KBS Real Estate Investment Trust 10-Q 10 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2016	Aug. 08, 2016
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, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		185,498,863

CONSOLIDATED BALANCE SHEETS (U

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Real estate held for investment:
Land	$ 126,721	$ 131,874
Buildings and improvements	462,653	484,773
Tenant origination and absorption costs	23,377	26,940
Total real estate held for investment, at cost and net of impairment charges	612,751	643,587
Less accumulated depreciation and amortization	(91,963)	(102,618)
Total real estate held for investment, net	520,788	540,969
Real estate held for sale, net	112,038	319,911
Total real estate, net	632,826	860,880
Real estate loans receivable, net	22,304	27,281
Total real estate and real estate-related investments, net	655,130	888,161
Cash and cash equivalents	181,025	46,605
Restricted cash	18,499	39,874
Rents and other receivables, net	26,319	26,510
Above-market leases, net	4,539	5,417
Assets related to real estate held for sale	6,409	27,245
Prepaid expenses and other assets, net	23,758	21,053
Total assets	915,679	1,054,865
Notes payable:
Notes payable, net	217,723	244,420
Notes payable related to real estate held for sale, net	33,490	183,802
Total notes payable, net	251,213	428,222
Accounts payable and accrued liabilities	18,399	19,152
Due to affiliates	218	68
Below-market leases, net	12,427	15,485
Liabilities related to real estate held for sale	4,301	12,528
Other liabilities	40,049	49,747
Total liabilities	326,607	525,202
Commitments and contingencies (Note 12)
Redeemable common stock	6,708	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, 185,578,670 and 186,414,147 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	1,856	1,864
Additional paid-in capital	1,656,145	1,656,137
Cumulative distributions and net losses	(1,075,637)	(1,138,338)
Total stockholders’ equity	582,364	519,663
Total liabilities and stockholders’ equity	$ 915,679	$ 1,054,865

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
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	185,578,670	186,414,147
Common stock, shares outstanding	185,578,670	186,414,147

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Rental income	$ 24,950	$ 32,432	$ 54,346	$ 67,797
Tenant reimbursements	8,598	11,133	18,846	23,688
Interest income from real estate loans receivable	739	741	1,549	1,467
Parking revenues and other operating income	497	660	1,169	1,592
Total revenues	34,784	44,966	75,910	94,544
Expenses:
Operating, maintenance, and management	14,711	17,843	30,565	39,833
Real estate taxes, property-related taxes, and insurance	4,634	5,865	10,096	12,646
Asset management fees to affiliate	2,097	2,346	4,446	4,766
Foreclosure fees and expenses	262	0	262	0
General and administrative expenses	2,890	6,047	6,262	8,277
Depreciation and amortization	10,046	14,205	21,044	29,810
Interest expense	2,651	8,084	7,880	16,816
Impairment charges on real estate	14,629	0	25,493	0
Total expenses	51,920	54,390	106,048	112,148
Other income and loss
Gain on sales of real estate, net	97,349	35,093	120,935	49,059
Gain on sales of foreclosed real estate held for sale	0	0	0	2,509
Loss from extinguishment of debt	(19,317)	(6,385)	(19,320)	(6,376)
Other interest income	203	120	340	241
Other income	0	354	106	349
Total other income	78,235	29,182	102,061	45,782
Income from continuing operations	61,099	19,758	71,923	28,178
Discontinued operations:
Gain on sales of real estate, net	0	0	0	124
Income (loss) from discontinued operations	83	(7)	78	38
Total income (loss) from discontinued operations	83	(7)	78	162
Net income	$ 61,182	$ 19,751	$ 72,001	$ 28,340
Basic and diluted income per common share:
Continuing operations (in dollars per share)	$ 0.33	$ 0.11	$ 0.39	$ 0.15
Discontinued operations (in dollars per share)	0	0	0	0
Net income per common share (in dollars per share)	$ 0.33	$ 0.11	$ 0.39	$ 0.15
Weighted-average number of common shares outstanding, basic and diluted (in shares)	185,908,553	187,389,195	186,104,088	187,552,869

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]
Balance, shares at Dec. 31, 2014		187,845,515
Balance at Dec. 31, 2014	$ 602,773	$ 1,879	$ 1,662,483	$ (1,061,589)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(11,387)			(11,387)
Redemptions of common stock, shares		(1,431,368)
Redemptions of common stock	(6,361)	$ (15)	(6,346)
Distributions declared	$ (65,362)			(65,362)
Balance, shares at Dec. 31, 2015	186,414,147	186,414,147
Balance at Dec. 31, 2015	$ 519,663	$ 1,864	1,656,137	(1,138,338)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	72,001			72,001
Redemptions of common stock, shares		(835,477)
Redemptions of common stock	(3,292)	$ (8)	(3,284)
Transfers from redeemable common stock	3,292		3,292
Distributions declared	$ (9,300)			(9,300)
Balance, shares at Jun. 30, 2016	185,578,670	185,578,670
Balance at Jun. 30, 2016	$ 582,364	$ 1,856	$ 1,656,145	$ (1,075,637)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Flows from Operating Activities:
Net income	$ 72,001	$ 28,340
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	21,044	29,810
Impairment charges on real estate	25,493	0
Loss due to property damages	1,033	0
Noncash interest income on real estate-related investments	(551)	(491)
Deferred rent	(331)	(935)
Bad debt expense	219	368
Amortization of deferred financing costs	182	1,259
Amortization of above- and below-market leases, net	(2,831)	(4,081)
Gain on sales of foreclosed real estate held for sale	0	(2,509)
Gain on sales of real estate, net	(120,935)	(49,183)
Loss on extinguishment of debt	19,320	6,376
Amortization of discounts and premiums on notes payable, net	211	867
Changes in operating assets and liabilities:
Restricted cash for operational expenditures	10,026	8,030
Rents and other receivables	(1,220)	3,020
Prepaid expenses and other assets	(3,783)	(575)
Accounts payable and accrued liabilities	1,502	3,454
Due to affiliates	150	(12)
Other liabilities	(9,679)	(5,693)
Net cash provided by operating activities	11,851	18,045
Cash Flows from Investing Activities:
Improvements to real estate	(16,521)	(19,024)
Proceeds from sales of real estate, net	337,007	204,943
Proceeds from sales of foreclosed real estate held for sale	0	14,155
Principal repayments on real estate loans receivable	48	78
Net change in restricted cash for capital expenditures	1,463	3,735
Net cash provided by investing activities	321,997	203,887
Cash Flows from Financing Activities:
Principal payments on notes payable	(11,950)	(126,207)
Purchase of treasury securities in connection with defeasance of notes payable	(184,772)	0
Prepayment premium on the repayment of debt	0	(4,390)
Net change in restricted cash for debt service obligations	9,886	778
Payments to redeem common stock	(3,292)	(3,108)
Distributions paid to common stockholders	(9,300)	(14,071)
Net cash used in financing activities	(199,428)	(146,998)
Net increase in cash and cash equivalents	134,420	74,934
Cash and cash equivalents, beginning of period	46,605	58,675
Cash and cash equivalents, end of period	$ 181,025	$ 133,609

ORGANIZATION

ORGANIZATION	6 Months Ended
	Jun. 30, 2016
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, 2016 , the Company owned or, with respect to a limited number of properties, held a leasehold interest in, 232 real estate properties (of which 23 properties were held for sale, 22 of which were GKK Properties), including the GKK Properties (defined below). In addition, as of June 30, 2016 , the Company owned three 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 (the “Advisory Agreement”) in effect through November 8, 2016. 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, 2016 , the Company had redeemed 13,856,909 of the shares sold in the Offering for $95.1 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. On June 29, 2016, KBS Acquisition Sub entered into two agreements, a second amended and restated asset management services agreement (the “Second Amended Services Agreement”) and an accounting/construction services agreement (the “Accounting/Construction Services Agreement”), with the Property Manager. The effective date of both the Second Amended Services Agreement and the Accounting/Construction Services Agreement was June 1, 2016. Combined, the Services and the key terms and compensation for the Services under the Second Amended Services Agreement and the Accounting/Construction Services Agreement are the same as those of the prior Amended Services Agreement; the two agreements allocate the Services and the compensation between asset management services and accounting/construction services. The Second Amended Services Agreement and the Accounting/Construction Services Agreement supersede and replace all prior agreements related to the Services among the Company and its affiliates and the Property Manager and its affiliates. The Second Amended Services Agreement and the Accounting/Construction 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 agreements. On June 29, 2016, the Property Manager assigned the Second Amended Services Agreement to an affiliate, GPT Realty Management LP, an entity controlled by Gramercy. As of June 30, 2016 , the Company accrued $20.1 million of estimated profit participation interest related to the GKK Properties under the Second Amended Services Agreement.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2016
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, 2015 . 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, 2015 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“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, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The unaudited 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 unaudited 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 unaudited consolidated financial statements and condensed 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, 2016 , the Company sold 133 properties ( 132 of which were GKK Properties). As of June 30, 2016 , the Company had classified 23 properties as held for sale, 22 of which were GKK Properties. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented. 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 six months ended June 30, 2016 and 2015 , respectively. Distributions declared per share of common stock were $0.025 and $0.050 for the three and six months ended June 30, 2016 , respectively, and $0.025 and $0.050 for the three and six months ended June 30, 2015 , respectively. Distributions per share of common stock were based on a quarterly record date for each quarter ended June 30, 2016 and 2015 , respectively. 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 11, “Segment Information.” Square Footage, Occupancy and Other Measures Any references to square footage, occupancy or annualized base rent are unaudited and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. 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 was to be 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. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU No. 2015-14”), which defers 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 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU No. 2016-01”). The amendments in ASU No. 2016-01 address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU No. 2016-01 primarily affects accounting for equity investments and financial liabilities where the fair value option has been elected. ASU No. 2016-01 also requires entities to present financial assets and financial liabilities separately, grouped by measurement category and form of financial asset in the balance sheet or in the accompanying notes to the financial statements. ASU No. 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU No. 2016-01 to have a significant impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). The amendments in ASU No. 2016-02 change the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU No. 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of ASU No. 2016-02 as of its issuance is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the new leases standard on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU No. 2016-13”). ASU No. 2016-13 affects entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. The amendments in ASU No. 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU No. 2016-13 also amends the impairment model for available-for-sale securities. An entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra-account to the amortized cost basis rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. ASU No. 2016-13 also requires new disclosures. For financial assets measured at amortized cost, an entity will be required to disclose information about how it developed its allowance for credit losses, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. For financing receivables and net investments in leases measured at amortized cost, an entity will be required to further disaggregate the information it currently discloses about the credit quality of these assets by year of the asset’s origination for as many as five annual periods. For available for sale securities, an entity will be required to provide a roll-forward of the allowance for credit losses and an aging analysis for securities that are past due. ASU No. 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the impact of adopting ASU No. 2016-13 on its financial statements, but does not expect the adoption of ASU No. 2016-13 to have a material impact on its financial statements.

REAL ESTATE HELD FOR INVESTMENT

REAL ESTATE HELD FOR INVESTMENT	6 Months Ended
	Jun. 30, 2016
Real Estate Held for Investment [Abstract]
REAL ESTATE HELD FOR INVESTMENT	REAL ESTATE HELD FOR INVESTMENT As of June 30, 2016 , the Company’s portfolio of real estate held for investment, including the GKK Properties, was composed of approximately 5.0 million rentable square feet and was 86% occupied. These properties are located in 26 states and include office properties, industrial properties, bank branch properties and a retail property. Included in the Company’s portfolio of real estate held for investment was 2.4 million rentable square feet related to the GKK Properties held for investment, which were 83% occupied as of June 30, 2016 . The following table summarizes the Company’s investments in real estate as of June 30, 2016 and December 31, 2015 (in thousands): Land Buildings and Improvements Tenant Origination and Absorption Costs Total Real Estate Held for Investment As of June 30, 2016: Office $ 55,335 $ 289,769 $ 525 $ 345,629 Industrial 10,975 56,897 1,835 69,707 Retail (1) 1,607 2,967 805 5,379 GKK Properties 58,804 113,020 20,212 192,036 Real estate held for investment, at cost and net of impairment charges 126,721 462,653 23,377 612,751 Accumulated depreciation/amortization — (79,003 ) (12,960 ) (91,963 ) Real estate held for investment, net $ 126,721 $ 383,650 $ 10,417 $ 520,788 As of December 31, 2015: Office $ 56,745 $ 294,979 $ 525 $ 352,249 Industrial 10,974 56,451 1,835 69,260 GKK Properties 64,155 133,343 24,580 222,078 Real estate held for investment, at cost and net of impairment charges 131,874 484,773 26,940 643,587 Accumulated depreciation/amortization — (87,547 ) (15,071 ) (102,618 ) Real estate held for investment, net $ 131,874 $ 397,226 $ 11,869 $ 540,969 _____________________ (1) On May 13, 2016, the Company received a deed-in-lieu of foreclosure in satisfaction of all amounts due to it under its investment in the Lawrence Village Plaza Loan Origination and received title to the collateral that secured the loan. See Note 5, “Real Estate Loans Receivable.” 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, 2016 , the Company’s leases, including those related to the GKK Properties held for investment and excluding options to extend, had remaining terms of up to 14.0 years with a weighted-average remaining term of 4.1 years. As of June 30, 2016 , leases related to the GKK Properties, excluding options to extend, had remaining terms of up to 9.6 years with a weighted-average remaining term of 3.3 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. 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 $3.0 million and $3.2 million as of June 30, 2016 and December 31, 2015 , respectively. During the six months ended June 30, 2016 and 2015 , the Company recognized deferred rent from tenants of $0.3 million and $0.9 million , respectively. These amounts for the six months ended June 30, 2016 and 2015 were net of $0.7 million and $0.7 million of lease incentive amortization, respectively. As of June 30, 2016 and December 31, 2015 , the cumulative deferred rent balance was $21.0 million and $19.9 million , respectively, and is included in rents and other receivables on the accompanying balance sheets. The cumulative deferred rent balance included $5.1 million and $4.8 million of unamortized lease incentives as of June 30, 2016 and December 31, 2015 , 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, 2016 for the years ending December 31 is as follows (in thousands): July 1, 2016 through December 31, 2016 $ 36,291 2017 70,179 2018 60,162 2019 52,780 2020 43,930 Thereafter 124,873 $ 388,215 As of June 30, 2016 , the Company’s highest tenant industry concentration (greater than 10% of annualized base rent) was as follows: Industry Number of Annualized (1) (in thousands) Percentage of Finance 48 $ 26,041 34.4 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2016 , 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, 2016 , no other tenant industries accounted for more than 10% of the Company’s annualized base rent. The Company currently has over 200 tenants over a diverse range of industries and geographical regions. As of June 30, 2016 and December 31, 2015 , the Company had a bad debt expense reserve of $0.6 million and $0.5 million , respectively. The Company’s bad debt expense reserve as of June 30, 2016 and December 31, 2015 included $0.5 million and $0.4 million related to the GKK Properties, respectively. During the six months ended June 30, 2016 and 2015 , the Company recorded bad debt expense related to its tenant receivables of $0.2 million and $0.4 million , respectively. As of June 30, 2016 , 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 1,002,669 23.5 % $ 9,536 12.6 % $ 9.51 (2) _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2016 , 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, 2016 , lease expiration dates ranged from 2019 through 2023 with a weighted-average remaining term of 4.5 years. No other tenant represented more than 10% of the Company’s annualized base rent. Geographic Concentration Risk As of June 30, 2016 , the Company’s net investments in real estate in Virginia represented 12.9% 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. Impairment of Real Estate During the three months ended June 30, 2016 , the Company recorded non-cash impairment charges of $14.6 million , of which $14.2 million relates to 30 properties classified as real estate held for investment (including 27 GKK Properties), to write-down the carrying values of these real estate investments to their estimated fair values and $0.4 million with respect to two GKK Properties that were held for sale to write-down the carrying values of these real estate investments to their estimated sales price less estimated costs to sell. During the six months ended June 30, 2016 , the Company recorded non-cash impairment charges of $25.5 million , of which $24.8 million related to 44 properties classified as real estate held for investment (including 41 GKK Properties), to write-down the carrying values of these real estate investments to their estimated fair values and $0.7 million with respect to five GKK Properties that were held for sale or sold to write-down the carrying values of these real estate investments to their estimated sales price less estimated costs to sell. See Note 6, “Real Estate Held for Sale and Discontinued Operations,” for information regarding impairments of assets related to real estate held for sale or sold. The facts and circumstances leading to the impairments on the Company’s real estate held for investment are as follows: City Gate Plaza The Company recognized an impairment charge during the six months ended June 30, 2016 of $3.3 million to reduce the carrying value of the Company’s investment in City Gate Plaza, an office property located in Sacramento, California, to its estimated fair value. The Company revised its cash flow projections to account for higher projected leasing costs to stabilize the property. The continued lack of demand in the Sacramento office rental market also resulted in higher capitalization rates. University Park Buildings The Company recognized an impairment charge during the six months ended June 30, 2016 of $3.2 million to reduce the carrying value of the Company’s investment in the University Park Buildings, an office property located in Sacramento, California, to its estimated fair value. The Company revised its cash flow projections primarily to account for higher projected capital costs for general building upgrades and to address certain maintenance issues. The continued lack of demand in the Sacramento office rental market also resulted in higher capitalization rates. ADP Plaza The Company recognized an impairment charge during the six months ended June 30, 2016 of $1.7 million to reduce the carrying value of the Company’s investment in ADP Plaza, an office property located in Portland, Oregon, to its estimated fair value. The Company revised its cash flow projections due to an increase in projected vacancy as a tenant occupying 48.6% of the building’s rentable square feet notified the Company that it will exercise its contraction option as early as January 2017, resulting in a decrease in projected cash flows. GKK Properties Citizens Bank Portfolio The Company recognized an impairment charge during the six months ended June 30, 2016 of $9.5 million relating to 21 properties in the Citizens Bank Portfolio due to a decrease in cash flow projections primarily due to an increase in projected vacancy, thus decreasing the projected cash flows the properties would generate. Pitney Bowes - Bank of America Portfolio The Company recognized an impairment charge during the six months ended June 30, 2016 of $1.7 million relating to 8 properties in the Pitney Bowes - Bank of America Portfolio due to a decrease in cash flow projections primarily due to an increase in projected vacancy, thus decreasing the projected cash flows the properties would generate. Other Properties The Company recognized an impairment charge during the six months ended June 30, 2016 of $5.4 million relating to 12 other GKK Properties classified as held for investment. No impairment charge related to any individual property was greater than $800,000 . These impairments generally resulted from changes in lease projections, including longer estimated lease-up periods and lower projected rental rates, thus decreasing the projected cash flows the properties would generate.

TENANT ORIGINATION AND ABSORPTI

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	6 Months Ended
	Jun. 30, 2016
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, 2016 and December 31, 2015 , 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, 2016 December 31, 2015 June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Cost, net of impairments $ 23,377 $ 26,940 $ 13,680 $ 13,624 $ (44,033 ) $ (44,033 ) Accumulated amortization (12,959 ) (15,071 ) (9,141 ) (8,207 ) 31,606 28,548 Net amount $ 10,418 $ 11,869 $ 4,539 $ 5,417 $ (12,427 ) $ (15,485 ) 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, 2016 and 2015 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, 2016 2015 2016 2015 2016 2015 Amortization $ (1,288 ) $ (2,581 ) $ (476 ) $ (1,303 ) $ 1,995 $ 3,594 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, 2016 2015 2016 2015 2016 2015 Amortization $ (2,830 ) $ (5,405 ) $ (1,304 ) $ (2,158 ) $ 4,135 $ 6,239

REAL ESTATE LOANS RECEIVABLE

REAL ESTATE LOANS RECEIVABLE	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
REAL ESTATE LOANS RECEIVABLE	REAL ESTATE LOANS RECEIVABLE As of June 30, 2016 and December 31, 2015 , 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, 2016 (1) Book Value as of June 30, 2016 (2) Book Value as of December 31, 2015 (2) Contractual Interest Rate (3) Annualized Effective Interest Rate (3) Maturity Date Sandmar Mezzanine Loan Southeast U.S. (4) 01/09/2007 Retail Mezzanine $ 5,074 $ 5,096 $ 5,096 5.4% — % 01/01/2017 Lawrence Village Plaza Loan Origination New Castle, Pennsylvania (5) 08/06/2007 Retail Mortgage — — 6,903 (5) (5) (5) San Diego Office Portfolio B-Note San Diego, California (6) 10/26/2007 Office B-Note 20,000 18,726 18,277 5.8% 11.2 % 10/11/2017 4929 Wilshire B-Note Los Angeles, California 11/19/2007 Office B-Note 3,807 3,578 3,503 6.1% 12.4 % 07/11/2017 $ 28,881 $ 27,400 $ 33,779 Reserve for Loan Losses (7) — (5,096 ) (6,498 ) $ 28,881 $ 22,304 $ 27,281 _____________________ (1) Outstanding principal balance as of June 30, 2016 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 2016, using the interest method, annualized and divided by the average amortized cost basis of the investment during 2016. The contractual interest rates and annualized effective interest rates presented are as of June 30, 2016 . (4) The Company had recorded an asset-specific loan loss reserve against this investment as of June 30, 2016 . See “—Reserve for Loan Losses.” (5) On September 1, 2015, the Lawrence Village Plaza Loan Origination matured without repayment. On May 13, 2016, the Company received a deed-in-lieu of foreclosure in satisfaction of all amounts due to it under its investment in the Lawrence Village Plaza Loan Origination and received title to the collateral that secured the loan. (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, 2016 , the Company recognized $1.0 million of interest income related to its investment in this loan. (7) See “—Reserve for Loan Losses.” As of June 30, 2016 and December 31, 2015 , 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, 2016 (in thousands): Real estate loans receivable, net - December 31, 2015 $ 27,281 Principal repayments received on real estate loans receivable (48 ) Accretion of discounts on purchased real estate loans receivable 568 Amortization of origination fees and costs on purchased and originated real estate loans receivable (17 ) Deed-in-lieu foreclosure of real estate loan receivable (5,480 ) Real estate loans receivable, net - June 30, 2016 $ 22,304 For the three and six months ended June 30, 2016 and 2015 , interest income from real estate loans receivable consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Contractual interest income $ 459 $ 491 $ 998 $ 976 Interest accretion 288 258 568 506 Amortization of origination fees and costs (8 ) (8 ) (17 ) (15 ) Interest income from real estate loans receivable $ 739 $ 741 $ 1,549 $ 1,467 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. As of June 30, 2016 , the borrower under the Sandmar Mezzanine Loan was delinquent. Beginning in July 2014, interest income received on the Sandmar Mezzanine Loan was recorded on a cost-recovery basis. As of September 30, 2015, the book value, which is net of the loan loss reserve for the Sandmar Mezzanine Loan, was $0 . Subsequent to September 30, 2015, the Company began recognizing cash receipts related to the Sandmar Mezzanine Loan as interest income. During the six months ended June 30, 2016 and 2015 , the Company recognized interest income of $94,000 and $0 related to the Sandmar Mezzanine Loan, respectively. On September 1, 2015, the Lawrence Village Plaza Loan Origination matured without repayment and the Company began recognizing interest income on a cash basis. On May 13, 2016, the Company received a deed-in-lieu of foreclosure in satisfaction of all amounts due to it under its investment in the Lawrence Village Plaza Loan Origination and received title to the collateral that secured the loan. During the six months ended June 30, 2016 and 2015 , the Company recognized interest income of $0.2 million and $0.3 million on the Lawrence Village Plaza Loan Origination, respectively. Reserve for Loan Losses As of June 30, 2016 , the total reserve for loan losses consisted of $5.1 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 additional loan loss reserves during the six months ended June 30, 2016 .

REAL ESTATE HELD FOR SALE AND D

REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS	6 Months Ended
	Jun. 30, 2016
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 operating results 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, 2015 , the Company disposed of 34 properties (of which 31 were GKK Properties) and terminated its leasehold interest in three GKK Properties. As of December 31, 2015 , the Company had classified eight properties as held for sale (all of which were GKK Properties). During the six months ended June 30, 2016 , the Company disposed of 133 properties ( 132 of which were GKK Properties). As of June 30, 2016 , the Company had classified 23 properties as held for sale, 22 of which were GKK Properties. The following summary presents the major components of assets and liabilities related to real estate held for sale as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Assets related to real estate held for sale Total real estate, at cost and net of impairment charges $ 129,637 $ 380,376 Accumulated depreciation and amortization (17,599 ) (60,465 ) Real estate held for sale, net 112,038 319,911 Other assets 6,409 27,245 Total assets related to real estate held for sale $ 118,447 $ 347,156 Liabilities related to real estate held for sale Notes payable, net 33,490 183,802 Other liabilities 4,301 12,528 Total liabilities related to real estate held for sale $ 37,791 $ 196,330 During the six months ended June 30, 2016 , the Company sold one historical real estate property and 132 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, 2015 , the Company sold three historical real estate properties and 30 GKK Properties, which properties were not classified as held for sale in financial statements issued for the reporting periods prior to January 1, 2014. As of June 30, 2016 , the Company had classified 23 properties as held for sale, 22 of which were GKK Properties. 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, 2016 2015 2016 2015 Revenues Rental income $ 5,100 $ 13,059 $ 14,780 $ 29,161 Tenant reimbursements and other operating income 4,525 7,308 10,668 16,233 Total revenues 9,625 20,367 25,448 45,394 Expenses Operating, maintenance, and management 3,300 6,603 7,990 16,691 Real estate taxes and insurance 1,758 2,971 4,333 6,913 Asset management fees to affiliate 318 373 659 838 General and administrative expenses 2 4 55 — Depreciation and amortization 2,070 6,408 5,280 14,332 Interest expense 377 4,343 2,958 9,667 Impairment of real estate 430 — 701 — Total expenses 8,255 20,702 21,976 48,441 Discontinued Operations The following table summarizes operating income from discontinued operations for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Total revenues and other income $ 6 $ — $ 6 $ 45 Total expenses (77 ) 7 (72 ) 7 Income (loss) from discontinued operations before gain on sales of real estate, net, and impairment charge 83 (7 ) 78 38 Gain on sales of real estate, net — — — 124 Income (loss) from discontinued operations $ 83 $ (7 ) $ 78 $ 162 Foreclosed Real Estate Held for Sale During the six months ended June 30, 2015 , the Company sold the remaining two condominium units of the Tribeca Building 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. Disposition of the FSI 6000 Properties On April 11, 2016, the Company sold 61 bank branch properties, containing an aggregate of 245,843 rentable square feet (the “FSI 6000 Properties”), to a buyer unaffiliated with the Company or the Advisor (the “FSI 6000 Buyer”), for an aggregate sales price, net of closing credits, of $139.6 million (which includes a payment of $6.6 million by the FSI 6000 Buyer to the Company to compensate the Company for costs and expenses the Company incurred in connection with the defeasance of the FSI 6000 Mortgage Loans, as defined below), excluding closing costs.

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2016
Notes Payable [Abstract]
NOTES PAYABLE	NOTES PAYABLE As of June 30, 2016 and December 31, 2015 , 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, 2016 Book Value as of December 31, 2015 Contractual Interest Rate as of June 30, 2016 (1) Effective (1) Payment Type Maturity Date (2) Notes Payable Plaza in Clayton Mortgage Loan $ 62,200 $ 62,200 5.9% 5.9% Interest Only 10/06/2016 Portfolio Loan 153,499 164,131 One-month LIBOR + 1.80% 2.3% Interest Only 01/01/2017 215,699 226,331 GKK Properties Notes Payable Bank of America - BBD2 Mortgage Loan (3) — 65,712 (3) (3) (3) (3) Pitney Bowes - Bank of America Mortgage Loan 36,160 36,160 5.3% 5.3% Principal & Interest 10/10/2022 FSI 6000D Mortgage Loan (4) — 28,934 (4) (4) (4) (4) FSI 6000B Mortgage Loan (4) — 27,763 (4) (4) (4) (4) FSI 6000A Mortgage Loan (4) — 24,271 (4) (4) (4) (4) FSI 6000C Mortgage Loan (4) — 21,967 (4) (4) (4) (4) 36,160 204,807 Total notes payable principal outstanding 251,859 431,138 Discount on notes payable, net (5) (504 ) (2,487 ) Deferred financing costs, net (142 ) (429 ) Total notes payable, net $ 251,213 $ 428,222 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of June 30, 2016 . Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2016 (consisting of the contractual interest rate), using interest rate indices as of June 30, 2016 , where applicable. (2) Represents the initial maturity date or the maturity date as extended as of June 30, 2016 ; subject to certain conditions, the maturity dates of certain loans may be extended beyond the maturity date shown. (3) On April 15, 2016, the Company, through an indirect wholly owned subsidiary, entered into a defeasance agreement with the lenders under the Bank of America - BBD2 Mortgage Loan. See “Significant Financing Transactions - Defeasance of the Bank of America - BBD2 Mortgage Loan” below. (4) On April 11, 2016, the Company, through indirect wholly owned subsidiaries, entered into a defeasance agreement with each of the lenders under these loans. See “Significant Financing Transactions - Defeasance of the FSI 6000 Mortgage Loans” below. (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, 2016 and December 31, 2015 , the Company’s deferred financing costs were $0.1 million and $0.4 million , respectively, net of amortization. During the three and six months ended June 30, 2016 , the Company incurred interest expense of $2.7 million and $7.9 million , respectively. During the three and six months ended June 30, 2015 , the Company incurred interest expense of $8.1 million and $16.8 million , respectively. Included in interest expense were: (i) the amortization of deferred financing costs of $0.1 million and $0.2 million for the three and six months ended June 30, 2016 and $0.8 million and $1.3 million for the three and six months ended June 30, 2015 , respectively, and (ii) the amortization of discounts and premiums on notes payable, which increased interest expense by $23,000 and $0.2 million for the three and six months ended June 30, 2016 and $0.4 million and $0.9 million for the three and six months ended June 30, 2015 , respectively. As of June 30, 2016 and December 31, 2015 , $2.0 million and $1.7 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, 2016 (in thousands): July 1, 2016 through December 31, 2016 $ 64,408 2017 155,832 2018 2,459 2019 2,592 2020 2,728 Thereafter 23,840 $ 251,859 The following summarizes the activity related to notes payable for the six months ended June 30, 2016 (in thousands): Total notes payable, net - December 31, 2015 $ 428,222 Principal repayments (11,950 ) Defeasance of notes payable (167,328 ) Write-off of discount on notes payable related to sale 1,771 Write-off of deferred financing costs 105 Amortization of discounts and premiums on notes payable, net 211 Amortization of deferred financing costs 182 Total notes payable, net - June 30, 2016 $ 251,213 Significant Financing Transactions Defeasance of the FSI 6000 Mortgage Loans On April 11, 2016, in connection with the disposition of the FSI 6000 Properties, the Company entered into a defeasance agreement with each of the lenders under the FSI 6000A Mortgage Loan, FSI 6000B Mortgage Loan, FSI 6000C Mortgage Loan and FSI 6000D Mortgage Loan (collectively, the “FSI 6000 Mortgage Loans”) to defease the entire aggregate outstanding principal balance of $102.3 million under the FSI 6000 Mortgage Loans, releasing the FSI 6000 Properties, which had secured the FSI 6000 Mortgage Loans. The defeasance costs and write-off of an unamortized discount resulted in an aggregate loss on extinguishment of debt of approximately $6.6 million . Defeasance of the Bank of America - BBD2 Mortgage Loan On April 15, 2016, the Company, through an indirect wholly owned subsidiary, entered into a defeasance agreement with the lender under the Bank of America - BBD2 Mortgage Loan to defease the remaining outstanding principal balance of $65.1 million , releasing all the properties that secured the Bank of America - BBD2 Mortgage Loan. The defeasance costs and write-off of an unamortized discount and unamortized deferred financing costs resulted in a loss on extinguishment of debt of approximately $12.7 million . 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. As of June 30, 2016 , the Company was in compliance with these debt covenants.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	6 Months Ended
	Jun. 30, 2016
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 non-financial and financial assets 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, 2016 and December 31, 2015 , which carrying amounts generally do not approximate the fair values (in thousands): June 30, 2016 December 31, 2015 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial assets: Real estate loans receivable (1) $ 28,881 $ 22,304 $ 20,586 $ 35,811 $ 27,281 $ 25,218 Financial liabilities: Notes payable $ 251,859 $ 251,213 $ 258,908 $ 431,138 $ 428,222 $ 448,351 _____________________ (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. Low levels of transaction volume for certain financial instruments have made the estimation of fair values difficult and, therefore, both the actual results and the Company’s estimate of value at a future date could be materially different. Assets Recorded at Fair Value During the six months ended June 30, 2016 , the Company measured the following assets at fair value on a nonrecurring basis (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Nonrecurring Basis (1) : Impaired real estate held for investment $ 84,088 $ — $ — $ 84,088 Impaired real estate held for sale 1,354 — — 1,354 Impaired real estate sold 8,771 — — 8,771 _____________________ (1) Amounts represent the aggregate fair value for real estate assets impacted by impairment charges during the six months ended June 30, 2016 , as of the date that the fair value measurements were made. The carrying value for these real estate assets may have subsequently increased or decreased from the fair value reflected due to activity that has occurred since the measurement date. As of June 30, 2016 , certain of the Company’s real estate properties held for investment were measured at estimated fair value as these properties were impaired and the carrying values of these properties were adjusted to estimated fair values. The Company estimated the fair value for the impaired real estate properties held for investment by performing a 10-year discounted cash flow analysis. The range of the terminal capitalization rates used to estimate the fair values for these properties was 7.00% to 10.75% . See Note 3, “Real Estate Held for Investment — Impairment of Real Estate,” for information regarding impairments related to real estate held for investment. As of June 30, 2016 , certain of the Company’s real estate properties held for sale and sold were measured at estimated fair value as these properties were impaired and the carrying values of these properties were adjusted to estimated fair value. The Company estimated the fair value for these impaired real estate properties held for sale and sold based on an estimated sales price, less estimated costs to sell.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2016
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, 2016 and 2015 , 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, 2016 and 2015 , respectively, and any related amounts payable as of June 30, 2016 and December 31, 2015 (in thousands): Incurred Payable Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2016 2015 2016 2015 2016 2015 Expensed Asset management fees (1) $ 2,097 $ 2,346 $ 4,446 $ 4,766 $ — $ — Reimbursement of operating expenses (2) 101 52 165 99 61 68 Disposition fees (3) 3,062 1,068 3,480 2,253 157 — $ 5,260 $ 3,466 $ 8,091 $ 7,118 $ 218 $ 68 _____________________ (1) See “Asset Management Fee for GKK Properties” below. (2) Reimbursable operating expenses primarily consists of internal audit personnel costs, accounting software and cybersecurity related expenses incurred by the Advisor 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 $78,000 and $50,000 for the three months ended June 30, 2016 and 2015 , respectively, and $142,000 and $95,000 for the six months ended June 30, 2016 and 2015 , respectively. These were the only type of employee costs reimbursed under the Advisory Agreement for the six months ended June 30, 2016 and 2015 . 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. In addition to the amounts above, the Company reimburses the Advisor for certain of the Company’s direct costs incurred from third parties that were initially paid by the Advisor on behalf of the Company. (3) Disposition fees with respect to real estate sold are included in the gain (loss) on sales of real estate in the accompanying consolidated statements of operations. During the three and six months ended June 30, 2016 , the Advisor reimbursed the Company $36,000 for property insurance rebate and $69,000 for legal and professional fees. Asset Management Fee for GKK Properties Among the fees payable to the Advisor is an asset management fee. With respect to investments in real estate, the Company pays the Advisor a monthly asset management fee equal to one-twelfth of 0.75% of the amount actually paid or allocated to acquire the investment, plus the cost of any subsequent development, construction or improvements to the property. This amount includes any portion of the investment that was debt financed and is inclusive of acquisition fees and expenses related thereto. In the case of investments made through joint ventures, the asset management fee is determined based on the Company’s proportionate share of the underlying investment. With respect to investments in loans and any investments other than real estate, the Company pays our advisor a monthly asset management fee calculated, each month, as one-twelfth of 0.75% of the lesser of (i) the amount actually paid or allocated to acquire or fund the loan or other investment (which amount includes any portion of the investment that was debt financed and is inclusive of acquisition or origination fees and expenses related thereto) and (ii) the outstanding principal amount of such loan or other investment, plus the acquisition or origination fees and expenses related to the acquisition or funding of such investment, as of the time of calculation. With respect to an investment that has suffered an impairment in value, reduction in cash flow or other negative circumstances, such investment may either be excluded from the calculation of the asset management fee described above or included in such calculation at a reduced value that is recommended by the Advisor and Company’s management and then approved by a majority of its independent directors, and this change in the fee shall be applicable to an investment upon the earlier to occur of the date on which (i) such investment is sold, (ii) such investment is surrendered to a person other than the company, its direct or indirect wholly owned subsidiary or a joint venture or partnership in which it has an interest, (iii) the Advisor determines that it will no longer pursue collection or other remedies related to such investment, or (iv) the Advisor recommends a revised fee arrangement with respect to such investment. As of June 30, 2016 , the Company excluded its interest in an unconsolidated joint venture from the calculation of asset management fees. Through March 31, 2016, the Company calculated the asset management fee for the GKK Properties based on the original cost of its investment in the GKK Mezzanine Loan, rather than on the gross value of the GKK Properties it owns or in which it holds a leasehold interest. Beginning April 2016, the gross value of the GKK Properties fell below the original cost of the Company’s investment in the GKK Mezzanine Loan and for the period from April 1, 2016 through June 30, 2016, it calculated the asset management fee for these properties based on the gross value of the GKK Properties. As of June 30, 2016 , the Company had not determined to calculate the asset management fee at an adjusted value for any other investments or to exclude any other investments from the calculation of the asset management fee. Modification of Disposition Fee Related to GKK Properties 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. Notwithstanding the foregoing, in January 2015, the disposition fee related to the sales of GKK Properties was 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. 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, 2016 , the Company had sold 160 GKK Properties for an aggregate contract sales price of $214.1 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, 2016 , which amount would be determined by the conflicts committee in its sole discretion. On August 9, 2016, the Company and the Advisor entered into an amendment (“Amendment No. 1”) to the Advisory Agreement between the parties to amend certain terms related to the disposition fee payable to the Advisor by the Company. See Note 13, “Subsequent Events - Advisory Agreement Amendment” for more information.

SUPPLEMENTAL CASH FLOW AND SIGN

SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES	6 Months Ended
	Jun. 30, 2016
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, 2016 2015 Supplemental Disclosure of Cash Flow Information: Interest paid $ 7,195 $ 13,671 Supplemental Disclosure of Significant Noncash Transactions: Treasury securities transferred in connection with defeasance of notes payable $ (184,256 ) $ — Defeasance of notes payable $ 167,328 $ — Investment in a real estate property through deed-in-lieu of foreclosure $ 5,480 $ — Increase in lease commissions payable $ 340 $ — Increase in lease incentives payable $ 164 $ 423

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2016
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 26 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, 2016 and 2015 , and total assets and total liabilities for each reportable segment as of June 30, 2016 and December 31, 2015 (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 Revenues: Real estate segment (1) $ 16,481 $ 16,488 $ 33,671 $ 34,329 Real estate-related segment 739 741 1,549 1,467 GKK Properties segment (1) 17,564 27,737 40,690 58,748 Total revenues $ 34,784 $ 44,966 $ 75,910 $ 94,544 Interest expense: Real estate segment (1) $ 1,922 $ 2,036 $ 3,860 $ 4,244 GKK Properties segment (1) 729 6,048 4,020 12,572 Total interest expense $ 2,651 $ 8,084 $ 7,880 $ 16,816 NOI: Real estate segment (1) $ 7,152 $ 6,660 $ 14,888 $ 13,055 Real estate-related segment 738 741 1,548 1,466 GKK Properties segment (1) 4,898 5,773 10,933 10,728 Total NOI $ 12,788 $ 13,174 $ 27,369 $ 25,249 As of June 30, As of December 31, 2016 2015 Assets: Real estate segment $ 407,124 $ 406,690 Real estate-related segment 23,962 27,899 GKK Properties segment 226,455 261,950 Total segment assets 657,541 696,539 Real estate held for sale 118,447 347,156 Corporate-level (2) 139,691 11,170 Total assets $ 915,679 $ 1,054,865 Liabilities: Real estate segment $ 198,544 $ 199,729 Real estate-related segment 5 3 GKK Properties segment 88,415 127,836 Total segment liabilities 286,964 327,568 Real estate held for sale 37,791 196,330 Corporate-level (3) 1,852 1,304 Total liabilities $ 326,607 $ 525,202 _____________________ (1) Amounts include certain properties in continuing operations that were sold or held for sale as of June 30, 2016 . 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 $139.1 million and $10.6 million as of June 30, 2016 and December 31, 2015 , respectively. (3) As of June 30, 2016 and December 31, 2015 , corporate-level liabilities consisted primarily of accounts payable and accrued liabilities for general and administrative expenses. The following table reconciles the Company’s net income to its NOI for the three and six months ended June 30, 2016 and 2015 (amounts in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 Net income $ 61,182 $ 19,751 $ 72,001 $ 28,340 Gain on sales of real estate (97,349 ) (35,093 ) (120,935 ) (49,059 ) Loss from extinguishment of debt 19,317 6,385 19,320 6,376 Gain on sale of foreclosed real estate held for sale — — — (2,509 ) Other income and interest income (203 ) (474 ) (446 ) (590 ) Asset management fees to affiliate 2,097 2,346 4,446 4,766 Foreclosure fees and expenses 262 — 262 — General and administrative expenses 2,890 6,047 6,262 8,277 Depreciation and amortization 10,046 14,205 21,044 29,810 Impairment charges on real estate 14,629 — 25,493 — Total (income) loss from discontinued operations (83 ) 7 (78 ) (162 ) NOI (1) $ 12,788 $ 13,174 $ 27,369 $ 25,249 _____________________ (1) Amounts include certain properties in continuing operations that were sold or held for sale as of June 30, 2016 . 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, 2016
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 2016 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, 2016 were as follows (in thousands): July 1, 2016 through December 31, 2016 $ 8,318 2017 12,724 2018 2,560 2019 1,864 2020 1,289 Thereafter 30,182 $ 56,937 If the Company were to dispose of an asset that is subject to a ground lease, the Company may incur additional losses to settle obligations related to the ground lease. 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 GPT Realty Management LP and the Property Manager for the Services under the Second Amended Services Agreement and the Accounting/Construction 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, 2016
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 9, 2016, 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 22, 2016. The Company expects to pay this distribution on or about September 29, 2016. Disposition of Woodfield Preserve Office Center On November 13, 2007, the Company, through an indirect wholly owned subsidiary, purchased two six-story office buildings containing an aggregate of 647,216 rentable square feet on approximately 24 acres of land in Schaumburg, Illinois (“Woodfield Preserve Office Center”). On July 14, 2016, the Company sold Woodfield Preserve Office Center, which had a net book value of $71.5 million as of the date of sale, for $73.4 million . The purchaser is not affiliated with the Company or the Advisor. In connection with the disposition of Woodfield Preserve Office Center, the Company repaid $37.1 million of the outstanding principal balance due under the Portfolio Loan, which was partially secured by Woodfield Preserve Office Center. Advisory Agreement Amendment On August 9, 2016, the Company and the Advisor entered into Amendment No. 1 to the Advisory Agreement between the parties to amend certain terms related to the disposition fee payable to the Advisor by the Company. Prior to Amendment No. 1, with respect to sales of GKK Properties, the Advisory Agreement provided: 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. Pursuant to Amendment No. 1, with respect to sales of GKK Properties for which a disposition fee has not yet been paid, based on the proceeds received from the entire investment related to the GKK Mezzanine Loan and the GKK Properties to date and expected proceeds from future sales, the conflicts committee determined that the Advisor had provided a substantial amount of services in connection with the sale of each such 160 GKK Property named therein and approved the payment to the Advisor of a disposition fee equal to 1.0% of the aggregate contract sales prices of such GKK Properties, which aggregate disposition fee was $2.0 million . The aggregate contract sales price of such 160 GKK Properties was $214.1 million . Also pursuant to Amendment No. 1, for substantial assistance in connection with the sale of all GKK Properties that have not yet been sold (as determined by the conflicts committee of the Company’s board of directors), the Company will pay the Advisor or its affiliates a disposition fee of 1% of the contract sales such GKK Properties 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.

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2016
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, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 .
Principles of Consolidation	The unaudited 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 unaudited 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 unaudited consolidated financial statements and condensed 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, 2016 , the Company sold 133 properties ( 132 of which were GKK Properties). As of June 30, 2016 , the Company had classified 23 properties as held for sale, 22 of which were GKK Properties. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented.
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 six months ended June 30, 2016 and 2015 , respectively. Distributions declared per share of common stock were $0.025 and $0.050 for the three and six months ended June 30, 2016 , respectively, and $0.025 and $0.050 for the three and six months ended June 30, 2015 , respectively. Distributions per share of common stock were based on a quarterly record date for each quarter ended June 30, 2016 and 2015 , respectively.
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 11, “Segment Information.”
Square Footage, Occupancy and Other Measures	Any references to square footage, occupancy or annualized base rent are unaudited and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board.
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 was to be 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. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU No. 2015-14”), which defers 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 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU No. 2016-01”). The amendments in ASU No. 2016-01 address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU No. 2016-01 primarily affects accounting for equity investments and financial liabilities where the fair value option has been elected. ASU No. 2016-01 also requires entities to present financial assets and financial liabilities separately, grouped by measurement category and form of financial asset in the balance sheet or in the accompanying notes to the financial statements. ASU No. 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU No. 2016-01 to have a significant impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). The amendments in ASU No. 2016-02 change the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU No. 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of ASU No. 2016-02 as of its issuance is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the new leases standard on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU No. 2016-13”). ASU No. 2016-13 affects entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. The amendments in ASU No. 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU No. 2016-13 also amends the impairment model for available-for-sale securities. An entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra-account to the amortized cost basis rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. ASU No. 2016-13 also requires new disclosures. For financial assets measured at amortized cost, an entity will be required to disclose information about how it developed its allowance for credit losses, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. For financing receivables and net investments in leases measured at amortized cost, an entity will be required to further disaggregate the information it currently discloses about the credit quality of these assets by year of the asset’s origination for as many as five annual periods. For available for sale securities, an entity will be required to provide a roll-forward of the allowance for credit losses and an aging analysis for securities that are past due. ASU No. 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the impact of adopting ASU No. 2016-13 on its financial statements, but does not expect the adoption of ASU No. 2016-13 to have a material impact on its financial statements.

REAL ESTATE HELD FOR INVESTME21

REAL ESTATE HELD FOR INVESTMENT (Tables)	6 Months Ended
	Jun. 30, 2016
Real Estate Held for Investment [Abstract]
Schedule of Real Estate Investments	The following table summarizes the Company’s investments in real estate as of June 30, 2016 and December 31, 2015 (in thousands): Land Buildings and Improvements Tenant Origination and Absorption Costs Total Real Estate Held for Investment As of June 30, 2016: Office $ 55,335 $ 289,769 $ 525 $ 345,629 Industrial 10,975 56,897 1,835 69,707 Retail (1) 1,607 2,967 805 5,379 GKK Properties 58,804 113,020 20,212 192,036 Real estate held for investment, at cost and net of impairment charges 126,721 462,653 23,377 612,751 Accumulated depreciation/amortization — (79,003 ) (12,960 ) (91,963 ) Real estate held for investment, net $ 126,721 $ 383,650 $ 10,417 $ 520,788 As of December 31, 2015: Office $ 56,745 $ 294,979 $ 525 $ 352,249 Industrial 10,974 56,451 1,835 69,260 GKK Properties 64,155 133,343 24,580 222,078 Real estate held for investment, at cost and net of impairment charges 131,874 484,773 26,940 643,587 Accumulated depreciation/amortization — (87,547 ) (15,071 ) (102,618 ) Real estate held for investment, net $ 131,874 $ 397,226 $ 11,869 $ 540,969 _____________________ (1) On May 13, 2016, the Company received a deed-in-lieu of foreclosure in satisfaction of all amounts due to it under its investment in the Lawrence Village Plaza Loan Origination and received title to the collateral that secured the loan. See Note 5, “Real Estate Loans Receivable.”
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, 2016 for the years ending December 31 is as follows (in thousands): July 1, 2016 through December 31, 2016 $ 36,291 2017 70,179 2018 60,162 2019 52,780 2020 43,930 Thereafter 124,873 $ 388,215
Schedules of Concentration of Risk, by Risk Factor	As of June 30, 2016 , 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 1,002,669 23.5 % $ 9,536 12.6 % $ 9.51 (2) _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2016 , 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, 2016 , lease expiration dates ranged from 2019 through 2023 with a weighted-average remaining term of 4.5 years. As of June 30, 2016 , the Company’s highest tenant industry concentration (greater than 10% of annualized base rent) was as follows: Industry Number of Annualized (1) (in thousands) Percentage of Finance 48 $ 26,041 34.4 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2016 , 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.

TENANT ORIGINATION AND ABSORP22

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 and December 31, 2015 , 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, 2016 December 31, 2015 June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Cost, net of impairments $ 23,377 $ 26,940 $ 13,680 $ 13,624 $ (44,033 ) $ (44,033 ) Accumulated amortization (12,959 ) (15,071 ) (9,141 ) (8,207 ) 31,606 28,548 Net amount $ 10,418 $ 11,869 $ 4,539 $ 5,417 $ (12,427 ) $ (15,485 )
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, 2016 and 2015 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, 2016 2015 2016 2015 2016 2015 Amortization $ (1,288 ) $ (2,581 ) $ (476 ) $ (1,303 ) $ 1,995 $ 3,594 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, 2016 2015 2016 2015 2016 2015 Amortization $ (2,830 ) $ (5,405 ) $ (1,304 ) $ (2,158 ) $ 4,135 $ 6,239

REAL ESTATE LOANS RECEIVABLE (T

REAL ESTATE LOANS RECEIVABLE (Tables)	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
Schedule of Real Estate Loans Receivable	As of June 30, 2016 and December 31, 2015 , 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, 2016 (1) Book Value as of June 30, 2016 (2) Book Value as of December 31, 2015 (2) Contractual Interest Rate (3) Annualized Effective Interest Rate (3) Maturity Date Sandmar Mezzanine Loan Southeast U.S. (4) 01/09/2007 Retail Mezzanine $ 5,074 $ 5,096 $ 5,096 5.4% — % 01/01/2017 Lawrence Village Plaza Loan Origination New Castle, Pennsylvania (5) 08/06/2007 Retail Mortgage — — 6,903 (5) (5) (5) San Diego Office Portfolio B-Note San Diego, California (6) 10/26/2007 Office B-Note 20,000 18,726 18,277 5.8% 11.2 % 10/11/2017 4929 Wilshire B-Note Los Angeles, California 11/19/2007 Office B-Note 3,807 3,578 3,503 6.1% 12.4 % 07/11/2017 $ 28,881 $ 27,400 $ 33,779 Reserve for Loan Losses (7) — (5,096 ) (6,498 ) $ 28,881 $ 22,304 $ 27,281 _____________________ (1) Outstanding principal balance as of June 30, 2016 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 2016, using the interest method, annualized and divided by the average amortized cost basis of the investment during 2016. The contractual interest rates and annualized effective interest rates presented are as of June 30, 2016 . (4) The Company had recorded an asset-specific loan loss reserve against this investment as of June 30, 2016 . See “—Reserve for Loan Losses.” (5) On September 1, 2015, the Lawrence Village Plaza Loan Origination matured without repayment. On May 13, 2016, the Company received a deed-in-lieu of foreclosure in satisfaction of all amounts due to it under its investment in the Lawrence Village Plaza Loan Origination and received title to the collateral that secured the loan. (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, 2016 , the Company recognized $1.0 million of interest income related to its investment in this loan. (7) 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, 2016 (in thousands): Real estate loans receivable, net - December 31, 2015 $ 27,281 Principal repayments received on real estate loans receivable (48 ) Accretion of discounts on purchased real estate loans receivable 568 Amortization of origination fees and costs on purchased and originated real estate loans receivable (17 ) Deed-in-lieu foreclosure of real estate loan receivable (5,480 ) Real estate loans receivable, net - June 30, 2016 $ 22,304
Schedule of Interest Income from Real Estate Loans Receivable	For the three and six months ended June 30, 2016 and 2015 , interest income from real estate loans receivable consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Contractual interest income $ 459 $ 491 $ 998 $ 976 Interest accretion 288 258 568 506 Amortization of origination fees and costs (8 ) (8 ) (17 ) (15 ) Interest income from real estate loans receivable $ 739 $ 741 $ 1,549 $ 1,467

REAL ESTATE HELD FOR SALE AND24

REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Assets related to real estate held for sale Total real estate, at cost and net of impairment charges $ 129,637 $ 380,376 Accumulated depreciation and amortization (17,599 ) (60,465 ) Real estate held for sale, net 112,038 319,911 Other assets 6,409 27,245 Total assets related to real estate held for sale $ 118,447 $ 347,156 Liabilities related to real estate held for sale Notes payable, net 33,490 183,802 Other liabilities 4,301 12,528 Total liabilities related to real estate held for sale $ 37,791 $ 196,330
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, 2016 2015 2016 2015 Revenues Rental income $ 5,100 $ 13,059 $ 14,780 $ 29,161 Tenant reimbursements and other operating income 4,525 7,308 10,668 16,233 Total revenues 9,625 20,367 25,448 45,394 Expenses Operating, maintenance, and management 3,300 6,603 7,990 16,691 Real estate taxes and insurance 1,758 2,971 4,333 6,913 Asset management fees to affiliate 318 373 659 838 General and administrative expenses 2 4 55 — Depreciation and amortization 2,070 6,408 5,280 14,332 Interest expense 377 4,343 2,958 9,667 Impairment of real estate 430 — 701 — Total expenses 8,255 20,702 21,976 48,441
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, 2016 and 2015 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Total revenues and other income $ 6 $ — $ 6 $ 45 Total expenses (77 ) 7 (72 ) 7 Income (loss) from discontinued operations before gain on sales of real estate, net, and impairment charge 83 (7 ) 78 38 Gain on sales of real estate, net — — — 124 Income (loss) from discontinued operations $ 83 $ (7 ) $ 78 $ 162

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2016
Notes Payable [Abstract]
Schedule of Long-term Debt Instruments	As of June 30, 2016 and December 31, 2015 , 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, 2016 Book Value as of December 31, 2015 Contractual Interest Rate as of June 30, 2016 (1) Effective (1) Payment Type Maturity Date (2) Notes Payable Plaza in Clayton Mortgage Loan $ 62,200 $ 62,200 5.9% 5.9% Interest Only 10/06/2016 Portfolio Loan 153,499 164,131 One-month LIBOR + 1.80% 2.3% Interest Only 01/01/2017 215,699 226,331 GKK Properties Notes Payable Bank of America - BBD2 Mortgage Loan (3) — 65,712 (3) (3) (3) (3) Pitney Bowes - Bank of America Mortgage Loan 36,160 36,160 5.3% 5.3% Principal & Interest 10/10/2022 FSI 6000D Mortgage Loan (4) — 28,934 (4) (4) (4) (4) FSI 6000B Mortgage Loan (4) — 27,763 (4) (4) (4) (4) FSI 6000A Mortgage Loan (4) — 24,271 (4) (4) (4) (4) FSI 6000C Mortgage Loan (4) — 21,967 (4) (4) (4) (4) 36,160 204,807 Total notes payable principal outstanding 251,859 431,138 Discount on notes payable, net (5) (504 ) (2,487 ) Deferred financing costs, net (142 ) (429 ) Total notes payable, net $ 251,213 $ 428,222 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of June 30, 2016 . Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2016 (consisting of the contractual interest rate), using interest rate indices as of June 30, 2016 , where applicable. (2) Represents the initial maturity date or the maturity date as extended as of June 30, 2016 ; subject to certain conditions, the maturity dates of certain loans may be extended beyond the maturity date shown. (3) On April 15, 2016, the Company, through an indirect wholly owned subsidiary, entered into a defeasance agreement with the lenders under the Bank of America - BBD2 Mortgage Loan. See “Significant Financing Transactions - Defeasance of the Bank of America - BBD2 Mortgage Loan” below. (4) On April 11, 2016, the Company, through indirect wholly owned subsidiaries, entered into a defeasance agreement with each of the lenders under these loans. See “Significant Financing Transactions - Defeasance of the FSI 6000 Mortgage Loans” below. (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, 2016 (in thousands): July 1, 2016 through December 31, 2016 $ 64,408 2017 155,832 2018 2,459 2019 2,592 2020 2,728 Thereafter 23,840 $ 251,859
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, 2016 (in thousands): Total notes payable, net - December 31, 2015 $ 428,222 Principal repayments (11,950 ) Defeasance of notes payable (167,328 ) Write-off of discount on notes payable related to sale 1,771 Write-off of deferred financing costs 105 Amortization of discounts and premiums on notes payable, net 211 Amortization of deferred financing costs 182 Total notes payable, net - June 30, 2016 $ 251,213

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 and December 31, 2015 , which carrying amounts generally do not approximate the fair values (in thousands): June 30, 2016 December 31, 2015 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial assets: Real estate loans receivable (1) $ 28,881 $ 22,304 $ 20,586 $ 35,811 $ 27,281 $ 25,218 Financial liabilities: Notes payable $ 251,859 $ 251,213 $ 258,908 $ 431,138 $ 428,222 $ 448,351 _____________________ (1) Carrying amount of real estate loans receivable includes loan loss reserves.
Fair Value, Assets Measured on Recurring and Nonrecurring Basis	During the six months ended June 30, 2016 , the Company measured the following assets at fair value on a nonrecurring basis (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Nonrecurring Basis (1) : Impaired real estate held for investment $ 84,088 $ — $ — $ 84,088 Impaired real estate held for sale 1,354 — — 1,354 Impaired real estate sold 8,771 — — 8,771 _____________________ (1) Amounts represent the aggregate fair value for real estate assets impacted by impairment charges during the six months ended June 30, 2016 , as of the date that the fair value measurements were made. The carrying value for these real estate assets may have subsequently increased or decreased from the fair value reflected due to activity that has occurred since the measurement date.

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 and 2015 , respectively, and any related amounts payable as of June 30, 2016 and December 31, 2015 (in thousands): Incurred Payable Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2016 2015 2016 2015 2016 2015 Expensed Asset management fees (1) $ 2,097 $ 2,346 $ 4,446 $ 4,766 $ — $ — Reimbursement of operating expenses (2) 101 52 165 99 61 68 Disposition fees (3) 3,062 1,068 3,480 2,253 157 — $ 5,260 $ 3,466 $ 8,091 $ 7,118 $ 218 $ 68 _____________________ (1) See “Asset Management Fee for GKK Properties” below. (2) Reimbursable operating expenses primarily consists of internal audit personnel costs, accounting software and cybersecurity related expenses incurred by the Advisor 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 $78,000 and $50,000 for the three months ended June 30, 2016 and 2015 , respectively, and $142,000 and $95,000 for the six months ended June 30, 2016 and 2015 , respectively. These were the only type of employee costs reimbursed under the Advisory Agreement for the six months ended June 30, 2016 and 2015 . 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. In addition to the amounts above, the Company reimburses the Advisor for certain of the Company’s direct costs incurred from third parties that were initially paid by the Advisor on behalf of the Company. (3) Disposition fees with respect to real estate sold are included in the gain (loss) on sales of real estate in the accompanying consolidated statements of operations.

SUPPLEMENTAL CASH FLOW AND SI28

SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 2015 Supplemental Disclosure of Cash Flow Information: Interest paid $ 7,195 $ 13,671 Supplemental Disclosure of Significant Noncash Transactions: Treasury securities transferred in connection with defeasance of notes payable $ (184,256 ) $ — Defeasance of notes payable $ 167,328 $ — Investment in a real estate property through deed-in-lieu of foreclosure $ 5,480 $ — Increase in lease commissions payable $ 340 $ — Increase in lease incentives payable $ 164 $ 423

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 and 2015 , and total assets and total liabilities for each reportable segment as of June 30, 2016 and December 31, 2015 (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 Revenues: Real estate segment (1) $ 16,481 $ 16,488 $ 33,671 $ 34,329 Real estate-related segment 739 741 1,549 1,467 GKK Properties segment (1) 17,564 27,737 40,690 58,748 Total revenues $ 34,784 $ 44,966 $ 75,910 $ 94,544 Interest expense: Real estate segment (1) $ 1,922 $ 2,036 $ 3,860 $ 4,244 GKK Properties segment (1) 729 6,048 4,020 12,572 Total interest expense $ 2,651 $ 8,084 $ 7,880 $ 16,816 NOI: Real estate segment (1) $ 7,152 $ 6,660 $ 14,888 $ 13,055 Real estate-related segment 738 741 1,548 1,466 GKK Properties segment (1) 4,898 5,773 10,933 10,728 Total NOI $ 12,788 $ 13,174 $ 27,369 $ 25,249 As of June 30, As of December 31, 2016 2015 Assets: Real estate segment $ 407,124 $ 406,690 Real estate-related segment 23,962 27,899 GKK Properties segment 226,455 261,950 Total segment assets 657,541 696,539 Real estate held for sale 118,447 347,156 Corporate-level (2) 139,691 11,170 Total assets $ 915,679 $ 1,054,865 Liabilities: Real estate segment $ 198,544 $ 199,729 Real estate-related segment 5 3 GKK Properties segment 88,415 127,836 Total segment liabilities 286,964 327,568 Real estate held for sale 37,791 196,330 Corporate-level (3) 1,852 1,304 Total liabilities $ 326,607 $ 525,202 _____________________ (1) Amounts include certain properties in continuing operations that were sold or held for sale as of June 30, 2016 . 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 $139.1 million and $10.6 million as of June 30, 2016 and December 31, 2015 , respectively. (3) As of June 30, 2016 and December 31, 2015 , corporate-level liabilities consisted primarily of accounts payable and accrued liabilities for general and administrative expenses.
Reconciliation of Net Income (Loss) to Net Operating Income (Loss)	The following table reconciles the Company’s net income to its NOI for the three and six months ended June 30, 2016 and 2015 (amounts in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 Net income $ 61,182 $ 19,751 $ 72,001 $ 28,340 Gain on sales of real estate (97,349 ) (35,093 ) (120,935 ) (49,059 ) Loss from extinguishment of debt 19,317 6,385 19,320 6,376 Gain on sale of foreclosed real estate held for sale — — — (2,509 ) Other income and interest income (203 ) (474 ) (446 ) (590 ) Asset management fees to affiliate 2,097 2,346 4,446 4,766 Foreclosure fees and expenses 262 — 262 — General and administrative expenses 2,890 6,047 6,262 8,277 Depreciation and amortization 10,046 14,205 21,044 29,810 Impairment charges on real estate 14,629 — 25,493 — Total (income) loss from discontinued operations (83 ) 7 (78 ) (162 ) NOI (1) $ 12,788 $ 13,174 $ 27,369 $ 25,249 _____________________ (1) Amounts include certain properties in continuing operations that were sold or held for sale as of June 30, 2016 . 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, 2016
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, 2016 were as follows (in thousands): July 1, 2016 through December 31, 2016 $ 8,318 2017 12,724 2018 2,560 2019 1,864 2020 1,289 Thereafter 30,182 $ 56,937

ORGANIZATION (Details)

ORGANIZATION (Details) $ in Thousands	Dec. 19, 2013USD ($)	Jun. 30, 2016USD ($)propertyshares	Dec. 31, 2015USD ($)shares	May 30, 2008USD ($)shares	Sep. 30, 2012USD ($)shares	Jun. 30, 2016USD ($)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		232				232
Number of real estate loans receivable		3				3
Redemptions of common stock | $		$ 3,292	$ 6,361
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		835,477	1,431,368			13,856,909
Redemptions of common stock | $		$ 8	$ 15			$ 95,100
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
Accrued income | $		$ 20,100				$ 20,100
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
Held-for-Sale [Member]
Organizational Structure [Line Items]
Number of real estate properties		23				23
Held-for-Sale [Member] | GKK Properties [Member]
Organizational Structure [Line Items]
Number of real estate properties		22				22

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016property$ / shares	Jun. 30, 2015$ / shares	Jun. 30, 2016property$ / shares	Jun. 30, 2015$ / shares	Dec. 31, 2015property	Sep. 01, 2011property
Summary of Significant Accounting Policies [Line Items]
Number of real estate properties	232		232
Distributions declared per common share | $ / shares	$ 0.025	$ 0.025	$ 0.050	$ 0.050
GKK Properties [Member]
Summary of Significant Accounting Policies [Line Items]
Number of real estate properties						867
Disposed of by Sale [Member]
Summary of Significant Accounting Policies [Line Items]
Number of real estate properties disposed			133
Number of real estate properties					34
Disposed of by Sale [Member] | GKK Properties [Member]
Summary of Significant Accounting Policies [Line Items]
Number of real estate properties disposed			132
Number of real estate properties	160		160		31
Held-for-Sale [Member]
Summary of Significant Accounting Policies [Line Items]
Number of real estate properties	23		23
Held-for-Sale [Member] | GKK Properties [Member]
Summary of Significant Accounting Policies [Line Items]
Number of real estate properties	22		22

REAL ESTATE HELD FOR INVESTME33

REAL ESTATE HELD FOR INVESTMENT (Narrative) (Details) $ in Thousands, ft² in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)ft²States	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)ft²States	Jun. 30, 2015USD ($)
Real Estate Properties [Line Items]
Rentable square feet	5		5
Percentage of real estate portfolio occupied	86.00%		86.00%
Number of states in which entity operates | States	26		26
Impairment of real estate | $	$ 14,629	$ 0	$ 25,493	$ 0
GKK Properties [Member]
Real Estate Properties [Line Items]
Rentable square feet	2.4		2.4
Percentage of real estate portfolio occupied	83.00%		83.00%

REAL ESTATE HELD FOR INVESTME34

REAL ESTATE HELD FOR INVESTMENT (Schedule of Real Estate Investments) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	$ 612,751	$ 643,587
Accumulated depreciation/amortization	(91,963)	(102,618)
Total real estate held for investment, net	520,788	540,969
Office [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	345,629	352,249
Industrial [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	69,707	69,260
Retail [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	5,379
GKK Properties [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	192,036	222,078
Land [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	126,721	131,874
Accumulated depreciation/amortization	0	0
Total real estate held for investment, net	126,721	131,874
Land [Member] | Office [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	55,335	56,745
Land [Member] | Industrial [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	10,975	10,974
Land [Member] | Retail [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	1,607
Land [Member] | GKK Properties [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	58,804	64,155
Buildings and Improvements [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	462,653	484,773
Accumulated depreciation/amortization	(79,003)	(87,547)
Total real estate held for investment, net	383,650	397,226
Buildings and Improvements [Member] | Office [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	289,769	294,979
Buildings and Improvements [Member] | Industrial [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	56,897	56,451
Buildings and Improvements [Member] | Retail [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	2,967
Buildings and Improvements [Member] | GKK Properties [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	113,020	133,343
Tenant Origination and Absorption Costs [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	23,377	26,940
Accumulated depreciation/amortization	(12,960)	(15,071)
Total real estate held for investment, net	10,417	11,869
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	525	525
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	1,835	1,835
Tenant Origination and Absorption Costs [Member] | Retail [Member]
Real Estate Properties [Line Items]
Real estate held for investment, at cost and net of impairment charges	805
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	$ 20,212	$ 24,580

REAL ESTATE HELD FOR INVESTME35

REAL ESTATE HELD FOR INVESTMENT (Operating Leases) (Narrative) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2016USD ($)Tenants	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Operating Leased Assets [Line Items]
Recognition of deferred revenue, net of discontinued operations	$ 0.3	$ 0.9
Amortization of lease incentives	0.7	0.7
Deferred rent receivables	21		$ 19.9
Unamortized lease incentives	$ 5.1		4.8
Number of tenants | Tenants	200
Bad debt reserve	$ 0.6		0.5
Provision of doubtful accounts, net of discontinued operations	$ 0.2	$ 0.4
Maximum [Member]
Operating Leased Assets [Line Items]
Operating lease, term	14 years
Weighted Average [Member]
Operating Leased Assets [Line Items]
Operating lease, term	4 years 1 month 6 days
GKK Properties [Member]
Operating Leased Assets [Line Items]
Bad debt reserve	$ 0.5		0.4
GKK Properties [Member] | Maximum [Member]
Operating Leased Assets [Line Items]
Operating lease, term	9 years 7 months 6 days
GKK Properties [Member] | Weighted Average [Member]
Operating Leased Assets [Line Items]
Operating lease, term	3 years 3 months 18 days
Other Liabilities [Member]
Operating Leased Assets [Line Items]
Security deposit liability	$ 3		$ 3.2

REAL ESTATE HELD FOR INVESTME36

REAL ESTATE HELD FOR INVESTMENT (Future Minimum Rental Income) (Details) $ in Thousands	Jun. 30, 2016USD ($)
Real Estate Held for Investment [Abstract]
July 1, 2016 through December 31, 2016	$ 36,291
2,017	70,179
2,018	60,162
2,019	52,780
2,020	43,930
Thereafter	124,873
Future minimum rental income	$ 388,215

REAL ESTATE HELD FOR INVESTME37

REAL ESTATE HELD FOR INVESTMENT (Highes Tenant Industry Concentrations- Grater than 10% of Annual Base Rent) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)Tenants
Concentration Risk [Line Items]
Number of Tenants	200
Industry - Finance [Member]
Concentration Risk [Line Items]
Number of Tenants	48
Annualized Base Rent | $	$ 26,041
Percentage of Annualized Base Rent	34.40%

REAL ESTATE HELD FOR INVESTME38

REAL ESTATE HELD FOR INVESTMENT (Concentration of Credit Risk, Tenant Lease that Represents More than 10% of Annualized Base Rent) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)ft²$ / ft²
Weighted Average [Member]
Concentration Risk [Line Items]
Operating lease, term	4 years 1 month 6 days
Tenant Lease - Bank of America, N.A. [Member]
Concentration Risk [Line Items]
Rentable Square Feet | ft²	1,002,669
Annualized Base Rent | $	$ 9,536
Annualized Base Rent per Square Foot | $ / ft²	9.51
Tenant Lease - Bank of America, N.A. [Member] | Weighted Average [Member]
Concentration Risk [Line Items]
Operating lease, term	4 years 6 months
Tenant Lease - Bank of America, N.A. [Member] | Rentable Square Feet [Member]
Concentration Risk [Line Items]
Percentage of Annualized Base Rent	23.50%
Tenant Lease - Bank of America, N.A. [Member] | Base Rent [Member]
Concentration Risk [Line Items]
Percentage of Annualized Base Rent	12.60%

REAL ESTATE HELD FOR INVESTME39

REAL ESTATE HELD FOR INVESTMENT (Geographic Concentration Risk) (Details)	6 Months Ended
	Jun. 30, 2016
VIRGINIA | Assets, Total [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	12.90%

REAL ESTATE HELD FOR INVESTME40

REAL ESTATE HELD FOR INVESTMENT (Impairment of Real Estate) (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016USD ($)property	Jun. 30, 2016USD ($)property
Investment [Line Items]
Impairment of real estate	$ 14,600	$ 25,500
Assets Held-for-Investment [Member]
Investment [Line Items]
Impairment of real estate	$ 14,200	$ 24,800
Number of real estate properties included in impairment charges | property	30	44
Assets Held-for-Investment [Member] | City Gate Plaza [Member]
Investment [Line Items]
Impairment of real estate		$ 3,300
Number of real estate properties included in impairment charges | property		1
Assets Held-for-Investment [Member] | University Park Buildings [Member]
Investment [Line Items]
Impairment of real estate		$ 3,200
Number of real estate properties included in impairment charges | property		1
Assets Held-for-Investment [Member] | ADP Plaza [Member]
Investment [Line Items]
Impairment of real estate		$ 1,700
Number of real estate properties included in impairment charges | property		1
Percent of occupancy of real estate	48.60%	48.60%
Assets Held-for-Investment [Member] | GKK Properties [Member]
Investment [Line Items]
Impairment of real estate		$ 5,400
Number of real estate properties included in impairment charges | property	27	41
Assets Held-for-Investment [Member] | GKK Properties [Member] | Maximum [Member]
Investment [Line Items]
Amount of Impairment of Real Estate per Individual Property		$ 800
Assets Held-for-Investment [Member] | GKK Properties [Member] | Impairment Charge up to $800,000 [Member]
Investment [Line Items]
Number of real estate properties included in impairment charges | property		12
Assets Held-for-Investment [Member] | GKK Properties [Member] | Pitney Bowes - Bank of America Portfolio [Member]
Investment [Line Items]
Impairment of real estate		$ 1,700
Number of real estate properties included in impairment charges | property		8
Assets Held-for-Investment [Member] | GKK Properties [Member] | Citizen Bank Portfolio [Member]
Investment [Line Items]
Impairment of real estate		$ 9,500
Number of real estate properties included in impairment charges | property		21
Held-for-Sale [Member]
Investment [Line Items]
Impairment of real estate	$ 400	$ 700
Held-for-Sale [Member] | GKK Properties [Member]
Investment [Line Items]
Number of real estate properties included in impairment charges | property	2	5

TENANT ORIGINATION AND ABSORP41

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, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination and Absorption Costs, Cost, net of impairments	$ 23,377		$ 23,377		$ 26,940
Tenant Origination and Absorption Costs, Accumulated amortization	(12,959)		(12,959)		(15,071)
Tenant Origination and Absorption Costs, Net amount	10,418		10,418		11,869
Tenant Origination and Absorption Costs, Amortization	(1,288)	$ (2,581)	(2,830)	$ (5,405)
Above-Market Lease Assets, Cost, net of impairments	13,680		13,680		13,624
Above-Market Lease Assets, Accumulated amortization	(9,141)		(9,141)		(8,207)
Above-Market Lease Assets, Net amount	4,539		4,539		5,417
Above-Market Lease Assets, Amortization	(476)	(1,303)	(1,304)	(2,158)
Below-Market Lease Liabilities, Cost, net of impairments	(44,033)		(44,033)		(44,033)
Below-Market Lease Liabilities, Accumulated amortization	31,606		31,606		28,548
Below-Market Lease Liabilities, Net amount	(12,427)		(12,427)		$ (15,485)
Below-Market Lease Liabilities, Amortization	$ 1,995	$ 3,594	$ 4,135	$ 6,239

REAL ESTATE LOANS RECEIVABLE (S

REAL ESTATE LOANS RECEIVABLE (Schedule of Real Estate Loans Receivable) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Principal Balance	$ 28,881
Book Value	27,400	$ 33,779
Reserve for Loan Losses	(5,096)	(6,498)
Book Value	22,304	27,281
Interest receivable	$ 100	100
Sandmar Mezzanine Loan Southeast U.S. [Member] | Mezzanine [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Date Acquired/ Originated	Jan. 9, 2007
Outstanding Principal Balance	$ 5,074
Book Value	$ 5,096	5,096
Contractual Interest Rate	5.40%
Annualized Effective Interest Rate	0.00%
Maturity Date	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	$ 0
Book Value	0	6,903
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	Oct. 26, 2007
Outstanding Principal Balance	$ 20,000
Book Value	$ 18,726	18,277
Contractual Interest Rate	5.80%
Annualized Effective Interest Rate	11.20%
Maturity Date	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	$ 3,807
Book Value	$ 3,578	$ 3,503
Contractual Interest Rate	6.10%
Annualized Effective Interest Rate	12.40%
Maturity Date	Jul. 11, 2017

REAL ESTATE LOANS RECEIVABLE 43

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, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Real Estate Loans Receivable [Roll Forward]
Real estate loans receivable, net - December 31, 2015			$ 27,281
Principal repayments received on real estate loans receivable			(48)
Accretion of discounts on purchased real estate loans receivable			568
Amortization of origination fees and costs on purchased and originated real estate loans receivable	$ (8)	$ (8)	(17)	$ (15)
Deed-in-lieu foreclosure of real estate loan receivable			(5,480)
Real estate loans receivable, net - June 30, 2016	$ 22,304		$ 22,304

REAL ESTATE LOANS RECEIVABLE 44

REAL ESTATE LOANS RECEIVABLE (Schedule of Interest Income from Real Estate Loans Receivable) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Real Estate Properties [Line Items]
Contractual interest income	$ 459,000	$ 491,000	$ 998,000	$ 976,000
Interest accretion	288,000	258,000	568,000	506,000
Amortization of origination fees and costs	(8,000)	(8,000)	(17,000)	(15,000)
Interest income from real estate loans receivable	739,000	741,000	1,549,000	1,467,000
Book value	27,400,000		27,400,000		$ 33,779,000
Sandmar Mezzanine Loan [Member]
Real Estate Properties [Line Items]
Book value	0		0
Interest income related to impaired loans	$ 94,000	$ 0
Lawrence Village Plaza Loan Origination [Member]
Real Estate Properties [Line Items]
Interest income related to impaired loans			$ 200,000	$ 300,000

REAL ESTATE LOANS RECEIVABLE (R

REAL ESTATE LOANS RECEIVABLE (Reserve for Loan Losses) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Mortgage Loans on Real Estate [Line Items]
Reserve for loan losses	$ 5,096	$ 6,498
Sandmar Mezzanine Loan [Member]
Mortgage Loans on Real Estate [Line Items]
Reserve for loan losses	5,100
Mortgage loans on real estate, amortized cost basis	$ 5,100

REAL ESTATE HELD FOR SALE AND46

REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS (Narrative) (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016USD ($)property	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)property	Jun. 30, 2015USD ($)Units	Dec. 31, 2015USD ($)property	Sep. 01, 2011property
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties	232		232
Real estate held for sale, net | $	$ 112,038		$ 112,038		$ 319,911
Number of residential units sold, included in disposition fees | Units				2
Gain on sales of foreclosed real estate held for sale | $	$ 0	$ 0	$ 0	$ 2,509
GKK Properties [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Additional number of real estate properties disposed					30
Number of real estate properties with terminated leasehold interest					3
Number of real estate properties						867
Tribeca Building [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposition fees | $				200
Foreclosed real estate expense | $				$ 300
Held-for-Sale [Member] | GKK Properties [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties					8
Disposed of by Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties					34
Number of real estate properties disposed			133
Disposed of by Sale [Member] | GKK Properties [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties	160		160		31
Number of real estate properties disposed			132
Disposed of by Sale [Member] | Historical Real Estate [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties	1		1		3
Held-for-Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties	23		23
Held-for-Sale [Member] | GKK Properties [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties	22		22

REAL ESTATE HELD FOR SALE AND47

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, 2016	Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
Total real estate, at cost and net of impairment charges	$ 129,637	$ 380,376
Accumulated depreciation and amortization	(17,599)	(60,465)
Real estate held for sale, net	112,038	319,911
Other assets	6,409	27,245
Total assets related to real estate held for sale	118,447	347,156
Notes payable, net	33,490	183,802
Other liabilities	4,301	12,528
Total liabilities related to real estate held for sale	$ 37,791	$ 196,330

REAL ESTATE HELD FOR SALE AND48

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, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Rental income	$ 24,950	$ 32,432	$ 54,346	$ 67,797
Tenant reimbursements and other operating income	8,598	11,133	18,846	23,688
Total revenues	34,784	44,966	75,910	94,544
Expenses
Operating, maintenance, and management	14,711	17,843	30,565	39,833
Real estate taxes and insurance	4,634	5,865	10,096	12,646
Asset management fees to affiliate	2,097	2,346	4,446	4,766
General and administrative expenses	2,890	6,047	6,262	8,277
Depreciation and amortization	10,046	14,205	21,044	29,810
Interest expense	2,651	8,084	7,880	16,816
Impairment of real estate	14,629	0	25,493	0
Total expenses	51,920	54,390	106,048	112,148
Two Properties [Member]
Revenues
Rental income	5,100	13,059	14,780	29,161
Tenant reimbursements and other operating income	4,525	7,308	10,668	16,233
Total revenues	9,625	20,367	25,448	45,394
Expenses
Operating, maintenance, and management	3,300	6,603	7,990	16,691
Real estate taxes and insurance	1,758	2,971	4,333	6,913
Asset management fees to affiliate	318	373	659	838
General and administrative expenses	2	4	55	0
Depreciation and amortization	2,070	6,408	5,280	14,332
Interest expense	377	4,343	2,958	9,667
Impairment of real estate	430	0	701	0
Total expenses	$ 8,255	$ 20,702	$ 21,976	$ 48,441

REAL ESTATE HELD FOR SALE AND49

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, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Total revenues and other income	$ 6	$ 0	$ 6	$ 45
Total expenses	(77)	7	(72)	7
Income (loss) from discontinued operations before gain on sales of real estate, net, and impairment charge	83	(7)	78	38
Gain on sales of real estate, net	0	0	0	124
Total income (loss) from discontinued operations	$ 83	$ (7)	$ 78	$ 162

REAL ESTATE HELD FOR SALE AND50

REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS (Dispositions) (Details) $ in Millions	Apr. 11, 2016USD ($)ft²property	Jun. 30, 2016property	Dec. 31, 2015property
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties		232
Disposed of by Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties			34
Bank Branches [Member] | Disposed of by Sale [Member] | FSI 6000 Properties [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties	61
Net rentable area | ft²	245,843
Sales of real estate | $	$ 139.6
Payment received for cost and expenses | $	$ 6.6

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Deferred financing costs	$ 100		$ 100		$ 400
Interest expense	2,651	$ 8,084	7,880	$ 16,816
Amortization of financing cost, net of discontinued operations	100	800	200	1,300
Amortization of discounts and premiums on notes payable, net			211	867
Interest payable	2,000		2,000		$ 1,700
Notes Payable [Member]
Debt Instrument [Line Items]
Amortization of discounts and premiums on notes payable, net	$ 0	$ 400	$ 200	$ 900

NOTES PAYABLE (Schedule of Long

NOTES PAYABLE (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 251,859	$ 431,138
Discount on notes payable, net	(504)	(2,487)
Deferred Finance Costs, Net	(142)	(429)
Total notes payable, net	251,213	428,222
Mortgages [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	215,699	226,331
Mortgages [Member] | GKK Properties [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	36,160	204,807
Mortgages [Member] | Plaza in Clayton Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 62,200	62,200
Contractual interest rate	5.90%
Effective Percentage	5.90%
Maturity Date	Oct. 6, 2016
Mortgages [Member] | Portfolio Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 153,499	164,131
Effective Percentage	2.30%
Maturity Date	Jan. 1, 2017
Mortgages [Member] | Portfolio Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Variable rate	1.80%
Mortgages [Member] | Bank of America - BBD2 Mortgage Loan [Member] | GKK Properties [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 0	65,712
Mortgages [Member] | Pitney Bowes - Bank of America Mortgage Loan [Member] | GKK Properties [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 36,160	36,160
Contractual interest rate	5.30%
Effective Percentage	5.30%
Maturity Date	Oct. 10, 2022
Mortgages [Member] | FSI 6000D Mortgage Loan [Member] | GKK Properties [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 0	28,934
Mortgages [Member] | FSI 6000B Mortgage Loan [Member] | GKK Properties [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	0	27,763
Mortgages [Member] | FSI 6000A Mortgage Loan [Member] | GKK Properties [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	0	24,271
Mortgages [Member] | FSI 6000C Mortgage Loan [Member] | GKK Properties [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 0	$ 21,967

NOTES PAYABLE (Schedule of Matu

NOTES PAYABLE (Schedule of Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Notes Payable [Abstract]
July 1, 2016 through December 31, 2016	$ 64,408
2,017	155,832
2,018	2,459
2,019	2,592
2,020	2,728
Thereafter	23,840
Notes payable outstanding	$ 251,859	$ 431,138

NOTES PAYABLE (Schedule of Acti

NOTES PAYABLE (Schedule of Activity Related to Notes Payable) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Activity Related to Notes Payable [Roll Forward]
Total notes payable, net - December 31, 2015	$ 428,222
Principal repayments	(11,950)
Defeasance of notes payable	(167,328)	$ 0
Write-off of discount on notes payable related to sale	1,771
Write-off of deferred financing costs	105
Amortization of discounts and premiums on notes payable, net	211	867
Amortization of deferred financing costs	182	$ 1,259
Total notes payable, net - June 30, 2016	$ 251,213

NOTES PAYABLE (Significant Fina

NOTES PAYABLE (Significant Financing Transactions) (Details) - USD ($) $ in Thousands	Apr. 15, 2016	Apr. 11, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Debt Instrument [Line Items]
Loss on extinguishment of debt			$ 19,317	$ 6,385	$ 19,320	$ 6,376
Outstanding principal balance			$ 28,881		$ 28,881
FSI 6000 Mortgage Loan [Member]
Debt Instrument [Line Items]
Defease amount of outstanding principal balance		$ 102,300
Loss on extinguishment of debt		$ 6,600
Bank of America - BBD2 Mortgage Loan [Member]
Debt Instrument [Line Items]
Loss on extinguishment of debt	$ 12,700
Outstanding principal balance	$ 65,100

FAIR VALUE DISCLOSURES (Schedul

FAIR VALUE DISCLOSURES (Schedule of Face Value, Carrying Amounts and Fair Value) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate loans receivable, Face Value	$ 28,881	$ 35,811
Notes payable, Face Value	251,859	431,138
Notes payable, Value	251,213	428,222
Carrying Amount [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate loans receivable, Value	22,304	27,281
Notes payable, Value	251,213	428,222
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate loans receivable, Value	20,586	25,218
Notes payable, Value	$ 258,908	$ 448,351

FAIR VALUE DISCLOSURES (Sched57

FAIR VALUE DISCLOSURES (Schedule of Assets at Fair Value) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate	$ 14,629	$ 0	$ 25,493	$ 0
Nonrecurring Basis [Member] | Assets Held-for-Investment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate	84,088
Nonrecurring Basis [Member] | Assets Held-for-Investment [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate	0
Nonrecurring Basis [Member] | Assets Held-for-Investment [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate	0
Nonrecurring Basis [Member] | Assets Held-for-Investment [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate	84,088
Nonrecurring Basis [Member] | Assets Held-for-Sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate	1,354
Nonrecurring Basis [Member] | Assets Held-for-Sale [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate	0
Nonrecurring Basis [Member] | Assets Held-for-Sale [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate	0
Nonrecurring Basis [Member] | Assets Held-for-Sale [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate	1,354
Nonrecurring Basis [Member] | Disposed of by Sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate	8,771
Nonrecurring Basis [Member] | Disposed of by Sale [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate	0
Nonrecurring Basis [Member] | Disposed of by Sale [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate	0
Nonrecurring Basis [Member] | Disposed of by Sale [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate	$ 8,771

FAIR VALUE DISCLOSURES (Narrati

FAIR VALUE DISCLOSURES (Narrative) (Details) - Held-for-Investment [Member] - Discounted Cash Flow [Member]	Jun. 30, 2016
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Terminal capitalization rates	7.00%
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Terminal capitalization rates	10.75%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Payable	$ 218		$ 218		$ 68
Administrative fees, amount paid	78	$ 50	142	$ 95
Advisor and Dealer Manager [Member]
Related Party Transaction [Line Items]
Incurred	5,260	3,466	8,091	7,118
Payable	218		218		68
Advisor and Dealer Manager [Member] | Expensed [Member] | Asset Management Fees [Member]
Related Party Transaction [Line Items]
Incurred	2,097	2,346	4,446	4,766
Payable	0		0		0
Advisor and Dealer Manager [Member] | Expensed [Member] | Reimbursement of Operating Expenses [Member]
Related Party Transaction [Line Items]
Incurred	101	52	165	99
Payable	61		61		68
Advisor and Dealer Manager [Member] | Expensed [Member] | Dispositon Fees [Member]
Related Party Transaction [Line Items]
Incurred	3,062	$ 1,068	3,480	$ 2,253
Payable	$ 157		$ 157		$ 0

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) $ in Thousands	May 18, 2012USD ($)	Jun. 30, 2016USD ($)property	Dec. 31, 2015property	Jan. 15, 2015	Aug. 14, 2013	Sep. 01, 2011property
Related Party Transaction [Line Items]
Number of real estate properties | property		232
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%
Disposed of by Sale [Member]
Related Party Transaction [Line Items]
Number of real estate properties | property			34
GKK Properties [Member]
Related Party Transaction [Line Items]
Number of real estate properties | property						867
Sales of real estate | $		$ 214,100
GKK Properties [Member] | KBS Capital Advisors LLC [Member]
Related Party Transaction [Line Items]
Disposition fee as percent		1.00%		1.00%
GKK Properties [Member] | Disposed of by Sale [Member]
Related Party Transaction [Line Items]
Number of real estate properties | property		160	31
Option One [Member] | GKK Properties [Member] | KBS Capital Advisors LLC [Member]
Related Party Transaction [Line Items]
Monthly asset management fee, percent of acquisition expense, excluding acquisition fees related to thereto		6.25%
Acquisition advisory fee, percent		0.80%
Option Two [Member] | GKK Properties [Member] | KBS Capital Advisors LLC [Member]
Related Party Transaction [Line Items]
Monthly asset management fee, percent of acquisition expense, excluding acquisition fees related to thereto					6.25%
Acquisition advisory fee, percent		0.80%
Property Insurance Rebate [Member] | KBS Capital Advisors LLC [Member]
Related Party Transaction [Line Items]
Due from affiliate | $		$ 36
Legal and Professional Fees Reimbursement [Member] | KBS Capital Advisors LLC [Member]
Related Party Transaction [Line Items]
Due from affiliate | $		$ 69
KBS Strategic Opportunity REIT, Inc. [Member]
Related Party Transaction [Line Items]
Investment in joint venture | $	$ 8,000

SUPPLEMENTAL CASH FLOW AND SI61

SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Supplemental Disclosure of Cash Flow Information:
Interest paid	$ 7,195	$ 13,671
Supplemental Disclosure of Significant Noncash Transactions:
Treasury securities transferred in connection with defeasance of notes payable	(184,256)	0
Defeasance of notes payable	167,328	0
Investment in a real estate property through deed-in-lieu of foreclosure	5,480	0
Increase in lease commissions payable	340	0
Increase in lease incentives payable	$ 164	$ 423

SEGMENT INFORMATION (Schedule o

SEGMENT INFORMATION (Schedule of Segment Reporting Information, by Segment) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)States	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)Statessegments	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segments			3
Number of states in which entity operates | States	26		26
Revenues	$ 34,784	$ 44,966	$ 75,910	$ 94,544
Interest expense	2,651	8,084	7,880	16,816
Total net operating income	12,788	13,174	27,369	25,249
Assets	915,679		915,679		$ 1,054,865
Real estate held for sale	112,038		112,038		319,911
Liabilities	326,607		326,607		525,202
Liabilities related to real estate held for sale	4,301		4,301		12,528
Cash and cash equivalents	181,025	133,609	181,025	133,609	46,605	$ 58,675
Operating Segments [Member]
Segment Reporting Information [Line Items]
Assets	657,541		657,541		696,539
Liabilities	286,964		286,964		327,568
Segment Reconciling Items [Member]
Segment Reporting Information [Line Items]
Real estate held for sale	118,447		118,447		347,156
Liabilities related to real estate held for sale	37,791		37,791		196,330
Corporate-Level [Member]
Segment Reporting Information [Line Items]
Assets	139,691		139,691		11,170
Liabilities	1,852		1,852		1,304
Cash and cash equivalents	139,100		139,100		10,600
Real Estate Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	16,481	16,488	33,671	34,329
Interest expense	1,922	2,036	3,860	4,244
Total net operating income	7,152	6,660	14,888	13,055
Assets	407,124		407,124		406,690
Liabilities	198,544		198,544		199,729
Real Estate-Related Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	739	741	1,549	1,467
Total net operating income	738	741	1,548	1,466
Assets	23,962		23,962		27,899
Liabilities	$ 5		$ 5		3
GKK Properties Segment [Member]
Segment Reporting Information [Line Items]
Number of states in which entity operates | States	26		26
GKK Properties Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	$ 17,564	27,737	$ 40,690	58,748
Interest expense	729	6,048	4,020	12,572
Total net operating income	4,898	$ 5,773	10,933	$ 10,728
Assets	226,455		226,455		261,950
Liabilities	$ 88,415		$ 88,415		$ 127,836

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, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Segment Reporting [Abstract]
Net income	$ 61,182	$ 19,751	$ 72,001	$ 28,340	$ (11,387)
Gain on sales of real estate	(97,349)	(35,093)	(120,935)	(49,059)
Loss from extinguishment of debt	19,317	6,385	19,320	6,376
Gain on sales of foreclosed real estate held for sale	0	0	0	(2,509)
Other income and interest income	(203)	(474)	(446)	(590)
Asset management fees to affiliate	2,097	2,346	4,446	4,766
Foreclosure fees and expenses	262	0	262	0
General and administrative expenses	2,890	6,047	6,262	8,277
Depreciation and amortization	10,046	14,205	21,044	29,810
Impairment charges on real estate	14,629	0	25,493	0
Total (income) loss from discontinued operations	(83)	7	(78)	(162)
NOI	$ 12,788	$ 13,174	$ 27,369	$ 25,249

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - $ / shares	Aug. 09, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Subsequent Event [Line Items]
Distributions declared per common share		$ 0.025	$ 0.025	$ 0.050	$ 0.050
Subsequent Event [Member]
Subsequent Event [Line Items]
Distributions declared per common share	$ 0.025

COMMITMENTS AND CONTINGENCIES65

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jun. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
July 1, 2016 through December 31, 2016	$ 8,318
2,017	12,724
2,018	2,560
2,019	1,864
2,020	1,289
Thereafter	30,182
Total future minimum lease payments	$ 56,937

SUBSEQUENT EVENTS (Disposition)

SUBSEQUENT EVENTS (Disposition) (Details) $ in Millions	Jul. 14, 2016USD ($)	Nov. 13, 2007ft²aproperty
Woodfield Preserve Office Center [Member]
Subsequent Event [Line Items]
Number of real estate properties acquired | property		2
Net rentable area | ft²		647,216
Area of land | a		24
Subsequent Event [Member] | Portfolio Loan [Member]
Subsequent Event [Line Items]
Extinguishment of debt	$ 37.1
Subsequent Event [Member] | Woodfield Preserve Office Center [Member]
Subsequent Event [Line Items]
Real estate, book value	71.5
Sales of real estate	$ 73.4

SUBSEQUENT EVENTS (Advisory Agr

SUBSEQUENT EVENTS (Advisory Agreement Amendment) (Details) $ in Millions	Aug. 09, 2016USD ($)property	Jun. 30, 2016USD ($)property	Dec. 31, 2015property	Jan. 15, 2015	Sep. 01, 2011property
Subsequent Event [Line Items]
Number of real estate properties		232
Disposed of by Sale [Member]
Subsequent Event [Line Items]
Number of real estate properties			34
GKK Properties [Member]
Subsequent Event [Line Items]
Number of real estate properties					867
Sales of real estate | $		$ 214.1
GKK Properties [Member] | Disposed of by Sale [Member]
Subsequent Event [Line Items]
Number of real estate properties		160	31
KBS Capital Advisors LLC [Member]
Subsequent Event [Line Items]
Disposition fee as percent				1.00%
Selling commissions fees paid, percent of sales price				6.00%
KBS Capital Advisors LLC [Member] | GKK Properties [Member]
Subsequent Event [Line Items]
Disposition fee as percent		1.00%		1.00%
Subsequent Event [Member] | GKK Properties [Member]
Subsequent Event [Line Items]
Disposition fees | $	$ 2
Sales of real estate | $	$ 214.1
Subsequent Event [Member] | GKK Properties [Member] | Disposed of by Sale [Member]
Subsequent Event [Line Items]
Number of real estate properties	160
Subsequent Event [Member] | KBS Capital Advisors LLC [Member]
Subsequent Event [Line Items]
Disposition fee as percent	1.00%
Selling commissions fees paid, percent of sales price	6.00%
Subsequent Event [Member] | KBS Capital Advisors LLC [Member] | GKK Properties [Member]
Subsequent Event [Line Items]
Disposition fee as percent	1.00%