KBS Real Estate Investment Trust II (KBRS) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 09, 2017
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Entity Registrant Name	KBS Real Estate Investment Trust II, Inc.
Entity Central Index Key	1,411,059
Entity Filer Category	Non-accelerated Filer
Current Fiscal Year end	--12-31
Entity Common Stock, Shares Outstanding		187,759,131

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Real estate:
Land	$ 188,592	$ 188,592
Buildings and improvements	989,213	980,863
Tenant origination and absorption costs	61,001	64,117
Total real estate held for investment, cost	1,238,806	1,233,572
Less accumulated depreciation and amortization	(173,278)	(141,830)
Total real estate held for investment, net	1,065,528	1,091,742
Real estate held for sale, net	0	33,994
Total real estate, net	1,065,528	1,125,736
Real estate loan receivable, net	13,964	14,079
Total real estate and real estate-related investments, net	1,079,492	1,139,815
Cash and cash equivalents	75,951	48,009
Restricted cash	3,750	0
Rents and other receivables, net	61,387	59,152
Above-market leases, net	2,701	4,466
Assets related to real estate held for sale	0	3,565
Prepaid expenses and other assets	31,045	31,773
Total assets	1,254,326	1,286,780
Liabilities and stockholders’ equity
Notes payable, net	521,262	523,771
Accounts payable and accrued liabilities	18,784	18,422
Due to affiliate	51	41
Distributions payable	4,241	4,493
Below-market leases, net	1,665	2,876
Liabilities related to real estate held for sale	0	17
Other liabilities	10,666	10,253
Total liabilities	556,669	559,873
Commitments and contingencies (Note 11)
Redeemable common stock	5,400	10,000
Stockholders’ equity:
Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $.01 par value; 1,000,000,000 shares authorized, 187,882,112 and 188,719,952 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively	1,879	1,887
Additional paid-in capital	1,679,532	1,679,524
Cumulative distributions in excess of net income	(989,154)	(964,504)
Total stockholders’ equity	692,257	716,907
Total liabilities and stockholders’ equity	$ 1,254,326	$ 1,286,780

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	187,882,112	188,719,952
Common stock, shares outstanding (in shares)	187,882,112	188,719,952

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Rental income	$ 30,649	$ 33,214	$ 95,384	$ 101,674
Tenant reimbursements	3,401	3,389	10,842	11,114
Interest income from real estate loans receivable	267	270	795	806
Other operating income	1,827	1,729	5,441	5,191
Total revenues	36,144	38,602	112,462	118,785
Expenses:
Operating, maintenance, and management	8,315	9,002	25,600	25,785
Real estate taxes and insurance	5,014	5,099	15,092	15,223
Asset management fees to affiliate	2,899	2,955	8,746	8,850
General and administrative expenses	1,119	1,299	3,307	5,125
Depreciation and amortization	13,458	14,210	40,771	43,391
Interest expense	4,558	4,066	12,947	12,727
Total expenses	35,363	36,631	106,463	111,101
Other income:
Other income	118	474	167	516
Gain on sale of real estate	0	0	7,863	9,101
Total other income	118	474	8,030	9,617
Net income	$ 899	$ 2,445	$ 14,029	$ 17,301
Net income per common share, basic and diluted (in dollars per share)	$ 0	$ 0.01	$ 0.07	$ 0.09
Weighted-average number of common shares outstanding, basic and diluted (in shares)	188,085,093	189,002,569	188,390,374	189,208,324

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 899	$ 2,445	$ 14,029	$ 17,301
Other comprehensive income:
Reclassification of realized losses recognized on interest rate swaps (effective portion)	0	0	0	60
Total other comprehensive income	0	0	0	60
Total comprehensive income	$ 899	$ 2,445	$ 14,029	$ 17,361

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Cumulative Distributions and Net Income (Loss)	Accumulated Other Comprehensive Income (Loss)
Balance (in shares) at Dec. 31, 2015		189,556,185
Balance at Dec. 31, 2015	$ 757,930	$ 1,895	$ 1,684,206	$ (928,111)	$ (60)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	16,747			16,747
Other comprehensive income	60				60
Redemptions of common stock (in shares)		(836,233)
Redemptions of common stock	(4,690)	$ (8)	(4,682)
Distributions declared	$ (53,140)			(53,140)
Balance (in shares) at Dec. 31, 2016	188,719,952	188,719,952
Balance at Dec. 31, 2016	$ 716,907	$ 1,887	1,679,524	(964,504)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	14,029			14,029
Other comprehensive income	0
Redemptions of common stock (in shares)		(837,840)
Redemptions of common stock	(4,600)	$ (8)	(4,592)
Transfers from redeemable common stock	4,600		4,600
Distributions declared	$ (38,679)			(38,679)
Balance (in shares) at Sep. 30, 2017	187,882,112	187,882,112
Balance at Sep. 30, 2017	$ 692,257	$ 1,879	$ 1,679,532	$ (989,154)	$ 0

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Cash Flows from Operating Activities:
Net income	$ 899	$ 2,445	$ 14,029	$ 17,301	$ 16,747
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,458	14,210	40,771	43,391
Noncash interest income on real estate-related investments			3	3
Deferred rent			(1,549)	(5,114)
Bad debt expense			264	247
Amortization of above- and below-market leases, net			540	(244)
Amortization of deferred financing costs	200	600	841	1,423
Unrealized gains on derivative instruments			(101)	(321)
Gain on sale of real estate, net			(7,863)	(9,101)
Changes in operating assets and liabilities:
Rents and other receivables			(1,163)	(1,707)
Prepaid expenses and other assets			(2,302)	(4,606)
Accounts payable and accrued liabilities			(1,097)	2,541
Due to affiliates			10	58
Other liabilities			520	739
Net cash provided by operating activities			42,903	44,610
Cash Flows from Investing Activities:
Proceeds from sale of real estate			45,689	41,218
Improvements to real estate			(10,131)	(32,125)
Principal repayments on real estate loans receivable			112	91
Net cash provided by investing activities			35,670	9,184
Cash Flows from Financing Activities:
Proceeds from note payable			0	17,000
Principal payments on notes payable			(2,615)	(39,800)
Payments of deferred financing costs			(735)	(878)
Payments to redeem common stock			(4,600)	(3,867)
Distributions paid to common stockholders			(38,931)	(40,177)
Net cash used in financing activities			(46,881)	(67,722)
Net increase (decrease) in cash and cash equivalents and restricted cash			31,692	(13,928)
Cash and cash equivalents and restricted cash, beginning of period			48,009	72,687	72,687
Cash and cash equivalents and restricted cash, end of period	$ 79,701	$ 58,759	79,701	58,759	$ 48,009
Supplemental Disclosure of Cash Flow Information:
Interest paid			12,076	11,703
Supplemental Disclosure of Noncash Transactions:
Increase in accrued improvements to real estate			$ 1,421	$ 0

ORGANIZATION

ORGANIZATION	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION KBS Real Estate Investment Trust II, Inc. (the “Company”) was formed on July 12, 2007 as a Maryland corporation that elected to be taxed as a real estate investment trust (“REIT”) beginning with the taxable year ended December 31, 2008. The Company conducts its business primarily through KBS Limited Partnership II, a Delaware limited partnership formed on August 23, 2007 (the “Operating Partnership”), and its subsidiaries. The Company is the sole general partner of and directly owns a 0.1% partnership interest in the Operating Partnership. The Company’s wholly-owned subsidiary, KBS REIT Holdings II LLC, a Delaware limited liability company formed on August 23, 2007 (“KBS REIT Holdings II”), owns the remaining 99.9% 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 September 30, 2017 , the Company owned ten real estate properties (consisting of nine office properties and an office campus consisting of eight office buildings). In addition, as of September 30, 2017 , the Company owned one real estate loan receivable. 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 the Company renewed with the Advisor on May 21, 2017 (the “Advisory Agreement”). 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. The Company ceased offering shares of common stock in its primary offering on December 31, 2010 and terminated its primary offering on March 22, 2011. The Company terminated its dividend reinvestment plan effective May 29, 2014. The Company sold 182,681,633 shares of common stock in its primary offering for gross offering proceeds of $1.8 billion . The Company sold 30,903,504 shares of common stock under its dividend reinvestment plan for gross offering proceeds of $298.2 million . Also as of September 30, 2017 , the Company had redeemed 25,723,025 shares sold in the Offering for $244.6 million .

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2017
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, 2016 . 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, 2016 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”). Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The consolidated financial statements include the accounts of the Company, KBS REIT Holdings II, the Operating Partnership, and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and condensed notes. Actual results could materially differ from those estimates. 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 nine months ended September 30, 2017 and 2016 , respectively. Distributions declared per common share were $0.069 and $0.205 in the aggregate for the three and nine months ended September 30, 2017 , respectively, and $0.070 and $0.210 in the aggregate for the three and nine months ended September 30, 2016 , respectively. Distributions declared per common share assumes each share was issued and outstanding each day that was a record date for distributions and were based on a monthly record date for each month during the periods commencing January 2017 through September 2017 and January 2016 through September 2016 . Segments The Company invested in core real estate properties and real estate-related investments with the goal of acquiring a portfolio of income-producing investments. The Company’s real estate properties exhibit similar long-term financial performance and have similar economic characteristics to each other. Beginning with the reporting period commencing on January 1, 2016, the Company aggregated its investments into one reportable business segment. The Company considered both quantitative and qualitative thresholds and determined that its investment in a real estate loan receivable does not constitute a reportable segment. Prior to the reporting period commencing on January 1, 2016, the Company had identified two reportable business segments based on its investment types: real estate and real estate-related. However, based on the Company’s current investment portfolio, the Company does not believe that its investment in a real estate-related investment is a reportable segment. 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 nine months ended September 30, 2017 , the Company sold an office property. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented. Additionally, during the year ended December 31, 2016 , the Company elected to early adopt ASU No. 2016-18 (as defined below). As a result, the Company no longer presents the changes within restricted cash in the consolidated statements of cash flows. Instead, restricted cash is included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the consolidated statements of cash flows. 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 primary source of revenue for the Company is generated through leasing arrangements, which are excluded from this standard. The Company’s revenues that may be impacted by this standard primarily include other operating income, sales of real estate and other ancillary income earned at its properties. In 2016, other operating income and other ancillary income were approximately 6% of consolidated revenue. The Company is in process of evaluating how this standard will impact sales of real estate. The Company continues to evaluate the impact that the standard will have on its consolidated financial statements. The Company expects to adopt the standard using the modified retrospective approach, which requires a cumulative effect adjustment as of the date of the adoption. 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 of certain provisions of the standard 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): Measurement of Credit Losses of Financial Instruments (“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. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU No. 2016-15”). ASU No. 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The amendments in ASU No. 2016-15 provide guidance on eight specific cash flow issues, including the following that are or may be relevant to the Company: (a) Cash payments for debt prepayment or debt extinguishment costs should be classified as cash outflows for financing activities; (b) Cash payments relating to contingent consideration made soon after an acquisition’s consummation date (i.e., approximately three months or less) should be classified as cash outflows for investing activities. Payments made thereafter should be classified as cash outflows for financing activities up to the amount of the original contingent consideration liability. Payments made in excess of the amount of the original contingent consideration liability should be classified as cash outflows for operating activities; (c) Cash payments received from the settlement of insurance claims should be classified on the basis of the nature of the loss (or each component loss, if an entity receives a lump-sum settlement); and (d) In the absence of specific guidance, an entity should classify each separately identifiable cash source and use on the basis of the nature of the underlying cash flows. For cash flows with aspects of more than one class that cannot be separated, the classification should be based on the activity that is likely to be the predominant source or use of cash flow. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is still evaluating the impact of adopting ASU No. 2016-15 on its financial statements, but does not expect the adoption of ASU No. 2016-15 to have a material impact on its financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU No. 2016-18”). ASU No. 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company elected to early adopt ASU No. 2016-18 for the reporting period ended December 31, 2016 and it was applied retrospectively. As a result of the adoption of ASU No. 2016-18, the Company no longer presents the changes within restricted cash in the consolidated statements of cash flows.

REAL ESTATE HELD FOR INVESTMENT

REAL ESTATE HELD FOR INVESTMENT	9 Months Ended
	Sep. 30, 2017
Real Estate [Abstract]
REAL ESTATE HELD FOR INVESTMENT	REAL ESTATE HELD FOR INVESTMENT As of September 30, 2017 , the Company’s portfolio of real estate held for investment was composed of nine office properties and an office campus consisting of eight office buildings, encompassing in the aggregate approximately 4.9 million rentable square feet. As of September 30, 2017 , the Company’s real estate portfolio was 83% occupied. The following table summarizes the Company’s real estate portfolio as of September 30, 2017 (in thousands): Property Date Acquired City State Property Type Total Real Estate at Cost Accumulated Depreciation and Amortization Total Real Estate, Net 100 & 200 Campus Drive Buildings 09/09/2008 Florham Park NJ Office $ 143,687 $ (10,023 ) $ 133,664 300-600 Campus Drive Buildings 10/10/2008 Florham Park NJ Office 162,131 (14,899 ) 147,232 Willow Oaks Corporate Center 08/26/2009 Fairfax VA Office 103,753 (18,137 ) 85,616 Pierre Laclede Center 02/04/2010 Clayton MO Office 80,531 (9,491 ) 71,040 Horizon Tech Center 06/17/2010 San Diego CA Office 29,540 (2,095 ) 27,445 Union Bank Plaza 09/15/2010 Los Angeles CA Office 186,119 (20,151 ) 165,968 Emerald View at Vista Center 12/09/2010 West Palm Beach FL Office 31,029 (6,582 ) 24,447 Granite Tower 12/16/2010 Denver CO Office 154,386 (41,655 ) 112,731 Fountainhead Plaza 09/13/2011 Tempe AZ Office 119,383 (16,414 ) 102,969 Corporate Technology Centre 03/28/2013 San Jose CA Office 228,247 (33,831 ) 194,416 $ 1,238,806 $ (173,278 ) $ 1,065,528 As of September 30, 2017 , the following properties represented more than 10% of the Company’s total assets: Property Location Rentable Square Feet Total Real Estate, Net (in thousands) Percentage of Total Assets Annualized Base Rent (in thousands) (1) Average Annualized Base Rent per Sq. Ft. Occupancy Corporate Technology Centre San Jose, CA 610,083 $ 194,416 15.5 % $ 18,635 $ 30.54 100 % Union Bank Plaza Los Angeles, CA 627,334 165,968 13.2 % 20,697 40.23 82 % 300-600 Campus Drive Buildings Florham Park, NJ 578,424 147,232 11.7 % 17,923 33.63 92 % 100 & 200 Campus Drive Buildings Florham Park, NJ 586,405 133,664 10.7 % 12,164 31.34 66 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2017 , 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. Operating Leases The Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of September 30, 2017 , the leases had remaining terms, excluding options to extend, of up to 14.1 years with a weighted-average remaining term of 5.1 years. Some of the leases have provisions to extend the term of the leases, options for early termination for all or 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 $2.6 million and $2.5 million as of September 30, 2017 and December 31, 2016 , respectively. During the nine months ended September 30, 2017 and 2016 , the Company recognized deferred rent from tenants, net of lease incentive amortization, of $1.5 million and $5.1 million , respectively. As of September 30, 2017 and December 31, 2016 , the cumulative deferred rent balance was $60.1 million and $57.9 million , respectively, and is included in rents and other receivables on the accompanying balance sheets. The cumulative deferred rent balance included $10.0 million and $10.9 million of unamortized lease incentives as of September 30, 2017 and December 31, 2016 , respectively. As of September 30, 2017 , the future minimum rental income from the Company’s properties under non-cancelable operating leases was as follows (in thousands): October 1, 2017 through December 31, 2017 $ 31,057 2018 120,037 2019 106,671 2020 100,749 2021 89,760 Thereafter 275,199 $ 723,473 As of September 30, 2017 , the Company had approximately 190 tenants over a diverse range of industries and geographic areas. The Company’s highest tenant industry concentrations (greater than 10% of annualized base rent) were as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Annualized Base Rent Finance 33 $ 28,081 22.6 % Mining, Oil & Gas Extraction 5 16,939 13.6 % Computer System Design & Programming 5 15,638 12.6 % Legal Services 33 15,146 12.2 % $ 75,804 61.0 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2017 , 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. No other tenant industries accounted for more than 10% of annualized base rent. The Company had not identified any material tenant credit issues as of September 30, 2017 . During the nine months ended September 30, 2017 and 2016 , the Company recorded bad debt expense of $0.3 million and $0.2 million , respectively. As of September 30, 2017 , the Company had a bad debt expense reserve of approximately $0.6 million , which represented less than 1% of its annualized base rent. As of September 30, 2017 , the Company had a concentration of credit risk related to the following tenant lease that represented more than 10% of the Company’s annualized base rent: Annualized Base Rent Statistics Tenant Property Tenant Industry Square Feet % of Portfolio (Net Rentable Sq. Ft.) Annualized Base Rent (in thousands) (1) % of Portfolio Annualized Base Rent Annualized Base Rent per Sq. Ft. Lease Expiration (2) (3) Union Bank Union Bank Plaza Finance 342,712 8.5% $ 14,182 11.4% $ 41.38 01/31/2022 _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2017 , 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) Represents the expiration date of the lease as of September 30, 2017 and does not take into account any tenant renewal or termination options. (3) Union Bank has two options to extend the term of this lease for three, four, five, six or seven years per option term, provided that the combined renewal option terms do not exceed 10 years. If Union Bank elects to exercise its extension options, it must extend the lease on (i) the entire office premises or (ii) no less than 200,000 rentable square feet consisting of full floors only plus either all or none of both the retail and vault space. No other tenant accounted for more than 10% of annualized base rent. Geographic Concentration Risk As of September 30, 2017 , the Company’s net investments in real estate in California and New Jersey represented 30.9% and 22.4% of the Company’s total assets, respectively. As a result, the geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the California and New Jersey real estate markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for office space resulting from the local business climate, could adversely affect the Company’s operating results and its ability to make distributions to stockholders.

TENANT ORIGINATION AND ABSORPTI

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 and December 31, 2016 , 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 September 30, December 31, September 30, December 31, September 30, December 31, Cost $ 61,001 $ 64,117 $ 13,650 $ 13,740 $ (10,170 ) $ (11,249 ) Accumulated amortization (37,651 ) (33,577 ) (10,949 ) (9,274 ) 8,505 8,373 Net amount $ 23,350 $ 30,540 $ 2,701 $ 4,466 $ (1,665 ) $ (2,876 ) 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 nine months ended September 30, 2017 and 2016 were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Three Months Ended September 30, For the Three Months Ended September 30, For the Three Months Ended September 30, 2017 2016 2017 2016 2017 2016 Amortization $ (2,281 ) $ (2,811 ) $ (593 ) $ (606 ) $ 383 $ 571 Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Nine Months Ended September 30, For the Nine Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 2017 2016 Amortization $ (7,218 ) $ (9,116 ) $ (1,765 ) $ (1,935 ) $ 1,225 $ 2,179

REAL ESTATE LOAN RECEIVABLE

REAL ESTATE LOAN RECEIVABLE	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
REAL ESTATE LOAN RECEIVABLE	REAL ESTATE LOAN RECEIVABLE As of September 30, 2017 and December 31, 2016 , the Company, through an indirect wholly owned subsidiary, had originated the following real estate loan receivable (dollars in thousands): Loan Name Location of Related Property or Collateral Date Acquired/ Originated Property Type Loan Type Outstanding Principal Balance as of September 30, 2017 (1) Book Value as of September 30, 2017 (2) Book Value as of December 31, 2016 (2) Contractual Interest Rate (3) Annualized Effective Interest Rate (3) Maturity Date Sheraton Charlotte Airport Hotel First Mortgage Charlotte, North Carolina 07/11/2011 Hotel Mortgage $ 13,961 $ 13,964 $ 14,079 7.5% 7.6% 08/01/2018 _____________________ (1) Outstanding principal balance as of September 30, 2017 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. (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 2017, using the interest method, annualized and divided by the average amortized cost basis of the investment during 2017. The contractual interest rate and annualized effective interest rate presented are as of September 30, 2017 . The following summarizes the activity related to the real estate loan receivable for the nine months ended September 30, 2017 (in thousands): Real estate loan receivable - December 31, 2016 $ 14,079 Principal repayments received on the real estate loan receivable (112 ) Amortization of closing costs and origination fees on the real estate loan receivable (3 ) Real estate loan receivable - September 30, 2017 $ 13,964 For the nine months ended September 30, 2017 and 2016 , interest income from the real estate loan receivable consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Contractual interest income $ 268 $ 271 $ 798 $ 809 Amortization of closing costs and origination fees (1 ) (1 ) (3 ) (3 ) Interest income from real estate loan receivable $ 267 $ 270 $ 795 $ 806 As of September 30, 2017 and December 31, 2016 , the borrower under the Company’s real estate loan receivable was current on its debt obligations.

REAL ESTATE HELD FOR SALE

REAL ESTATE HELD FOR SALE	9 Months Ended
	Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
REAL ESTATE SALE	REAL ESTATE HELD FOR SALE 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”), results of operations from 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. Results of operations from properties that were classified as held for sale in financial statements issued prior to January 1, 2014 will remain in discontinued operations on the Company’s consolidated statements of operations. Prior to the adoption of ASU No. 2014-08, the results of operations of properties held for sale or to be disposed of and the aggregate net gains recognized upon their disposition were presented as discontinued operations in the accompanying consolidated statements of operations for all periods presented. During the nine months ended September 30, 2017 , the Company disposed of one office property. During the year ended December 31, 2016 , the Company disposed of one office/flex property. The results of operations for the properties sold during the nine months ended September 30, 2017 and the year ended December 31, 2016 are included in continuing operations on the Company’s consolidated statements of operations. As of September 30, 2017 , the Company did not have any real estate properties held for sale. The following table summarizes certain revenue and expenses related to the Company’s real estate properties that were sold during the year ended December 31, 2016 and the three and nine months ended September 30, 2017 , which were included in continuing operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues Rental income $ — $ 1,337 $ 2,379 $ 5,148 Tenant reimbursements — 17 33 389 Total revenues — 1,354 2,412 5,537 Expenses Operating, maintenance, and management — 336 633 1,124 Real estate taxes and insurance — 213 334 848 Asset management fees to affiliate — 94 169 395 General and administrative expenses — 9 15 64 Depreciation and amortization — 488 157 1,931 Interest expense — 108 88 835 Total expenses $ — $ 1,248 $ 1,396 $ 5,197 The following summary presents the major components of assets and liabilities related to real estate held for sale as of September 30, 2017 and December 31, 2016 (in thousands). No real estate properties were held for sale as of September 30, 2017 . September 30, 2017 December 31, 2016 Assets related to real estate held for sale Total real estate, at cost $ — $ 42,276 Accumulated depreciation and amortization — (8,282 ) Real estate held for sale, net — 33,994 Other assets — 3,565 Total assets related to real estate held for sale $ — $ 37,559 Liabilities related to real estate held for sale Other liabilities — 17 Total liabilities related to real estate held for sale $ — $ 17

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2017
Notes Payable [Abstract]
NOTES PAYABLE	NOTES PAYABLE As of September 30, 2017 and December 31, 2016 , the Company’s notes payable consisted of the following (dollars in thousands): Book Value as of September 30, 2017 Book Value as of December 31, 2016 Contractual Interest Rate as of September 30, 2017 (1) Effective Interest Rate as of September 30, 2017 (1) Payment Type Maturity Date (2) Amended and Restated Portfolio Revolving Loan Facility (3) $ 52,638 $ 52,638 One-month LIBOR + 1.80% 3.0% Interest Only 06/21/2018 Union Bank Plaza Mortgage Loan (4) 105,000 105,000 One-month LIBOR + 1.65% 2.9% Interest Only 01/12/2018 Portfolio Mortgage Loan #1 (5) 77,651 78,033 One-month LIBOR + 2.15% 3.4% Interest Only 10/20/2017 Portfolio Mortgage Loan #3 (6) 54,000 54,000 One-month LIBOR + 3.0% Interest Only 03/01/2018 Corporate Technology Centre Mortgage Loan (7) 138,892 140,000 3.50% 3.5% (7) 04/01/2020 300-600 Campus Drive Revolving Loan (8) 93,500 94,625 One-month LIBOR + 2.05% 3.3% (8) 02/01/2018 Total notes payable principal outstanding $ 521,681 $ 524,296 Deferred financing costs, net (419 ) (525 ) Total notes payable, net $ 521,262 $ 523,771 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of September 30, 2017 . Effective interest rate is calculated as the actual interest rate in effect as of September 30, 2017 , using interest rate indices as of September 30, 2017 , where applicable. For further information regarding the Company’s derivative instruments, see Note 8, “Derivative Instruments.” (2) Represents the initial maturity date or the maturity date as extended as of September 30, 2017 ; subject to certain conditions, the maturity dates of certain loans may be extended beyond the maturity date shown. (3) On June 23, 2017, the Company exercised its first extension option with the lender to extend the maturity date of the Amended and Restated Portfolio Revolving Loan Facility to June 21, 2018. As of September 30, 2017 , the Amended and Restated Portfolio Revolving Loan Facility was secured by Pierre Laclede Center. (4) On September 15, 2017, the Company extended the maturity date of the Union Bank Plaza Mortgage Loan to January 12, 2018. As of September 30, 2017 , $105.0 million of the Union Bank Plaza Mortgage Loan had been disbursed to the Company with the remaining loan balance of $14.3 million available for future disbursements, subject to certain conditions set forth in the loan agreement. (5) On June 28, 2017, the Company entered into a loan modification agreement with the lender and extended the maturity date of Portfolio Mortgage Loan #1 to October 20, 2017. As of September 30, 2017 , Portfolio Mortgage Loan #1 was secured by Horizon Tech Center and Granite Tower. On October 19, 2017, the Company exercised its extension option with the lender to extend the maturity date of Portfolio Mortgage Loan #1 to April 20, 2018. (6) On March 1, 2017, the Company exercised its second extension option with the lender to extend the maturity date of Portfolio Mortgage Loan #3 to March 1, 2018 and reduced the loan commitment amount to $54.0 million . As of September 30, 2017 , the principal balance under Portfolio Mortgage Loan #3 consisted of the $32.4 million non-revolving portion and $21.6 million revolving portion. As of September 30, 2017 , Portfolio Mortgage Loan #3 was secured by the 100 & 200 Campus Drive Buildings and Willow Oaks Corporate Center. (7) Monthly payments were initially interest-only. On May 1, 2017 , monthly payments for the Corporate Technology Centre Mortgage Loan began to include principal and interest with principal payments calculated using an amortization schedule of 30 years for the balance of the loan term, with the remaining principal balance, all accrued and unpaid interest and any other amounts due at maturity. (8) As of September 30, 2017 , the principal balance of the 300-600 Campus Drive Revolving Loan consisted of the $93.5 million non-revolving portion. The revolving portion of $25.0 million remained available for future disbursements, subject to certain terms and conditions contained in the loan documents. On the first day of each calendar quarter, commencing on October 1, 2016, and each succeeding January 1, April 1, July 1 and October 1 thereafter, the Company repays principal outstanding under the 300-600 Campus Drive Revolving Loan in equal installments of $375,000 . During the three and nine months ended September 30, 2017 , the Company incurred $4.6 million and $12.9 million of interest expense, respectively. During the three and nine months ended September 30, 2016 , the Company incurred $4.1 million and $12.7 million of interest expense, respectively. As of September 30, 2017 and December 31, 2016 , $1.4 million and $1.3 million , respectively, of interest expense were payable. Included in interest expense for the three and nine months ended September 30, 2017 was $0.2 million and $0.8 million of amortization of deferred financing costs, respectively. Included in interest expense for the three and nine months ended September 30, 2016 were $0.6 million and $1.4 million of amortization of deferred financing costs, respectively. During the nine months ended September 30, 2017 , the Company recorded a reduction to interest expense of $10,000 as a result of the Company’s interest rate swap agreements. Interest expense incurred as a result of the Company’s interest rate swap agreements for the nine months ended September 30, 2016 was $0.6 million . The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of September 30, 2017 (in thousands): October 1, 2017 through December 31, 2017 $ 78,699 2018 307,513 2019 2,848 2020 132,621 $ 521,681 The Company plans to exercise its extension options available under its loan agreements, if applicable, or pay off or refinance the related notes payable prior to their maturity dates. Certain of the Company’s notes payable contain financial debt covenants. As of September 30, 2017 , the Company was in compliance with these debt covenants.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS	DERIVATIVE INSTRUMENTS The Company enters into derivative instruments for risk management purposes to hedge its exposure to cash flow variability caused by changing interest rates. The primary goal of the Company’s risk management practices related to interest rate risk is to prevent changes in interest rates from adversely impacting the Company’s ability to achieve its investment return objectives. The Company does not enter into derivatives for speculative purposes. The Company enters into interest rate swaps as a fixed rate payer to mitigate its exposure to rising interest rates on its variable rate notes payable. The value of interest rate swaps is primarily impacted by interest rates, market expectations about interest rates, and the remaining life of the instrument. In general, increases in interest rates, or anticipated increases in interest rates, will increase the value of the fixed rate payer position and decrease the value of the variable rate payer position. As the remaining life of the interest rate swap decreases, the value of both positions will generally move towards zero. The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of September 30, 2017 and December 31, 2016 . The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands): Derivative Instruments September 30, 2017 December 31, 2016 Reference Rate as of September 30, 2017 Fix Pay Rate Remaining Term in Years Number of Instruments Notional Amount Number of Instruments Notional Amount Interest Rate Swaps (1) — $ — 3 $106,638 (1) (1) (1) _____________________ (1) As of June 1, 2017, all of the Company’s remaining interest rate swaps had expired. As of December 31, 2016 , none of the Company’s interest rate swaps were designated as cash flow hedges. The following table sets forth the fair value of the Company’s derivative instruments as well as their classification on the consolidated balance sheets as of September 30, 2017 and December 31, 2016 (dollars in thousands): Derivative Instruments Balance Sheet Location September 30, 2017 December 31, 2016 Number of Instruments (1) Fair Value Number of Instruments Fair Value Interest Rate Swaps Prepaid expenses and other assets, at fair value — $ — 2 $ 6 Interest Rate Swaps Other liabilities, at fair value — $ — 1 $ (107 ) _____________________ (1) As of June 1, 2017, all of the Company’s remaining interest rate swaps had expired. The change in fair value of the effective portion of a derivative instrument that is designated as a cash flow hedge is recorded as other comprehensive income (loss) in the accompanying consolidated statements of comprehensive income (loss) and as other comprehensive income in the accompanying consolidated statements of stockholders’ equity. Amounts in other comprehensive income (loss) will be reclassified into earnings in the periods in which earnings are affected by the hedged cash flow. The change in fair value of the ineffective portion is recognized directly in earnings. With respect to swap agreements that were terminated for which it remains probable that the original hedged forecasted transactions (i.e., LIBOR-based debt service payments) will occur, the loss related to the termination of these swap agreements is included in accumulated other comprehensive income (loss) and is reclassified into earnings over the period of the original forecasted hedged transaction. The change in fair value of a derivative instrument that is not designated as a cash flow hedge is recorded as interest expense in the accompanying consolidated statements of operations. The following table summarizes the effects of derivative instruments on the Company’s consolidated statements of operations (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Derivatives designated as hedging instruments (1)(2) Amount of loss recognized on interest rate swaps (effective portion) $ — $ — $ — $ 60 — — — 60 Derivatives not designated as hedging instruments (2) Realized loss recognized on interest rate swaps — 164 91 671 Unrealized gains on interest rate swaps — (245 ) (101 ) (321 ) Losses related to swap terminations — — — 156 — (81 ) (10 ) 506 Increase (decrease) in interest expense as a result of derivatives $ — $ (81 ) $ (10 ) $ 566 _____________________ (1) All of the Company’s interest rate swap agreements were initially designated as cash flow hedges. During 2014, the Company dedesignated all of its interest rate swap instruments due to the anticipated early repayment of debt in connection with asset sales, and therefore, certain hedged forecasted transactions were no longer probable beyond the projected asset sale date. (2) As of June 1, 2017, all of the Company’s remaining interest rate swaps had expired.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	9 Months Ended
	Sep. 30, 2017
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, 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 loan receivable: The Company’s real estate loan receivable is presented in the accompanying consolidated balance sheets at its amortized cost net of recorded loan loss reserves (if applicable) and not at fair value. The fair value of the real estate loan receivable was estimated using an internal valuation model that considered the expected cash flows for the loan, underlying collateral value (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 value of the Company’s notes payable is 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 liabilities 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 loan receivable and notes payable as of September 30, 2017 and December 31, 2016 , which carrying amounts do not generally approximate the fair values (in thousands): September 30, 2017 December 31, 2016 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial assets: Real estate loan receivable $ 13,961 $ 13,964 $ 13,945 $ 14,073 $ 14,079 $ 14,089 Financial liabilities: Notes payable $ 521,681 $ 521,262 $ 519,070 $ 524,296 $ 523,771 $ 522,296 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.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Company has entered into the Advisory Agreement with the Advisor. This agreement entitles the Advisor to specified fees upon the provision of certain services with regard to the management of the Company’s investments, among other services, and the disposition of investments, as well as reimbursement of 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 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 Depository Trust & Clearing Corporation Alternative Investment Product Platform with respect to certain accounts of the Company’s investors serviced through the platform. The Advisor and Dealer Manager also serve as the advisor and dealer manager, respectively, for KBS Real Estate Investment Trust, 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, Inc. (“KBS REIT I”), 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. In June 2017, the Company renewed its participation in the program, and the program is effective through June 30, 2018. As KBS REIT I is implementing its plan of of liquidation, at renewal in June 2017, KBS REIT I elected to cease participation in the program and obtain separate insurance coverage. During the nine months ended September 30, 2017 and 2016 , no other business transactions occurred between the Company and KBS REIT I, 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. Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three and nine months ended September 30, 2017 and 2016 , respectively, and any related amounts payable as of September 30, 2017 and December 31, 2016 (in thousands): Incurred Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, December 31, 2017 2016 2017 2016 2017 2016 Expensed Asset management fees $ 2,899 $ 2,955 $ 8,746 $ 8,850 $ — $ — Reimbursement of operating expenses (1) 63 71 188 217 51 41 Disposition fees (2) — — 470 423 — — $ 2,962 $ 3,026 $ 9,404 $ 9,490 $ 51 $ 41 _____________________ (1) 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 has reimbursed 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 $63,000 and $64,000 for the three months ended September 30, 2017 and 2016 , respectively, and $167,000 and $162,000 for the nine months ended September 30, 2017 and 2016 , respectively, and were the only type of employee costs reimbursed under the Advisory Agreement for the nine months ended September 30, 2017 and 2016 . The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition, origination or 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. (2) Disposition fees with respect to real estate sold are included in the gain on sale of real estate, net, in the accompanying consolidated statements of operations. Disposition fees with respect to real estate loans receivable sold are included in the gain on payoff or sale of real estate loans receivable in the accompanying consolidated statements of operations. During the nine months ended September 30, 2017 , the Advisor paid the Company a $0.1 million property insurance rebate.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Economic Dependency The Company is dependent on the Advisor for certain services that are essential to the Company, including the disposition of real estate and real estate-related investments; management of the daily operations of the Company’s real estate and real estate-related investment portfolio; and other general and administrative responsibilities. In the event the Advisor is unable to provide any of these services, the Company will be required to obtain such services from other sources. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. Compliance with existing environmental laws is not expected to have a material adverse effect on the Company’s financial condition and results of operations as of September 30, 2017 . 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 of which the outcome 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	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Distributions Paid On October 2, 2017, the Company paid distributions of $4.2 million , which related to distributions declared for September 2017 in the amount of $0.02256164 per share of common stock to stockholders of record as of the close of business on September 20, 2017. On November 1, 2017, the Company paid distributions of $4.4 million , which related to distributions declared for October 2017 in the amount of $0.02331370 per share of common stock to stockholders of record as of the close of business on October 20, 2017. Distributions Declared On November 14, 2017, the Company’s board of directors declared a November 2017 distribution in the amount of $0.02256164 per share of common stock to stockholders of record as of the close of business on November 20, 2017, which the Company expects to pay in December 2017, and a December 2017 distribution in the amount of $0.02331370 per share of common stock to stockholders of record as of the close of business on December 20, 2017, which the Company expects to pay in January 2018.

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2017
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 nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.
Principles of Consolidation	The consolidated financial statements include the accounts of the Company, KBS REIT Holdings II, the Operating Partnership, and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation.
Use of Estimates	The preparation of the consolidated financial statements and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and condensed notes. Actual results could materially differ from those estimates.
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 nine months ended September 30, 2017 and 2016 , respectively. Distributions declared per common share were $0.069 and $0.205 in the aggregate for the three and nine months ended September 30, 2017 , respectively, and $0.070 and $0.210 in the aggregate for the three and nine months ended September 30, 2016 , respectively. Distributions declared per common share assumes each share was issued and outstanding each day that was a record date for distributions and were based on a monthly record date for each month during the periods commencing January 2017 through September 2017 and January 2016 through September 2016 .
Segments	The Company invested in core real estate properties and real estate-related investments with the goal of acquiring a portfolio of income-producing investments. The Company’s real estate properties exhibit similar long-term financial performance and have similar economic characteristics to each other. Beginning with the reporting period commencing on January 1, 2016, the Company aggregated its investments into one reportable business segment. The Company considered both quantitative and qualitative thresholds and determined that its investment in a real estate loan receivable does not constitute a reportable segment. Prior to the reporting period commencing on January 1, 2016, the Company had identified two reportable business segments based on its investment types: real estate and real estate-related. However, based on the Company’s current investment portfolio, the Company does not believe that its investment in a real estate-related investment is a reportable segment.
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 nine months ended September 30, 2017 , the Company sold an office property. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented. Additionally, during the year ended December 31, 2016 , the Company elected to early adopt ASU No. 2016-18 (as defined below). As a result, the Company no longer presents the changes within restricted cash in the consolidated statements of cash flows. Instead, restricted cash is included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the consolidated statements of cash flows.
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 primary source of revenue for the Company is generated through leasing arrangements, which are excluded from this standard. The Company’s revenues that may be impacted by this standard primarily include other operating income, sales of real estate and other ancillary income earned at its properties. In 2016, other operating income and other ancillary income were approximately 6% of consolidated revenue. The Company is in process of evaluating how this standard will impact sales of real estate. The Company continues to evaluate the impact that the standard will have on its consolidated financial statements. The Company expects to adopt the standard using the modified retrospective approach, which requires a cumulative effect adjustment as of the date of the adoption. 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 of certain provisions of the standard 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): Measurement of Credit Losses of Financial Instruments (“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. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU No. 2016-15”). ASU No. 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The amendments in ASU No. 2016-15 provide guidance on eight specific cash flow issues, including the following that are or may be relevant to the Company: (a) Cash payments for debt prepayment or debt extinguishment costs should be classified as cash outflows for financing activities; (b) Cash payments relating to contingent consideration made soon after an acquisition’s consummation date (i.e., approximately three months or less) should be classified as cash outflows for investing activities. Payments made thereafter should be classified as cash outflows for financing activities up to the amount of the original contingent consideration liability. Payments made in excess of the amount of the original contingent consideration liability should be classified as cash outflows for operating activities; (c) Cash payments received from the settlement of insurance claims should be classified on the basis of the nature of the loss (or each component loss, if an entity receives a lump-sum settlement); and (d) In the absence of specific guidance, an entity should classify each separately identifiable cash source and use on the basis of the nature of the underlying cash flows. For cash flows with aspects of more than one class that cannot be separated, the classification should be based on the activity that is likely to be the predominant source or use of cash flow. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is still evaluating the impact of adopting ASU No. 2016-15 on its financial statements, but does not expect the adoption of ASU No. 2016-15 to have a material impact on its financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU No. 2016-18”). ASU No. 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company elected to early adopt ASU No. 2016-18 for the reporting period ended December 31, 2016 and it was applied retrospectively. As a result of the adoption of ASU No. 2016-18, the Company no longer presents the changes within restricted cash in the consolidated statements of cash flows.

REAL ESTATE HELD FOR INVESTME21

REAL ESTATE HELD FOR INVESTMENT (Tables)	9 Months Ended
	Sep. 30, 2017
Real Estate [Abstract]
Schedule of Real Estate Investments	The following table summarizes the Company’s real estate portfolio as of September 30, 2017 (in thousands): Property Date Acquired City State Property Type Total Real Estate at Cost Accumulated Depreciation and Amortization Total Real Estate, Net 100 & 200 Campus Drive Buildings 09/09/2008 Florham Park NJ Office $ 143,687 $ (10,023 ) $ 133,664 300-600 Campus Drive Buildings 10/10/2008 Florham Park NJ Office 162,131 (14,899 ) 147,232 Willow Oaks Corporate Center 08/26/2009 Fairfax VA Office 103,753 (18,137 ) 85,616 Pierre Laclede Center 02/04/2010 Clayton MO Office 80,531 (9,491 ) 71,040 Horizon Tech Center 06/17/2010 San Diego CA Office 29,540 (2,095 ) 27,445 Union Bank Plaza 09/15/2010 Los Angeles CA Office 186,119 (20,151 ) 165,968 Emerald View at Vista Center 12/09/2010 West Palm Beach FL Office 31,029 (6,582 ) 24,447 Granite Tower 12/16/2010 Denver CO Office 154,386 (41,655 ) 112,731 Fountainhead Plaza 09/13/2011 Tempe AZ Office 119,383 (16,414 ) 102,969 Corporate Technology Centre 03/28/2013 San Jose CA Office 228,247 (33,831 ) 194,416 $ 1,238,806 $ (173,278 ) $ 1,065,528
Schedules of Concentration of Risk, by Risk Factor	As of September 30, 2017 , the Company had a concentration of credit risk related to the following tenant lease that represented more than 10% of the Company’s annualized base rent: Annualized Base Rent Statistics Tenant Property Tenant Industry Square Feet % of Portfolio (Net Rentable Sq. Ft.) Annualized Base Rent (in thousands) (1) % of Portfolio Annualized Base Rent Annualized Base Rent per Sq. Ft. Lease Expiration (2) (3) Union Bank Union Bank Plaza Finance 342,712 8.5% $ 14,182 11.4% $ 41.38 01/31/2022 _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2017 , 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) Represents the expiration date of the lease as of September 30, 2017 and does not take into account any tenant renewal or termination options. (3) Union Bank has two options to extend the term of this lease for three, four, five, six or seven years per option term, provided that the combined renewal option terms do not exceed 10 years. If Union Bank elects to exercise its extension options, it must extend the lease on (i) the entire office premises or (ii) no less than 200,000 rentable square feet consisting of full floors only plus either all or none of both the retail and vault space. As of September 30, 2017 , the Company had approximately 190 tenants over a diverse range of industries and geographic areas. The Company’s highest tenant industry concentrations (greater than 10% of annualized base rent) were as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Annualized Base Rent Finance 33 $ 28,081 22.6 % Mining, Oil & Gas Extraction 5 16,939 13.6 % Computer System Design & Programming 5 15,638 12.6 % Legal Services 33 15,146 12.2 % $ 75,804 61.0 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2017 , 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 September 30, 2017 , the following properties represented more than 10% of the Company’s total assets: Property Location Rentable Square Feet Total Real Estate, Net (in thousands) Percentage of Total Assets Annualized Base Rent (in thousands) (1) Average Annualized Base Rent per Sq. Ft. Occupancy Corporate Technology Centre San Jose, CA 610,083 $ 194,416 15.5 % $ 18,635 $ 30.54 100 % Union Bank Plaza Los Angeles, CA 627,334 165,968 13.2 % 20,697 40.23 82 % 300-600 Campus Drive Buildings Florham Park, NJ 578,424 147,232 11.7 % 17,923 33.63 92 % 100 & 200 Campus Drive Buildings Florham Park, NJ 586,405 133,664 10.7 % 12,164 31.34 66 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2017 , 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.
Schedule of Future Minimum Rental Income for Company's Properties	As of September 30, 2017 , the future minimum rental income from the Company’s properties under non-cancelable operating leases was as follows (in thousands): October 1, 2017 through December 31, 2017 $ 31,057 2018 120,037 2019 106,671 2020 100,749 2021 89,760 Thereafter 275,199 $ 723,473

TENANT ORIGINATION AND ABSORP22

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 and December 31, 2016 , 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 September 30, December 31, September 30, December 31, September 30, December 31, Cost $ 61,001 $ 64,117 $ 13,650 $ 13,740 $ (10,170 ) $ (11,249 ) Accumulated amortization (37,651 ) (33,577 ) (10,949 ) (9,274 ) 8,505 8,373 Net amount $ 23,350 $ 30,540 $ 2,701 $ 4,466 $ (1,665 ) $ (2,876 )
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 nine months ended September 30, 2017 and 2016 were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Three Months Ended September 30, For the Three Months Ended September 30, For the Three Months Ended September 30, 2017 2016 2017 2016 2017 2016 Amortization $ (2,281 ) $ (2,811 ) $ (593 ) $ (606 ) $ 383 $ 571 Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Nine Months Ended September 30, For the Nine Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 2017 2016 Amortization $ (7,218 ) $ (9,116 ) $ (1,765 ) $ (1,935 ) $ 1,225 $ 2,179

REAL ESTATE LOAN RECEIVABLE (Ta

REAL ESTATE LOAN RECEIVABLE (Tables)	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Schedule of Real Estate Loans Receivable	As of September 30, 2017 and December 31, 2016 , the Company, through an indirect wholly owned subsidiary, had originated the following real estate loan receivable (dollars in thousands): Loan Name Location of Related Property or Collateral Date Acquired/ Originated Property Type Loan Type Outstanding Principal Balance as of September 30, 2017 (1) Book Value as of September 30, 2017 (2) Book Value as of December 31, 2016 (2) Contractual Interest Rate (3) Annualized Effective Interest Rate (3) Maturity Date Sheraton Charlotte Airport Hotel First Mortgage Charlotte, North Carolina 07/11/2011 Hotel Mortgage $ 13,961 $ 13,964 $ 14,079 7.5% 7.6% 08/01/2018 _____________________ (1) Outstanding principal balance as of September 30, 2017 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. (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 2017, using the interest method, annualized and divided by the average amortized cost basis of the investment during 2017. The contractual interest rate and annualized effective interest rate presented are as of September 30, 2017 .
Schedule of Activity Related to Real Estate Loans Receivable	The following summarizes the activity related to the real estate loan receivable for the nine months ended September 30, 2017 (in thousands): Real estate loan receivable - December 31, 2016 $ 14,079 Principal repayments received on the real estate loan receivable (112 ) Amortization of closing costs and origination fees on the real estate loan receivable (3 ) Real estate loan receivable - September 30, 2017 $ 13,964
Schedule of Interest Income from Real Estate Loans Receivable	For the nine months ended September 30, 2017 and 2016 , interest income from the real estate loan receivable consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Contractual interest income $ 268 $ 271 $ 798 $ 809 Amortization of closing costs and origination fees (1 ) (1 ) (3 ) (3 ) Interest income from real estate loan receivable $ 267 $ 270 $ 795 $ 806

REAL ESTATE HELD FOR SALE (Tabl

REAL ESTATE HELD FOR SALE (Tables)	9 Months Ended
	Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Revenue and Expenses of Real Estate Disposed of by Sale	The following table summarizes certain revenue and expenses related to the Company’s real estate properties that were sold during the year ended December 31, 2016 and the three and nine months ended September 30, 2017 , which were included in continuing operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues Rental income $ — $ 1,337 $ 2,379 $ 5,148 Tenant reimbursements — 17 33 389 Total revenues — 1,354 2,412 5,537 Expenses Operating, maintenance, and management — 336 633 1,124 Real estate taxes and insurance — 213 334 848 Asset management fees to affiliate — 94 169 395 General and administrative expenses — 9 15 64 Depreciation and amortization — 488 157 1,931 Interest expense — 108 88 835 Total expenses $ — $ 1,248 $ 1,396 $ 5,197
Schedule of Assets and Liabilities of 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 September 30, 2017 and December 31, 2016 (in thousands). No real estate properties were held for sale as of September 30, 2017 . September 30, 2017 December 31, 2016 Assets related to real estate held for sale Total real estate, at cost $ — $ 42,276 Accumulated depreciation and amortization — (8,282 ) Real estate held for sale, net — 33,994 Other assets — 3,565 Total assets related to real estate held for sale $ — $ 37,559 Liabilities related to real estate held for sale Other liabilities — 17 Total liabilities related to real estate held for sale $ — $ 17

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Payable [Abstract]
Schedule of Long-term Debt Instruments	As of September 30, 2017 and December 31, 2016 , the Company’s notes payable consisted of the following (dollars in thousands): Book Value as of September 30, 2017 Book Value as of December 31, 2016 Contractual Interest Rate as of September 30, 2017 (1) Effective Interest Rate as of September 30, 2017 (1) Payment Type Maturity Date (2) Amended and Restated Portfolio Revolving Loan Facility (3) $ 52,638 $ 52,638 One-month LIBOR + 1.80% 3.0% Interest Only 06/21/2018 Union Bank Plaza Mortgage Loan (4) 105,000 105,000 One-month LIBOR + 1.65% 2.9% Interest Only 01/12/2018 Portfolio Mortgage Loan #1 (5) 77,651 78,033 One-month LIBOR + 2.15% 3.4% Interest Only 10/20/2017 Portfolio Mortgage Loan #3 (6) 54,000 54,000 One-month LIBOR + 3.0% Interest Only 03/01/2018 Corporate Technology Centre Mortgage Loan (7) 138,892 140,000 3.50% 3.5% (7) 04/01/2020 300-600 Campus Drive Revolving Loan (8) 93,500 94,625 One-month LIBOR + 2.05% 3.3% (8) 02/01/2018 Total notes payable principal outstanding $ 521,681 $ 524,296 Deferred financing costs, net (419 ) (525 ) Total notes payable, net $ 521,262 $ 523,771 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of September 30, 2017 . Effective interest rate is calculated as the actual interest rate in effect as of September 30, 2017 , using interest rate indices as of September 30, 2017 , where applicable. For further information regarding the Company’s derivative instruments, see Note 8, “Derivative Instruments.” (2) Represents the initial maturity date or the maturity date as extended as of September 30, 2017 ; subject to certain conditions, the maturity dates of certain loans may be extended beyond the maturity date shown. (3) On June 23, 2017, the Company exercised its first extension option with the lender to extend the maturity date of the Amended and Restated Portfolio Revolving Loan Facility to June 21, 2018. As of September 30, 2017 , the Amended and Restated Portfolio Revolving Loan Facility was secured by Pierre Laclede Center. (4) On September 15, 2017, the Company extended the maturity date of the Union Bank Plaza Mortgage Loan to January 12, 2018. As of September 30, 2017 , $105.0 million of the Union Bank Plaza Mortgage Loan had been disbursed to the Company with the remaining loan balance of $14.3 million available for future disbursements, subject to certain conditions set forth in the loan agreement. (5) On June 28, 2017, the Company entered into a loan modification agreement with the lender and extended the maturity date of Portfolio Mortgage Loan #1 to October 20, 2017. As of September 30, 2017 , Portfolio Mortgage Loan #1 was secured by Horizon Tech Center and Granite Tower. On October 19, 2017, the Company exercised its extension option with the lender to extend the maturity date of Portfolio Mortgage Loan #1 to April 20, 2018. (6) On March 1, 2017, the Company exercised its second extension option with the lender to extend the maturity date of Portfolio Mortgage Loan #3 to March 1, 2018 and reduced the loan commitment amount to $54.0 million . As of September 30, 2017 , the principal balance under Portfolio Mortgage Loan #3 consisted of the $32.4 million non-revolving portion and $21.6 million revolving portion. As of September 30, 2017 , Portfolio Mortgage Loan #3 was secured by the 100 & 200 Campus Drive Buildings and Willow Oaks Corporate Center. (7) Monthly payments were initially interest-only. On May 1, 2017 , monthly payments for the Corporate Technology Centre Mortgage Loan began to include principal and interest with principal payments calculated using an amortization schedule of 30 years for the balance of the loan term, with the remaining principal balance, all accrued and unpaid interest and any other amounts due at maturity. (8) As of September 30, 2017 , the principal balance of the 300-600 Campus Drive Revolving Loan consisted of the $93.5 million non-revolving portion. The revolving portion of $25.0 million remained available for future disbursements, subject to certain terms and conditions contained in the loan documents. On the first day of each calendar quarter, commencing on October 1, 2016, and each succeeding January 1, April 1, July 1 and October 1 thereafter, the Company repays principal outstanding under the 300-600 Campus Drive Revolving Loan in equal installments of $375,000 .
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 September 30, 2017 (in thousands): October 1, 2017 through December 31, 2017 $ 78,699 2018 307,513 2019 2,848 2020 132,621 $ 521,681

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Notional and Fair Value of Interest Rate Swaps Designated as Cash Flow Hedges	The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of September 30, 2017 and December 31, 2016 . The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands): Derivative Instruments September 30, 2017 December 31, 2016 Reference Rate as of September 30, 2017 Fix Pay Rate Remaining Term in Years Number of Instruments Notional Amount Number of Instruments Notional Amount Interest Rate Swaps (1) — $ — 3 $106,638 (1) (1) (1) _____________________ (1) As of June 1, 2017, all of the Company’s remaining interest rate swaps had expired. As of December 31, 2016 , none of the Company’s interest rate swaps were designated as cash flow hedges.
Schedule of Derivative Instruments in Statement of Financial Position	The following table sets forth the fair value of the Company’s derivative instruments as well as their classification on the consolidated balance sheets as of September 30, 2017 and December 31, 2016 (dollars in thousands): Derivative Instruments Balance Sheet Location September 30, 2017 December 31, 2016 Number of Instruments (1) Fair Value Number of Instruments Fair Value Interest Rate Swaps Prepaid expenses and other assets, at fair value — $ — 2 $ 6 Interest Rate Swaps Other liabilities, at fair value — $ — 1 $ (107 ) _____________________ (1) As of June 1, 2017, all of the Company’s remaining interest rate swaps had expired.
Schedule of Derivative Instruments in Statement of Operations	The following table summarizes the effects of derivative instruments on the Company’s consolidated statements of operations (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Derivatives designated as hedging instruments (1)(2) Amount of loss recognized on interest rate swaps (effective portion) $ — $ — $ — $ 60 — — — 60 Derivatives not designated as hedging instruments (2) Realized loss recognized on interest rate swaps — 164 91 671 Unrealized gains on interest rate swaps — (245 ) (101 ) (321 ) Losses related to swap terminations — — — 156 — (81 ) (10 ) 506 Increase (decrease) in interest expense as a result of derivatives $ — $ (81 ) $ (10 ) $ 566 _____________________ (1) All of the Company’s interest rate swap agreements were initially designated as cash flow hedges. During 2014, the Company dedesignated all of its interest rate swap instruments due to the anticipated early repayment of debt in connection with asset sales, and therefore, certain hedged forecasted transactions were no longer probable beyond the projected asset sale date. (2) As of June 1, 2017, all of the Company’s remaining interest rate swaps had expired.

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	9 Months Ended
	Sep. 30, 2017
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 loan receivable and notes payable as of September 30, 2017 and December 31, 2016 , which carrying amounts do not generally approximate the fair values (in thousands): September 30, 2017 December 31, 2016 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial assets: Real estate loan receivable $ 13,961 $ 13,964 $ 13,945 $ 14,073 $ 14,079 $ 14,089 Financial liabilities: Notes payable $ 521,681 $ 521,262 $ 519,070 $ 524,296 $ 523,771 $ 522,296

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Schedule of Related Party Costs	Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three and nine months ended September 30, 2017 and 2016 , respectively, and any related amounts payable as of September 30, 2017 and December 31, 2016 (in thousands): Incurred Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, December 31, 2017 2016 2017 2016 2017 2016 Expensed Asset management fees $ 2,899 $ 2,955 $ 8,746 $ 8,850 $ — $ — Reimbursement of operating expenses (1) 63 71 188 217 51 41 Disposition fees (2) — — 470 423 — — $ 2,962 $ 3,026 $ 9,404 $ 9,490 $ 51 $ 41 _____________________ (1) 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 has reimbursed 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 $63,000 and $64,000 for the three months ended September 30, 2017 and 2016 , respectively, and $167,000 and $162,000 for the nine months ended September 30, 2017 and 2016 , respectively, and were the only type of employee costs reimbursed under the Advisory Agreement for the nine months ended September 30, 2017 and 2016 . The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition, origination or 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. (2) Disposition fees with respect to real estate sold are included in the gain on sale of real estate, net, in the accompanying consolidated statements of operations. Disposition fees with respect to real estate loans receivable sold are included in the gain on payoff or sale of real estate loans receivable in the accompanying consolidated statements of operations.

ORGANIZATION (Details)

ORGANIZATION (Details) $ in Thousands	9 Months Ended	12 Months Ended	35 Months Ended	110 Months Ended	113 Months Ended
	Sep. 30, 2017USD ($)loans-receivablepropertyshares	Dec. 31, 2016USD ($)shares	Mar. 22, 2011USD ($)shares	Jun. 30, 2017USD ($)shares	Sep. 30, 2017USD ($)loans-receivablepropertyshares
Organizational Structure [Line Items]
Partnership interest in Operating Partnership	0.10%
Partnership interest in the Operating Partnership and is its sole limited partner	99.90%
Number of real estate properties | property	10				10
Number of real estate loans receivable | loans-receivable	1				1
Issuance of common stock, value | $			$ 1,800,000
Shares of common stock sold under dividend reinvestment plan, value | $				$ 298,200
Redemptions of common stock | $	$ 4,600	$ 4,690
Common Stock
Organizational Structure [Line Items]
Issuance of common stock, shares | shares			182,681,633
Shares of common stock sold under dividend reinvestment plan, shares | shares				30,903,504
Redemptions of common stock (in shares) | shares	(837,840)	(836,233)			(25,723,025)
Redemptions of common stock | $	$ 8	$ 8			$ 244,600
KBS Capital Advisors LLC
Organizational Structure [Line Items]
Period of Advisory Agreement renewal	1 year
Period of termination notice	60 days
KBS Capital Advisors LLC | Common Stock
Organizational Structure [Line Items]
Shares held by affiliate | shares	20,000				20,000
Office Properties
Organizational Structure [Line Items]
Number of real estate properties | property	9				9
Office Campus
Organizational Structure [Line Items]
Number of real estate properties | property	1				1
Office Buildings, Campus
Organizational Structure [Line Items]
Number of real estate properties | property	8				8

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017$ / shares	Sep. 30, 2016$ / shares	Sep. 30, 2017$ / shares	Sep. 30, 2016$ / shares	Dec. 31, 2016segment	Dec. 31, 2015segment
Accounting Policies [Abstract]
Distributions declared per common share (in dollars per share) | $ / shares	$ 0.069	$ 0.070	$ 0.205	$ 0.210
Number of reportable segments | segment					1	2
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other operating income and other ancillary income as percent of consolidated revenue					6.00%

REAL ESTATE HELD FOR INVESTME31

REAL ESTATE HELD FOR INVESTMENT (Narrative) (Details) ft² in Millions	Sep. 30, 2017ft²property
Real Estate Properties [Line Items]
Number of real estate properties	10
Occupancy	83.00%
Office Properties
Real Estate Properties [Line Items]
Number of real estate properties	9
Office Campus
Real Estate Properties [Line Items]
Number of real estate properties	1
Office Buildings, Campus
Real Estate Properties [Line Items]
Number of real estate properties	8
Real Estate Held-for-Investment
Real Estate Properties [Line Items]
Rentable Square Feet | ft²	4.9
Real Estate Held-for-Investment | Office Properties
Real Estate Properties [Line Items]
Number of real estate properties	9
Real Estate Held-for-Investment | Office Buildings, Campus
Real Estate Properties [Line Items]
Number of real estate properties	8

REAL ESTATE HELD FOR INVESTME32

REAL ESTATE HELD FOR INVESTMENT (Schedule of Real Estate Investments) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Real Estate Properties [Line Items]
Total Real Estate at Cost	$ 1,238,806	$ 1,233,572
Accumulated Depreciation and Amortization	(173,278)	(141,830)
Total real estate held for investment, net	1,065,528	$ 1,091,742
Office Properties
Real Estate Properties [Line Items]
Total Real Estate at Cost	1,238,806
Accumulated Depreciation and Amortization	(173,278)
Total real estate held for investment, net	$ 1,065,528
100 & 200 Campus Drive Buildings | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Sep. 9, 2008
Total Real Estate at Cost	$ 143,687
Accumulated Depreciation and Amortization	(10,023)
Total real estate held for investment, net	$ 133,664
300-600 Campus Drive Buildings | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Oct. 10, 2008
Total Real Estate at Cost	$ 162,131
Accumulated Depreciation and Amortization	(14,899)
Total real estate held for investment, net	$ 147,232
Willow Oaks Corporate Center | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Aug. 26, 2009
Total Real Estate at Cost	$ 103,753
Accumulated Depreciation and Amortization	(18,137)
Total real estate held for investment, net	$ 85,616
Pierre Laclede Center | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Feb. 4, 2010
Total Real Estate at Cost	$ 80,531
Accumulated Depreciation and Amortization	(9,491)
Total real estate held for investment, net	$ 71,040
Horizon Tech Center | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Jun. 17, 2010
Total Real Estate at Cost	$ 29,540
Accumulated Depreciation and Amortization	(2,095)
Total real estate held for investment, net	$ 27,445
Union Bank Plaza | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Sep. 15, 2010
Total Real Estate at Cost	$ 186,119
Accumulated Depreciation and Amortization	(20,151)
Total real estate held for investment, net	$ 165,968
Emerald View at Vista Center | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Dec. 9, 2010
Total Real Estate at Cost	$ 31,029
Accumulated Depreciation and Amortization	(6,582)
Total real estate held for investment, net	$ 24,447
Granite Tower | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Dec. 16, 2010
Total Real Estate at Cost	$ 154,386
Accumulated Depreciation and Amortization	(41,655)
Total real estate held for investment, net	$ 112,731
Fountainhead Plaza | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Sep. 13, 2011
Total Real Estate at Cost	$ 119,383
Accumulated Depreciation and Amortization	(16,414)
Total real estate held for investment, net	$ 102,969
Corporate Technology Centre | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Mar. 28, 2013
Total Real Estate at Cost	$ 228,247
Accumulated Depreciation and Amortization	(33,831)
Total real estate held for investment, net	$ 194,416

REAL ESTATE HELD FOR INVESTME33

REAL ESTATE HELD FOR INVESTMENT (Properties Represented More than 10% of Company’s Total Assets) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)ft²$ / ft²	Dec. 31, 2016USD ($)
Real Estate Properties [Line Items]
Total Real Estate, Net	$ 1,065,528	$ 1,091,742
Percentage of Total Assets	61.00%
Annualized Base Rent	$ 75,804
Occupancy	83.00%
Assets, Total | Corporate Technology Centre
Real Estate Properties [Line Items]
Rentable Square Feet | ft²	610,083
Total Real Estate, Net	$ 194,416
Percentage of Total Assets	15.50%
Annualized Base Rent	$ 18,635
Average Annualized Base Rent per Sq. Ft. | $ / ft²	30.54
Occupancy	100.00%
Assets, Total | Union Bank Plaza
Real Estate Properties [Line Items]
Rentable Square Feet | ft²	627,334
Total Real Estate, Net	$ 165,968
Percentage of Total Assets	13.20%
Annualized Base Rent	$ 20,697
Average Annualized Base Rent per Sq. Ft. | $ / ft²	40.23
Occupancy	82.00%
Assets, Total | 300-600 Campus Drive Buildings
Real Estate Properties [Line Items]
Rentable Square Feet | ft²	578,424
Total Real Estate, Net	$ 147,232
Percentage of Total Assets	11.70%
Annualized Base Rent	$ 17,923
Average Annualized Base Rent per Sq. Ft. | $ / ft²	33.63
Occupancy	92.00%
Assets, Total | 100 & 200 Campus Drive Buildings
Real Estate Properties [Line Items]
Rentable Square Feet | ft²	586,405
Total Real Estate, Net	$ 133,664
Percentage of Total Assets	10.70%
Annualized Base Rent	$ 12,164
Average Annualized Base Rent per Sq. Ft. | $ / ft²	31.34
Occupancy	66.00%

REAL ESTATE HELD FOR INVESTME34

REAL ESTATE HELD FOR INVESTMENT (Operating Leases) (Narrative) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)tenant	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Operating Leased Assets [Line Items]
Deferred rent recognized	$ 1,549	$ 5,114
Deferred rent receivables	60,100		$ 57,900
Unamortized lease incentives	$ 10,000		10,900
Number of tenants | tenant	190
Recorded bad debt expense related to tenant	$ 264	$ 247
Bad debt reserve	600
Other liabilities, at fair value
Operating Leased Assets [Line Items]
Security deposit liability	$ 2,600		$ 2,500
Maximum
Operating Leased Assets [Line Items]
Operating lease, term	14 years 1 month 6 days
Bad debt reserve of annualized base rent	1.00%
Weighted Average
Operating Leased Assets [Line Items]
Operating lease, term	5 years 1 month 6 days

REAL ESTATE HELD FOR INVESTME35

REAL ESTATE HELD FOR INVESTMENT (Future Minimum Rental Income) (Details) $ in Thousands	Sep. 30, 2017USD ($)
Real Estate [Abstract]
October 1, 2017 through December 31, 2017	$ 31,057
2,018	120,037
2,019	106,671
2,020	100,749
2,021	89,760
Thereafter	275,199
Future minimum rental income	$ 723,473

REAL ESTATE HELD FOR INVESTME36

REAL ESTATE HELD FOR INVESTMENT (Highest Tenant Industry Concentrations- Grater than 10% of Annual Base Rent) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)tenant
Concentration Risk [Line Items]
Number of Tenants | tenant	190
Annualized Base Rent | $	$ 75,804
Percentage of Annualized Base Rent	61.00%
Finance
Concentration Risk [Line Items]
Number of Tenants | tenant	33
Annualized Base Rent | $	$ 28,081
Percentage of Annualized Base Rent	22.60%
Mining, Oil & Gas Extraction
Concentration Risk [Line Items]
Number of Tenants | tenant	5
Annualized Base Rent | $	$ 16,939
Percentage of Annualized Base Rent	13.60%
Computer System Design & Programming
Concentration Risk [Line Items]
Number of Tenants | tenant	5
Annualized Base Rent | $	$ 15,638
Percentage of Annualized Base Rent	12.60%
Legal Services
Concentration Risk [Line Items]
Number of Tenants | tenant	33
Annualized Base Rent | $	$ 15,146
Percentage of Annualized Base Rent	12.20%

REAL ESTATE HELD FOR INVESTME37

REAL ESTATE HELD FOR INVESTMENT (Concentration of Credit Risk for Tenant Leases) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)ft²extension$ / ft²
Real Estate Properties [Line Items]
Annualized Base Rent | $	$ 75,804
Tenant Lease - Union Bank Plaza
Real Estate Properties [Line Items]
Square Feet | ft²	342,712
% of Portfolio (Net Rentable Sq. Ft.)	8.50%
Annualized Base Rent | $	$ 14,182
% of Portfolio Annualized Base Rent	11.40%
Annualized Base Rent per Sq. Ft. | $ / ft²	41.38
Extension option | extension	2
Tenant Lease - Union Bank Plaza | Maximum
Real Estate Properties [Line Items]
Extension period	10 years
Tenant Lease - Union Bank Plaza | Minimum
Real Estate Properties [Line Items]
Rentable area required for extension option (less than) | ft²	200,000

REAL ESTATE HELD FOR INVESTME38

REAL ESTATE HELD FOR INVESTMENT (Geographic Concentration Risk) (Details)	9 Months Ended
	Sep. 30, 2017
Concentration Risk [Line Items]
Concentration risk, percentage	61.00%
Assets, Total | California
Concentration Risk [Line Items]
Concentration risk, percentage	30.90%
Assets, Total | New Jersey
Concentration Risk [Line Items]
Concentration risk, percentage	22.40%

TENANT ORIGINATION AND ABSORP39

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination And Absorption Costs, Cost	$ 61,001		$ 61,001		$ 64,117
Tenant Origination and Absorption Costs, Accumulated amortization	(37,651)		(37,651)		(33,577)
Tenant Origination and Absorption Costs, Net amount	23,350		23,350		30,540
Tenant Origination and Absorption Costs, Amortization	(2,281)	$ (2,811)	(7,218)	$ (9,116)
Above-Market Lease Assets, Cost	13,650		13,650		13,740
Above-Market Lease Assets, Accumulated amortization	(10,949)		(10,949)		(9,274)
Above-Market Lease Assets, Net amount	2,701		2,701		4,466
Above-Market Lease Assets, Amortization	(593)	(606)	(1,765)	(1,935)
Below-Market Lease Liabilities, Cost	(10,170)		(10,170)		(11,249)
Below-Market Lease Liabilities, Accumulated amortization	8,505		8,505		8,373
Below-Market Lease Liabilities, Net amount	(1,665)		(1,665)		$ (2,876)
Below-Market Lease Liabilities, Amortization	$ 383	$ 571	$ 1,225	$ 2,179

REAL ESTATE LOAN RECEIVABLE (Sc

REAL ESTATE LOAN RECEIVABLE (Schedule of Real Estate Loans Receivable) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Book Value	$ 13,964	$ 14,079
Mortgage | Sheraton Charlotte Airport Hotel First Mortgage Charlotte, North Carolina
Accounts, Notes, Loans and Financing Receivable [Line Items]
Date Acquired	Jul. 11, 2011
Outstanding Principal Balance	$ 13,961
Book Value	$ 13,964	$ 14,079
Contractual Interest Rate	7.50%
Annualized Effective Interest Rate	7.60%
Maturity Date	Aug. 1, 2018

REAL ESTATE LOAN RECEIVABLE (41

REAL ESTATE LOAN RECEIVABLE (Schedule of Activity Related to Real Estate Loans Receivable) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Real Estate Loans Receivable [Roll Forward]
Real estate loan receivable - December 31, 2016			$ 14,079
Principal repayments received on the real estate loan receivable			(112)	$ (91)
Amortization of closing costs and origination fees on the real estate loan receivable	$ (1)	$ (1)	(3)	$ (3)
Real estate loan receivable - September 30, 2017	$ 13,964		$ 13,964

REAL ESTATE LOAN RECEIVABLE (42

REAL ESTATE LOAN RECEIVABLE (Schedule of Interest Income from Real Estate Loans Receivable) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Receivables [Abstract]
Contractual interest income	$ 268	$ 271	$ 798	$ 809
Amortization of closing costs and origination fees	(1)	(1)	(3)	(3)
Interest income from real estate loan receivable	$ 267	$ 270	$ 795	$ 806

REAL ESTATE HELD FOR SALE (Narr

REAL ESTATE HELD FOR SALE (Narrative) (Details) - Disposed of by Sale - property	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Office Properties
Real Estate Properties [Line Items]
Number of real estate properties sold	1
Office-Flex Properties [Member]
Real Estate Properties [Line Items]
Number of real estate properties sold		1

REAL ESTATE HELD FOR SALE (Reve

REAL ESTATE HELD FOR SALE (Revenue and Expenses of Real Estate Held-for-Sale) (Details) - Disposed of by Sale - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues
Rental income	$ 0	$ 1,337	$ 2,379	$ 5,148
Tenant reimbursements	0	17	33	389
Total revenues	0	1,354	2,412	5,537
Expenses
Operating, maintenance, and management	0	336	633	1,124
Real estate taxes and insurance	0	213	334	848
Asset management fees to affiliate	0	94	169	395
General and administrative expenses	0	9	15	64
Depreciation and amortization	0	488	157	1,931
Interest expense	0	108	88	835
Total expenses	$ 0	$ 1,248	$ 1,396	$ 5,197

REAL ESTATE HELD FOR SALE (Sche

REAL ESTATE HELD FOR SALE (Schedule of Assets and Liabilities Related to Real Estate Held for Sale) (Details) - Held-for-sale - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total real estate, at cost	$ 0	$ 42,276
Accumulated depreciation and amortization	0	(8,282)
Real estate held for sale, net	0	33,994
Other assets	0	3,565
Total assets related to real estate held for sale	0	37,559
Other liabilities	0	17
Total liabilities related to real estate held for sale	$ 0	$ 17

NOTES PAYABLE (Schedule of Long

NOTES PAYABLE (Schedule of Long-term Debt Instruments) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Mar. 01, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 521,681,000		$ 524,296,000
Deferred financing costs, net	(419,000)		(525,000)
Total notes payable, net	521,262,000		523,771,000
Debt instrument, face amount	521,681,000		524,296,000
Mortgage | Amended and Restated Portfolio Revolving Loan Facility
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 52,638,000		52,638,000
Effective Interest Rate	3.00%
Maturity Date	Jun. 21, 2018
Mortgage | Amended and Restated Portfolio Revolving Loan Facility | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.80%
Mortgage | Union Bank Plaza Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 105,000,000		105,000,000
Effective Interest Rate	2.90%
Maturity Date	Jan. 12, 2018
Amount outstanding	$ 105,000,000
Unused borrowing capacity, amount	$ 14,300,000
Mortgage | Union Bank Plaza Mortgage Loan | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.65%
Mortgage | Portfolio Mortgage Loan 1
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 77,651,000		78,033,000
Effective Interest Rate	3.40%
Maturity Date	Oct. 20, 2017
Mortgage | Portfolio Mortgage Loan 1 | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.15%
Mortgage | Portfolio Mortgage Loan 3
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 54,000,000		54,000,000
Effective Interest Rate	3.00%
Maturity Date	Mar. 1, 2018
Debt instrument, face amount		$ 54,000,000
Mortgage | Portfolio Mortgage Loan 3 | Non-Revolving Credit Facility
Debt Instrument [Line Items]
Amount outstanding	$ 32,400,000
Mortgage | Portfolio Mortgage Loan 3 | Revolving Credit Facility
Debt Instrument [Line Items]
Amount outstanding	$ 21,600,000
Mortgage | Portfolio Mortgage Loan 3 | One-month LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Mortgage | Portfolio Mortgage Loan 3 | One-month LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.85%
Mortgage | Corporate Technology Centre Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 138,892,000		140,000,000
Contractual Interest Rate	3.50%
Effective Interest Rate	3.50%
Maturity Date	Apr. 1, 2020
Amortization schedule	30 years
Mortgage | 300-600 Campus Drive Revolving Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 93,500,000		$ 94,625,000
Effective Interest Rate	3.30%
Maturity Date	Feb. 1, 2018
Periodic payment, principal	$ 375,000
Mortgage | 300-600 Campus Drive Revolving Loan | Non-Revolving Credit Facility
Debt Instrument [Line Items]
Amount outstanding	93,500,000
Mortgage | 300-600 Campus Drive Revolving Loan | Revolving Credit Facility
Debt Instrument [Line Items]
Borrowing capacity	$ 25,000,000
Mortgage | 300-600 Campus Drive Revolving Loan | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.05%

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Derivative [Line Items]
Interest expense	$ 4,558	$ 4,066	$ 12,947	$ 12,727
Interest payable, current	1,400		1,400		$ 1,300
Amortization of deferred financing costs	$ 200	$ 600	841	1,423
Interest Rate Swaps
Derivative [Line Items]
Interest expense				$ 600
Increase in interest expense			$ (10)

NOTES PAYABLE (Schedule of Matu

NOTES PAYABLE (Schedule of Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Notes Payable [Abstract]
October 1, 2017 through December 31, 2017	$ 78,699
2,018	307,513
2,019	2,848
2,020	132,621
Total notes payable, net	$ 521,681	$ 524,296

DERIVATIVE INSTRUMENTS (Notiona

DERIVATIVE INSTRUMENTS (Notional Amount and Fair Value) (Details) - Interest Rate Swaps $ in Thousands	Sep. 30, 2017USD ($)investment	Dec. 31, 2016USD ($)investment
Derivative [Line Items]
Number of Instruments | investment	0	3
Notional Amount | $	$ 0	$ 106,638
Prepaid expenses and other assets, at fair value
Derivative [Line Items]
Number of Instruments | investment	0	2
Notional Amount | $	$ 0	$ 6
Other liabilities, at fair value
Derivative [Line Items]
Number of Instruments | investment	0	1
Notional Amount | $	$ 0	$ 107

DERIVATIVE INSTRUMENTS (Stateme

DERIVATIVE INSTRUMENTS (Statement of Operations) (Details) - Interest Rate Swaps - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative [Line Items]
Increase (decrease) in interest expense as a result of derivatives	$ 0	$ (81)	$ (10)	$ 566
Derivatives designated as hedging instruments
Derivative [Line Items]
Amount of loss recognized on interest rate swaps (effective portion)	0	0	0	60
Increase (decrease) in interest expense as a result of derivatives	0	0	0	60
Derivatives not designated as hedging instruments (2)
Derivative [Line Items]
Realized loss recognized on interest rate swaps	0	164	91	671
Unrealized gains on interest rate swaps	0	(245)	(101)	(321)
Losses related to swap terminations	0	0	0	156
Increase (decrease) in interest expense as a result of derivatives	$ 0	$ (81)	$ (10)	$ 506

FAIR VALUE DISCLOSURES (Schedul

FAIR VALUE DISCLOSURES (Schedule of Face Value, Carrying Amounts and Fair Value) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real estate loan receivable, Face Value	$ 13,961,000	$ 14,073,000
Notes payable, Face Value	521,681,000	524,296,000
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real estate loans receivable, Value	13,964,000	14,079,000
Notes payable, Value	521,262,000	523,771,000
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real estate loans receivable, Value	13,945,000	14,089,000
Notes payable, Value	$ 519,070,000	$ 522,296,000

RELATED PARTY TRANSACTIONS (Rel

RELATED PARTY TRANSACTIONS (Related Party Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Payable as of	$ 51		$ 51		$ 41
Administrative fees	63	$ 64	167	$ 162
Advisor and Dealer Manager
Related Party Transaction [Line Items]
Expenses	2,962	3,026	9,404	9,490
Payable as of	51		51		41
Advisor and Dealer Manager | Asset management fees
Related Party Transaction [Line Items]
Expenses	2,899	2,955	8,746	8,850
Payable as of	0		0		0
Advisor and Dealer Manager | Reimbursement of operating expenses
Related Party Transaction [Line Items]
Expenses	63	71	188	217
Payable as of	51		51		41
Advisor and Dealer Manager | Disposition fees
Related Party Transaction [Line Items]
Expenses	0	$ 0	470	$ 423
Payable as of	$ 0		$ 0		$ 0

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)
KBS Capital Advisors LLC | Property Insurance Rebate
Related Party Transaction [Line Items]
Paid from related parties	$ 0.1

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions	Nov. 14, 2017	Nov. 01, 2017	Oct. 02, 2017	Dec. 31, 2017	Oct. 31, 2017	Sep. 30, 2017
Dividend Paid
Subsequent Event [Line Items]
Distribution rate per share per day, declared						$ 0.02256164
Dividend Declared | Scenario, Forecast
Subsequent Event [Line Items]
Distribution rate per share per day, declared				$ 0.02331370
Subsequent Event
Subsequent Event [Line Items]
Distribution rate per share per day, declared	$ 0.02256164
Subsequent Event | Dividend Paid
Subsequent Event [Line Items]
Paid distributions		$ 4.4	$ 4.2
Distribution rate per share per day, declared					$ 0.02331370