances, March 31, 2018 2,108 1,590 2,493 33,817 88,452 128,460 Balances, December 31, 2018 2,783 10,516 2,778 37,385 77,390 130,852 Issuance of common stock: Primary shares 474 3,239 244 1,208 — 5,165 Distribution reinvestment plan 18 64 19 249 312 662 Share-based compensation — — — 26 — 26 Redemptions of common stock (14 ) (4 ) (55 ) (367 ) (2,511 ) (2,951 ) Balances, March 31, 2019 3,261 13,815 2,986 38,501 75,191 133,754 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 2019 March 31 $ 0.09375 $ 7,198 $ 1,244 $ 4,997 $ 13,439 Total $ 0.09375 $ 7,198 $ 1,244 $ 4,997 $ 13,439 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 December 31 0.09375 7,180 1,202 4,814 13,196 Total $ 0.37500 $ 28,714 $ 4,724 $ 19,051 $ 52,489 (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 certain classes of our shares. See “Note 7” for further detail regarding the current and historical ongoing distribution fees. Redemptions and Repurchases Below is a summary of redemptions and repurchases pursuant to our share redemption program for the three months ended March 31, 2019 and 2018. Our board of directors may modify, suspend or terminate our current share redemption programs if it deems such action to be in the best interest of our stockholders. For the Three Months Ended March 31, (in thousands, except for per share data) 2019 2018 Number of shares requested for redemption or repurchase 2,951 7,315 Number of shares redeemed or repurchased 2,951 7,315 % of shares requested that were redeemed or repurchased 100.0 % 100.0 % Average redemption or repurchase price per share $ 7.45 $ 7.43

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS Summary of Fees and Expenses The following table summarizes the fees and expenses incurred by us for services provided by Black Creek Diversified Property Advisors LLC (the “Advisor”) and its affiliates, and by the Dealer Manager, and any related amounts payable: For the Three Months Ended March 31, Payable as of (in thousands) 2019 2018 March 31, 2019 December 31, 2018 Upfront selling commissions (1) $ 485 $ 136 $ — $ — Ongoing distribution fees (1) 256 55 95 76 Advisory fees 2,905 3,640 1,000 3,225 Other expense reimbursements—Advisor 2,345 2,401 431 1,411 Other expense reimbursements—Dealer Manager 247 72 — — DST Program advisory fees 223 39 — — DST Program selling commissions 494 108 — — DST Program dealer manager fees 115 32 — — DST Program other reimbursements—Dealer Manager 201 10 — — DST Program facilitation and loan origination fees 421 — — — Total $ 7,692 $ 6,493 $ 1,526 $ 4,712 (1) All or a portion of these amounts will be retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers. Company Restricted Stock Units (“Company RSUs”) The table below summarizes the unvested Company RSUs as of March 31, 2019 : (in thousands, except per share data) Grant Date Vesting Date Number of Unvested Shares Grant Date Net Asset Value (“NAV”) per Class I Share Company RSUs 2/4/2016 4/15/2019 57 $ 7.41

NET INCOME (LOSS) PER COMMON SH

NET INCOME (LOSS) PER COMMON SHARE	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
NET INCOME (LOSS) PER COMMON SHARE	NET INCOME (LOSS) PER COMMON SHARE The computation of our basic and diluted net income (loss) per share attributable to common stockholders is as follows: For the Three Months Ended March 31, (in thousands, except per share data) 2019 2018 Net income (loss) attributable to common stockholders—basic $ 3,602 $ (8,635 ) Net income (loss) attributable to OP Units 284 (756 ) Net income (loss) attributable to common stockholders—diluted $ 3,886 $ (9,391 ) Weighted-average shares outstanding—basic 132,847 128,946 Incremental weighted-average shares effect of conversion of OP Units 10,482 11,306 Weighted-average shares outstanding—diluted 143,329 140,252 Net income (loss) per share attributable to common stockholders: Basic $ 0.03 $ (0.07 ) Diluted $ 0.03 $ (0.07 )

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	3 Months Ended
	Mar. 31, 2019
Cash and Cash Equivalents [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information and disclosure of non-cash investing and financing activities is as follows: For the Three Months Ended March 31, (in thousands) 2019 2018 Distributions reinvested in common stock $ 4,941 $ 4,774 Change in accrued future ongoing distribution fees 1,903 896 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 Three Months Ended March 31, (in thousands) 2019 2018 Beginning of period: Cash and cash equivalents $ 10,008 $ 10,475 Restricted cash 7,030 8,541 Cash, cash equivalents and restricted cash $ 17,038 $ 19,016 End of period: Cash and cash equivalents $ 13,058 $ 13,989 Restricted cash 6,607 7,341 Cash, cash equivalents and restricted cash $ 19,665 $ 21,330

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES We and the Operating Partnership are not presently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us or our investments. Environmental Matters A majority of the properties we acquire are subject to environmental reviews either by us or the previous owners. In addition, we may incur environmental remediation costs associated with certain land parcels we may acquire in connection with the development of the land. We have acquired certain properties in urban and industrial areas that may have been leased to or previously owned by commercial and industrial companies that discharged hazardous materials. We may purchase various environmental insurance policies to mitigate our exposure to environmental liabilities. We are not aware of any environmental liabilities that we believe would have a material adverse effect on our business, financial condition, or results of operations as of March 31, 2019 .

SEGMENT FINANCIAL INFORMATION

SEGMENT FINANCIAL INFORMATION	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
SEGMENT FINANCIAL INFORMATION	SEGMENT FINANCIAL INFORMATION Our three reportable segments are office, retail and industrial. Factors used to determine our reportable segments include the physical and economic characteristics of our properties and the related operating activities. Our chief operating decision makers rely primarily on net operating income to make decisions about allocating resources and assessing segment performance. Net operating income is the key performance metric that captures the unique operating characteristics of each segment. Items that are not directly assignable to a segment, such as certain corporate items, are not allocated but reflected as reconciling items. The following table reflects our total assets by business segment as of March 31, 2019 and December 31, 2018 : As of (in thousands) March 31, 2019 December 31, 2018 Assets: Office (1) $ 723,828 $ 724,875 Retail 667,440 671,007 Industrial 131,290 111,230 Corporate 68,637 73,990 Total assets $ 1,591,195 $ 1,581,102 (1) As of March 31, 2019, amount includes properties classified as held for sale. Refer to “Note 3” for further detail. The following table sets forth the financial results by segment for the three months ended March 31, 2019 and 2018 : ໿ (in thousands) Office Retail Industrial Consolidated Three Months Ended March 31, 2019 Rental revenues $ 29,724 $ 18,047 $ 2,800 $ 50,571 Rental expenses (10,860 ) (4,558 ) (651 ) (16,069 ) Net operating income $ 18,864 $ 13,489 $ 2,149 $ 34,502 Real estate-related depreciation and amortization $ 8,175 $ 4,723 $ 1,345 $ 14,243 Three Months Ended March 31, 2018 Rental revenues $ 24,425 $ 18,599 $ 1,430 $ 44,454 Rental expenses (11,007 ) (4,598 ) (225 ) (15,830 ) Net operating income $ 13,418 $ 14,001 $ 1,205 $ 28,624 Real estate-related depreciation and amortization $ 7,885 $ 5,290 $ 638 $ 13,813 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, 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 months ended March 31, 2019 and 2018 : For the Three Months Ended March 31, (in thousands) 2019 2018 Net income (loss) attributable to common stockholders $ 3,602 $ (8,635 ) Debt-related income (123 ) (173 ) Real estate-related depreciation and amortization 14,243 13,813 General and administrative expenses 2,044 2,534 Advisory fees, related party 3,128 3,679 Impairment of real estate property — 6,800 Other expense 143 122 Interest expense 13,374 11,240 Gain on sale of real estate property (1,191 ) — Gain on extinguishment of debt and financing commitments, net (1,002 ) — Net income (loss) attributable to noncontrolling interests 284 (756 ) Net operating income $ 34,502 $ 28,624

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Disposition of Property On April 16, 2019, we sold to an unrelated third party an office property located in Austin, Texas (“Rialto”) that was classified as held for sale as of March 31, 2019, for gross proceeds of approximately $46.9 million . Our accounting basis (net of accumulated depreciation and amortization) for this real estate property as of the closing date was approximately $33.2 million . On May 6, 2019, we sold to an unrelated third party an office property located in San Francisco, California (“655 Montgomery”) that was classified as held for sale as of March 31, 2019, for gross proceeds of approximately $191.5 million . In addition, upon closing of this transaction, we prepaid the mortgage note and mezzanine loan that was secured by a pledge of ownership interests in this property. As of the date of closing, the mortgage note and mezzanine loan had an aggregate outstanding principal balance of approximately $98.6 million with a weighted-average variable interest rate of 5.23% . Our accounting basis (net of accumulated depreciation and amortization) for this real estate property as of the closing date was approximately $108.5 million . Acquisition Under Contract On May 6, 2019, we entered into a contract to acquire a multi-family property located in Rockville, Maryland with a purchase price of approximately $93.5 million . There can be no assurance that we will complete the acquisition of the property under contract.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2019
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, 2018, filed with the SEC on March 6, 2019 (“2018 Form 10-K”)
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 standard also requires new disclosures within the notes accompanying the consolidated financial statements. Additional guidance and targeted improvements to ASU 2016-02 were made through the issuance of supplemental ASUs. 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 updated ASU 2016-02 to include land easements under the updated guidance, including the option to elect the practical expedient discussed above. In December 2018, the FASB issued ASU No. 2018-20, “Narrow—Scope Improvements for Lessors” (“ASU 2018-20”), which updated 2016-02 by providing the option to elect a practical expedient for lessors to exclude sales and other similar taxes from the transaction price of the contract, allows lessors to exclude from revenue and expense lessor costs paid directly to a third party by lessees, and clarifies lessors’ accounting for variable payments related to both lease and non-lease components. In March 2019, the FASB issued ASU No. 2019-01, “Leases (Topic 842): Codification Improvements” (“ASU 2019-01”), which updates ASU 2016-02 to clarify that entities are not required to provide interim disclosures related to their adoption of ASU 2016-02 as required for other accounting changes and error corrections. We adopted ASU 2016-02 and its supplemental ASUs when they became effective for us, as of the reporting period beginning January 1, 2019, and we elected the practical expedients available for implementation under the standards. Under the practical expedients election, we were not required to reassess: (i) whether an expired or existing contract met the definition of a lease; (ii) the lease classification at January 1, 2019 for existing leases; and (iii) whether costs previously capitalized as initial direct costs would continue to be amortized. We also adopted the practical expedient that allowed us to not separate tenant reimbursement revenue from rental revenue if certain criteria were met. We assessed the criteria and concluded that the timing and pattern of transfer for rental revenue and the related tenant reimbursement revenue are the same and the lease component, if accounted for separately, would be classified as an operating lease. As such, we account for and presented rental revenue and tenant reimbursement revenue as a single component in the condensed consolidated statements of operations. The adoption of these standards did not have a material effect on our condensed consolidated financial statements.
Assets Held For Sale	We classify a property as held for sale when certain criteria are met, in accordance with GAAP. Assets classified as held for sale are expected to be sold to a third party. At such time the property meets the held for sale criteria, the respective assets and liabilities are presented separately in the condensed consolidated balance sheets and depreciation is no longer recognized. Assets held for sale are reported at the lower of their carrying amount or their estimated fair value less the costs to sell the assets.

INVESTMENTS IN REAL ESTATE PR_2

INVESTMENTS IN REAL ESTATE PROPERTIES (Tables)	3 Months Ended
	Mar. 31, 2019
Real Estate [Abstract]
Schedule of Consolidated Investments in Real Property	The following table summarizes our consolidated investments in real estate properties and excludes properties classified as held for sale. Refer to “Note 3” for detail relating to our real estate properties held for sale. As of (in thousands) March 31, 2019 December 31, 2018 Land $ 385,187 $ 421,531 Buildings and improvements 1,180,568 1,271,773 Intangible lease assets 301,054 315,429 Investment in real estate properties 1,866,809 2,008,733 Accumulated depreciation and amortization (485,941 ) (501,621 ) Net investment in real estate properties $ 1,380,868 $ 1,507,112
Schedule of Finite-Lived Intangible Assets	Intangible lease assets and liabilities, excluding properties classified as held for sale, as of March 31, 2019 and December 31, 2018 include the following: March 31, 2019 December 31, 2018 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible lease assets $ 268,708 $ (229,561 ) $ 39,147 $ 282,961 $ (238,768 ) $ 44,193 Above-market lease assets 32,346 (31,595 ) 751 32,468 (31,382 ) 1,086 Below-market lease liabilities (80,162 ) 34,148 (46,014 ) (82,060 ) 34,864 (47,196 )
Schedule of Adjustments to Rental Revenue Related to Amortization of Above-Market Lease Assets, Below-Market Lease Liabilities, and for Straight-Line Rental Adjustments	The following table summarizes straight-line rent adjustments, amortization recognized as an increase (decrease) to rental revenues from above- and below-market lease assets and liabilities, and real estate-related depreciation and amortization expense: For the Three Months Ended March 31, (in thousands) 2019 2018 Increase (decrease) to rental revenue: Straight-line rent adjustments $ 4,182 $ 2,362 Above-market lease amortization (336 ) (184 ) Below-market lease amortization 1,047 1,251 Real estate-related depreciation and amortization: Depreciation expense $ 9,561 $ 9,280 Intangible lease asset amortization 4,682 4,533
Future Minimum Base Rental Payments	Future minimum base rental payments, which equal the cash basis of monthly contractual rent, owed to us from our tenants under the terms of non-cancelable operating and ground leases in effect as of March 31, 2019, excluding rental revenues from the potential renewal or replacement of existing leases, were as follows for the next five years and thereafter: As of (in thousands) March 31, 2019 December 31, 2018 2019 $ 99,380 $ 133,999 2020 123,946 116,145 2021 112,505 104,997 2022 94,009 88,136 2023 79,913 74,661 Thereafter 317,684 323,040 Total $ 827,437 $ 840,978

ASSETS HELD FOR SALE (Tables)

ASSETS HELD FOR SALE (Tables)	3 Months Ended
	Mar. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Summary of Assets Held For Sale	As of (in thousands) March 31, 2019 December 31, 2018 Net investment in real estate properties $ 141,689 $ — Other assets 2,872 — Assets held for sale $ 144,561 $ — Accounts payable and accrued expenses $ 578 $ — Debt, net 97,686 — Intangible lease liabilities, net 152 — Other liabilities 4,321 — Liabilities related to assets held for sale $ 102,737 $ —

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Schedule of Borrowings	A summary of our debt is as follows: Weighted-Average Balance as of ($ in thousands) March 31, December 31, Maturity Date March 31, December 31, Line of credit (1) 3.99 % 4.05 % January 2023 $ 287,000 $ 131,000 Term loan (2) 3.11 % 3.52 % January 2024 150,000 275,000 Term loan (3) 3.39 % 3.79 % February 2022 200,000 200,000 Fixed-rate mortgage notes (4) 3.68 % 3.57 % September 2021 - December 2029 140,846 173,932 Floating-rate mortgage notes (5) 4.74 % 4.97 % January 2020 127,000 225,600 Total principal amount / weighted-average 3.77 % 3.98 % $ 904,846 $ 1,005,532 Less unamortized debt issuance costs $ (8,307 ) $ (4,627 ) Add mark-to-market adjustment on assumed debt 357 393 Total debt, net (excluding debt related to assets held for sale) $ 896,896 $ 1,001,298 Floating-rate mortgage notes related to assets held for sale (6) 5.24 % — % September 2020 $ 98,600 $ — Total principal amount / weighted-average (including debt related to assets held for sale) (7) 3.91 % 3.98 % $ 1,003,446 $ 1,005,532 Gross book value of properties encumbered by debt (8) $ 562,809 $ 598,978 (1) The effective interest rate is calculated based on the London Interbank Offered Rate (“LIBOR”), plus a margin ranging from 1.30% to 2.10% , depending on our consolidated leverage ratio. As of March 31, 2019 , the unused and available portions under the line of credit were approximately $163.0 million and $63.1 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 1.25% to 2.05% , depending on our consolidated leverage ratio. The Company has the ability to increase borrowings under this term loan by an additional $175.0 million for total commitments of $325.0 million . As of March 31, 2019 , both the unused and available portions under the term loan were approximately $175.0 million . The weighted-average interest rate is the all-in interest rate and is fixed through interest swap agreements with respect to the funded portion only. (3) The effective interest rate is calculated based on LIBOR, plus a margin ranging from 1.25% to 2.05% , 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 March 31, 2019 includes a $51.8 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% until the designated cash flow hedge expires in July 2021. This mortgage note matures in August 2023. (5) The effective interest rate is calculated based on LIBOR plus a margin. As of March 31, 2019 and December 31, 2018, our floating-rate mortgage notes were subject to a weighted-average interest rate spread of 2.25% and 2.47% , respectively. (6) Amount represents principal balance outstanding. Refer to “Note 3” for further detail relating to our assets held for sale. (7) The weighted-average remaining term of our borrowings (including borrowings related to assets held for sale) was approximately 3.4 years as of March 31, 2019 , excluding the impact of certain extension options. (8) Amount includes the gross book value of properties classified as held for sale that are encumbered by debt.
Schedule of Borrowings Reflects Contractual Debt Maturities	As of March 31, 2019 , the principal payments due on our debt (including debt related to assets held for sale) during each of the next five years and thereafter were as follows: (in thousands) Line of Credit Term Loans Mortgage Notes (1) Total Remainder of 2019 $ — $ — $ 1,989 $ 1,989 2020 — — 228,366 228,366 2021 — — 11,627 11,627 2022 (2) — 200,000 2,478 202,478 2023 (3) 287,000 — 47,967 334,967 Thereafter — 150,000 74,019 224,019 Total principal payments $ 287,000 $ 350,000 $ 366,446 $ 1,003,446 (1) Includes a $127.0 million floating-rate mortgage note expiring in January 2020, which may be extended pursuant to two one -year extension options, subject to certain conditions. (2) The term of this term loan may be extended pursuant to two one -year extension options, subject to certain conditions. (3) The term of the line of credit may be extended pursuant to two six -month extension options, subject to certain conditions.
Gross Fair Value of Derivative Financial Instruments as Well as Their Classification	The following table summarizes the location and fair value of our derivative instruments on our condensed consolidated balance sheets: Fair Value ($ in thousands) Number of Contracts Notional Other Other March 31, 2019 Interest rate swaps (1) 14 $ 601,849 $ 3,019 $ 6,177 Interest rate caps 4 338,450 1 — Total derivative instruments 18 $ 940,299 $ 3,020 $ 6,177 December 31, 2018 Interest rate swaps 15 $ 634,565 $ 6,692 $ 3,220 Interest rate caps 4 338,450 25 — Total derivative instruments 19 $ 973,015 $ 6,717 $ 3,220 (1) Includes four interest rate swaps with a combined notional amount of $200.0 million that will become effective in January 2020.
Effect of Derivative Financial Instruments on Financial Statements	The following table presents the effect of our derivative instruments on our condensed consolidated financial statements: For the Three Months Ended March 31, (in thousands) 2019 2018 Derivative instruments designated as cash flow hedges: (Loss) gain recognized in AOCI $ (4,707 ) $ 3,971 (Gain) loss reclassified from AOCI into interest expense (412 ) 704 Gain reclassified from AOCI due to hedged transactions becoming probable of not occurring (1,374 ) — Total interest expense on the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded 13,374 11,240 Derivative instruments not designated as cash flow hedges: (Loss) gain recognized in income $ (24 ) $ 53

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 Assets: Derivative instruments $ — $ 3,020 $ — $ 3,020 Total assets measured at fair value $ — $ 3,020 $ — $ 3,020 Liabilities: Derivative instruments $ — $ 6,177 $ — $ 6,177 Total liabilities measured at fair value $ — $ 6,177 $ — $ 6,177 December 31, 2018 Assets: Derivative instruments $ — $ 6,717 $ — $ 6,717 Total assets measured at fair value $ — $ 6,717 $ — $ 6,717 Liabilities: Derivative instruments $ — $ 3,220 $ — $ 3,220 Total liabilities measured at fair value $ — $ 3,220 $ — $ 3,220
Nonrecurring Fair Value Measurements	The carrying values and fair values of these financial instruments were as follows: ໿ As of March 31, 2019 As of December 31, 2018 (in thousands) Carrying Fair Carrying Fair Assets: Debt-related investments $ 2,702 $ 2,729 $ 10,682 $ 10,709 Liabilities: Line of credit $ 287,000 $ 287,000 $ 131,000 $ 131,000 Term loans 350,000 350,000 475,000 475,000 Mortgage notes 366,446 365,326 399,532 398,117 (1) The carrying amount reflects the principal amount outstanding.

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	3 Months Ended
	Mar. 31, 2019
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 three months ended March 31, 2019 , is as follows: (in thousands) Class T Class S Class D Class I Class E Total Amount of gross proceeds raised: Primary offering $ 3,637 $ 24,517 $ 1,810 $ 9,006 $ — $ 38,970 DRIP 135 479 143 1,866 2,318 4,941 Total offering $ 3,772 $ 24,996 $ 1,953 $ 10,872 $ 2,318 $ 43,911 Number of shares sold: Primary offering 474 3,239 244 1,208 — 5,165 DRIP 18 64 19 249 312 662 Total offering 492 3,303 263 1,457 312 5,827
Information of Share Transactions	The following table describes the changes in each class of common shares during the three months ended March 31, 2019 : (in thousands) Class T Shares Class S Shares Class D Shares Class I Shares Class E Shares Total Shares Balances, December 31, 2017 2,062 64 2,510 34,135 93,695 132,466 Issuance of common stock: Primary shares 67 1,524 23 1,016 — 2,630 Distribution reinvestment plan 16 2 16 235 372 641 Share-based compensation — — — 38 — 38 Redemptions of common stock (37 ) — (56 ) (1,607 ) (5,615 ) (7,315 ) Balances, March 31, 2018 2,108 1,590 2,493 33,817 88,452 128,460 Balances, December 31, 2018 2,783 10,516 2,778 37,385 77,390 130,852 Issuance of common stock: Primary shares 474 3,239 244 1,208 — 5,165 Distribution reinvestment plan 18 64 19 249 312 662 Share-based compensation — — — 26 — 26 Redemptions of common stock (14 ) (4 ) (55 ) (367 ) (2,511 ) (2,951 ) Balances, March 31, 2019 3,261 13,815 2,986 38,501 75,191 133,754
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 2019 March 31 $ 0.09375 $ 7,198 $ 1,244 $ 4,997 $ 13,439 Total $ 0.09375 $ 7,198 $ 1,244 $ 4,997 $ 13,439 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 December 31 0.09375 7,180 1,202 4,814 13,196 Total $ 0.37500 $ 28,714 $ 4,724 $ 19,051 $ 52,489 (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 certain classes of our shares. See “Note 7” for further detail regarding the current and historical ongoing distribution fees.
Redemption Activity	Our board of directors may modify, suspend or terminate our current share redemption programs if it deems such action to be in the best interest of our stockholders. For the Three Months Ended March 31, (in thousands, except for per share data) 2019 2018 Number of shares requested for redemption or repurchase 2,951 7,315 Number of shares redeemed or repurchased 2,951 7,315 % of shares requested that were redeemed or repurchased 100.0 % 100.0 % Average redemption or repurchase price per share $ 7.45 $ 7.43

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
Schedule of Fees and Other Amounts Earned by Advisor	The following table summarizes the fees and expenses incurred by us for services provided by Black Creek Diversified Property Advisors LLC (the “Advisor”) and its affiliates, and by the Dealer Manager, and any related amounts payable: For the Three Months Ended March 31, Payable as of (in thousands) 2019 2018 March 31, 2019 December 31, 2018 Upfront selling commissions (1) $ 485 $ 136 $ — $ — Ongoing distribution fees (1) 256 55 95 76 Advisory fees 2,905 3,640 1,000 3,225 Other expense reimbursements—Advisor 2,345 2,401 431 1,411 Other expense reimbursements—Dealer Manager 247 72 — — DST Program advisory fees 223 39 — — DST Program selling commissions 494 108 — — DST Program dealer manager fees 115 32 — — DST Program other reimbursements—Dealer Manager 201 10 — — DST Program facilitation and loan origination fees 421 — — — Total $ 7,692 $ 6,493 $ 1,526 $ 4,712
Schedule of RSU Grants	The table below summarizes the unvested Company RSUs as of March 31, 2019 : (in thousands, except per share data) Grant Date Vesting Date Number of Unvested Shares Grant Date Net Asset Value (“NAV”) per Class I Share Company RSUs 2/4/2016 4/15/2019 57 $ 7.41

NET INCOME (LOSS) PER COMMON _2

NET INCOME (LOSS) PER COMMON SHARE (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Details of Numerator and Denominator Used to Calculate Basic and Diluted Net Income Per Common Share	The computation of our basic and diluted net income (loss) per share attributable to common stockholders is as follows: For the Three Months Ended March 31, (in thousands, except per share data) 2019 2018 Net income (loss) attributable to common stockholders—basic $ 3,602 $ (8,635 ) Net income (loss) attributable to OP Units 284 (756 ) Net income (loss) attributable to common stockholders—diluted $ 3,886 $ (9,391 ) Weighted-average shares outstanding—basic 132,847 128,946 Incremental weighted-average shares effect of conversion of OP Units 10,482 11,306 Weighted-average shares outstanding—diluted 143,329 140,252 Net income (loss) per share attributable to common stockholders: Basic $ 0.03 $ (0.07 ) Diluted $ 0.03 $ (0.07 )

SUPPLEMENTAL CASH FLOW INFORM_2

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2019
Cash and Cash Equivalents [Abstract]
Supplemental cash flow information	Supplemental cash flow information and disclosure of non-cash investing and financing activities is as follows: For the Three Months Ended March 31, (in thousands) 2019 2018 Distributions reinvested in common stock $ 4,941 $ 4,774 Change in accrued future ongoing distribution fees 1,903 896
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 Three Months Ended March 31, (in thousands) 2019 2018 Beginning of period: Cash and cash equivalents $ 10,008 $ 10,475 Restricted cash 7,030 8,541 Cash, cash equivalents and restricted cash $ 17,038 $ 19,016 End of period: Cash and cash equivalents $ 13,058 $ 13,989 Restricted cash 6,607 7,341 Cash, cash equivalents and restricted cash $ 19,665 $ 21,330

SEGMENT FINANCIAL INFORMATION (

SEGMENT FINANCIAL INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Summary of Total Assets by Business Segment	The following table reflects our total assets by business segment as of March 31, 2019 and December 31, 2018 : As of (in thousands) March 31, 2019 December 31, 2018 Assets: Office (1) $ 723,828 $ 724,875 Retail 667,440 671,007 Industrial 131,290 111,230 Corporate 68,637 73,990 Total assets $ 1,591,195 $ 1,581,102 (1) As of March 31, 2019, amount includes properties classified as held for sale. Refer to “Note 3” for further detail.
Revenue and Components of Net Operating Income	The following table sets forth the financial results by segment for the three months ended March 31, 2019 and 2018 : ໿ (in thousands) Office Retail Industrial Consolidated Three Months Ended March 31, 2019 Rental revenues $ 29,724 $ 18,047 $ 2,800 $ 50,571 Rental expenses (10,860 ) (4,558 ) (651 ) (16,069 ) Net operating income $ 18,864 $ 13,489 $ 2,149 $ 34,502 Real estate-related depreciation and amortization $ 8,175 $ 4,723 $ 1,345 $ 14,243 Three Months Ended March 31, 2018 Rental revenues $ 24,425 $ 18,599 $ 1,430 $ 44,454 Rental expenses (11,007 ) (4,598 ) (225 ) (15,830 ) Net operating income $ 13,418 $ 14,001 $ 1,205 $ 28,624 Real estate-related depreciation and amortization $ 7,885 $ 5,290 $ 638 $ 13,813
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 months ended March 31, 2019 and 2018 : For the Three Months Ended March 31, (in thousands) 2019 2018 Net income (loss) attributable to common stockholders $ 3,602 $ (8,635 ) Debt-related income (123 ) (173 ) Real estate-related depreciation and amortization 14,243 13,813 General and administrative expenses 2,044 2,534 Advisory fees, related party 3,128 3,679 Impairment of real estate property — 6,800 Other expense 143 122 Interest expense 13,374 11,240 Gain on sale of real estate property (1,191 ) — Gain on extinguishment of debt and financing commitments, net (1,002 ) — Net income (loss) attributable to noncontrolling interests 284 (756 ) Net operating income $ 34,502 $ 28,624

INVESTMENTS IN REAL ESTATE PR_3

INVESTMENTS IN REAL ESTATE PROPERTIES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Real Estate Properties [Line Items]
Impairment charges	$ 0	$ 6,800
Retail Property, Jacksonville, Florida
Real Estate Properties [Line Items]
Impairment charges		$ 6,800

INVESTMENTS IN REAL ESTATE PR_4

INVESTMENTS IN REAL ESTATE PROPERTIES (Schedule of Consolidated Investments in Real Property) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Real Estate Properties [Line Items]
Investment in real estate properties	$ 1,866,809	$ 2,008,733
Accumulated depreciation and amortization	(485,941)	(501,621)
Net investment in real estate properties	1,380,868	1,507,112
Land
Real Estate Properties [Line Items]
Investment in real estate properties	385,187	421,531
Building and Improvements
Real Estate Properties [Line Items]
Investment in real estate properties	1,180,568	1,271,773
Intangible Lease Assets
Real Estate Properties [Line Items]
Investment in real estate properties	$ 301,054	$ 315,429

INVESTMENTS IN REAL ESTATE PR_5

INVESTMENTS IN REAL ESTATE PROPERTIES (Intangible Leased Assets and Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Intangible Lease Assets
Finite-Lived Intangible Assets [Line Items]
Gross	$ 268,708	$ 282,961
Accumulated Amortization	(229,561)	(238,768)
Net	39,147	44,193
Above-market lease assets
Finite-Lived Intangible Assets [Line Items]
Gross	32,346	32,468
Accumulated Amortization	(31,595)	(31,382)
Net	751	1,086
Below-market lease liabilities
Finite-Lived Intangible Assets [Line Items]
Gross, Liabilities	(80,162)	(82,060)
Accumulated Amortization, Liabilities	34,148	34,864
Net, Liabilities	$ (46,014)	$ (47,196)

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
	Mar. 31, 2019	Mar. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Straight-line rent adjustments	$ 4,182	$ 2,362
Depreciation expense	9,561	9,280
Intangible lease asset amortization	4,682	4,533
Above-market lease assets
Finite-Lived Intangible Assets [Line Items]
Amortization of above and below Market Leases	(336)	(184)
Below Market Lease [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of above and below Market Leases	$ 1,047	$ 1,251

INVESTMENTS IN REAL ESTATE PR_7

INVESTMENTS IN REAL ESTATE PROPERTIES (Future Minimum Base Rental Payments) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Real Estate [Abstract]
2019	$ 99,380
2019		$ 133,999
2020	123,946	116,145
2021	112,505	104,997
2022	94,009	88,136
2023	79,913	74,661
Thereafter	317,684	323,040
Total	$ 827,437	$ 840,978

ASSETS HELD FOR SALE (Details)

ASSETS HELD FOR SALE (Details) $ in Thousands	Mar. 31, 2019USD ($)property	Dec. 31, 2018USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale	$ 144,561	$ 0
Liabilities related to assets held for sale	$ 102,737	0
Assets Held For Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of office properties | property	2
Net investment in real estate properties	$ 141,689	0
Other assets	2,872	0
Assets held for sale	144,561	0
Accounts payable and accrued expenses	578	0
Debt, net	97,686	0
Intangible lease liabilities, net	152	0
Other liabilities	4,321	0
Liabilities related to assets held for sale	$ 102,737	$ 0

DEBT (Narrative) (Details)

DEBT (Narrative) (Details) $ in Millions	Mar. 31, 2019USD ($)
Derivative [Line Items]
Estimated decrease to interest expense related to active effective hedges of floating rate debt	$ 2.1
Interest rate swap
Derivative [Line Items]
Estimated increase to interest expense related to termination of hedging instrument	$ 0.1

DEBT (Schedule of Borrowings) (

DEBT (Schedule of Borrowings) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total borrowings	$ 904,846	$ 1,005,532
Less unamortized debt issuance costs	(8,307)	(4,627)
Add mark-to-market adjustment on assumed debt	357	393
Total debt, net (excluding debt related to assets held for sale)	896,896	1,001,298
Gross book value of properties encumbered by debt (8)	$ 562,809	$ 598,978
Weighted-Average Effective Interest Rate as of	3.77%	3.98%
Assets Held For Sale
Debt Instrument [Line Items]
Total borrowings	$ 1,003,446	$ 1,005,532
Weighted-Average Effective Interest Rate as of	3.91%	3.98%
Weighted average maturity of debt investments	3 years 5 months 4 days
Line of Credit
Debt Instrument [Line Items]
Total borrowings	$ 287,000	$ 131,000
Weighted-Average Effective Interest Rate as of	3.99%	4.05%
Current borrowing capacity	$ 163,000
Available portions under the line of credit	63,100
Term Loan
Debt Instrument [Line Items]
Total borrowings	350,000
Term Loan | Term Loan Due January 2024
Debt Instrument [Line Items]
Total borrowings	$ 150,000	$ 275,000
Weighted-Average Effective Interest Rate as of	3.11%	3.52%
Current borrowing capacity	$ 175,000
Available portions under the line of credit	175,000
Available increase to borrowing category	175,000
Maximum borrowing capacity	325,000
Term Loan | Term Loan Due February 2022
Debt Instrument [Line Items]
Total borrowings	$ 200,000	$ 200,000
Weighted-Average Effective Interest Rate as of	3.39%	3.79%
Fixed-Rate Mortgage Notes
Debt Instrument [Line Items]
Total borrowings	$ 140,846	$ 173,932
Weighted-Average Effective Interest Rate as of	3.68%	3.57%
Fixed-Rate Mortgage Notes | Preston Sherry Plaza
Debt Instrument [Line Items]
Total borrowings	$ 51,800
Outstanding borrowings spread over LIBOR	1.65%
Effective interest rate on debt	2.85%
Floating-Rate Mortgage Notes
Debt Instrument [Line Items]
Total borrowings	$ 127,000	$ 225,600
Weighted-Average Effective Interest Rate as of	4.74%	4.97%
Floating-Rate Mortgage Notes | Assets Held For Sale
Debt Instrument [Line Items]
Total borrowings	$ 98,600	$ 0
Weighted-Average Effective Interest Rate as of	5.24%	0.00%
Minimum | Line of Credit | LIBOR
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	1.30%
Minimum | Term Loan | LIBOR | Term Loan Due January 2024
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	1.25%
Minimum | Term Loan | LIBOR | Term Loan Due February 2022
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	1.25%
Maximum | Line of Credit | LIBOR
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	2.10%
Maximum | Term Loan | LIBOR | Term Loan Due January 2024
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	2.05%
Maximum | Term Loan | LIBOR | Term Loan Due February 2022
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	2.05%
Maximum | Floating-Rate Mortgage Notes | LIBOR
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR	2.25%	2.47%

DEBT (Summary of Borrowings Ref

DEBT (Summary of Borrowings Reflects Contractual Debt Maturities Footnote) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)extension	Dec. 31, 2018USD ($)
Debt Instrument [Line Items]
Total	$ 904,846	$ 1,005,532
Line of Credit
Debt Instrument [Line Items]
Remainder of 2019	0
2020	0
2021	0
2022	0
2023	287,000
Thereafter	0
Total	$ 287,000	131,000
Number of extension options | extension	2
Term of extension	6 months
Line of Credit | $200 Million Term
Debt Instrument [Line Items]
Number of extension options | extension	2
Term of extension	1 year
Term Loan
Debt Instrument [Line Items]
Remainder of 2019	$ 0
2020	0
2021	0
2022	200,000
2023	0
Thereafter	150,000
Total	350,000
Mortgage Notes
Debt Instrument [Line Items]
Remainder of 2019	1,989
2020	228,366
2021	11,627
2022	2,478
2023	47,967
Thereafter	74,019
Total	366,446
Mortgage Notes | Floating-Rate Mortgage Note Expiring in January 2020
Debt Instrument [Line Items]
Amount of debt instrument	$ 127,000
Number of extension options | extension	2
Term of extension	1 year
Assets Held For Sale
Debt Instrument [Line Items]
Remainder of 2019	$ 1,989
2020	228,366
2021	11,627
2022	202,478
2023	334,967
Thereafter	224,019
Total	$ 1,003,446	$ 1,005,532

DEBT (Gross Fair Value of Deriv

DEBT (Gross Fair Value of Derivative Financial Instruments) (Details) $ in Thousands	Jan. 31, 2020USD ($)contract	Mar. 31, 2019USD ($)contract	Dec. 31, 2018USD ($)contract
Derivatives, Fair Value [Line Items]
Number of Interest Rate Derivatives Held | contract		18	19
Total notional amount		$ 940,299	$ 973,015
Other Assets
Derivatives, Fair Value [Line Items]
Derivative Asset		3,020	6,717
Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability		$ 6,177	$ 3,220
Interest rate swap
Derivatives, Fair Value [Line Items]
Number of Interest Rate Derivatives Held | contract		14	15
Total notional amount		$ 601,849	$ 634,565
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		3,019	6,692
Interest rate swap | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability		$ 6,177	$ 3,220
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		1	25
Interest Rate Cap | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability		$ 0	$ 0

DEBT (Effect of Derivative Fina

DEBT (Effect of Derivative Financial Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
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	$ 13,374	$ 11,240
Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) gain recognized in income	(24)	53
Cash Flow Hedging | Designated Hedges
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) gain recognized in AOCI	(4,707)	3,971
(Gain) loss reclassified from AOCI into interest expense	(412)	704
Gain reclassified from AOCI due to hedged transactions becoming probable of not occurring	(1,374)	0
Total interest expense on the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$ 13,374	$ 11,240

FAIR VALUE (Details)

FAIR VALUE (Details) - Recurring - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets:
Derivative instruments	$ 3,020	$ 6,717
Total assets measured at fair value	3,020	6,717
Liabilities
Derivative instruments	6,177	3,220
Total liabilities measured at fair value	6,177	3,220
Level 2
Assets:
Derivative instruments	3,020	6,717
Total assets measured at fair value	3,020	6,717
Liabilities
Derivative instruments	6,177	3,220
Total liabilities measured at fair value	$ 6,177	$ 3,220

FAIR VALUE Schedule of Fair Val

FAIR VALUE Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - Level 3 - Nonrecurring - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Carrying Amount
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Debt-related investments	$ 2,702	$ 10,682
Line of credit	287,000	131,000
Term loans	350,000	475,000
Mortgage notes	366,446	399,532
Estimated Fair Value
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Debt-related investments	2,729	10,709
Line of credit	287,000	131,000
Term loans	350,000	475,000
Mortgage notes	$ 365,326	$ 398,117

STOCKHOLDERS_ EQUITY (Summary o

STOCKHOLDERS’ EQUITY (Summary of Public Offering) (Details) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)shares
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 43,911
Number of shares sold | shares	5,827
Class T
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 3,772
Number of shares sold | shares	492
Class S
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 24,996
Number of shares sold | shares	3,303
Class D
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 1,953
Number of shares sold | shares	263
Class I
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 10,872
Number of shares sold | shares	1,457
Class E
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 2,318
Number of shares sold | shares	312
Primary Offering
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 38,970
Number of shares sold | shares	5,165
Primary Offering | Class T
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 3,637
Number of shares sold | shares	474
Primary Offering | Class S
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 24,517
Number of shares sold | shares	3,239
Primary Offering | Class D
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 1,810
Number of shares sold | shares	244
Primary Offering | Class I
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 9,006
Number of shares sold | shares	1,208
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 | $	$ 4,941
Number of shares sold | shares	662
Drip Offering | Class T
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 135
Number of shares sold | shares	18
Drip Offering | Class S
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 479
Number of shares sold | shares	64
Drip Offering | Class D
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 143
Number of shares sold | shares	19
Drip Offering | Class I
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 1,866
Number of shares sold | shares	249
Drip Offering | Class E
Subsidiary, Sale of Stock [Line Items]
Amount of gross proceeds raised | $	$ 2,318
Number of shares sold | shares	312

STOCKHOLDERS_ EQUITY (Informati

STOCKHOLDERS’ EQUITY (Information of Share Transactions) (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Primary shares (in shares)		67
Class T
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	2,783	2,062
Primary shares (in shares)	474
Distribution reinvestment plan (in shares)	18	16
Redemptions of common stock (in shares)	(14)	(37)
Ending balance (in shares)	3,261	2,108
Class S
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	10,516	64
Primary shares (in shares)	3,239	1,524
Distribution reinvestment plan (in shares)	64	2
Redemptions of common stock (in shares)	(4)	0
Ending balance (in shares)	13,815	1,590
Class D
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	2,778	2,510
Primary shares (in shares)	244	23
Distribution reinvestment plan (in shares)	19	16
Redemptions of common stock (in shares)	(55)	(56)
Ending balance (in shares)	2,986	2,493
Class I
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	37,385	34,135
Primary shares (in shares)	1,208	1,016
Distribution reinvestment plan (in shares)	249	235
Stock-based compensation (in shares)	26	38
Redemptions of common stock (in shares)	(367)	(1,607)
Ending balance (in shares)	38,501	33,817
Class E
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	77,390	93,695
Distribution reinvestment plan (in shares)	312	372
Redemptions of common stock (in shares)	(2,511)	(5,615)
Ending balance (in shares)	75,191	88,452
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	130,852	132,466
Primary shares (in shares)	5,165	2,630
Distribution reinvestment plan (in shares)	662	641
Stock-based compensation (in shares)	26	38
Redemptions of common stock (in shares)	(2,951)	(7,315)
Ending balance (in shares)	133,754	128,460

STOCKHOLDERS_ EQUITY (Total Dis

STOCKHOLDERS’ EQUITY (Total Distributions Declared and Portion of Each Contribution Paid in Cash and Reinvested) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended					12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2018
Equity [Abstract]
Declared per Common Share (usd per share)	$ 0.09375	$ 0.09375	$ 0.09375	$ 0.09375	$ 0.09375	$ 0.37500
Common Stock Distributions Paid in Cash	$ 7,198	$ 7,180	$ 7,157	$ 7,137	$ 7,240	$ 28,714
Other Cash Distributions	1,244	1,202	1,174	1,221	1,127	4,724
Reinvested in Shares	4,997	4,814	4,738	4,710	4,789	19,051
Total Distributions	$ 13,439	$ 13,196	$ 13,069	$ 13,068	$ 13,156	$ 52,489

STOCKHOLDERS_ EQUITY (Redemptio

STOCKHOLDERS’ EQUITY (Redemption Table) (Details) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Equity [Abstract]
Number of shares requested for redemption or repurchase	2,951	7,315
Number of shares redeemed or repurchased	2,951	7,315
% of shares requested that were redeemed or repurchased	100.00%	100.00%
Average redemption or repurchase price per share (usd per share)	$ 7.45	$ 7.43

RELATED PARTY TRANSACTIONS (Sum

RELATED PARTY TRANSACTIONS (Summary of Fees and Other Amounts Earned by Advisor) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Related Party Transaction [Line Items]
Related party transaction expense	$ 7,692	$ 6,493
Payable as of	1,526		$ 4,712
Upfront selling commissions (1)
Related Party Transaction [Line Items]
Related party transaction expense	485	136
Payable as of	0		0
Ongoing distribution fees (1)
Related Party Transaction [Line Items]
Related party transaction expense	256	55
Payable as of	95		76
Advisory fees
Related Party Transaction [Line Items]
Related party transaction expense	2,905	3,640
Payable as of	1,000		3,225
Other expense reimbursements—Advisor
Related Party Transaction [Line Items]
Related party transaction expense	2,345	2,401
Payable as of	431		1,411
Other expense reimbursements—Dealer Manager
Related Party Transaction [Line Items]
Related party transaction expense	247	72
Payable as of	0		0
DST Program advisory fees
Related Party Transaction [Line Items]
Related party transaction expense	223	39
Payable as of	0		0
DST Program selling commissions
Related Party Transaction [Line Items]
Related party transaction expense	494	108
Payable as of	0		0
DST Program dealer manager fees
Related Party Transaction [Line Items]
Related party transaction expense	115	32
Payable as of	0		0
DST Program other reimbursements—Dealer Manager
Related Party Transaction [Line Items]
Related party transaction expense	201	10
Payable as of	0		0
DST Program facilitation and loan origination fees
Related Party Transaction [Line Items]
Related party transaction expense	421	$ 0
Payable as of	$ 0		$ 0

RELATED PARTY TRANSACTIONS (Sch

RELATED PARTY TRANSACTIONS (Schedule of RSU Grants) (Details) - Class I - Company Advisor - Restricted Stock Units (RSUs) - Feb 4, 2016 Grant shares in Thousands	Mar. 31, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Unvested Shares (shares) | shares	57
Grant Date NAV per Class I share (usd per share) | $ / shares	$ 7.41

NET INCOME (LOSS) PER COMMON _3

NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Net income (loss) attributable to common stockholders—basic	$ 3,602	$ (8,635)
Net income (loss) attributable to OP Units	284	(756)
Net income (loss) attributable to common stockholders—diluted	$ 3,886	$ (9,391)
Weighted-average shares outstanding—basic	132,847	128,946
Incremental weighted-average shares effect of conversion of OP Units	10,482	11,306
Weighted-average shares outstanding—diluted	143,329	140,252
Basic (usd per share)	$ 0.03	$ (0.07)
Diluted (usd per share)	$ 0.03	$ (0.07)

SUPPLEMENTAL CASH FLOW INFORM_3

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Noncash Investing and Financing Items [Abstract]
Distributions reinvested in common stock	$ 4,941	$ 4,774
Change in accrued future ongoing distribution fees	1,903	896
Supplemental Cash Flow Information [Abstract]
Cash and cash equivalents	13,058	13,989	$ 10,008	$ 10,475
Restricted cash	6,607	7,341	7,030	8,541
Cash, cash equivalents and restricted cash	$ 19,665	$ 21,330	$ 17,038	$ 19,016

SEGMENT FINANCIAL INFORMATION_2

SEGMENT FINANCIAL INFORMATION (Schedule of Total Assets by Business Segment) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)segment	Dec. 31, 2018USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment	3
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 1,591,195	$ 1,581,102
Operating Segments | Office
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	723,828	724,875
Operating Segments | Retail
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	667,440	671,007
Operating Segments | Industrial
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	131,290	111,230
Corporate
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 68,637	$ 73,990

SEGMENT FINANCIAL INFORMATION_3

SEGMENT FINANCIAL INFORMATION (Revenue and Components of Net Operating Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Rental revenues	$ 50,571	$ 44,454
Rental expenses	(16,069)	(15,830)
Net operating income	34,502	28,624
Real estate-related depreciation and amortization	14,243	13,813
Office
Segment Reporting Information [Line Items]
Rental revenues	29,724	24,425
Rental expenses	(10,860)	(11,007)
Net operating income	18,864	13,418
Real estate-related depreciation and amortization	8,175	7,885
Industrial
Segment Reporting Information [Line Items]
Rental revenues	2,800	1,430
Rental expenses	(651)	(225)
Net operating income	2,149	1,205
Real estate-related depreciation and amortization	1,345	638
Retail
Segment Reporting Information [Line Items]
Rental revenues	18,047	18,599
Rental expenses	(4,558)	(4,598)
Net operating income	13,489	14,001
Real estate-related depreciation and amortization	$ 4,723	$ 5,290

SEGMENT FINANCIAL INFORMATION_4

SEGMENT FINANCIAL INFORMATION (Reconciliation of Net Operating Income to Reported Net Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Reconciliation of net operating income attributable to common shareholders
Net income (loss) attributable to common stockholders	$ 3,602	$ (8,635)
Debt-related income	(123)	(173)
Real estate-related depreciation and amortization	14,243	13,813
General and administrative expenses	2,044	2,534
Advisory fees, related party	3,128	3,679
Impairment of real estate property	0	6,800
Other expense	143	122
Interest expense	13,374	11,240
Gain on sale of real estate property	(1,191)	0
Gain on extinguishment of debt and financing commitments, net	(1,002)	0
Net income (loss) attributable to noncontrolling interests	284	(756)
Net operating income	$ 34,502	$ 28,624

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands	May 06, 2019	Apr. 16, 2019	Mar. 31, 2019	Dec. 31, 2018
Subsequent Event [Line Items]
Total borrowings			$ 904,846	$ 1,005,532
Weighted-average effective interest rate			3.77%	3.98%
Floating-Rate Mortgage Notes
Subsequent Event [Line Items]
Total borrowings			$ 127,000	$ 225,600
Weighted-average effective interest rate			4.74%	4.97%
Assets Held For Sale
Subsequent Event [Line Items]
Net investment in real estate properties			$ 141,689	$ 0
Total borrowings			$ 1,003,446	$ 1,005,532
Weighted-average effective interest rate			3.91%	3.98%
Assets Held For Sale | Floating-Rate Mortgage Notes
Subsequent Event [Line Items]
Total borrowings			$ 98,600	$ 0
Weighted-average effective interest rate			5.24%	0.00%
Subsequent Event | Rockville, Maryland [Member]
Subsequent Event [Line Items]
Purchase price	$ 93,500
Rialto | Subsequent Event | Austin, Texas
Subsequent Event [Line Items]
Gross proceeds received		$ 46,900
Net investment in real estate properties		$ 33,200
655 Montgomery | Subsequent Event | San Francisco, California
Subsequent Event [Line Items]
Gross proceeds received	191,500
655 Montgomery | Subsequent Event | Assets Held For Sale | Floating-Rate Mortgage Notes | San Francisco, California
Subsequent Event [Line Items]
Net investment in real estate properties	108,500
Total borrowings	$ 98,600
Weighted-average effective interest rate	5.23%

Uncategorized Items - ck0001327

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