KBS Real Estate Investment Trust 10-Q 13 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2015	Aug. 07, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	KBS Real Estate Investment Trust, Inc.
Entity Central Index Key	1,330,622
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		187,063,080

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Real estate held for investment:
Land	$ 265,278	$ 265,278
Buildings and improvements	812,033	800,876
Tenant origination and absorption costs	77,478	79,050
Total real estate held for investment, at cost and net of impairment charges	1,154,789	1,145,204
Less accumulated depreciation and amortization	(196,120)	(175,047)
Total real estate held for investment, net	958,669	970,157
Real estate held for sale, net	0	148,354
Foreclosed real estate held for sale	0	12,045
Total real estate, net	958,669	1,130,556
Real estate loans receivable, net	29,335	28,922
Total real estate and real estate-related investments, net	988,004	1,159,478
Cash and cash equivalents	133,609	58,675
Restricted cash	50,212	62,755
Rents and other receivables, net	35,235	37,604
Above-market leases, net	19,582	21,678
Assets related to real estate held for sale	0	10,462
Deferred financing costs, prepaid expenses and other assets, net	23,773	25,515
Total assets	1,250,415	1,376,167
Notes payable:
Notes payable	534,744	578,129
Notes payable related to real estate held for sale	0	79,969
Total notes payable	534,744	658,098
Accounts payable and accrued liabilities	23,671	22,579
Due to affiliates	33	444
Distributions payable	0	4,699
Below-market leases, net	32,715	38,075
Liabilities related to real estate held for sale	0	3,087
Other liabilities	30,620	36,412
Total liabilities	$ 621,783	$ 763,394
Commitments and contingencies (Note 13)
Redeemable common stock	$ 6,891	$ 10,000
Stockholders’ equity
Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $.01 par value; 1,000,000,000 shares authorized, 187,157,793 and 187,845,515 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively	1,872	1,879
Additional paid-in capital	1,662,490	1,662,483
Cumulative distributions and net losses	(1,042,621)	(1,061,589)
Total stockholders’ equity	621,741	602,773
Total liabilities and stockholders' equity	$ 1,250,415	$ 1,376,167

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	187,157,793	187,845,515
Common stock, shares outstanding	187,157,793	187,845,515

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Rental income	$ 32,432	$ 38,618	$ 67,797	$ 77,762
Tenant reimbursements	11,133	14,073	23,688	27,131
Interest income from real estate loans receivable	741	814	1,467	1,615
Parking revenues and other operating income	660	956	1,592	1,960
Total revenues	44,966	54,461	94,544	108,468
Expenses:
Operating, maintenance, and management	17,843	21,431	39,833	42,830
Real estate taxes, property-related taxes, and insurance	5,865	6,758	12,646	14,198
Asset management fees to affiliate	2,346	2,530	4,766	5,029
General and administrative expenses	6,047	3,685	8,277	7,329
Depreciation and amortization	14,205	17,961	29,810	35,884
Interest expense	8,084	13,036	16,816	26,581
Impairment charge on real estate held for investment	0	939	0	2,196
Provision for Loan and Lease Losses	0	1,973	0	1,973
Total expenses	54,390	68,313	112,148	136,020
Other income and loss
Gain on sales of real estate securities (includes $0.7 million and $4.5 million of unrealized gains reclassified from accumulated other comprehensive income during the three and six months ended June 30, 2014, respectively)	0	662	0	4,410
Gain on sales of real estate, net	35,093	2,041	49,059	2,041
Gain on sales of foreclosed real estate held for sale	0	0	2,509	0
Gain from extinguishment of debt	(6,385)	3,297	(6,376)	5,112
Other interest income	120	130	241	297
Other income	354	62	349	365
Total other income	29,182	6,192	45,782	12,225
Income (loss) from continuing operations	19,758	(7,660)	28,178	(15,327)
Discontinued operations:
Gain on sales of real estate, net	0	89	124	3,006
(Loss) income from discontinued operations	(7)	0	38	234
Impairment charges on discontinued operations	0	(81)	0	(81)
Total (loss) income from discontinued operations	(7)	8	162	3,159
Net income (loss)	$ 19,751	$ (7,652)	$ 28,340	$ (12,168)
Basic and diluted income (loss) per common share:
Continuing operations (in dollars per share)	$ 0.11	$ (0.04)	$ 0.15	$ (0.08)
Discontinued operations (in dollars per share)	0	0	0	0.02
Net income (loss) per common share (in dollars per share)	$ 0.11	$ (0.04)	$ 0.15	$ (0.06)
Weighted-average number of common shares outstanding, basic and diluted	187,389,195	189,152,147	187,552,869	189,316,544

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - Jun. 30, 2014 - USD ($) $ in Millions	Total	Total
Income Statement [Abstract]
Unrealized gains on real estate securities reclassified from accumulated other comprehensive income	$ 0.7	$ 4.5

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 19,751	$ (7,652)	$ 28,340	$ (12,168)
Other comprehensive loss
Reclassification of realized gain on real estate securities	0	(669)	0	(4,452)
Unrealized change in market value of real estate securities	0	36	0	(100)
Total other comprehensive loss	0	(633)	0	(4,552)
Total comprehensive income (loss)	$ 19,751	$ (8,285)	$ 28,340	$ (16,720)

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Cumulative Distributions and Net Income (Loss) [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance, shares at Dec. 31, 2013		189,616,701
Balance at Dec. 31, 2013	$ 645,893	$ 1,896	$ 1,670,356	$ (1,030,911)	$ 4,552
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(21,266)			(21,266)
Other comprehensive income	(4,552)				(4,552)
Redemptions of common stock, shares		(1,771,186)
Redemptions of common stock	(7,890)	$ (17)	(7,873)
Distributions declared	$ (9,412)			(9,412)
Balance, shares at Dec. 31, 2014	187,845,515	187,845,515
Balance at Dec. 31, 2014	$ 602,773	$ 1,879	1,662,483	(1,061,589)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	28,340			28,340
Other comprehensive income	0
Redemptions of common stock, shares		(687,722)
Redemptions of common stock	(3,108)	$ (7)	(3,101)
Transfers from redeemable common stock	3,108		3,108
Distributions declared	$ (9,372)			(9,372)
Balance, shares at Jun. 30, 2015	187,157,793	187,157,793
Balance at Jun. 30, 2015	$ 621,741	$ 1,872	$ 1,662,490	$ (1,042,621)	$ 0

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows from Operating Activities:
Net income (loss)	$ 28,340	$ (12,168)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	29,810	35,884
Impairment charge on real estate - continuing operations	0	2,196
Impairment charge on real estate - discontinued operations	0	81
Noncash interest income on real estate-related investments	(491)	(504)
Increase (decrease) in provision for loan losses	0	1,973
Deferred rent	(935)	(1,731)
Bad debt expense	368	1,617
Amortization of deferred financing costs	1,259	756
Deferred interest	0	597
Amortization of above- and below-market leases, net	(4,081)	(4,267)
Gain on sales of foreclosed real estate held for sale	(2,509)	0
Gain on sales of real estate, net	(49,183)	(5,047)
Gain on sales of real estate securities	0	(4,410)
Loss (gain) on extinguishment of debt	6,376	(5,112)
Amortization of discounts and premiums on notes payable, net	867	2,137
Changes in operating assets and liabilities:
Restricted cash for operational expenditures	8,030	9,559
Rents and other receivables	3,020	(4,008)
Prepaid expenses and other assets	(575)	(1,642)
Accounts payable and accrued liabilities	3,454	(815)
Due to affiliates	(12)	0
Other liabilities	(5,693)	(4,060)
Net cash provided by operating activities	18,045	11,036
Cash Flows from Investing Activities:
Improvements to real estate	(19,024)	(10,331)
Proceeds from sales of real estate, net	204,943	86,753
Proceeds from sales of foreclosed real estate held for sale	14,155	0
Principal repayments on real estate loans receivable	78	70
Proceeds from sale of real estate securities	0	7,831
Net change in restricted cash for capital expenditures	3,735	(248)
Net cash provided by investing activities	203,887	84,075
Cash Flows from Financing Activities:
Proceeds from notes payable	0	42,500
Principal payments on notes payable	(126,207)	(251,799)
Prepayment premium on the repayment of debt	(4,390)	0
Net change in restricted cash for debt service obligations	778	587
Payments of deferred financing costs	0	(1,730)
Payments to redeem common stock	(3,108)	(3,152)
Distributions paid to common stockholders	(14,071)	0
Net cash used in financing activities	(146,998)	(213,594)
Net increase (decrease) in cash and cash equivalents	74,934	(118,483)
Cash and cash equivalents, beginning of period	58,675	211,391
Cash and cash equivalents, end of period	$ 133,609	$ 92,908

ORGANIZATION

ORGANIZATION	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION KBS Real Estate Investment Trust, Inc. (the “Company”) was formed on June 13, 2005 as a Maryland corporation and has elected to be taxed as a real estate investment trust (“REIT”). Substantially all of the Company’s assets are held by, and the Company conducts substantially all of its operations through, KBS Limited Partnership, a Delaware limited partnership (the “Operating Partnership”), and its subsidiaries. The Company is the sole general partner of and directly owns a 99% partnership interest in the Operating Partnership. The Company’s wholly owned subsidiary, KBS REIT Holdings LLC, a Delaware limited liability company (“KBS REIT Holdings”), owns the remaining 1% partnership interest in the Operating Partnership and is its sole limited partner. The Company invested in a diverse portfolio of real estate and real estate-related investments. As of June 30, 2015 , the Company owned or, with respect to a limited number of properties, held a leasehold interest in, 392 real estate properties, including the GKK Properties (defined below). In addition, as of June 30, 2015 , the Company owned four real estate loans receivable and a participation interest with respect to a real estate joint venture. On September 1, 2011, the Company, through indirect wholly owned subsidiaries (collectively, “KBS”), entered into a Collateral Transfer and Settlement Agreement (the “Settlement Agreement”) with, among other parties, GKK Stars Acquisition LLC (“GKK Stars”), the wholly owned subsidiary of Gramercy Property Trust, Inc. (“Gramercy”) that indirectly owned the Gramercy real estate portfolio, to effect the orderly transfer of certain assets and liabilities of the Gramercy real estate portfolio to KBS in satisfaction of certain debt obligations under a mezzanine loan owed by wholly owned subsidiaries of Gramercy to KBS (the “GKK Mezzanine Loan”). The Settlement Agreement resulted in the transfer of the equity interests in certain subsidiaries of Gramercy (the “Equity Interests”) that indirectly owned or, with respect to a limited number of properties, held a leasehold interest in, 867 properties (the “GKK Properties”), consisting of 576 bank branch properties and 291 office buildings, operations centers and other properties. As of December 15, 2011, GKK Stars had transferred all of the Equity Interests to the Company, giving the Company title to or, with respect to a limited number of GKK Properties, a leasehold interest in, 867 GKK Properties as of that date. Subject to certain restrictions and limitations, the business of the Company is managed by KBS Capital Advisors LLC (the “Advisor”), an affiliate of the Company, pursuant to an advisory agreement with the Company (as amended, the “Advisory Agreement”) in effect through November 8, 2015. The Advisory Agreement may be renewed for an unlimited number of one -year periods upon the mutual consent of the Advisor and the Company. Either party may terminate the Advisory Agreement upon 60 days written notice. The Advisor owns 20,000 shares of the Company’s common stock. Upon commencing its initial public offering (the “Offering”), the Company retained KBS Capital Markets Group LLC (the “Dealer Manager”), an affiliate of the Advisor, to serve as the dealer manager of the Offering pursuant to a dealer manager agreement dated January 27, 2006 (the “Dealer Manager Agreement”). The Company ceased offering shares of common stock in its primary offering on May 30, 2008. The Company terminated its dividend reinvestment plan effective April 10, 2012. The Company sold 171,109,494 shares of common stock in its primary offering for gross offering proceeds of $1.7 billion . The Company sold 28,306,086 shares of common stock under its dividend reinvestment plan for gross offering proceeds of $233.7 million . As of June 30, 2015 , the Company had redeemed 12,277,787 of the shares sold in the Offering for $88.6 million . Asset Management Services Agreement Related to the GKK Properties On December 19, 2013, the Company, through an indirect wholly owned subsidiary (“KBS Acquisition Sub”), entered into an amended and restated asset management services agreement (the “Amended Services Agreement”) with GKK Realty Advisors LLC (the “Property Manager”), an affiliate of Gramercy, with respect to the GKK Properties. The effective date of the Amended Services Agreement was December 1, 2013. Pursuant to the Amended Services Agreement, the Property Manager agreed to provide, among other services: standard asset management services, assistance related to dispositions, accounting services and budgeting and business plans for the GKK Properties (the “Services”). The Property Manager is not affiliated with the Company or KBS Acquisition Sub. As compensation for the Services, the Company agreed to pay the Property Manager: (i) an annual fee of $7.5 million plus all GKK Property-related expenses incurred by the Property Manager, (ii) subject to certain terms and conditions in the Amended Services Agreement, a profit participation interest based on a percentage (ranging from 10% to 30% ) of the amount by which the gross fair market value or gross sales price of certain identified portfolios of GKK Properties exceeds the sum of (a) an agreed-upon baseline value for such GKK Property portfolios plus (b) new capital expended to increase the value of GKK Properties within the portfolios and expenditures made to pay for tenant improvements and leasing commissions related to these GKK Properties as of the measurement date, and (iii) a monthly construction oversight fee equal to a percentage of construction costs for certain construction projects at the GKK Properties overseen by the Property Manager. The Amended Services Agreement will terminate on December 31, 2016, with a one -year extension option at the Company’s option, subject to certain terms and conditions contained in the Amended Services Agreement. The Amended Services Agreement supersedes and replaces all prior agreements related to the Services among the Company and its affiliates and the Property Manager and its affiliates.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2014 . For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC. Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . The consolidated financial statements include the accounts of the Company, KBS REIT Holdings, the Operating Partnership and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. Reclassifications Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods. During the six months ended June 30, 2015 , the Company sold six properties (of which four were GKK Properties), two of which were held for sale as of December 31, 2014. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented. Operating results of properties that were classified as held for sale in financial statements prior to January 1, 2014 will remain in discontinued operations on the Company’s consolidated statements of operations. Operating results of properties that were disposed of or classified as held for sale in the ordinary course of business subsequent to January 1, 2014 that had not been classified as held for sale in financial statements issued for the reporting periods prior to January 1, 2014 are included in continuing operations on the Company’s consolidated statements of operations. Per Share Data Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding during the three and six months ended June 30, 2015 and 2014 , respectively. Distributions declared per share of common stock were $0.025 and $0.050 for the three and six months ended June 30, 2015 , respectively. On March 6, 2015, the Company’s board of directors declared a distribution in the amount of $0.025 per share of common stock to stockholders of record as of the close of business on March 20, 2015. On May 13, 2015, the Company’s board of directors declared a distribution in the amount of $0.025 per share of common stock to stockholders of record as of the close of business on June 19, 2015. No distributions were declared during the three and six months ended June 30, 2014 . Segments The Company’s segments are based on the Company’s method of internal reporting, which classifies its operations by investment type: (i) real estate, (ii) real estate-related and (iii) commercial properties primarily leased to financial institutions received under the Settlement Agreement, the GKK Properties. For financial data by segment, see Note 12, “Segment Information.” Recently Issued Accounting Standards Update In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). ASU No. 2014-09 requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU No. 2014-09 supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU No. 2014-09 does not apply to lease contracts within the scope of Leases (Topic 840) . ASU No. 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. On July 9, 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year. Early adoption is permitted but not before the original effective date. The Company is still evaluating the impact of adopting ASU No. 2014-09 on its financial statements, but does not expect the adoption of ASU No. 2014-09 to have a material impact on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”). The amendments in ASU No. 2014-15 require management to evaluate, for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued when applicable) and, if so, provide related disclosures. ASU No. 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect the adoption of ASU No. 2014-15 to have a significant impact on its financial statements. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU No. 2015-01”). The amendments in ASU No. 2015-01 eliminate from GAAP the concept of extraordinary items. Although the amendments will eliminate the requirements in Subtopic 225-20 for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU No. 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU No. 2015-01 to have a significant impact on its financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs (“ASU No. 2015-03”). The amendments in ASU No. 2015-03 require debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. ASU No. 2015-03 is limited to the presentation of debt issuance costs and does not affect the recognition and measurement of debt issuance costs. ASU No. 2015-03 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and is to be applied retrospectively. Early adoption is permitted for financial statements that have not been previously issued. The adoption of ASU No. 2015-03 would change the presentation of debt issuance costs as the Company presents debt issuance costs as deferred financing costs, prepaid expenses and other assets, net on the accompanying consolidated balance sheets.

REAL ESTATE HELD FOR INVESTMENT

REAL ESTATE HELD FOR INVESTMENT	6 Months Ended
	Jun. 30, 2015
Real Estate Held for Investment [Abstract]
REAL ESTATE HELD FOR INVESTMENT	REAL ESTATE HELD FOR INVESTMENT As of June 30, 2015 , the Company’s portfolio of real estate held for investment, including the GKK Properties, was composed of approximately 9.2 million rentable square feet and was 80% occupied. These properties are located in 31 states and include office properties, industrial properties and bank branch properties. Included in the Company’s portfolio of real estate held for investment was 5.7 million rentable square feet related to the GKK Properties held for investment, which were 81% occupied as of June 30, 2015 . The following table summarizes the Company’s investments in real estate as of June 30, 2015 and December 31, 2014 (in thousands): Land Buildings and Improvements Tenant Origination and Absorption Costs Total Real Estate Held for Investment As of June 30, 2015: Office $ 68,178 $ 410,719 $ 1,563 $ 480,460 Industrial 16,787 82,667 2,244 101,698 GKK Properties 180,313 318,647 73,671 572,631 Real estate held for investment, at cost and net of impairment charges 265,278 812,033 77,478 1,154,789 Accumulated depreciation/amortization — (158,793 ) (37,327 ) (196,120 ) Real estate held for investment, net $ 265,278 $ 653,240 $ 40,151 $ 958,669 As of December 31, 2014: Office $ 68,178 $ 401,083 $ 1,825 $ 471,086 Industrial 16,787 80,565 3,137 100,489 GKK Properties 180,313 319,228 74,088 573,629 Real estate held for investment, at cost and net of impairment charges 265,278 800,876 79,050 1,145,204 Accumulated depreciation/amortization — (141,306 ) (33,741 ) (175,047 ) Real estate held for investment, net $ 265,278 $ 659,570 $ 45,309 $ 970,157 Operating Leases The Company’s real estate assets are leased to tenants under operating leases for which the terms and expirations vary. As of June 30, 2015 , the Company’s leases, including the GKK Properties held for investment and excluding options to extend, had remaining terms of up to 11.7 years with a weighted-average remaining term of 4.6 years. As of June 30, 2015 , leases related to the GKK Properties, excluding options to extend, had remaining terms of up to 11.7 years with a weighted-average remaining term of 4.6 years. Some of the Company’s leases have provisions to extend the term of the leases, options for early termination for all or a part of the leased premises after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other terms and conditions as negotiated. Additionally, the Company assumed several leases related to the GKK Properties which contain shedding rights provisions. As of June 30, 2015 , these shedding rights totaled approximately 33,000 square feet and can be exercised at various dates during the remainder of 2015 through 2016. Pursuant to these rights, as of June 30, 2015 , a tenant had notified the Company of its intent to shed 30,000 square feet from its leased premises in September 2015. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires a security deposit from the tenant in the form of a cash deposit and/or a letter of credit. The amount required as a security deposit varies depending upon the terms of the respective lease and the creditworthiness of the tenant, but generally is not a significant amount. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled $2.9 million and $3.0 million as of June 30, 2015 and December 31, 2014 , respectively. During the six months ended June 30, 2015 and 2014 , the Company recognized deferred rent from tenants of $0.9 million and $1.7 million , respectively. These excess amounts for the six months ended June 30, 2015 and 2014 were net of $0.7 million and $0.7 million of lease incentive amortization, respectively. As of June 30, 2015 and December 31, 2014 , the cumulative deferred rent balance was $29.5 million and $27.4 million , respectively, and is included in rents and other receivables on the accompanying balance sheets. The cumulative deferred rent balance included $6.2 million and $5.7 million of unamortized lease incentives as of June 30, 2015 and December 31, 2014 , respectively. The Company records property operating expense reimbursements due from tenants for common area maintenance, real estate taxes and other recoverable costs in the period the related expenses are incurred. The future minimum rental income from the Company’s properties under non-cancelable operating leases, including leases subject to shedding rights and excluding options to extend, as of June 30, 2015 for the years ending December 31 is as follows (in thousands): July 1, 2015 through December 31, 2015 $ 56,749 2016 113,907 2017 105,101 2018 92,065 2019 77,383 Thereafter 198,008 $ 643,213 As of June 30, 2015 , the Company’s highest tenant industry concentration (greater than 10% of annualized base rent) was as follows: Industry Number of Tenants Annualized (1) (in thousands) Percentage of Annualized Base Rent Finance 72 $ 56,839 48.6 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2015 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease's inception through the balance of the lease term. As of June 30, 2015 , no other tenant industries accounted for more than 10% of the Company’s annualized base rent. The Company currently has approximately 350 tenants over a diverse range of industries and geographical regions. As of June 30, 2015 and December 31, 2014 , the Company had a bad debt expense reserve of $1.2 million and $1.1 million , respectively. The Company’s bad debt expense reserve as of June 30, 2015 and December 31, 2014 included $0.8 million and $0.9 million related to the GKK Properties, respectively. During the six months ended June 30, 2015 and 2014 , the Company recorded bad debt expense related to its tenant receivables of $0.4 million and $1.5 million , respectively. As of June 30, 2015 , the Company had a concentration of credit risk related to leases with the following tenant that represented more than 10% of the Company’s annualized base rent: Annualized Base Rent Statistics Tenant Property Tenant Industry Rentable Square Feet % of Portfolio Rentable Square Feet Annualized Base Rent (1) (in thousands) % of Portfolio Annualized Base Rent Annualized Base Rent per Square Foot Lease Expirations Bank of America, N.A. Various Finance 2,811,855 30.7 % $ 22,494 19.2 % $ 8.00 (2) _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2015 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. (2) As of June 30, 2015 , lease expiration dates ranged from the remainder of 2015 through 2026 with a weighted-average remaining term of 4.6 years. Bank of America Corporation is the guarantor of various leases that its subsidiary, Bank of America, N.A., has with the Company. The condensed consolidated financial information of Bank of America Corporation has been included herein because of the significant credit concentration the Company has with this guarantor. Bank of America Corporation currently files its financial statements in reports filed with the SEC, and the following unaudited summary financial data regarding Bank of America Corporation is taken from its previously filed public reports. For more detailed financial information regarding Bank of America Corporation, please refer to its financial statements, which are publicly available with the SEC at http:// www.sec.gov. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Consolidated Statements of Income (in millions) Total revenue, net of interest expense $ 22,117 $ 21,747 $ 43,319 $ 44,313 Income before income taxes 7,519 2,795 12,261 2,114 Net income (loss) 5,320 2,291 8,677 2,015 As of June 30, 2015 December 31, 2014 Consolidated Balance Sheets (in millions) Total assets $ 2,149,034 $ 2,104,534 Total liabilities 1,897,375 1,861,063 Total stockholders’ equity 251,659 243,471 No other tenant represented more than 10% of the Company’s annualized base rent. Geographic Concentration Risk As of June 30, 2015 , the Company’s net investments in real estate in Virginia represented 10.3% of the Company’s total assets. As a result, the geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in Virginia’s real estate market. Any adverse economic or real estate developments in this market, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for office or bank branch space resulting from the local business climate, could adversely affect the Company’s operating results.

TENANT ORIGINATION AND ABSORPTI

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	6 Months Ended
	Jun. 30, 2015
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES As of June 30, 2015 and December 31, 2014 , the Company’s tenant origination and absorption costs, above-market lease assets, and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Cost, net of impairments $ 77,478 $ 79,050 $ 32,685 $ 32,796 $ (70,667 ) $ (71,141 ) Accumulated amortization (37,327 ) (33,741 ) (13,103 ) (11,118 ) 37,952 33,066 Net Amount $ 40,151 $ 45,309 $ 19,582 $ 21,678 $ (32,715 ) $ (38,075 ) Increases (decreases) in net income as a result of amortization of the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities for the three and six months ended June 30, 2015 and 2014 were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Three Months Ended June 30, For the Three Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 2015 2014 Amortization $ (2,581 ) $ (3,993 ) $ (1,303 ) $ (1,001 ) $ 3,594 $ 3,094 Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Six Months Ended June 30, For the Six Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 2015 2014 Amortization $ (5,405 ) $ (7,827 ) $ (2,158 ) $ (2,009 ) $ 6,239 $ 6,115

REAL ESTATE LOANS RECEIVABLE

REAL ESTATE LOANS RECEIVABLE	6 Months Ended
	Jun. 30, 2015
Receivables [Abstract]
REAL ESTATE LOANS RECEIVABLE	REAL ESTATE LOANS RECEIVABLE As of June 30, 2015 and December 31, 2014 , the Company, through indirect wholly owned subsidiaries, had invested in or originated real estate loans receivable as follows (dollars in thousands): Loan Name Location of Related Property or Collateral Date Acquired/ Originated Property Type Loan Type Outstanding Principal Balance as of June 30, 2015 (1) Book Value as of June 30, 2015 (2) Book Value as of December 31, 2014 (2) Contractual Interest Rate (3) Annualized Effective Interest Rate (3) Maturity Date Sandmar Mezzanine Loan Southeast U.S. (4) 01/09/2007 Retail Mezzanine $ 5,110 $ 5,132 $ 5,181 5.4% — % 01/01/2017 Lawrence Village Plaza Loan Origination New Castle, Pennsylvania 08/06/2007 Retail Mortgage 6,917 6,917 6,920 8.0% 8.1 % 09/01/2015 San Diego Office Portfolio B-Note San Diego, California (5) 10/26/2007 Office B-Note 20,000 17,849 17,450 5.8% 11.2 % 10/11/2017 4929 Wilshire B-Note Los Angeles, California 11/19/2007 Office B-Note 3,860 3,431 3,365 6.1% 12.4 % 07/11/2017 $ 35,887 $ 33,329 $ 32,916 Reserve for Loan Losses (6) — (3,994 ) (3,994 ) $ 35,887 $ 29,335 $ 28,922 _____________________ (1) Outstanding principal balance as of June 30, 2015 represents original principal balance outstanding under the loan, increased for any subsequent fundings and reduced for any principal paydowns. (2) Book value represents outstanding principal balance, adjusted for unamortized acquisition discounts, origination fees and direct origination and acquisition costs. Loan balances are presented gross of any asset-specific reserves. (3) Contractual interest rate is the stated interest rate on the face of the loan. Annualized effective interest rate is calculated as the actual interest income recognized in 2015, using the interest method, annualized and divided by the average amortized cost basis of the investment during 2015. The contractual interest rates and annualized effective interest rates presented are as of June 30, 2015 . (4) The Company had recorded an asset-specific loan loss reserve against this investment as of June 30, 2015 . See “—Reserve for Loan Losses.” (5) The borrower under this note is a wholly owned subsidiary of the Irvine Company. Donald Bren, who is the brother of Peter Bren (one of the Company’s executive officers and sponsors), is the chairman of the Irvine Company. During the six months ended June 30, 2015 , the Company recognized $1.0 million of interest income related to its investment in this loan. (6) See “—Reserve for Loan Losses.” As of June 30, 2015 and December 31, 2014 , interest receivable from real estate loans receivable was $0.1 million and $0.1 million , respectively, and is included in rents and other receivables. The following summarizes the activity related to real estate loans receivable for the six months ended June 30, 2015 (in thousands): Real estate loans receivable, net - December 31, 2014 $ 28,922 Principal repayments received on real estate loans receivable (78 ) Accretion of discounts on purchased real estate loans receivable 506 Amortization of origination fees and costs on purchased and originated real estate loans receivable (15 ) Real estate loans receivable, net - June 30, 2015 $ 29,335 For the three and six months ended June 30, 2015 and 2014 , interest income from real estate loans receivable consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Contractual interest income $ 491 $ 558 $ 976 $ 1,111 Interest accretion 258 265 506 522 Amortization of origination fees and costs (8 ) (9 ) (15 ) (18 ) Interest income from real estate loans receivable $ 741 $ 814 $ 1,467 $ 1,615 The Company generally recognizes income on impaired loans on either a cash basis, where interest income is only recorded when received in cash, or on a cost-recovery basis, where all cash receipts are applied against the carrying value of the loan. The Company will resume the accrual of interest if it determines the collection of interest according to the contractual terms of the loan is probable. The Company considers the collectibility of the loan’s principal balance in determining whether to recognize income on impaired loans on a cash basis or a cost-recovery basis. Beginning in July 2014, interest income received on the Sandmar Mezzanine Loan was recorded on a cost-recovery basis. During the six months ended June 30, 2014 , the Company recognized $0.2 million of interest income related to the Sandmar Mezzanine Loan, which has an asset-specific reserve. The Company did not recognize any interest income related to the Sandmar Mezzanine Loan during the six months ended June 30, 2015 . Reserve for Loan Losses As of June 30, 2015 , the total reserve for loan losses consisted of $4.0 million of asset-specific reserves related to the Sandmar Mezzanine Loan, which had an amortized cost basis of $5.1 million . The Company did not record a provision for loan loss reserves during the six months ended June 30, 2015 or 2014 . As of June 30, 2015 , the borrower under the Sandmar Mezzanine Loan was delinquent and the Company will recognize income on this loan on a cost-recovery basis.

REAL ESTATE HELD FOR SALE AND D

REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS	6 Months Ended
	Jun. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS	REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS In accordance with ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU No. 2014-08”), operating results of properties that are classified as held for sale in the ordinary course of business on or subsequent to January 1, 2014 would generally be included in continuing operations on the Company’s consolidated statements of operations. Operating results of properties that were classified as held for sale in financial statements issued for the reporting periods prior to January 1, 2014 will remain in discontinued operations on the Company’s consolidated statement of operations. Prior to the adoption of ASU No. 2014-08, the operations of properties held for sale or to be disposed of and the aggregate net gains recognized upon their disposition were presented as discontinued operations in the accompanying consolidated statements of operations for all periods presented. During the year ended December 31, 2014 , the Company disposed of 16 properties (of which 11 were GKK Properties), transferred a portfolio of five GKK Properties to the lender in satisfaction of the debt and other obligations due under the BOA Windsor Mortgage Portfolio, terminated its leasehold interest in three GKK Properties and transferred two GKK Properties to the lenders in connection with foreclosure proceedings. During the six months ended June 30, 2015 , the Company disposed of six properties (of which four were GKK Properties) and terminated its leasehold interest in three GKK Properties. As of June 30, 2015 , the Company did not own any properties that were classified as held for sale. The following summary presents the major components of assets and liabilities related to real estate held for sale as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Assets related to real estate held for sale Total real estate, at cost and net of impairment charges $ — $ 166,715 Accumulated depreciation and amortization — (18,361 ) Real estate held for sale, net — 148,354 Other assets — 10,462 Total assets related to real estate held for sale $ — $ 158,816 Liabilities related to real estate held for sale Notes payable — 79,969 Other liabilities — 3,087 Total liabilities related to real estate held for sale $ — $ 83,056 During the six months ended June 30, 2015 , the Company sold two historical real estate properties and three GKK Properties, which properties were not classified as held for sale in financial statements issued for the reporting periods prior to January 1, 2014. During the year ended December 31, 2014 , the Company sold four historical real estate properties and two GKK Properties, disposed of a portfolio of five properties in connection with a deed-in-lieu of foreclosure, and transferred two GKK Properties to the lenders in connection with foreclosure proceedings, which properties were not classified as held for sale in financial statements issued for the reporting periods prior to January 1, 2014. In accordance with ASU No. 2014-08, the operations of these properties are included in continuing operations on the Company’s consolidated statements of operations. The following table summarizes certain revenues and expenses related to all of these properties, which were included in continuing operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenues Rental income $ 1,518 $ 7,880 $ 6,280 $ 15,773 Tenant reimbursements and other operating income 37 1,436 1,286 3,191 Total Revenues 1,555 9,316 7,566 18,964 Expenses Operating, maintenance, and management 389 2,621 2,753 5,229 Real estate taxes and insurance 89 1,279 682 2,419 Asset management fees to affiliate — 193 98 388 General and administrative expenses 2 13 — 20 Depreciation and amortization — 3,446 1,500 6,885 Interest expense 402 3,714 1,802 7,442 Impairment of real estate — 939 — 2,196 Total expenses 882 12,205 6,835 24,579 Discontinued Operations The following table summarizes operating income from discontinued operations for the three and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Total revenues and other income $ — $ 195 $ 45 $ 886 Total expenses 7 195 7 652 (Loss) income from discontinued operations before gain on sales of real estate, net, and impairment charge (7 ) — 38 234 Gain on sales of real estate, net — 89 124 3,006 Impairment charge — (81 ) — (81 ) (Loss) income from discontinued operations $ (7 ) $ 8 $ 162 $ 3,159 Significant Transactions 101 Independence On May 1, 2015, the Company, through an indirect wholly owned subsidiary, sold an office building containing 565,694 rentable square feet located in Charlotte, North Carolina (“101 Independence”) to a purchaser unaffiliated with the Company or the Advisor for $107.8 million , or $106.8 million net of concessions and credits. The carrying value of 101 Independence as of the date of sale was $69.5 million , which was net of $13.3 million of accumulated depreciation and amortization. The Company recognized a gain on the disposition of 101 Independence of approximately $35.0 million after fees and expenses.

FORECLOSED REAL ESTATE HELD FOR

FORECLOSED REAL ESTATE HELD FOR SALE	6 Months Ended
	Jun. 30, 2015
Foreclosed Real Estate Held for Sale [Abstract]
FORECLOSED REAL ESTATE HELD FOR SALE	FORECLOSED REAL ESTATE HELD FOR SALE In 2006 and 2007, the Company originally made three debt investments (collectively, the “Tribeca Loans”) related to the conversion of an eight-story loft building into a 10-story condominium building with 62 units (the “Tribeca Building”) located at 415 Greenwich Street in New York, New York. On February 19, 2010, the borrowers under the Tribeca Loans defaulted and the Company foreclosed on the Tribeca Building by exercising its right to accept 100% of the ownership interest of the borrowers. The Company acquired the remaining unsold condominium units of the Tribeca Building (the residential, retail and parking space condominium units transferred to the Company are, collectively, the “Units” and, individually, each is a “Unit”) and assumed the project liabilities. The Company recorded the Tribeca Building at fair value using a discounted cash flow valuation model based on the net realizable value (expected sales price less estimated costs to sell the unsold Units) of the real estate. As of December 31, 2014 , the Company’s investment in the Tribeca Building consisted of two Units with a carrying value of $12.0 million and is presented as foreclosed real estate held for sale on the consolidated balance sheet. During the six months ended June 30, 2015 , the Company sold the remaining two Units and recognized a gain on sale of $2.5 million (which gain on sale has been reduced by disposition fees to the Advisor of $0.2 million related to these two Units) and recorded expenses of $0.3 million related to foreclosed real estate held for sale. During the six months ended June 30, 2014 , the Company did not sell any Units of the Tribeca Building and recorded expenses of $0.7 million related to foreclosed real estate held for sale.

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2015
Notes Payable [Abstract]
NOTES PAYABLE	NOTES PAYABLE As of June 30, 2015 and December 31, 2014 , the Company’s notes payable, including notes payable related to real estate held for sale, consisted of the following (dollars in thousands): Loan Type Book Value as of June 30, 2015 Book Value as of December 31, 2014 Contractual Interest Rates as of June 30, 2015 (1) Weighted-Average Interest Rates as of June 30, 2015 (1) Weighted-Average Remaining Term in Years (2) Fixed Rate Mortgage loans $ 62,200 $ 62,200 5.9% 5.9% 1.3 GKK Properties mortgage loans (3) 312,090 381,179 5.3% - 6.8% 5.9% 3.9 374,290 443,379 Variable Rate Mortgage loans 164,131 181,249 One-month LIBOR + 1.80% 2.0% 0.5 GKK Properties mortgage loan (4) — 40,000 (4) (4) (4) 164,131 221,249 Total notes payable principal outstanding 538,421 664,628 Discount on notes payable, net (5) (3,677 ) (6,530 ) Total notes payable, net $ 534,744 $ 658,098 _____________________ (1) Contractual interest rates as of June 30, 2015 represent the range of interest rates in effect under these loans as of June 30, 2015 . Weighted-average interest rates as of June 30, 2015 are calculated as the actual interest rates in effect under these loans as of June 30, 2015 (consisting of the contractual interest rates), using interest rate indices as of June 30, 2015 , where applicable. (2) Weighted-average remaining term in years represents the initial maturity dates or the maturity dates as extended as of June 30, 2015 ; subject to certain conditions, the maturity dates of certain loans may be further extended. (3) On May 1, 2015, in connection with the disposition of 101 Independence, the Company repaid the entire $65.3 million principal balance and all other sums due under a mortgage loan secured by 101 Independence, including a prepayment premium of $4.4 million , and wrote-off an unamortized discount on note payable of $2.0 million . (4) On May 15, 2015, the Company repaid the entire outstanding principal balance due and all other sums due under this loan. (5) Represents the unamortized discounts and premiums on notes payable due to the above- and below-market interest rates when the loans were assumed. The discounts and premiums are amortized over the remaining life of the respective loan. As of June 30, 2015 and December 31, 2014 , the Company’s deferred financing costs were $0.8 million and $1.9 million , respectively, net of amortization. During the three and six months ended June 30, 2015 , the Company incurred interest expense, net of discontinued operations, of $8.1 million and $16.8 million , respectively. During the three and six months ended June 30, 2014 , the Company incurred interest expense, net of discontinued operations, of $13.0 million and $26.6 million , respectively. Included in interest expense was: (i) the amortization of deferred financing costs of $0.8 million and $1.3 million for the three and six months ended June 30, 2015 and $0.4 million and $0.7 million for the three and six months ended June 30, 2014 , respectively, and (ii) the amortization of discounts and premiums on notes payable, which increased interest expense by $0.4 million and $0.9 million for the three and six months ended June 30, 2015 and $1.5 million and $2.1 million for the three and six months ended June 30, 2014 , respectively. As of June 30, 2015 and December 31, 2014 , $2.9 million and $1.9 million of interest was payable, respectively. The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of June 30, 2015 (in thousands): July 1, 2015 through December 31, 2015 $ 5,464 2016 235,577 2017 129,175 2018 8,651 2019 126,044 Thereafter 33,510 $ 538,421 The following summarizes the activity related to notes payable for the six months ended June 30, 2015 (in thousands): Total notes payable, net - December 31, 2014 $ 658,098 Principal repayments (126,207 ) Write-off of discount on notes payable related to sale 1,986 Amortization of discounts and premiums on notes payable, net 867 Total notes payable, net - June 30, 2015 $ 534,744 Debt Covenants The documents evidencing the Company’s outstanding debt obligations typically require that specified loan-to-value and debt service coverage ratios be maintained with respect to the financed properties. A breach of the financial covenants in these documents may result in the lender imposing additional restrictions on the Company’s operations, such as restrictions on the Company’s ability to incur additional debt, or may allow the lender to impose “cash traps” with respect to cash flow from the property securing the loan. In addition, such a breach may constitute an event of default and the lender could require the Company to repay the debt immediately. If the Company fails to make such repayment in a timely manner, the lender may be entitled to take possession of any property securing the loan. Except as described below, as of June 30, 2015 , the Company was in compliance with these debt covenants. BBD2 Loan As of June 30, 2015 , the borrower under the BBD2 Loan was out of debt service coverage compliance. As a result of such non-compliance, the loan servicer may impose a “cash trap,” which restricts distributions to the Company to the budgeted property operating expenses.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURES	FAIR VALUE DISCLOSURES Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. The fair value for certain financial instruments is derived using a combination of market quotes, pricing models and other valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of assets and liabilities for which it is practicable to estimate the fair value: Cash and cash equivalents, restricted cash, rent and other receivables, and accounts payable and accrued liabilities: These balances approximate their fair values due to the short maturities of these items. Real estate loans receivable: These instruments are presented in the accompanying consolidated balance sheets at their amortized cost net of recorded loan loss reserves and not at fair value. The fair values of real estate loans receivable were estimated using an internal valuation model that considered the expected cash flows for the loans, underlying collateral values (for collateral-dependent loans) and estimated yield requirements of institutional investors for loans with similar characteristics, including remaining loan term, loan-to-value, type of collateral and other credit enhancements. The Company classifies these inputs as Level 3 inputs. Notes payable: The fair values of the Company’s notes payable are estimated using a discounted cash flow analysis based on management’s estimates of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. Additionally, when determining the fair value of a liability in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. The Company classifies these inputs as Level 3 inputs. The following were the face values, carrying amounts and fair values of the Company’s real estate loans receivable and notes payable as of June 30, 2015 and December 31, 2014 , which carrying amounts generally do not approximate the fair values (in thousands): June 30, 2015 December 31, 2014 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial assets: Real estate loans receivable (1) $ 35,887 $ 29,335 $ 26,763 $ 35,966 $ 28,922 $ 25,818 Financial liabilities: Notes payable $ 538,421 $ 534,744 $ 555,327 $ 664,628 $ 658,098 $ 688,374 _____________________ (1) Carrying amount of real estate loans receivable includes loan loss reserves. Disclosure of the fair values of financial instruments is based on pertinent information available to the Company as of the period end and requires a significant amount of judgment. The actual value of these investments could be materially different from the Company’s estimate of value.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Company has entered into an Advisory Agreement with the Advisor, which entitles the Advisor to specified fees for the management and disposition of investments, among other services, as well as to reimbursement for certain costs incurred by the Advisor in providing services to the Company. In addition, the Advisor is entitled to certain other fees, including an incentive fee upon achieving certain performance goals, as detailed in the Advisory Agreement. The Company has also entered into a fee reimbursement agreement (the “AIP Reimbursement Agreement”) with the Dealer Manager pursuant to which the Company agreed to reimburse the Dealer Manager for certain fees and expenses it incurs for administering the Company’s participation in the DTCC Alternative Investment Product Platform with respect to certain accounts of the Company’s investors serviced through the platform. The Advisor also serves, and the Dealer Manager also serves or served, as the advisor and dealer manager, respectively, for KBS Real Estate Investment Trust II, Inc., KBS Real Estate Investment Trust III, Inc., KBS Strategic Opportunity REIT, Inc., KBS Legacy Partners Apartment REIT, Inc., KBS Strategic Opportunity REIT II, Inc. and KBS Growth & Income REIT, Inc. On January 6, 2014, the Company, together with KBS Real Estate Investment Trust II, Inc., KBS Real Estate Investment Trust III, Inc., KBS Strategic Opportunity REIT, Inc., KBS Legacy Partners Apartment REIT, Inc., KBS Strategic Opportunity REIT II, Inc., the Dealer Manager, the Advisor and other KBS-affiliated entities, entered into an errors and omissions and directors and officers liability insurance program where the lower tiers of such insurance coverage are shared. The cost of these lower tiers is allocated by the Advisor and its insurance broker among each of the various entities covered by the program, and is billed directly to each entity. The allocation of these shared coverage costs is proportionate to the pricing by the insurance marketplace for the first tiers of directors and officers liability coverage purchased individually by each REIT. The Advisor’s and the Dealer Manager’s portion of the shared lower tiers’ cost is proportionate to the respective entities’ prior cost for the errors and omissions insurance. In June 2015, KBS Growth & Income REIT, Inc. was added to the insurance program at terms similar to those described above. During the six months ended June 30, 2015 and 2014 , no other business transactions occurred between the Company and the other KBS-sponsored programs. On May 18, 2012, KBS Strategic Opportunity REIT, Inc. made an $8.0 million investment in a joint venture in which the Company indirectly owns a participation interest through another joint venture investment. Pursuant to the terms of the Advisory Agreement and the AIP Reimbursement Agreement, summarized below are the related-party costs incurred by the Company for the three and six months ended June 30, 2015 and 2014 , respectively, and any related amounts payable as of June 30, 2015 and December 31, 2014 (in thousands): Incurred Payable Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2015 2014 2015 2014 2015 2014 Expensed Asset management fees (1) $ 2,346 $ 2,530 $ 4,766 $ 5,046 $ — $ — Reimbursement of operating expenses (2) 52 54 99 103 33 45 Disposition fees (3) 1,068 399 2,253 775 — 399 $ 3,466 $ 2,983 $ 7,118 $ 5,924 $ 33 $ 444 _____________________ (1) Amounts include asset management fees from discontinued operations totaling $17,000 for the six months ended June 30, 2014 . (2) The Advisor may seek reimbursement for certain employee costs under the Advisory Agreement. The Company reimburses the Advisor for the Company’s allocable portion of the salaries, benefits and overhead of internal audit department personnel providing services to the Company. These amounts totaled $50,000 and $54,000 for the three months ended June 30, 2015 and 2014 , respectively, and $95,000 and $0.1 million for the six months ended June 30, 2015 and 2014 , respectively. These were the only type of employee costs reimbursed under the Advisory Agreement for the three and six months ended June 30, 2015 and 2014 . The Company will not reimburse for employee costs in connection with services for which the Advisor earns disposition fees (other than reimbursement of travel and communication expenses) or for the salaries or benefits the Advisor or its affiliates may pay to the Company’s executive officers. (3) Disposition fees with respect to real estate sold are included in the gain on sales of real estate in the accompanying consolidated statements of operations. Advisory Agreement Amendment On January 15, 2015, the Company and the Advisor entered into an amendment to the Advisory Agreement to amend certain terms related to the disposition fee payable to the Advisor by the Company. In accordance with the Advisory Agreement, for substantial assistance in connection with the sale of properties, loans or other investments as determined by the conflicts committee of the Company’s board of directors, the Company pays the Advisor or its affiliates a disposition fee of 1% of the contract sales price of the properties, loans or other investments sold. However, in no event may the total commissions (including such disposition fees) paid to the Advisor, its affiliates and unaffiliated third parties exceed 6% of the contract sales price of the property, loan or other investment sold or exceed a competitive real estate commission. Pursuant to the amendment, the disposition fee related to the sales of GKK Properties has been modified to provide that the conflicts committee will determine in its sole discretion the amount of the disposition fee related to the sale of GKK Properties upon the terms set forth below, which disposition fee may be an amount not to exceed 1% of the contract sales price, which maximum amount is consistent with the fixed percentage applicable to the sales of other properties, loans and other investments under the Advisory Agreement. The amendment provides that with respect to sales of the GKK Properties, and provided that the conflicts committee determines that the Advisor has provided a substantial amount of services in connection with the sale of each GKK Property for which the payment of a disposition fee is requested by the Advisor, then: (a) With respect to portfolio or single asset sales of GKK Properties designated by the conflicts committee in its sole discretion at or about the time of the sale, the Company will pay the Advisor a fee in an amount not to exceed 1% of the contract sales price and subject to other limitations and conditions set forth in the Advisory Agreement, as determined by the conflicts committee in its sole discretion, which fee will be payable upon the respective closing; and (b) With respect to sales of all other GKK Properties for which a disposition fee has not yet been paid, if, upon the sale of the final GKK Property, the conflicts committee determines in its sole discretion that the Company has recovered its entire investment related to the GKK Mezzanine Loan and the GKK Properties subsequent to the Settlement Agreement, after taking into consideration the net cash flow received by the Company from the investment, whether in the form of (i) net proceeds from the sales or other dispositions or transfers of the GKK Properties, (ii) the net cash flow related to the GKK Mezzanine Loan, (iii) the net cash flow related to the GKK Properties subsequent to the Settlement Agreement and/or (iv) other proceeds related to the assets and liabilities received under the Settlement Agreement, then the Company will pay the Advisor a fee in an amount not to exceed 1% of the contract sales price and subject to other conditions set forth in the Advisory Agreement, as determined by the conflicts committee in its sole discretion, which fee will be payable promptly upon such determination by the conflicts committee. As of June 30, 2015 , the Company had sold 160 GKK Properties for an aggregate contract sales price of $213.0 million for which the Company had not paid or accrued a disposition fee. If the conflicts committee determines the Company has recovered its entire investment related to the GKK Mezzanine Loan and the GKK Properties upon the sale of the final GKK Property, the conflicts committee may authorize the Company to pay the Advisor a disposition fee of up to 1% of the aggregate contract sales price of these GKK Properties sold as of June 30, 2015 , which amount would be determined by the conflicts committee in its sole discretion.

SUPPLEMENTAL CASH FLOW AND SIGN

SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES	6 Months Ended
	Jun. 30, 2015
Supplemental Cash Flow and Significant Noncash Transaction Disclosures [Abstract]
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES	SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES Supplemental cash flow and significant noncash transaction disclosures were as follows (in thousands): For the Six Months Ended June 30, 2015 2014 Supplemental Disclosure of Cash Flow Information: Interest paid $ 13,671 $ 23,313 Supplemental Disclosure of Significant Noncash Transactions: Mortgage loans extinguished in connection with foreclosures and deed in lieu of foreclosure $ — $ 6,134 Increase in lease incentives payable $ 423 $ 1,925

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The Company presently operates in three business segments based on its investment types: real estate, real estate-related and commercial properties primarily leased to financial institutions received under the Settlement Agreement, or the GKK Properties. Under the real estate segment, the Company has invested primarily in office and industrial properties located throughout the United States. The real estate segment excludes all real estate properties that were classified as discontinued operations. Under the real estate-related segment, the Company has invested in or originated mortgage loans, mezzanine loans and other real estate-related assets, including real estate securities. The GKK Properties segment consists of primarily office properties, bank branch properties, operations centers and other properties located in 30 states but excludes GKK Properties that were classified as discontinued operations. All revenues earned from the Company’s three reporting segments were from external customers and there were no intersegment sales or transfers. The Company does not allocate corporate-level accounts to its reporting segments. Corporate-level accounts include corporate general and administrative expenses, asset management fees, non-operating interest income and other corporate-level expenses. The accounting policies of the reporting segments are consistent with those described in Note 2, “Summary of Significant Accounting Policies.” The Company evaluates the performance of its segments based upon net operating income from continuing operations (“NOI”), which is a non-GAAP supplemental financial measure. The Company defines NOI for its real estate segment and the GKK Properties segment as operating revenues (rental income, tenant reimbursements and other operating income) less property and related expenses (property operating expenses, real estate taxes, insurance and provision for bad debt) less interest expense. The Company defines NOI for its real estate-related segment as interest income and income from its unconsolidated joint venture investment less loan servicing costs (if applicable) and interest expense (if applicable). NOI excludes certain items that are not considered to be controllable in connection with the management of an asset such as non-property income and expenses, depreciation and amortization, asset management fees and corporate general and administrative expenses. The Company uses NOI to evaluate the operating performance of the Company’s real estate investments, real estate-related investments and the GKK Properties and to make decisions about resource allocations. The Company believes that net income is the GAAP measure that is most directly comparable to NOI; however, NOI should not be considered as an alternative to net income as the primary indicator of operating performance as it excludes the items described above. Additionally, NOI as defined above may not be comparable to other REITs or companies as their definitions of NOI may differ from the Company’s definition. During the year ended December 31, 2014, the Company revised its definition of NOI to exclude asset management fees, which the Company does not consider to be controllable in connection with the management of each property or real estate-related asset and is viewed by the chief operating decision makers as a corporate-level administrative expense. NOI for all prior periods presented has been adjusted to conform to the current period definition. The following tables summarize total revenues, interest expense and NOI for each reportable segment for the three and six months ended June 30, 2015 and 2014 , and total assets and total liabilities for each reportable segment as of June 30, 2015 and December 31, 2014 (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 Revenues: Real estate segment (1) $ 16,488 $ 18,231 $ 34,329 $ 37,151 Real estate-related segment 741 815 1,467 1,615 GKK Properties segment (1) 27,737 35,415 58,748 69,702 Total revenues $ 44,966 $ 54,461 $ 94,544 $ 108,468 Interest expense: Real estate segment (1) $ 2,036 $ 2,321 $ 4,244 $ 5,287 Real estate-related segment — — — — GKK Properties segment (1) 6,048 10,715 12,572 21,294 Total interest expense $ 8,084 $ 13,036 $ 16,816 $ 26,581 NOI: Real estate segment (1) $ 6,660 $ 8,381 $ 13,055 $ 15,945 Real estate-related segment 741 679 1,466 1,479 GKK Properties segment (1) 5,773 4,176 10,728 7,435 Total NOI $ 13,174 $ 13,236 $ 25,249 $ 24,859 As of June 30, As of December 31, 2015 2014 Assets: Real estate segment $ 548,572 $ 542,512 Real estate-related segment 29,488 29,096 GKK Properties segment 571,907 598,907 Total segment assets 1,149,967 1,170,515 Real estate held for sale — 158,816 Foreclosed real estate held for sale — 12,045 Corporate-level (2) 100,448 34,791 Total assets $ 1,250,415 $ 1,376,167 Liabilities: Real estate segment $ 243,804 $ 240,965 Real estate-related segment 2 — GKK Properties segment 377,045 433,735 Total segment liabilities 620,851 674,700 Real estate held for sale — 83,056 Corporate-level (3) 932 5,638 Total liabilities $ 621,783 $ 763,394 _____________________ (1) Amounts include certain properties in continuing operations that were sold as of June 30, 2015 . See Note 6, “Real Estate Held for Sale and Discontinued Operations” for more information. (2) Total corporate-level assets consisted primarily of cash and cash equivalents of approximately $100.2 million and $34.2 million as of June 30, 2015 and December 31, 2014 , respectively. (3) As of June 30, 2015 , corporate-level liabilities consisted primarily of accounts payable and accrued liabilities for general and administrative expenses. As of December 31, 2014 , corporate-level liabilities consisted primarily of distributions payable. The following table reconciles the Company’s net income (loss) to its NOI for the three and six months ended June 30, 2015 and 2014 (amounts in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 Net income (loss) $ 19,751 $ (7,652 ) $ 28,340 $ (12,168 ) Gain on sales of real estate (35,093 ) (2,041 ) (49,059 ) (2,041 ) Gain on sales of real estate securities — (662 ) — (4,410 ) Loss (gain) from extinguishment of debt 6,385 (3,297 ) 6,376 (5,112 ) Gain on sale of foreclosed real estate held for sale — — (2,509 ) — Other income and interest income (474 ) (192 ) (590 ) (662 ) Asset management fees to affiliate 2,346 2,530 4,766 5,029 General and administrative expenses 6,047 3,685 8,277 7,329 Depreciation and amortization 14,205 17,961 29,810 35,884 Impairment charge on real estate held for investment — 939 — 2,196 Provision for loan losses — 1,973 — 1,973 Total loss (income) from discontinued operations 7 (8 ) (162 ) (3,159 ) NOI (1) $ 13,174 $ 13,236 $ 25,249 $ 24,859 _____________________ (1) Amounts include certain properties in continuing operations that were sold as of June 30, 2015 . See Note 6, “Real Estate Held for Sale and Discontinued Operations” for more information.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Lease Obligations Pursuant to the Settlement Agreement, the Company indirectly received leasehold interests in certain commercial properties, pursuant to leases between the owner of the property, as landlord, and the Company, as tenant. The ground leases have expiration dates from 2017 through 2042 and the building leases have expiration dates from 2018 through 2085. These lease obligations generally contain rent increases and renewal options. In certain instances, the rent owed by the Company to the owner of the property under the lease is greater than the revenue received by the Company from the tenants occupying the property. Future minimum lease payments owed by the Company under non-cancelable operating building and ground leases as of June 30, 2015 were as follows (in thousands): July 1, 2015 through December 31, 2015 $ 8,460 2016 16,455 2017 12,425 2018 2,413 2019 1,766 Thereafter 31,469 $ 72,988 Economic Dependency The Company is dependent on the Advisor for certain services that are essential to the Company, including the management of the Company’s real estate and real estate-related investment portfolio; the disposition of real estate and real estate-related investments; and other general and administrative responsibilities. In the event that the Advisor is unable to provide any of these services, the Company will be required to obtain such services from other sources. The Company is also dependent on the Property Manager for the Services under the Amended Services Agreement, including the operations, leasing and eventual dispositions of the GKK Properties. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities. Under the Settlement Agreement, the Company indirectly took title to or, with respect to a limited number of the GKK Properties, indirectly took a leasehold interest in, the GKK Properties on an “as is” basis. As such, the Company was not able to inspect the GKK Properties or conduct standard due diligence on certain of the GKK Properties before the transfers of the properties. Additionally, the Company did not receive representations, warranties and indemnities relating to the GKK Properties from Gramercy and/or its affiliates. Thus, the value of the GKK Properties may decline if the Company subsequently discovers environmental problems with the GKK Properties. Legal Matters From time to time, the Company is party to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings the outcome of which is probable or reasonably possible to have a material adverse effect on the Company’s results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Distribution Declared On August 11, 2015, the Company’s board of directors declared a distribution in the amount of $0.025 per share of common stock to stockholders of record as of the close of business on September 18, 2015. The Company expects to pay this distribution on or about September 25, 2015.

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 .
Principles of Consolidation	The consolidated financial statements include the accounts of the Company, KBS REIT Holdings, the Operating Partnership and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation.
Use of Estimates	The preparation of the consolidated financial statements and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates.
Reclassifications	Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods. During the six months ended June 30, 2015 , the Company sold six properties (of which four were GKK Properties), two of which were held for sale as of December 31, 2014. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented. Operating results of properties that were classified as held for sale in financial statements prior to January 1, 2014 will remain in discontinued operations on the Company’s consolidated statements of operations. Operating results of properties that were disposed of or classified as held for sale in the ordinary course of business subsequent to January 1, 2014 that had not been classified as held for sale in financial statements issued for the reporting periods prior to January 1, 2014 are included in continuing operations on the Company’s consolidated statements of operations.
Per Share Data	Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding during the three and six months ended June 30, 2015 and 2014 , respectively. Distributions declared per share of common stock were $0.025 and $0.050 for the three and six months ended June 30, 2015 , respectively. On March 6, 2015, the Company’s board of directors declared a distribution in the amount of $0.025 per share of common stock to stockholders of record as of the close of business on March 20, 2015. On May 13, 2015, the Company’s board of directors declared a distribution in the amount of $0.025 per share of common stock to stockholders of record as of the close of business on June 19, 2015. No distributions were declared during the three and six months ended June 30, 2014 .
Segments	The Company’s segments are based on the Company’s method of internal reporting, which classifies its operations by investment type: (i) real estate, (ii) real estate-related and (iii) commercial properties primarily leased to financial institutions received under the Settlement Agreement, the GKK Properties.
Recently Issued Accounting Standards Update	In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). ASU No. 2014-09 requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU No. 2014-09 supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU No. 2014-09 does not apply to lease contracts within the scope of Leases (Topic 840) . ASU No. 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. On July 9, 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year. Early adoption is permitted but not before the original effective date. The Company is still evaluating the impact of adopting ASU No. 2014-09 on its financial statements, but does not expect the adoption of ASU No. 2014-09 to have a material impact on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”). The amendments in ASU No. 2014-15 require management to evaluate, for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued when applicable) and, if so, provide related disclosures. ASU No. 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect the adoption of ASU No. 2014-15 to have a significant impact on its financial statements. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU No. 2015-01”). The amendments in ASU No. 2015-01 eliminate from GAAP the concept of extraordinary items. Although the amendments will eliminate the requirements in Subtopic 225-20 for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU No. 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU No. 2015-01 to have a significant impact on its financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs (“ASU No. 2015-03”). The amendments in ASU No. 2015-03 require debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. ASU No. 2015-03 is limited to the presentation of debt issuance costs and does not affect the recognition and measurement of debt issuance costs. ASU No. 2015-03 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and is to be applied retrospectively. Early adoption is permitted for financial statements that have not been previously issued. The adoption of ASU No. 2015-03 would change the presentation of debt issuance costs as the Company presents debt issuance costs as deferred financing costs, prepaid expenses and other assets, net on the accompanying consolidated balance sheets.

REAL ESTATE HELD FOR INVESTME24

REAL ESTATE HELD FOR INVESTMENT (Tables)	6 Months Ended
	Jun. 30, 2015
Guarantor by Name [Line Items]
Schedule of Real Estate Investments	The following table summarizes the Company’s investments in real estate as of June 30, 2015 and December 31, 2014 (in thousands): Land Buildings and Improvements Tenant Origination and Absorption Costs Total Real Estate Held for Investment As of June 30, 2015: Office $ 68,178 $ 410,719 $ 1,563 $ 480,460 Industrial 16,787 82,667 2,244 101,698 GKK Properties 180,313 318,647 73,671 572,631 Real estate held for investment, at cost and net of impairment charges 265,278 812,033 77,478 1,154,789 Accumulated depreciation/amortization — (158,793 ) (37,327 ) (196,120 ) Real estate held for investment, net $ 265,278 $ 653,240 $ 40,151 $ 958,669 As of December 31, 2014: Office $ 68,178 $ 401,083 $ 1,825 $ 471,086 Industrial 16,787 80,565 3,137 100,489 GKK Properties 180,313 319,228 74,088 573,629 Real estate held for investment, at cost and net of impairment charges 265,278 800,876 79,050 1,145,204 Accumulated depreciation/amortization — (141,306 ) (33,741 ) (175,047 ) Real estate held for investment, net $ 265,278 $ 659,570 $ 45,309 $ 970,157
Schedule of Future Minimum Rental Income Under Non-cancelable Operating Leases	The future minimum rental income from the Company’s properties under non-cancelable operating leases, including leases subject to shedding rights and excluding options to extend, as of June 30, 2015 for the years ending December 31 is as follows (in thousands): July 1, 2015 through December 31, 2015 $ 56,749 2016 113,907 2017 105,101 2018 92,065 2019 77,383 Thereafter 198,008 $ 643,213
Schedules of Concentration of Risk, by Risk Factor	As of June 30, 2015 , the Company had a concentration of credit risk related to leases with the following tenant that represented more than 10% of the Company’s annualized base rent: Annualized Base Rent Statistics Tenant Property Tenant Industry Rentable Square Feet % of Portfolio Rentable Square Feet Annualized Base Rent (1) (in thousands) % of Portfolio Annualized Base Rent Annualized Base Rent per Square Foot Lease Expirations Bank of America, N.A. Various Finance 2,811,855 30.7 % $ 22,494 19.2 % $ 8.00 (2) _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2015 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. (2) As of June 30, 2015 , lease expiration dates ranged from the remainder of 2015 through 2026 with a weighted-average remaining term of 4.6 years. As of June 30, 2015 , the Company’s highest tenant industry concentration (greater than 10% of annualized base rent) was as follows: Industry Number of Tenants Annualized (1) (in thousands) Percentage of Annualized Base Rent Finance 72 $ 56,839 48.6 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2015 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease's inception through the balance of the lease term.
Bank of America Corporation [Member]
Guarantor by Name [Line Items]
Schedule of Condensed Consolidated Information	Bank of America Corporation is the guarantor of various leases that its subsidiary, Bank of America, N.A., has with the Company. The condensed consolidated financial information of Bank of America Corporation has been included herein because of the significant credit concentration the Company has with this guarantor. Bank of America Corporation currently files its financial statements in reports filed with the SEC, and the following unaudited summary financial data regarding Bank of America Corporation is taken from its previously filed public reports. For more detailed financial information regarding Bank of America Corporation, please refer to its financial statements, which are publicly available with the SEC at http:// www.sec.gov. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Consolidated Statements of Income (in millions) Total revenue, net of interest expense $ 22,117 $ 21,747 $ 43,319 $ 44,313 Income before income taxes 7,519 2,795 12,261 2,114 Net income (loss) 5,320 2,291 8,677 2,015 As of June 30, 2015 December 31, 2014 Consolidated Balance Sheets (in millions) Total assets $ 2,149,034 $ 2,104,534 Total liabilities 1,897,375 1,861,063 Total stockholders’ equity 251,659 243,471

TENANT ORIGINATION AND ABSORP25

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2015
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities	As of June 30, 2015 and December 31, 2014 , the Company’s tenant origination and absorption costs, above-market lease assets, and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Cost, net of impairments $ 77,478 $ 79,050 $ 32,685 $ 32,796 $ (70,667 ) $ (71,141 ) Accumulated amortization (37,327 ) (33,741 ) (13,103 ) (11,118 ) 37,952 33,066 Net Amount $ 40,151 $ 45,309 $ 19,582 $ 21,678 $ (32,715 ) $ (38,075 )
Amortization of Tenant Origination and Absorption Costs, Above-Market Leases and Below-Market Lease Liabilities	Increases (decreases) in net income as a result of amortization of the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities for the three and six months ended June 30, 2015 and 2014 were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Three Months Ended June 30, For the Three Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 2015 2014 Amortization $ (2,581 ) $ (3,993 ) $ (1,303 ) $ (1,001 ) $ 3,594 $ 3,094 Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Six Months Ended June 30, For the Six Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 2015 2014 Amortization $ (5,405 ) $ (7,827 ) $ (2,158 ) $ (2,009 ) $ 6,239 $ 6,115

REAL ESTATE LOANS RECEIVABLE (T

REAL ESTATE LOANS RECEIVABLE (Tables)	6 Months Ended
	Jun. 30, 2015
Receivables [Abstract]
Schedule of Real Estate Loans Receivable	As of June 30, 2015 and December 31, 2014 , the Company, through indirect wholly owned subsidiaries, had invested in or originated real estate loans receivable as follows (dollars in thousands): Loan Name Location of Related Property or Collateral Date Acquired/ Originated Property Type Loan Type Outstanding Principal Balance as of June 30, 2015 (1) Book Value as of June 30, 2015 (2) Book Value as of December 31, 2014 (2) Contractual Interest Rate (3) Annualized Effective Interest Rate (3) Maturity Date Sandmar Mezzanine Loan Southeast U.S. (4) 01/09/2007 Retail Mezzanine $ 5,110 $ 5,132 $ 5,181 5.4% — % 01/01/2017 Lawrence Village Plaza Loan Origination New Castle, Pennsylvania 08/06/2007 Retail Mortgage 6,917 6,917 6,920 8.0% 8.1 % 09/01/2015 San Diego Office Portfolio B-Note San Diego, California (5) 10/26/2007 Office B-Note 20,000 17,849 17,450 5.8% 11.2 % 10/11/2017 4929 Wilshire B-Note Los Angeles, California 11/19/2007 Office B-Note 3,860 3,431 3,365 6.1% 12.4 % 07/11/2017 $ 35,887 $ 33,329 $ 32,916 Reserve for Loan Losses (6) — (3,994 ) (3,994 ) $ 35,887 $ 29,335 $ 28,922 _____________________ (1) Outstanding principal balance as of June 30, 2015 represents original principal balance outstanding under the loan, increased for any subsequent fundings and reduced for any principal paydowns. (2) Book value represents outstanding principal balance, adjusted for unamortized acquisition discounts, origination fees and direct origination and acquisition costs. Loan balances are presented gross of any asset-specific reserves. (3) Contractual interest rate is the stated interest rate on the face of the loan. Annualized effective interest rate is calculated as the actual interest income recognized in 2015, using the interest method, annualized and divided by the average amortized cost basis of the investment during 2015. The contractual interest rates and annualized effective interest rates presented are as of June 30, 2015 . (4) The Company had recorded an asset-specific loan loss reserve against this investment as of June 30, 2015 . See “—Reserve for Loan Losses.” (5) The borrower under this note is a wholly owned subsidiary of the Irvine Company. Donald Bren, who is the brother of Peter Bren (one of the Company’s executive officers and sponsors), is the chairman of the Irvine Company. During the six months ended June 30, 2015 , the Company recognized $1.0 million of interest income related to its investment in this loan. (6) See “—Reserve for Loan Losses.”
Schedule of Activity Related to Real Estate Loans Receivable	The following summarizes the activity related to real estate loans receivable for the six months ended June 30, 2015 (in thousands): Real estate loans receivable, net - December 31, 2014 $ 28,922 Principal repayments received on real estate loans receivable (78 ) Accretion of discounts on purchased real estate loans receivable 506 Amortization of origination fees and costs on purchased and originated real estate loans receivable (15 ) Real estate loans receivable, net - June 30, 2015 $ 29,335
Schedule of Interest Income from Real Estate Loans Receivable	For the three and six months ended June 30, 2015 and 2014 , interest income from real estate loans receivable consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Contractual interest income $ 491 $ 558 $ 976 $ 1,111 Interest accretion 258 265 506 522 Amortization of origination fees and costs (8 ) (9 ) (15 ) (18 ) Interest income from real estate loans receivable $ 741 $ 814 $ 1,467 $ 1,615

REAL ESTATE HELD FOR SALE AND27

REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS (Tables)	6 Months Ended
	Jun. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Major Components of Real Estate Held for Sale and Liabilities Related to Real Estate Held for Sale	The following summary presents the major components of assets and liabilities related to real estate held for sale as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Assets related to real estate held for sale Total real estate, at cost and net of impairment charges $ — $ 166,715 Accumulated depreciation and amortization — (18,361 ) Real estate held for sale, net — 148,354 Other assets — 10,462 Total assets related to real estate held for sale $ — $ 158,816 Liabilities related to real estate held for sale Notes payable — 79,969 Other liabilities — 3,087 Total liabilities related to real estate held for sale $ — $ 83,056
Schedule of Revenue and Expenses Related to Real Estate Properties	The following table summarizes certain revenues and expenses related to all of these properties, which were included in continuing operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenues Rental income $ 1,518 $ 7,880 $ 6,280 $ 15,773 Tenant reimbursements and other operating income 37 1,436 1,286 3,191 Total Revenues 1,555 9,316 7,566 18,964 Expenses Operating, maintenance, and management 389 2,621 2,753 5,229 Real estate taxes and insurance 89 1,279 682 2,419 Asset management fees to affiliate — 193 98 388 General and administrative expenses 2 13 — 20 Depreciation and amortization — 3,446 1,500 6,885 Interest expense 402 3,714 1,802 7,442 Impairment of real estate — 939 — 2,196 Total expenses 882 12,205 6,835 24,579
Schedule of Operating Income from Discontinued Operations	The following table summarizes operating income from discontinued operations for the three and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Total revenues and other income $ — $ 195 $ 45 $ 886 Total expenses 7 195 7 652 (Loss) income from discontinued operations before gain on sales of real estate, net, and impairment charge (7 ) — 38 234 Gain on sales of real estate, net — 89 124 3,006 Impairment charge — (81 ) — (81 ) (Loss) income from discontinued operations $ (7 ) $ 8 $ 162 $ 3,159

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Payable [Abstract]
Schedule of Long-term Debt Instruments	As of June 30, 2015 and December 31, 2014 , the Company’s notes payable, including notes payable related to real estate held for sale, consisted of the following (dollars in thousands): Loan Type Book Value as of June 30, 2015 Book Value as of December 31, 2014 Contractual Interest Rates as of June 30, 2015 (1) Weighted-Average Interest Rates as of June 30, 2015 (1) Weighted-Average Remaining Term in Years (2) Fixed Rate Mortgage loans $ 62,200 $ 62,200 5.9% 5.9% 1.3 GKK Properties mortgage loans (3) 312,090 381,179 5.3% - 6.8% 5.9% 3.9 374,290 443,379 Variable Rate Mortgage loans 164,131 181,249 One-month LIBOR + 1.80% 2.0% 0.5 GKK Properties mortgage loan (4) — 40,000 (4) (4) (4) 164,131 221,249 Total notes payable principal outstanding 538,421 664,628 Discount on notes payable, net (5) (3,677 ) (6,530 ) Total notes payable, net $ 534,744 $ 658,098 _____________________ (1) Contractual interest rates as of June 30, 2015 represent the range of interest rates in effect under these loans as of June 30, 2015 . Weighted-average interest rates as of June 30, 2015 are calculated as the actual interest rates in effect under these loans as of June 30, 2015 (consisting of the contractual interest rates), using interest rate indices as of June 30, 2015 , where applicable. (2) Weighted-average remaining term in years represents the initial maturity dates or the maturity dates as extended as of June 30, 2015 ; subject to certain conditions, the maturity dates of certain loans may be further extended. (3) On May 1, 2015, in connection with the disposition of 101 Independence, the Company repaid the entire $65.3 million principal balance and all other sums due under a mortgage loan secured by 101 Independence, including a prepayment premium of $4.4 million , and wrote-off an unamortized discount on note payable of $2.0 million . (4) On May 15, 2015, the Company repaid the entire outstanding principal balance due and all other sums due under this loan. (5) Represents the unamortized discounts and premiums on notes payable due to the above- and below-market interest rates when the loans were assumed. The discounts and premiums are amortized over the remaining life of the respective loan.
Schedule of Maturities of Long-term Debt	The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of June 30, 2015 (in thousands): July 1, 2015 through December 31, 2015 $ 5,464 2016 235,577 2017 129,175 2018 8,651 2019 126,044 Thereafter 33,510 $ 538,421
Schedule of Activity Related to Notes Payable and Repurchase Agreements	The following summarizes the activity related to notes payable for the six months ended June 30, 2015 (in thousands): Total notes payable, net - December 31, 2014 $ 658,098 Principal repayments (126,207 ) Write-off of discount on notes payable related to sale 1,986 Amortization of discounts and premiums on notes payable, net 867 Total notes payable, net - June 30, 2015 $ 534,744

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Schedule of Face Value, Carrying Amounts and Fair Value	The following were the face values, carrying amounts and fair values of the Company’s real estate loans receivable and notes payable as of June 30, 2015 and December 31, 2014 , which carrying amounts generally do not approximate the fair values (in thousands): June 30, 2015 December 31, 2014 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial assets: Real estate loans receivable (1) $ 35,887 $ 29,335 $ 26,763 $ 35,966 $ 28,922 $ 25,818 Financial liabilities: Notes payable $ 538,421 $ 534,744 $ 555,327 $ 664,628 $ 658,098 $ 688,374 _____________________ (1) Carrying amount of real estate loans receivable includes loan loss reserves.

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Schedule of Related Party Costs	Pursuant to the terms of the Advisory Agreement and the AIP Reimbursement Agreement, summarized below are the related-party costs incurred by the Company for the three and six months ended June 30, 2015 and 2014 , respectively, and any related amounts payable as of June 30, 2015 and December 31, 2014 (in thousands): Incurred Payable Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2015 2014 2015 2014 2015 2014 Expensed Asset management fees (1) $ 2,346 $ 2,530 $ 4,766 $ 5,046 $ — $ — Reimbursement of operating expenses (2) 52 54 99 103 33 45 Disposition fees (3) 1,068 399 2,253 775 — 399 $ 3,466 $ 2,983 $ 7,118 $ 5,924 $ 33 $ 444 _____________________ (1) Amounts include asset management fees from discontinued operations totaling $17,000 for the six months ended June 30, 2014 . (2) The Advisor may seek reimbursement for certain employee costs under the Advisory Agreement. The Company reimburses the Advisor for the Company’s allocable portion of the salaries, benefits and overhead of internal audit department personnel providing services to the Company. These amounts totaled $50,000 and $54,000 for the three months ended June 30, 2015 and 2014 , respectively, and $95,000 and $0.1 million for the six months ended June 30, 2015 and 2014 , respectively. These were the only type of employee costs reimbursed under the Advisory Agreement for the three and six months ended June 30, 2015 and 2014 . The Company will not reimburse for employee costs in connection with services for which the Advisor earns disposition fees (other than reimbursement of travel and communication expenses) or for the salaries or benefits the Advisor or its affiliates may pay to the Company’s executive officers. (3) Disposition fees with respect to real estate sold are included in the gain on sales of real estate in the accompanying consolidated statements of operations.

SUPPLEMENTAL CASH FLOW AND SI31

SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2015
Supplemental Cash Flow and Significant Noncash Transaction Disclosures [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	Supplemental cash flow and significant noncash transaction disclosures were as follows (in thousands): For the Six Months Ended June 30, 2015 2014 Supplemental Disclosure of Cash Flow Information: Interest paid $ 13,671 $ 23,313 Supplemental Disclosure of Significant Noncash Transactions: Mortgage loans extinguished in connection with foreclosures and deed in lieu of foreclosure $ — $ 6,134 Increase in lease incentives payable $ 423 $ 1,925

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following tables summarize total revenues, interest expense and NOI for each reportable segment for the three and six months ended June 30, 2015 and 2014 , and total assets and total liabilities for each reportable segment as of June 30, 2015 and December 31, 2014 (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 Revenues: Real estate segment (1) $ 16,488 $ 18,231 $ 34,329 $ 37,151 Real estate-related segment 741 815 1,467 1,615 GKK Properties segment (1) 27,737 35,415 58,748 69,702 Total revenues $ 44,966 $ 54,461 $ 94,544 $ 108,468 Interest expense: Real estate segment (1) $ 2,036 $ 2,321 $ 4,244 $ 5,287 Real estate-related segment — — — — GKK Properties segment (1) 6,048 10,715 12,572 21,294 Total interest expense $ 8,084 $ 13,036 $ 16,816 $ 26,581 NOI: Real estate segment (1) $ 6,660 $ 8,381 $ 13,055 $ 15,945 Real estate-related segment 741 679 1,466 1,479 GKK Properties segment (1) 5,773 4,176 10,728 7,435 Total NOI $ 13,174 $ 13,236 $ 25,249 $ 24,859 As of June 30, As of December 31, 2015 2014 Assets: Real estate segment $ 548,572 $ 542,512 Real estate-related segment 29,488 29,096 GKK Properties segment 571,907 598,907 Total segment assets 1,149,967 1,170,515 Real estate held for sale — 158,816 Foreclosed real estate held for sale — 12,045 Corporate-level (2) 100,448 34,791 Total assets $ 1,250,415 $ 1,376,167 Liabilities: Real estate segment $ 243,804 $ 240,965 Real estate-related segment 2 — GKK Properties segment 377,045 433,735 Total segment liabilities 620,851 674,700 Real estate held for sale — 83,056 Corporate-level (3) 932 5,638 Total liabilities $ 621,783 $ 763,394 _____________________ (1) Amounts include certain properties in continuing operations that were sold as of June 30, 2015 . See Note 6, “Real Estate Held for Sale and Discontinued Operations” for more information. (2) Total corporate-level assets consisted primarily of cash and cash equivalents of approximately $100.2 million and $34.2 million as of June 30, 2015 and December 31, 2014 , respectively. (3) As of June 30, 2015 , corporate-level liabilities consisted primarily of accounts payable and accrued liabilities for general and administrative expenses. As of December 31, 2014 , corporate-level liabilities consisted primarily of distributions payable.
Reconciliation of Net Income (Loss) to Net Operating Income (Loss)	The following table reconciles the Company’s net income (loss) to its NOI for the three and six months ended June 30, 2015 and 2014 (amounts in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 Net income (loss) $ 19,751 $ (7,652 ) $ 28,340 $ (12,168 ) Gain on sales of real estate (35,093 ) (2,041 ) (49,059 ) (2,041 ) Gain on sales of real estate securities — (662 ) — (4,410 ) Loss (gain) from extinguishment of debt 6,385 (3,297 ) 6,376 (5,112 ) Gain on sale of foreclosed real estate held for sale — — (2,509 ) — Other income and interest income (474 ) (192 ) (590 ) (662 ) Asset management fees to affiliate 2,346 2,530 4,766 5,029 General and administrative expenses 6,047 3,685 8,277 7,329 Depreciation and amortization 14,205 17,961 29,810 35,884 Impairment charge on real estate held for investment — 939 — 2,196 Provision for loan losses — 1,973 — 1,973 Total loss (income) from discontinued operations 7 (8 ) (162 ) (3,159 ) NOI (1) $ 13,174 $ 13,236 $ 25,249 $ 24,859 _____________________ (1) Amounts include certain properties in continuing operations that were sold as of June 30, 2015 . See Note 6, “Real Estate Held for Sale and Discontinued Operations” for more information.

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Lease Payments, Non-Cancelable Operating Leases	Future minimum lease payments owed by the Company under non-cancelable operating building and ground leases as of June 30, 2015 were as follows (in thousands): July 1, 2015 through December 31, 2015 $ 8,460 2016 16,455 2017 12,425 2018 2,413 2019 1,766 Thereafter 31,469 $ 72,988

ORGANIZATION (Details)

ORGANIZATION (Details) $ in Thousands	Dec. 19, 2013USD ($)	Jun. 30, 2015USD ($)propertyshares	Dec. 31, 2014USD ($)shares	May. 30, 2008USD ($)shares	Sep. 30, 2012USD ($)shares	Jun. 30, 2015USD ($)propertyshares	Sep. 01, 2011property
Organizational Structure [Line Items]
Partnership interest in the Operating Partnership and is its sole limited partner		99.00%
Partnership interest in Operating Partnership		1.00%
Number of real estate properties		392				392
Number of real estate loans receivable		4				4
Redemptions of common stock | $		$ 3,108	$ 7,890
Common Stock [Member]
Organizational Structure [Line Items]
Issuance of common stock, shares | shares				171,109,494
Issuance of common stock, value | $				$ 1,700,000
Shares of common stock sold under dividend reinvestment plan, shares | shares					28,306,086
Shares of common stock sold under dividend reinvestment plan, value | $					$ 233,700
Redemptions of common stock, shares | shares		687,722	1,771,186			12,277,787
Redemptions of common stock | $		$ 7	$ 17			$ 88,600
KBS Capital Advisors LLC [Member]
Organizational Structure [Line Items]
Period of Advisory Agreement renewal		1 year
Period of termination notice		60 days
KBS Capital Advisors LLC [Member] | Common Stock [Member]
Organizational Structure [Line Items]
Shares held by affiliate | shares		20,000				20,000
GKK Properties [Member]
Organizational Structure [Line Items]
Number of real estate properties							867
Agreement for annual fee to be paid for real estate services, amount | $	$ 7,500
Amended service agreement, extension period	1 year
GKK Properties [Member] | Minimum [Member]
Organizational Structure [Line Items]
Profit participation interest based on a percentage rate of gross fair value of gross sale price	10.00%
GKK Properties [Member] | Maximum [Member]
Organizational Structure [Line Items]
Profit participation interest based on a percentage rate of gross fair value of gross sale price	30.00%
GKK Properties [Member] | Bank Branches [Member]
Organizational Structure [Line Items]
Number of real estate properties							576
GKK Properties [Member] | Office Building [Member]
Organizational Structure [Line Items]
Number of real estate properties							291

SUMMARY OF SIGNIFICANT ACCOUN35

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	May. 13, 2015$ / shares	Mar. 06, 2015$ / shares	Jun. 30, 2015property	Jun. 30, 2014$ / shares	Jun. 30, 2015property$ / shares	Jun. 30, 2014$ / shares	Dec. 31, 2014property	Sep. 01, 2011property
Summary of Significant Accounting Policies [Line Items]
Number of real estate properties disposed			6		6		16
Number of real estate properties			392		392
Distributions declared per common share | $ / shares	$ 0.025	$ 0.025		$ 0	$ 0.05	$ 0
Held-for-Sale [Member]
Summary of Significant Accounting Policies [Line Items]
Number of real estate properties							2
GKK Properties [Member]
Summary of Significant Accounting Policies [Line Items]
Number of real estate properties disposed			4		4		11
Number of real estate properties								867

REAL ESTATE HELD FOR INVESTME36

REAL ESTATE HELD FOR INVESTMENT (Narrative) (Details) - Jun. 30, 2015 ft² in Millions	ft²States
Real Estate Properties [Line Items]
Rentable square feet	9.2
Percentage of real estate portfolio occupied	80.00%
Number of states in which entity operates | States	31
GKK Properties [Member]
Real Estate Properties [Line Items]
Rentable square feet	5.7
Percentage of real estate portfolio occupied	81.00%

REAL ESTATE HELD FOR INVESTME37

REAL ESTATE HELD FOR INVESTMENT (Schedule of Real Estate Investments) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	$ 1,154,789	$ 1,145,204
Accumulated depreciation/amortization	(196,120)	(175,047)
Total real estate held for investment, net	958,669	970,157
Office [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	480,460	471,086
Industrial [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	101,698	100,489
GKK Properties [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	572,631	573,629
Land [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	265,278	265,278
Accumulated depreciation/amortization	0	0
Total real estate held for investment, net	265,278	265,278
Land [Member] | Office [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	68,178	68,178
Land [Member] | Industrial [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	16,787	16,787
Land [Member] | GKK Properties [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	180,313	180,313
Buildings and Improvements [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	812,033	800,876
Accumulated depreciation/amortization	(158,793)	(141,306)
Total real estate held for investment, net	653,240	659,570
Buildings and Improvements [Member] | Office [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	410,719	401,083
Buildings and Improvements [Member] | Industrial [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	82,667	80,565
Buildings and Improvements [Member] | GKK Properties [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	318,647	319,228
Tenant Origination and Absorption Costs [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	77,478	79,050
Accumulated depreciation/amortization	(37,327)	(33,741)
Total real estate held for investment, net	40,151	45,309
Tenant Origination and Absorption Costs [Member] | Office [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	1,563	1,825
Tenant Origination and Absorption Costs [Member] | Industrial [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	2,244	3,137
Tenant Origination and Absorption Costs [Member] | GKK Properties [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	$ 73,671	$ 74,088

REAL ESTATE HELD FOR INVESTME38

REAL ESTATE HELD FOR INVESTMENT (Operating Leases) (Narrative) (Details) ft² in Thousands, $ in Millions	6 Months Ended
	Jun. 30, 2015USD ($)ft²Tenants	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Operating Leased Assets [Line Items]
Square feet with exercised rights to shed | ft²	30
Recognition of deferred revenue, net of discontinued operations	$ 0.9	$ 1.7
Amortization of lease incentives	0.7	0.7
Deferred rent receivables	29.5		$ 27.4
Unamortized lease incentives	$ 6.2		5.7
Number of tenants | Tenants	350
Bad debt reserve	$ 1.2		1.1
Provision of doubtful accounts, net of discontinued operations	$ 0.4	$ 1.5
Maximum [Member]
Operating Leased Assets [Line Items]
Operating lease, term	11 years 8 months 12 days
Weighted Average [Member]
Operating Leased Assets [Line Items]
Operating lease, term	4 years 7 months 6 days
GKK Properties [Member]
Operating Leased Assets [Line Items]
Bad debt reserve	$ 0.8		0.9
GKK Properties [Member] | Maximum [Member]
Operating Leased Assets [Line Items]
Operating lease, term	11 years 8 months 12 days
GKK Properties [Member] | Weighted Average [Member]
Operating Leased Assets [Line Items]
Operating lease, term	4 years 7 months 6 days
Other Liabilities [Member]
Operating Leased Assets [Line Items]
Security deposit liability	$ 2.9		$ 3
Exercised at Various Dates (2015-2016) [Member]
Operating Leased Assets [Line Items]
Net rentable area | ft²	33

REAL ESTATE HELD FOR INVESTME39

REAL ESTATE HELD FOR INVESTMENT (Future Minimum Rental Income) (Details) $ in Thousands	Jun. 30, 2015USD ($)
Real Estate Held for Investment [Abstract]
July 1, 2015 through December 31, 2015	$ 56,749
2,016	113,907
2,017	105,101
2,018	92,065
2,019	77,383
Thereafter	198,008
Future minimum rental income	$ 643,213

REAL ESTATE HELD FOR INVESTME40

REAL ESTATE HELD FOR INVESTMENT (Highes Tenant Industry Concentrations- Grater than 10% of Annual Base Rent) (Details) - Jun. 30, 2015 $ in Thousands		USD ($)Tenants
Concentration Risk [Line Items]
Number of Tenants		350
Industry - Finance [Member]
Concentration Risk [Line Items]
Number of Tenants		72
Annualized Base Rent | $	[1]	$ 56,839
Percentage of Annualized Base Rent		48.60%
[1]	Annualized base rent represents annualized contractual base rental income as of June 30, 2015, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease's inception through the balance of the lease term.

REAL ESTATE HELD FOR INVESTME41

REAL ESTATE HELD FOR INVESTMENT (Concentration of Credit Risk, Tenant Lease that Represents More than 10% of Annualized Base Rent) (Details) - Jun. 30, 2015 $ in Thousands		USD ($)ft²$ / ft²
Weighted Average [Member]
Concentration Risk [Line Items]
Operating lease, term		4 years 7 months 6 days
Tenant Lease - Bank of America, N.A. [Member]
Concentration Risk [Line Items]
Rentable Square Feet | ft²		2,811,855
Annualized Base Rent | $	[1]	$ 22,494
Annualized Base Rent per Square Foot		8
Tenant Lease - Bank of America, N.A. [Member] | Weighted Average [Member]
Concentration Risk [Line Items]
Operating lease, term		4 years 7 months 6 days
Tenant Lease - Bank of America, N.A. [Member] | Rentable Square Feet [Member]
Concentration Risk [Line Items]
Percentage of Annualized Base Rent		30.70%
Tenant Lease - Bank of America, N.A. [Member] | Base Rent [Member]
Concentration Risk [Line Items]
Percentage of Annualized Base Rent		19.20%
[1]	Annualized base rent represents annualized contractual base rental income as of June 30, 2015, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term.

REAL ESTATE HELD FOR INVESTME42

REAL ESTATE HELD FOR INVESTMENT (Condensed Financial Information of Bank of America Corporation) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Consolidated Statements of Income
Total revenues	$ 44,966	$ 54,461	$ 94,544	$ 108,468
Consolidated Balance Sheets
Total assets	1,250,415		1,250,415		$ 1,376,167
Total liabilities	621,783		621,783		763,394
Total stockholders’ equity	621,741		621,741		602,773
Bank of America Corporation [Member]
Consolidated Statements of Income
Total revenues	22,117,000	21,747,000	43,319,000	44,313,000
Income before income taxes	7,519,000	2,795,000	12,261,000	2,114,000
Net income (loss)	5,320,000	$ 2,291,000	8,677,000	$ 2,015,000
Consolidated Balance Sheets
Total assets	2,149,034,000		2,149,034,000		2,104,534,000
Total liabilities	1,897,375,000		1,897,375,000		1,861,063,000
Total stockholders’ equity	$ 251,659,000		$ 251,659,000		$ 243,471,000

REAL ESTATE HELD FOR INVESTME43

REAL ESTATE HELD FOR INVESTMENT (Geographic Concentration Risk) (Details) - 6 months ended Jun. 30, 2015 - customer	Total
VIRGINIA | Assets, Total [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.30%
Customer Concentration Risk [Member] | Annualized Rent [Member]
Concentration Risk [Line Items]
Number of customers	0

TENANT ORIGINATION AND ABSORP44

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination and Absorption Costs, Cost, net of impairments	$ 77,478		$ 77,478		$ 79,050
Tenant Origination and Absorption Costs, Accumulated amortization	(37,327)		(37,327)		(33,741)
Tenant Origination and Absorption Costs, Net Amount	40,151		40,151		45,309
Tenant Origination and Absorption Costs, Amortization expense	(2,581)	$ (3,993)	(5,405)	$ (7,827)
Above-Market Lease Assets, Cost, net of impairments	32,685		32,685		32,796
Above-Market Lease Assets, Accumulated amortization	(13,103)		(13,103)		(11,118)
Above-Market Lease Assets, Net Amount	19,582		19,582		21,678
Above-Market Lease Assets, Amortization expense	(1,303)	(1,001)	(2,158)	(2,009)
Below-Market Lease Liabilities, Cost, net of impairments	(70,667)		(70,667)		(71,141)
Below-Market Lease Liabilities, Accumulated amortization	37,952		37,952		33,066
Below-Market Lease Liabilities, Net Amount	(32,715)		(32,715)		$ (38,075)
Below-Market Lease Liabilities, Amortization expense	$ 3,594	$ 3,094	$ 6,239	$ 6,115

REAL ESTATE LOANS RECEIVABLE (S

REAL ESTATE LOANS RECEIVABLE (Schedule of Real Estate Loans Receivable) (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Principal Balance	[1]	$ 35,887
Book Value	[2]	33,329	$ 32,916
Reserve for Loan Losses	[3]	(3,994)	(3,994)
Book Value		29,335	28,922
Interest receivable		$ 100	100
Sandmar Mezzanine Loan Southeast U.S. [Member] | Mezzanine [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Date Acquired/ Originated	[4]	Jan. 9, 2007
Outstanding Principal Balance	[1],[4]	$ 5,110
Book Value	[2],[4]	$ 5,132	5,181
Contractual Interest Rate	[4],[5]	5.40%
Annualized Effective Interest Rate	[4],[5]	0.00%
Maturity Date	[4]	Jan. 1, 2017
Lawrence Village Plaza Loan Origination New Castle, Pennsylvania [Member] | Mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Date Acquired/ Originated		Aug. 6, 2007
Outstanding Principal Balance	[1]	$ 6,917
Book Value	[2]	$ 6,917	6,920
Contractual Interest Rate	[5]	8.00%
Annualized Effective Interest Rate	[5]	8.10%
Maturity Date		Sep. 1, 2015
San Diego Office Portfolio B-Note San Diego, California [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income		$ 1,000
San Diego Office Portfolio B-Note San Diego, California [Member] | B-Note [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Date Acquired/ Originated	[6]	Oct. 26, 2007
Outstanding Principal Balance	[1],[6]	$ 20,000
Book Value	[2],[6]	$ 17,849	17,450
Contractual Interest Rate	[5],[6]	5.80%
Annualized Effective Interest Rate	[5],[6]	11.20%
Maturity Date	[6]	Oct. 11, 2017
4929 Wilshire B-Note Los Angeles, California [Member] | B-Note [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Date Acquired/ Originated		Nov. 19, 2007
Outstanding Principal Balance	[1]	$ 3,860
Book Value	[2]	$ 3,431	$ 3,365
Contractual Interest Rate	[5]	6.10%
Annualized Effective Interest Rate	[5]	12.40%
Maturity Date		Jul. 11, 2017
[1]	Outstanding principal balance as of June 30, 2015 represents original principal balance outstanding under the loan, increased for any subsequent fundings and reduced for any principal paydowns.
[2]	Book value represents outstanding principal balance, adjusted for unamortized acquisition discounts, origination fees and direct origination and acquisition costs. Loan balances are presented gross of any asset-specific reserves.
[3]	See “—Reserve for Loan Losses.”
[4]	The Company had recorded an asset-specific loan loss reserve against this investment as of June 30, 2015. See “—Reserve for Loan Losses.”
[5]	Contractual interest rate is the stated interest rate on the face of the loan. Annualized effective interest rate is calculated as the actual interest income recognized in 2015, using the interest method, annualized and divided by the average amortized cost basis of the investment during 2015. The contractual interest rates and annualized effective interest rates presented are as of June 30, 2015.
[6]	The borrower under this note is a wholly owned subsidiary of the Irvine Company. Donald Bren, who is the brother of Peter Bren (one of the Company’s executive officers and sponsors), is the chairman of the Irvine Company. During the six months ended June 30, 2015, the Company recognized $1.0 million of interest income related to its investment in this loan.

REAL ESTATE LOANS RECEIVABLE 46

REAL ESTATE LOANS RECEIVABLE (Schedule of Activity Related to Real Estate Loans Receivable) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Real Estate Loans Receivable [Roll Forward]
Real estate loans receivable, net - December 31, 2014			$ 28,922
Principal repayments received on real estate loans receivable			(78)
Accretion of discounts on purchased real estate loans receivable			506
Amortization of origination fees and costs on purchased and originated real estate loans receivable	$ (8)	$ (9)	(15)	$ (18)
Real estate loans receivable, net - June 30, 2015	$ 29,335		$ 29,335

REAL ESTATE LOANS RECEIVABLE 47

REAL ESTATE LOANS RECEIVABLE (Schedule of Interest Income from Real Estate Loans Receivable) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Real Estate Properties [Line Items]
Contractual interest income	$ 491	$ 558	$ 976	$ 1,111
Interest accretion	258	265	506	522
Amortization of origination fees and costs	(8)	(9)	(15)	(18)
Interest income from real estate loans receivable	$ 741	$ 814	$ 1,467	1,615
Sandmar Mezzanine Loan [Member]
Real Estate Properties [Line Items]
Interest income related to impaired loans				$ 200

REAL ESTATE LOANS RECEIVABLE (R

REAL ESTATE LOANS RECEIVABLE (Reserve for Loan Losses) (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014
Mortgage Loans on Real Estate [Line Items]
Reserve for loan losses	[1]	$ 3,994	$ 3,994
Sandmar Mezzanine Loan [Member]
Mortgage Loans on Real Estate [Line Items]
Reserve for loan losses		4,000
Mortgage loans on real estate, amortized cost basis		$ 5,100
[1]	See “—Reserve for Loan Losses.”

REAL ESTATE HELD FOR SALE AND49

REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS (Narrative) (Details) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2015USD ($)property	Jun. 30, 2015USD ($)property	Dec. 31, 2014USD ($)property	Sep. 01, 2011property
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties disposed	6	6	16
Number of real estate properties with terminated leasehold interest		3	3
Number of real estate properties	392	392
Real estate held for sale, net | $	$ 0	$ 0	$ 148,354
GKK Properties [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties disposed	4	4	11
Additional number of real estate properties disposed			2
Real estate properties transferred in connection with foreclosure			2
Number of real estate properties				867
Historical Real Estate [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties disposed	2		4
Historical Real Estate [Member] | GKK Properties [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties disposed	3
Held-for-Investment [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties disposed			5

REAL ESTATE HELD FOR SALE AND50

REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS (Schedule of Major Components of Real Estate Held for Sale and Liabilities Related to Real Estate Held for Sale) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]
Total real estate, at cost and net of impairment charges	$ 0	$ 166,715
Accumulated depreciation and amortization	0	(18,361)
Real estate held for sale, net	0	148,354
Other assets	0	10,462
Total assets related to real estate held for sale	0	158,816
Notes payable	0	79,969
Other liabilities	0	3,087
Total liabilities related to real estate held for sale	$ 0	$ 83,056

REAL ESTATE HELD FOR SALE AND51

REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS (Revenue and Expenses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues
Rental income	$ 32,432	$ 38,618	$ 67,797	$ 77,762
Tenant reimbursements and other operating income	11,133	14,073	23,688	27,131
Total revenues	44,966	54,461	94,544	108,468
Expenses
Operating, maintenance, and management	17,843	21,431	39,833	42,830
Real estate taxes and insurance	5,865	6,758	12,646	14,198
Asset management fees to affiliate	2,346	2,530	4,766	5,029
General and administrative expenses	6,047	3,685	8,277	7,329
Depreciation and amortization	14,205	17,961	29,810	35,884
Interest expense	8,084	13,036	16,816	26,581
Impairment of real estate	0	939	0	2,196
Total expenses	54,390	68,313	112,148	136,020
Two Properties [Member]
Revenues
Rental income	1,518	7,880	6,280	15,773
Tenant reimbursements and other operating income	37	1,436	1,286	3,191
Total revenues	1,555	9,316	7,566	18,964
Expenses
Operating, maintenance, and management	389	2,621	2,753	5,229
Real estate taxes and insurance	89	1,279	682	2,419
Asset management fees to affiliate	0	193	98	388
General and administrative expenses	2	13	0	20
Depreciation and amortization	0	3,446	1,500	6,885
Interest expense	402	3,714	1,802	7,442
Impairment of real estate	0	939	0	2,196
Total expenses	$ 882	$ 12,205	$ 6,835	$ 24,579

REAL ESTATE HELD FOR SALE AND52

REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS (Schedule of Operating Income from Discontinued Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]
Total revenues and other income	$ 0	$ 195	$ 45	$ 886
Total expenses	7	195	7	652
(Loss) income from discontinued operations before gain on sales of real estate, net, and impairment charge	(7)	0	38	234
Gain on sales of real estate, net	0	89	124	3,006
Impairment charge	0	(81)	0	(81)
Total (loss) income from discontinued operations	$ (7)	$ 8	$ 162	$ 3,159

REAL ESTATE HELD FOR SALE AND53

REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS (Significant Transactions) (Details) $ in Thousands	May. 01, 2015USD ($)ft²	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Real estate held for sale, net		$ 0	$ 148,354
Real Estate Held-for-Sale, Accumulated Depreciation		$ 0	$ 18,361
101 Independence [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net rentable area | ft²	565,694
Sales of real estate	$ 107,800
Sales of real estate, net of concessions and credits	106,800
Real estate held for sale, net	69,500
Real Estate Held-for-Sale, Accumulated Depreciation	13,300
Gain (Loss) on Sale of Properties	$ 35,000

FORECLOSED REAL ESTATE HELD F54

FORECLOSED REAL ESTATE HELD FOR SALE (Details) $ in Thousands	3 Months Ended		6 Months Ended		24 Months Ended
	Jun. 30, 2015USD ($)Units	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Dec. 31, 2007InvestmentsUnits	Dec. 31, 2014USD ($)Units	Feb. 19, 2010
Real Estate Properties [Line Items]
Number of debt investments | Investments					3
Foreclosed real estate held for sale	$ 0		$ 0			$ 12,045
Number of Residential Units Sold, Included in Disposition Fees | Units	2
Gain on sales of foreclosed real estate held for sale	$ 0	$ 0	2,509	$ 0
Tribeca Building [Member]
Real Estate Properties [Line Items]
Number of units in real estate property | Units					62
Right of ownership interest after foreclosure, percentage							100.00%
Number of units in condominium building | Units						2
Foreclosed real estate held for sale						$ 12,000
Disposition Fees	$ 200
Foreclosed real estate expense			$ 300
Tribeca Building [Member] | Retail Space [Member]
Real Estate Properties [Line Items]
Expense related to foreclosed real estate held-for-sale				$ 700

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Debt Instrument [Line Items]
Deferred financing costs	$ 800		$ 800		$ 1,900
Interest expense	8,084	$ 13,036	16,816	$ 26,581
Amortization of financing cost, net of discontinued operations	800	400	1,300	700
Amortization of discounts and premiums on notes payable, net			867	2,137
Interest payable	2,900		2,900		$ 1,900
Notes Payable [Member]
Debt Instrument [Line Items]
Amortization of discounts and premiums on notes payable, net	$ 400	$ 1,500	$ 900	$ 2,100

NOTES PAYABLE (Schedule of Long

NOTES PAYABLE (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands		May. 01, 2015	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Total notes payable principal outstanding			$ 538,421
Total notes payable, net			534,744	$ 658,098
Write-off of discount on notes payable			1,986
Notes Payable [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding			538,421	664,628
Discount on notes payable, net	[1]		$ (3,677)	(6,530)
Fixed Rate [Member]
Debt Instrument [Line Items]
Weighted-average interest rate	[2]		5.90%
Fixed Rate [Member] | Notes Payable [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding			$ 374,290	443,379
Fixed Rate [Member] | GKK Properties [Member]
Debt Instrument [Line Items]
Weighted-average interest rate	[2],[3]		5.90%
Fixed Rate [Member] | GKK Properties [Member] | Notes Payable [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	[3]		$ 312,090	381,179
Contractual interest rate, minimum	[2]		5.30%
Contractual interest rate, maximum	[2]		6.80%
Weighted-Average Remaining Term in Years	[3],[4]		3 years 10 months 24 days
Variable Rate [Member]
Debt Instrument [Line Items]
Weighted-average interest rate	[2]		2.00%
Variable Rate [Member] | Notes Payable [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding			$ 164,131	221,249
Variable Rate [Member] | GKK Properties [Member] | Notes Payable [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	[5]		$ 0	40,000
Mortgages [Member]
Debt Instrument [Line Items]
Extinguishment of debt		$ 65,300
Mortgages [Member] | 101 Independence [Member]
Debt Instrument [Line Items]
Debt Instrument, prepayment premium		$ 4,400
Mortgages [Member] | Fixed Rate [Member]
Debt Instrument [Line Items]
Contractual interest rate			5.90%
Mortgages [Member] | Fixed Rate [Member] | Notes Payable [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding			$ 62,200	62,200
Weighted-Average Remaining Term in Years	[4]		1 year 3 months 18 days
Mortgages [Member] | Variable Rate [Member] | Notes Payable [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding			$ 164,131	$ 181,249
Weighted-Average Remaining Term in Years	[4]		6 months
Mortgages [Member] | Variable Rate [Member] | Notes Payable [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Variable rate			1.80%
[1]	Represents the unamortized discounts and premiums on notes payable due to the above- and below-market interest rates when the loans were assumed. The discounts and premiums are amortized over the remaining life of the respective loan.
[2]	Contractual interest rates as of June 30, 2015 represent the range of interest rates in effect under these loans as of June 30, 2015. Weighted-average interest rates as of June 30, 2015 are calculated as the actual interest rates in effect under these loans as of June 30, 2015 (consisting of the contractual interest rates), using interest rate indices as of June 30, 2015, where applicable.
[3]	On May 1, 2015, in connection with the disposition of 101 Independence, the Company repaid the entire $65.3 million principal balance and all other sums due under a mortgage loan secured by 101 Independence, including a prepayment premium of $4.4 million, and wrote-off an unamortized discount on note payable of $2.0 million.
[4]	Weighted-average remaining term in years represents the initial maturity dates or the maturity dates as extended as of June 30, 2015; subject to certain conditions, the maturity dates of certain loans may be further extended.
[5]	On May 15, 2015, the Company repaid the entire outstanding principal balance due and all other sums due under this loan.

NOTES PAYABLE (Schedule of Matu

NOTES PAYABLE (Schedule of Maturities of Long-Term Debt) (Details) $ in Thousands	Jun. 30, 2015USD ($)
Notes Payable [Abstract]
July 1, 2015 through December 31, 2015	$ 5,464
2,016	235,577
2,017	129,175
2,018	8,651
2,019	126,044
Thereafter	33,510
Notes payable outstanding	$ 538,421

NOTES PAYABLE (Schedule of Acti

NOTES PAYABLE (Schedule of Activity Related to Notes Payable) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Activity Related to Notes Payable [Roll Forward]
Total notes payable, net - December 31, 2014	$ 658,098
Principal repayments	(126,207)
Write-off of discount on notes payable related to sale	1,986
Amortization of discounts and premiums on notes payable, net	867	$ 2,137
Total notes payable, net - June 30, 2015	$ 534,744

FAIR VALUE DISCLOSURES (Schedul

FAIR VALUE DISCLOSURES (Schedule of Face Value, Carrying Amounts and Fair Value) (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate loans receivable, Face Value	[1]	$ 35,887	$ 35,966
Notes payable, Face Value		538,421	664,628
Notes payable, Value		534,744	658,098
Carrying Amount [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate loans receivable, Value	[1]	29,335	28,922
Notes payable, Value		534,744	658,098
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate loans receivable, Value	[1]	26,763	25,818
Notes payable, Value		$ 555,327	$ 688,374
[1]	Carrying amount of real estate loans receivable includes loan loss reserves.

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Payable		$ 33		$ 33		$ 444
Asset management cost from discontinued operations					$ 17
Administrative fees, amount paid		50	$ 54	95	100
Advisor and Dealer Manager [Member]
Related Party Transaction [Line Items]
Incurred		3,466	2,983	7,118	5,924
Payable		33		33		444
Advisor and Dealer Manager [Member] | Expensed [Member] | Asset Management Fees [Member]
Related Party Transaction [Line Items]
Incurred	[1]	2,346	2,530	4,766	5,046
Payable	[1]	0		0		0
Advisor and Dealer Manager [Member] | Expensed [Member] | Reimbursement of Operating Expenses [Member]
Related Party Transaction [Line Items]
Incurred	[2]	52	54	99	103
Payable	[2]	33		33		45
Advisor and Dealer Manager [Member] | Expensed [Member] | Dispositon Fees [Member]
Related Party Transaction [Line Items]
Incurred	[3]	1,068	$ 399	2,253	$ 775
Payable	[3]	$ 0		$ 0		$ 399
[1]	Amounts include asset management fees from discontinued operations totaling $17,000 for the six months ended June 30, 2014.
[2]	The Advisor may seek reimbursement for certain employee costs under the Advisory Agreement. The Company reimburses the Advisor for the Company’s allocable portion of the salaries, benefits and overhead of internal audit department personnel providing services to the Company. These amounts totaled $50,000 and $54,000 for the three months ended June 30, 2015 and 2014, respectively, and $95,000 and $0.1 million for the six months ended June 30, 2015 and 2014, respectively. These were the only type of employee costs reimbursed under the Advisory Agreement for the three and six months ended June 30, 2015 and 2014. The Company will not reimburse for employee costs in connection with services for which the Advisor earns disposition fees (other than reimbursement of travel and communication expenses) or for the salaries or benefits the Advisor or its affiliates may pay to the Company’s executive officers.
[3]	Disposition fees with respect to real estate sold are included in the gain on sales of real estate in the accompanying consolidated statements of operations.

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) $ in Millions	May. 18, 2012USD ($)	Jun. 30, 2015USD ($)property	Jan. 15, 2015
Related Party Transaction [Line Items]
Disposition fee as percent			1.00%
KBS Capital Advisors LLC [Member]
Related Party Transaction [Line Items]
Disposition fee as percent			1.00%
Selling commissions fees paid, percent of sales price			6.00%
GKK Properties [Member]
Related Party Transaction [Line Items]
Number of real estate properties sold | property		160
Sales of real estate		$ 213
GKK Properties [Member] | KBS Capital Advisors LLC [Member]
Related Party Transaction [Line Items]
Disposition fee as percent		1.00%	1.00%
KBS Strategic Opportunity REIT, Inc. [Member]
Related Party Transaction [Line Items]
Investment in joint venture	$ 8

SUPPLEMENTAL CASH FLOW AND SI62

SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Supplemental Disclosure of Cash Flow Information:
Interest paid	$ 13,671	$ 23,313
Supplemental Disclosure of Significant Noncash Transactions:
Mortgage loans extinguished in connection with foreclosures and deed in lieu of foreclosure	0	6,134
Increase in lease incentives payable	$ 423	$ 1,925

SEGMENT INFORMATION (Schedule o

SEGMENT INFORMATION (Schedule of Segment Reporting Information, by Segment) (Details) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015USD ($)States	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)Statessegments	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segments				3
Number of states in which entity operates | States		31		31
Revenues		$ 44,966	$ 54,461	$ 94,544	$ 108,468
Interest expense		8,084	13,036	16,816	26,581
Total net operating income	[1]	13,174	13,236	25,249	24,859
Assets		1,250,415		1,250,415		$ 1,376,167
Real estate held for sale		0		0		148,354
Foreclosed real estate held for sale		0		0		12,045
Liabilities		621,783		621,783		763,394
Liabilities related to real estate held for sale		0		0		3,087
Cash and cash equivalents		133,609	92,908	133,609	92,908	58,675	$ 211,391
Corporate-Level [Member]
Segment Reporting Information [Line Items]
Assets	[2]	100,448		100,448		34,791
Liabilities	[3]	932		932		5,638
Cash and cash equivalents		100,200		100,200		34,200
Real Estate Segment [Member]
Segment Reporting Information [Line Items]
Revenues	[1]	16,488	18,231	34,329	37,151
Interest expense	[1]	2,036	2,321	4,244	5,287
Total net operating income	[1]	6,660	8,381	13,055	15,945
Assets		548,572		548,572		542,512
Liabilities		243,804		243,804		240,965
Real Estate-Related Segment [Member]
Segment Reporting Information [Line Items]
Revenues		741	815	1,467	1,615
Interest expense		0	0	0	0
Total net operating income		741	679	1,466	1,479
Assets		29,488		29,488		29,096
Liabilities		$ 2		$ 2		0
GKK Properties Segment [Member]
Segment Reporting Information [Line Items]
Number of states in which entity operates | States		30		30
Revenues	[1]	$ 27,737	35,415	$ 58,748	69,702
Interest expense	[1]	6,048	10,715	12,572	21,294
Total net operating income	[1]	5,773	$ 4,176	10,728	$ 7,435
Assets		571,907		571,907		598,907
Liabilities		377,045		377,045		433,735
Operating Segments [Member]
Segment Reporting Information [Line Items]
Assets		1,149,967		1,149,967		1,170,515
Real estate held for sale		0		0		158,816
Liabilities		620,851		620,851		674,700
Liabilities related to real estate held for sale		$ 0		$ 0		$ 83,056
[1]	Amounts include certain properties in continuing operations that were sold as of June 30, 2015. See Note 6, “Real Estate Held for Sale and Discontinued Operations” for more information.
[2]	Total corporate-level assets consisted primarily of cash and cash equivalents of approximately $100.2 million and $34.2 million as of June 30, 2015 and December 31, 2014, respectively.
[3]	As of June 30, 2015, corporate-level liabilities consisted primarily of accounts payable and accrued liabilities for general and administrative expenses. As of December 31, 2014, corporate-level liabilities consisted primarily of distributions payable.

SEGMENT INFORMATION (Reconcilia

SEGMENT INFORMATION (Reconciliation of Net Income (Loss) to Net Operating Income (Loss)) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Segment Reporting [Abstract]
Net income (loss)		$ 19,751	$ (7,652)	$ 28,340	$ (12,168)	$ (21,266)
Gain on sales of real estate		(35,093)	(2,041)	(49,059)	(2,041)
Gain on sales of real estate securities		0	(662)	0	(4,410)
Loss (gain) from extinguishment of debt		6,385	(3,297)	6,376	(5,112)
Gain on sales of foreclosed real estate held for sale		0	0	(2,509)	0
Other income and interest income		(474)	(192)	(590)	(662)
Asset management fees to affiliate		2,346	2,530	4,766	5,029
General and administrative expenses		6,047	3,685	8,277	7,329
Depreciation and amortization		14,205	17,961	29,810	35,884
Impairment charge on real estate held for investment		0	939	0	2,196
Provision for loan losses		0	1,973	0	1,973
Total loss (income) from discontinued operations		7	(8)	(162)	(3,159)
NOI	[1]	$ 13,174	$ 13,236	$ 25,249	$ 24,859
[1]	Amounts include certain properties in continuing operations that were sold as of June 30, 2015. See Note 6, “Real Estate Held for Sale and Discontinued Operations” for more information.

COMMITMENTS AND CONTINGENCIES65

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jun. 30, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
July 1, 2015 through December 31, 2015	$ 8,460
2,016	16,455
2,017	12,425
2,018	2,413
2,019	1,766
Thereafter	31,469
Total future minimum lease payments	$ 72,988

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - $ / shares	Aug. 11, 2015	May. 13, 2015	Mar. 06, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Subsequent Event [Line Items]
Distributions declared per common share		$ 0.025	$ 0.025	$ 0	$ 0.05	$ 0
Subsequent Event [Member]
Subsequent Event [Line Items]
Distributions declared per common share	$ 0.025