KBS Real Estate Investment Trust II (KBRS) 10-Q 12 Nov 19 2019 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2019	Nov. 08, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	000-53649
Entity Registrant Name	KBS REAL ESTATE INVESTMENT TRUST II, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	26-0658752
Entity Address, Address Line One	800 Newport Center Drive, Suite 700
Entity Address, City or Town	Newport Beach,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92660
City Area Code	949
Local Phone Number	417-6500
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		185,461,792
Entity Central Index Key	0001411059
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Real estate:
Land	$ 118,955	$ 118,955
Buildings and improvements	580,169	550,802
Tenant origination and absorption costs	28,025	30,846
Total real estate held for investment, cost	727,149	700,603
Less accumulated depreciation and amortization	(133,429)	(116,714)
Total real estate held for investment, net	593,720	583,889
Real estate held for sale, net	257,163	370,318
Total real estate, net	850,883	954,207
Cash and cash equivalents	48,133	57,730
Restricted cash	15,681	17,957
Rents and other receivables, net	79,824	67,232
Above-market leases, net	169	224
Assets related to real estate held for sale	38,571	46,817
Prepaid expenses and other assets	23,363	12,850
Total assets	1,056,624	1,157,017
Notes payable:
Notes payable, net	300,900	266,296
Notes payable related to real estate held for sale, net	115,693	148,912
Total notes payable, net	416,593	415,208
Accounts payable and accrued liabilities	69,408	48,903
Due to affiliate	102	55
Distributions payable	3,481	3,874
Below-market leases, net	190	308
Liabilities related to real estate held for sale	0	6
Other liabilities	14,504	17,189
Total liabilities	504,278	485,543
Commitments and contingencies (Note 9)
Redeemable common stock	5,655	10,000
Stockholders’ equity:
Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $.01 par value; 1,000,000,000 shares authorized, 185,551,436 and 186,464,794 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	1,856	1,865
Additional paid-in capital	1,667,906	1,667,897
Cumulative distributions in excess of net income	(1,123,071)	(1,008,288)
Total stockholders’ equity	546,691	661,474
Total liabilities and stockholders’ equity	$ 1,056,624	$ 1,157,017

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
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)	185,551,436	186,464,794
Common stock, shares outstanding (in shares)	185,551,436	186,464,794

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Rental income	$ 24,943	$ 30,411	$ 78,619	$ 95,578
Interest income from real estate loans receivable	0	0	0	434
Other operating income	1,480	2,271	5,359	6,968
Total revenues	26,423	32,682	83,978	102,980
Expenses:
Real estate taxes and insurance	4,294	4,387	13,959	13,634
General and administrative expenses	1,342	1,416	4,204	4,452
Depreciation and amortization	11,050	12,077	33,053	38,427
Interest expense	4,418	4,175	13,262	13,494
Impairment charges on real estate	14,300	0	14,300	0
Total expenses	45,864	33,516	112,352	103,578
Other income:
Other interest income	114	380	477	867
Loss from extinguishment of debt	(165)	0	(471)	(212)
Gain on sale of real estate, net	0	0	30,754	24,884
Total other (loss) income	(51)	380	30,760	25,539
Net (loss) income	$ (19,492)	$ (454)	$ 2,386	$ 24,941
Net (loss) income per common share, basic and diluted (in dollars per share)	$ (0.10)	$ 0	$ 0.01	$ 0.13
Weighted-average number of common shares outstanding, basic and diluted (in shares)	185,770,646	186,968,315	186,064,468	187,293,455
Operating, maintenance, and management
Expenses:
Expenses	$ 7,991	$ 8,773	$ 25,867	$ 25,379
Asset management fees to affiliate
Expenses:
Expenses	$ 2,469	$ 2,688	$ 7,707	$ 8,192

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)
Balance (in shares) at Dec. 31, 2017		187,666,302
Balance at Dec. 31, 2017	$ 684,582	$ 1,877	$ 1,673,767	$ (991,062)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	24,941			24,941
Redemptions of common stock (in shares)		(920,643)
Redemptions of common stock	(4,502)	$ (9)	(4,493)
Transfers from redeemable common stock	4,502		4,502
Distributions declared	(34,252)			(34,252)
Balance (in shares) at Sep. 30, 2018		186,745,659
Balance at Sep. 30, 2018	675,271	$ 1,868	1,673,776	(1,000,373)
Balance (in shares) at Jun. 30, 2018		187,162,274
Balance at Jun. 30, 2018	687,248	$ 1,872	1,673,772	(988,396)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(454)			(454)
Redemptions of common stock (in shares)		(416,615)
Redemptions of common stock	(2,037)	$ (4)	(2,033)
Transfers from redeemable common stock	2,037		2,037
Distributions declared	(11,523)			(11,523)
Balance (in shares) at Sep. 30, 2018		186,745,659
Balance at Sep. 30, 2018	$ 675,271	$ 1,868	1,673,776	(1,000,373)
Balance (in shares) at Dec. 31, 2018	186,464,794	186,464,794
Balance at Dec. 31, 2018	$ 661,474	$ 1,865	1,667,897	(1,008,288)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	2,386			2,386
Redemptions of common stock (in shares)		(913,358)
Redemptions of common stock	(4,345)	$ (9)	(4,336)
Transfers from redeemable common stock	4,345		4,345
Distributions declared	$ (117,169)			(117,169)
Balance (in shares) at Sep. 30, 2019	185,551,436	185,551,436
Balance at Sep. 30, 2019	$ 546,691	$ 1,856	1,667,906	(1,123,071)
Balance (in shares) at Jun. 30, 2019		185,871,023
Balance at Jun. 30, 2019	576,633	$ 1,859	1,667,903	(1,093,129)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(19,492)			(19,492)
Redemptions of common stock (in shares)		(319,587)
Redemptions of common stock	(1,438)	$ (3)	(1,435)
Transfers from redeemable common stock	1,438		1,438
Distributions declared	$ (10,450)			(10,450)
Balance (in shares) at Sep. 30, 2019	185,551,436	185,551,436
Balance at Sep. 30, 2019	$ 546,691	$ 1,856	$ 1,667,906	$ (1,123,071)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash Flows from Operating Activities:
Net income	$ 2,386	$ 24,941
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	33,053	38,427
Impairment charges on real estate	14,300	0
Noncash interest income on real estate-related investments	0	3
Deferred rent	2,761	3,096
Bad debt expense	0	213
Amortization of above- and below-market leases, net	(65)	948
Amortization of deferred financing costs	1,169	940
Loss from extinguishment of debt	471	212
Gain on sale of real estate, net	(30,754)	(24,884)
Changes in operating assets and liabilities:
Rents and other receivables	(14,841)	(2,391)
Prepaid expenses and other assets	(13,469)	(2,601)
Accounts payable and accrued liabilities	18,574	3,180
Due to affiliate	47	29
Other liabilities	(2,685)	8,478
Net cash provided by operating activities	10,947	50,591
Cash Flows from Investing Activities:
Proceeds from sale of real estate	130,285	94,015
Improvements to real estate	(30,943)	(24,205)
Principal repayments on real estate loans receivable	0	13,920
Net cash provided by investing activities	99,342	83,730
Cash Flows from Financing Activities:
Proceeds from notes payable	134,350	375,000
Principal payments on notes payable	(133,681)	(460,446)
Payments of deferred financing costs	(924)	(2,810)
Payments to redeem common stock	(4,345)	(4,502)
Distributions paid to common stockholders	(117,562)	(34,874)
Net cash used in financing activities	(122,162)	(127,632)
Net (decrease) increase in cash and cash equivalents and restricted cash	(11,873)	6,689
Cash and cash equivalents and restricted cash, beginning of period	75,687	86,643
Cash and cash equivalents and restricted cash, end of period	63,814	93,332
Supplemental Disclosure of Cash Flow Information:
Interest paid	12,131	12,663
Supplemental Disclosure of Noncash Transactions:
Accrued improvements to real estate	6,748	7,517
Distributions payable	$ 3,481	$ 3,754

ORGANIZATION

ORGANIZATION	9 Months Ended
	Sep. 30, 2019
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, 2019, the Company owned six office properties (of which two were held for sale) and an office campus consisting of five office buildings. 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 June 6, 2019 (the “Advisory Agreement”). The Advisory Agreement is effective through May 21, 2020 and may be renewed for an unlimited number of one 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.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2019
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, 2018, except for the Company’s adoption of the lease accounting standards issued by the Financial Accounting Standards Board (“FASB”) effective on January 1, 2019. 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, 2018 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 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, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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, 2019 and 2018. Distributions declared per common share were $0.056 and $0.630 in the aggregate for the three and nine months ended September 30, 2019, respectively, and consisted of the following: • For each month commencing January 2019 through June 2019, the Company’s board of directors declared distributions per common share in the amount of $0.02062500 per share of common stock to stockholders of record based on a monthly record date. • On June 12, 2019, the Company’s board of directors declared a special distribution in the amount of $0.45 per share of common stock to stockholders of record as of the close of business on June 17, 2019. • For each month commencing July 2019 through September 2019, the Company’s board of directors declared distributions per common share in the amount of $0.01875000 per share of common stock to stockholders of record based on a monthly record date. Distributions declared per common share were $0.062 and $0.183 in the aggregate for the three and nine months ended September 30, 2018, 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 2018 through September 2018. 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. As of September 30, 2019, the Company aggregated its investments in real estate properties into one reportable business 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. Upon adoption of the lease accounting standards of Topic 842 on January 1, 2019 (described below), the Company accounted for tenant reimbursements for property taxes, insurance and common area maintenance as variable lease payments and recorded these amounts as rental income on the statement of operations. For the three and nine months ended September 30, 2018, the Company reclassified $2.0 million and $7.6 million, respectively, of tenant reimbursement revenue for property taxes, insurance, and common area maintenance to rental income for comparability purposes. In addition, during the nine months ended September 30, 2019, the Company sold two office properties and classified two office properties as held for sale. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented. Revenue Recognition - Operating Leases Real Estate On January 1, 2019, the Company adopted the lease accounting standards under Topic 842 including the package of practical expedients for all leases that commenced before the effective date of January 1, 2019. Accordingly, the Company (i) did not reassess whether any expired or existing contracts are or contain leases, (ii) did not reassess the lease classification for any expired or existing lease, and (iii) did not reassess initial direct costs for any existing leases. The Company did not elect the practical expedient related to using hindsight to reevaluate the lease term. In addition, the Company adopted the practical expedient for land easements and did not assess whether existing or expired land easements that were not previously accounted for as leases under the lease accounting standards of Topic 840 are or contain a lease under Topic 842. In addition, Topic 842 provides an optional transition method to allow entities to apply the new lease accounting standards at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The Company adopted this transition method upon its adoption of the lease accounting standards of Topic 842, which did not result in a cumulative effect adjustment to the opening balance of retained earnings on January 1, 2019. The Company’s comparative periods presented in the financial statements will continue to be reported under the lease accounting standards of Topic 840. In accordance with Topic 842, tenant reimbursements for property taxes and insurance are included in the single lease component of the lease contract (the right of the lessee to use the leased space) and therefore are accounted for as variable lease payments and are recorded as rental income on the Company’s statement of operations beginning January 1, 2019. In addition, the Company adopted the practical expedient available under Topic 842 to not separate nonlease components from the associated lease component and instead to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue recognition standard (Topic 606) and if certain conditions are met, specifically related to tenant reimbursements for common area maintenance which would otherwise be accounted for under the revenue recognition standard. The Company believes the two conditions have been met for tenant reimbursements for common area maintenance as (i) the timing and pattern of transfer of the nonlease components and associated lease components are the same and (ii) the lease component would be classified as an operating lease. Accordingly, tenant reimbursements for common area maintenance are also accounted for as variable lease payments and recorded as rental income on the Company’s statement of operations beginning January 1, 2019. The Company recognizes minimum rent, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when collectibility is probable and records amounts expected to be received in later years as deferred rent receivable. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that can be taken in the form of cash or a credit against the tenant’s rent) that is funded is treated as a lease incentive and amortized as a reduction of rental revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how a tenant improvement allowance may be spent; • whether the lessee or lessor supervises the construction and bears the risk of cost overruns; • whether the amount of a tenant improvement allowance is in excess of market rates; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. In accordance with Topic 842, the Company makes a determination of whether the collectibility of the lease payments in an operating lease is probable. If the Company determines the lease payments are not probable of collection, the Company would fully reserve for any contractual lease payments, deferred rent receivable, and variable lease payments and would recognize rental income only if cash is received. Beginning January 1, 2019, these changes to the Company’s collectibility assessment are reflected as an adjustment to rental income. Prior to January 1, 2019, bad debt expense related to uncollectible accounts receivable and deferred rent receivable was included in operating, maintenance, and management expense in the statement of operations. Any subsequent changes to the collectibility of the allowance for doubtful accounts as of December 31, 2018, which was recorded prior to the adoption of Topic 842, are recorded in operating, maintenance, and management expense in the statement of operations. Beginning January 1, 2019, the Company, as a lessor, records costs to negotiate or arrange a lease that would have been incurred regardless of whether the lease was obtained, such as legal costs incurred to negotiate an operating lease, as an expense and classifies such costs as operating, maintenance, and management expense on the Company’s consolidated statement of operations, as these costs are no longer capitalizable under the definition of initial direct costs under Topic 842. Square Footage, Occupancy and Other Measures Square footage, occupancy, number of tenants and other similar measures, including annualized base rent and annualized base rent per square foot, used to describe real estate investments included in these condensed notes to the consolidated financial statements 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 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. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework -Changes to the Disclosure Requirements for Fair Value Measurement

REAL ESTATE HELD FOR INVESTMENT

REAL ESTATE HELD FOR INVESTMENT	9 Months Ended
	Sep. 30, 2019
Real Estate [Abstract]
REAL ESTATE HELD FOR INVESTMENT	REAL ESTATE HELD FOR INVESTMENT As of September 30, 2019, the Company’s portfolio of real estate held for investment was composed of four office properties and an office campus consisting of five office buildings, encompassing in the aggregate approximately 2.7 million rentable square feet. As of September 30, 2019, the Company’s real estate portfolio was 74% occupied. The following table summarizes the Company’s real estate portfolio as of September 30, 2019 (in thousands): Property Date Acquired City State Property Type Total Real Estate Accumulated Depreciation and Amortization Total Real Estate, Net Willow Oaks Corporate Center 08/26/2009 Fairfax VA Office $ 118,547 $ (24,520) $ 94,027 Union Bank Plaza 09/15/2010 Los Angeles CA Office 195,544 (34,710) 160,834 Granite Tower 12/16/2010 Denver CO Office 144,368 (31,588) 112,780 Fountainhead Plaza 09/13/2011 Tempe AZ Office 119,384 (27,357) 92,027 Corporate Technology Centre 03/28/2013 San Jose CA Office 149,306 (15,254) 134,052 $ 727,149 $ (133,429) $ 593,720 As of September 30, 2019, the following properties represented more than 10% of the Company’s total assets: Property Location Rentable Total Real Estate, Net Percentage of Annualized Base Rent (in thousands) (1) Average Annualized Base Rent per Sq. Ft. Occupancy Union Bank Plaza Los Angeles, CA 701,888 $ 160,834 15.2 % $ 23,798 $ 42.29 80 % Corporate Technology Centre San Jose, CA 415,492 134,052 12.7 % 5,774 33.39 42 % Granite Tower Denver, CO 591,070 112,780 10.7 % 18,884 34.86 92 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2019, 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. Annualized base rent excludes leases that have been executed but have not commenced as of September 30, 2019. Operating Leases The Company’s real estate properties held for investment are leased to tenants under operating leases for which the terms and expirations vary. As of September 30, 2019, the leases had remaining terms, excluding options to extend, of up to 15.7 years with a weighted-average remaining term of 6.6 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 $3.4 million and $2.5 million as of September 30, 2019 and December 31, 2018, respectively. During the nine months ended September 30, 2019 and 2018, the Company recognized deferred rent from tenants, net of lease incentive amortization, which reduced rental income by $2.8 million and $3.1 million, respectively. As of September 30, 2019 and December 31, 2018, the cumulative deferred rent balance was $78.8 million and $61.7 million, respectively, and is included in rents and other receivables on the accompanying balance sheets. The cumulative deferred rent balance included $54.8 million and $38.6 million of unamortized lease incentives as of September 30, 2019 and December 31, 2018, respectively. As of September 30, 2019 and December 31, 2018, lease incentive payable was $52.1 million and $35.2 million, respectively, and is included in accounts payable and accrued liabilities on the accompanying balance sheets. As of September 30, 2019, the future minimum rental income from the Company’s properties held for investment under non-cancelable operating leases was as follows (in thousands): October 1, 2019 through December 31, 2019 $ 14,264 2020 59,820 2021 55,459 2022 59,634 2023 54,929 Thereafter 388,947 $ 633,053 As of September 30, 2019, the Company had approximately 80 tenants over a diverse range of industries and geographic areas in its portfolio of real estate held for investment. 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 12 $ 19,363 28.1 % Mining, Oil & Gas Extraction 3 13,154 19.1 % Educational Services 1 11,728 17.0 % $ 44,245 64.2 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2019, 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, 2019. During the nine months ended September 30, 2019, the Company recorded an adjustment to rental income of $0.9 million for lease payments that were deemed not probable of collection and a net recovery of bad debt of $0.1 million, which was included in operating, maintenance, and management expense in the accompanying consolidated statements of operations. During the nine months ended September 30, 2018, the Company recorded bad debt expense of $0.2 million, which was included in operating, maintenance, and management expense in the accompanying consolidated statements of operations. As of September 30, 2019, the Company had a concentration of credit risk related to the following tenant leases that represented more than 10% of the Company’s annualized base rent: Annualized Base Rent Statistics Tenant Property Tenant Industry Square Feet % of Portfolio Annualized Base Rent (in thousands) (1) % of Portfolio Annualized Base Rent Annualized Base Rent per Sq. Ft. Lease Expiration Union Bank Union Bank Plaza Finance 295,563 14.6% $ 15,730 22.8% $ 53.22 05/31/2020 03/31/2021/ 05/31/2021/ 05/31/2022 05/31/2035 (2)(3) The University of Phoenix Fountainhead Plaza Educational Services 445,957 22.0% 11,728 17.0% 26.30 08/31/2023 (4) Anadarko Petroleum Corporation Granite Tower Mining, Oil & Gas Extraction 360,584 17.8% 12,256 17.8% 33.99 04/30/2021 / 04/30/2033 (5) _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2019, 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 dates of the lease as of September 30, 2019 and does not take into account any tenant renewal options. Pursuant to a lease amendment that the Company entered into with Union Bank on December 31, 2017, Union Bank surrendered 15,829 rentable square feet of its total rentable square footage on March 31, 2018 and 31,320 rentable square feet of its total rentable square footage on June 30, 2018. In addition, Union Bank also surrendered 321 parking area passes on March 31, 2018. During the year ended December 31, 2018, the Company received $11.4 million of lease termination fees from Union Bank, of which $8.5 million was deferred as of December 31, 2018. During the nine months ended September 30, 2018, $1.4 million was recognized as rental income and $0.8 million was recognized as other operating income in the accompanying consolidated statement of operations. During the nine months ended September 30, 2019, $1.4 million was recognized as rental income and $0.7 million was recognized as other operating income in the accompanying consolidated statements of operations, and $6.4 million was deferred as of September 30, 2019 and included in other liabilities on the accompanying consolidated balance sheets. (3) On August 2, 2019, the Company entered into amended and restated lease agreements with Union Bank relating to Union Bank’s office, retail, and storage spaces, which amended the terms of the leases as follows: (i) remeasured the existing rentable square footage from 295,563 rentable square feet to 307,729 rentable square feet effective June 1, 2020, (ii) of the 307,729 rentable square feet, a total of 131,135 rentable square feet of office space and 11,985 rentable square feet of retail space will be surrendered at various dates between May 31, 2020 and May 31, 2022 and the remaining 164,609 rentable square feet will expire on May 31, 2035, and (iii) the addition of 3,152 rentable square feet of retail space for a 15-year lease term expiring on May 31, 2035. Each of Union Bank’s amended and restated office and retail lease agreements has two five (4) The University of Phoenix has two options to extend the term of this lease for five years per option term. (5) Per the lease agreement, 64,841 rentable square feet will expire on April 30, 2021 and the remainder will expire on April 30, 2033. Anadarko Petroleum Corporation has an option to terminate all or a portion of its leased space effective April 30, 2028 or April 30, 2030. No other tenant accounted for more than 10% of annualized base rent. Geographic Concentration Risk

TENANT ORIGINATION AND ABSORPTI

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	9 Months Ended
	Sep. 30, 2019
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, 2019 and December 31, 2018, 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 Above-Market Below-Market September 30, December 31, September 30, December 31, September 30, December 31, Cost $ 28,025 $ 30,846 $ 835 $ 835 $ (1,154) $ (2,635) Accumulated amortization (16,785) (16,869) (666) (611) 964 2,327 Net amount $ 11,240 $ 13,977 $ 169 $ 224 $ (190) $ (308) 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, 2019 and 2018 were as follows (in thousands): Tenant Origination and Above-Market Below-Market For the Three Months Ended September 30, For the Three Months Ended September 30, For the Three Months Ended September 30, 2019 2018 2019 2018 2019 2018 Amortization $ (920) $ (1,410) $ (18) $ (555) $ 27 $ 144 Tenant Origination and Above-Market Below-Market For the Nine Months Ended September 30, For the Nine Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 2019 2018 Amortization $ (2,761) $ (5,815) $ (55) $ (1,697) $ 120 $ 749

REAL ESTATE HELD FOR SALE

REAL ESTATE HELD FOR SALE	9 Months Ended
	Sep. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]
REAL ESTATE HELD FOR SALE	REAL ESTATE HELD FOR SALE During the nine months ended September 30, 2019, the Company sold two office properties and as of September 30, 2019, the Company had classified two office properties as held for sale. During the year ended December 31, 2018, the Company sold three office buildings that were part of an eight-building office campus. The results of operations for the properties sold during the nine months ended September 30, 2019 and the year ended December 31, 2018 and the two office properties classified as held for sale as of September 30, 2019 are included in continuing operations on the Company’s consolidated statements of operations. 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, 2018 and the three and nine months ended September 30, 2019 and the two office properties that were classified as held for sale as of September 30, 2019, which were included in continuing operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenues Rental income $ 7,918 $ 12,390 $ 30,575 $ 40,030 Other operating income 354 959 1,786 2,630 Total revenues 8,272 13,349 32,361 42,660 Expenses Operating, maintenance, and management 2,393 3,845 9,845 11,859 Real estate taxes and insurance 750 1,525 3,698 5,156 Asset management fees to affiliate 835 1,117 2,653 3,520 General and administrative expenses 41 36 45 63 Depreciation and amortization 3,599 5,132 12,304 15,961 Interest expense 1,233 1,544 4,379 5,573 Impairment charges on real estate 14,300 — 14,300 — Total expenses $ 23,151 $ 13,199 $ 47,224 $ 42,132 The following summary presents the major components of assets and liabilities related to real estate held for sale as of September 30, 2019 and December 31, 2018 (in thousands). September 30, 2019 December 31, 2018 Assets related to real estate held for sale Total real estate, at cost $ 304,436 $ 427,335 Accumulated depreciation and amortization (47,273) (57,017) Real estate held for sale, net 257,163 370,318 Other assets 38,571 46,817 Total assets related to real estate held for sale $ 295,734 $ 417,135 Liabilities related to real estate held for sale Notes payable, net 115,693 148,912 Other liabilities — 6 Total liabilities related to real estate held for sale $ 115,693 $ 148,918 As of September 30, 2019, the following properties held for sale represented more than 10% of the Company’s total assets: Property Location Rentable Total Real Estate, Net Percentage of Annualized Base Rent (in thousands) (1) Average Annualized Base Rent per Sq. Ft. Occupancy Campus Drive Buildings (2) Florham Park, NJ 1,168,846 $ 257,164 24.3 % $ 32,181 $ 32.78 84 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2019, 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. Annualized base rent excludes leases that have been executed but have not commenced as of September 30, 2019. (2) Subsequent to September 30, 2019, the Company entered into a purchase and sale agreement for the 100 & 200 Campus Driving Buildings and the 300-600 Campus Buildings (together, the “Campus Drive Buildings”) with a buyer unaffiliated with the Company or the Advisor. See Note 10, “Subsequent Events - Purchase and Sale Agreement for Sale of the Membership Interests in KBSII 100-200 Campus Drive, LLC and KBSII 300-600 Campus Drive, LLC.” During the three and nine months ended September 30, 2019, the Company recorded non-cash impairment charges of $14.3 million to write down the carrying value of the Company’s investment in the Campus Drive Buildings to their contractual sales price less estimated costs to sell. The impairment was primarily due to estimated closing costs and disposition fees, which are reflected upon classification of the Campus Drive Buildings to held for sale. Subsequent to September 30, 2019, the Company entered into a purchase and sale agreement for the Campus Drive Buildings with a buyer unaffiliated with the Company or the Advisor. See Note 10, “Subsequent Events - Purchase and Sale Agreement for Sale of the Membership Interests in KBSII 100-200 Campus Drive, LLC and KBSII 300-600 Campus Drive, LLC.”

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTES PAYABLE As of September 30, 2019 and December 31, 2018, the Company’s notes payable, including notes payable related to real estate held for sale, consisted of the following (dollars in thousands): Book Value as of Book Value as of Contractual Interest Rate as of September 30, 2019 (1) Effective Interest Rate as of September 30, 2019 (1) Payment Type Maturity Date (2) Corporate Technology Centre Mortgage Loan (3) $ 40,894 $ 41,868 3.50% 3.5% Principal & Interest 04/01/2020 Portfolio Loan Facility (4) 281,293 375,000 One-month LIBOR + 1.45% 3.6% Interest Only 03/29/2020 Granite Tower Mortgage Loan (5) 95,350 — One-month LIBOR + 1.65% 3.8% (5) 09/01/2023 Total notes payable principal outstanding $ 417,537 $ 416,868 Deferred financing costs, net (944) (1,660) Total notes payable, net $ 416,593 $ 415,208 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of September 30, 2019. Effective interest rate is calculated as the actual interest rate in effect as of September 30, 2019, using interest rate indices as of September 30, 2019, where applicable. (2) Represents the initial maturity date or the maturity date as extended as of September 30, 2019; subject to certain conditions, the maturity dates of certain loans may be extended beyond the maturity date shown. (3) The loan documents require the Company to reserve for the annual charges for real estate taxes by making monthly deposits to an account held by the lender, subject to certain terms and conditions contained in the loan documents. (4) On August 30, 2019, the Company repaid $62.0 million due under this loan and Granite Tower was released as security from the Portfolio Loan Facility. See below, “- Recent Financing Transactions - Granite Tower Mortgage Loan.” As of September 30, 2019, the Portfolio Loan Facility is secured by the 100 & 200 Campus Drive Buildings, the 300-600 Campus Drive Buildings, Willow Oaks Corporate Center, Union Bank Plaza and Fountainhead Plaza. As of September 30, 2019, $281.3 million of term debt of the Portfolio Loan Facility was outstanding and $62.4 million of revolving debt remained available for future disbursements, subject to certain terms and conditions set forth in the loan documents. (5) See below, “- Recent Financing Transaction - Granite Tower Mortgage Loan.” During the three and nine months ended September 30, 2019, the Company incurred $4.4 million and $13.3 million of interest expense, respectively. During the three and nine months ended September 30, 2018, the Company incurred $4.2 million and $13.5 million of interest expense, respectively. As of September 30, 2019 and December 31, 2018, $1.3 million of interest expense was payable. Included in interest expense for the three and nine months ended September 30, 2019 were $0.4 million and $1.2 million of amortization of deferred financing costs, respectively. Included in interest expense for the three and nine months ended September 30, 2018 were $0.3 million and $0.9 million of amortization of deferred financing costs, respectively. Also included in interest expense for the nine months ended September 30, 2018 was $0.3 million of debt refinancing costs. The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of September 30, 2019 (in thousands): October 1, 2019 through December 31, 2019 $ 330 2020 321,857 2021 — 2022 — 2023 95,350 Thereafter — $ 417,537 Certain of the Company’s notes payable contain financial debt covenants. As of September 30, 2019, the Company was in compliance with these debt covenants. Recent Financing Transaction Granite Tower Mortgage Loan On August 30, 2019, in connection with the partial principal repayment of the Portfolio Loan Facility, the Company, through an indirect wholly owned subsidiary (the “Granite Tower Mortgage Loan Borrower”), entered into a four KBS REIT Properties II, LLC (“REIT Properties II”), the Company’s wholly owned subsidiary, is providing a guaranty of (i) payment of, and agrees to protect, defend, indemnify and hold harmless the Granite Tower Mortgage Loan Agent and each lender for, from and against, any liability, obligation, deficiency, loss, damage, costs and expenses (including reasonable attorney’s fees), and any litigation which may at any time be imposed upon, incurred or suffered by the Granite Tower Mortgage Loan Agent or any lender because of (a) certain intentional actions committed by the Granite Tower Mortgage Loan Borrower, (b) fraud or intentional misrepresentations by the Granite Tower Mortgage Loan Borrower or REIT Properties II in connection with the loan documents as described in the guaranty agreement, and (c) certain bankruptcy or insolvency proceedings involving the Granite Tower Mortgage Loan Borrower, as such acts are described in the guaranty, and (ii) upon and subject to the events and conditions described in the guaranty, payment of certain indemnity obligations of the Granite Tower Mortgage Loan Borrower related to environmental matters. REIT Properties II also provides a limited completion guaranty of all obligations of the Granite Tower Mortgage Loan Borrower under an amendment of a major tenant’s lease up to a maximum guaranteed amount of $45.7 million.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	9 Months Ended
	Sep. 30, 2019
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 long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. The fair value for certain financial instruments is derived using a combination of market quotes, pricing models and other valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of assets and liabilities for which it is practicable to estimate the fair value: Cash and cash equivalents, restricted cash, rent and other receivables, and accounts payable and accrued liabilities: These balances approximate their fair values due to the short maturities of these items. 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 notes payable as of September 30, 2019 and December 31, 2018, which carrying amounts do not generally approximate the fair values (in thousands): September 30, 2019 December 31, 2018 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 417,537 $ 416,593 $ 418,212 $ 416,868 $ 415,208 $ 416,163 Disclosure of the fair values of financial instruments is based on pertinent information available to the Company as of the period end and requires a significant amount of judgment. Low levels of transaction volume for certain financial instruments have made the estimation of fair values difficult and, therefore, both the actual results and the Company’s estimate of value at a future date could be materially different. Assets Recorded at Fair Value During the nine months ended September 30, 2019, the Company measured the following assets at fair value on a nonrecurring basis (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Significant Other Significant Nonrecurring Basis: Impaired real estate held for sale $ 295,803 $ — $ — $ 295,803

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2019
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 or served as the advisor and dealer manager, respectively, for KBS Real Estate Investment Trust, Inc. (“KBS REIT I”) (which liquidated in December 2018), KBS Real Estate Investment Trust III, Inc. (“KBS REIT III”), Pacific Oak Strategic Opportunity REIT, Inc., formerly KBS Strategic Opportunity REIT, Inc., (“Pacific Oak Strategic Opportunity REIT”) (advisory agreement terminated as of October 31, 2019 and the dealer manager agreement will terminate as of December 31, 2019), KBS Legacy Partners Apartment REIT, Inc. (“KBS Legacy Partners Apartment REIT”) (which liquidated in December 2018), Pacific Oak Strategic Opportunity REIT II, Inc., formerly KBS Strategic Opportunity REIT II, Inc., (“Pacific Oak Strategic Opportunity REIT II”) (advisory agreement terminated as of October 31, 2019 and the dealer manager agreement will terminate as of December 31, 2019) and KBS Growth & Income REIT, Inc. (“KBS Growth & Income REIT”). On November 1, 2019, Pacific Oak Strategic Opportunity REIT and Pacific Oak Strategic Opportunity REIT II each entered into advisory agreements with a new external advisor, Pacific Oak Capital Advisors, LLC. Pacific Oak Capital Advisors, LLC is part of a group of companies formed, owned and managed by Keith D. Hall and Peter McMillan III. Together, through GKP Holding LLC, Messrs. Hall and McMillan, indirectly own a 33 1/3% interest in the Advisor and the Dealer Manager. As of January 1, 2018, the Company, together with KBS REIT III, KBS Growth & Income REIT, Pacific Oak Strategic Opportunity REIT, KBS Legacy Partners Apartment REIT, Pacific Oak Strategic Opportunity REIT II, the Dealer Manager, the Advisor and other KBS-affiliated entities, had entered into an errors and omissions and directors and officers liability insurance program where the lower tiers of such insurance coverage were 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. At the June 2018 renewal, Pacific Oak Strategic Opportunity REIT, Pacific Oak Strategic Opportunity REIT II and Legacy Partners Apartment REIT elected to cease participation in the program and obtained separate insurance coverage. In June 2019, the Company renewed its participation in the program. The program is effective through June 30, 2020. During the nine months ended September 30, 2019 and 2018, no other business transactions occurred between the Company and KBS REIT I, KBS REIT III, Pacific Oak Strategic Opportunity REIT, KBS Legacy Partners Apartment REIT, Pacific Oak Strategic Opportunity REIT II, KBS Growth & Income REIT, the Advisor, the Dealer Manager or other KBS-affiliated entities. Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the nine months ended September 30, 2019 and 2018, respectively, and any related amounts payable as of September 30, 2019 and December 31, 2018 (in thousands): Incurred Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, December 31, 2019 2018 2019 2018 2019 2018 Expensed Asset management fees $ 2,469 $ 2,688 $ 7,707 $ 8,192 $ — $ — Reimbursement of operating expenses (1) 69 69 222 246 102 55 Disposition fees (2) — — 1,334 972 — — $ 2,538 $ 2,757 $ 9,263 $ 9,410 $ 102 $ 55 _____________________ (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 $55,000 and $53,000 for the three months ended September 30, 2019 and 2018, respectively, and $170,000 and $181,000 for the nine months ended September 30, 2019 and 2018, respectively, and were the only type of employee costs reimbursed under the Advisory Agreement for the nine months ended September 30, 2019 and 2018. 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. During the nine months ended September 30, 2018, the Advisor reimbursed the Company for a $0.1 million property insurance rebate.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2019
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 investments; management of the daily operations of the Company’s real estate 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, 2019. Legal Matters

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2019
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 1, 2019, the Company paid distributions of $3.5 million, which related to distributions declared for September 2019 in the amount of $0.01875000 per share of common stock to stockholders of record as of the close of business on September 20, 2019. On November 1, 2019, the Company paid distributions of $3.5 million, which related to distributions declared for October 2019 in the amount of $0.01875000 per share of common stock to stockholders of record as of the close of business on October 21, 2019. Purchase and Sale Agreement for Sale of the Membership Interests in KBSII 100-200 Campus Drive, LLC and KBSII 300-600 Campus Drive, LLC On September 9, 2008, the Company, through an indirect wholly owned subsidiary, KBSII 100-200 Campus Drive, LLC, purchased two four-story office buildings located at 100 & 200 Campus Drive in Florham Park, New Jersey containing 590,458 rentable square feet on an approximate 71.1-acre parcel of land (the “100 & 200 Campus Drive Buildings”). On October 10, 2008, the Company, through an indirect wholly owned subsidiary, KBSII 300-600 Campus Drive, LLC, purchased four four-story office buildings containing 578,388 rentable square feet (the “300-600 Campus Drive Buildings”). The 300-600 Campus Drive Buildings are located at 300, 400, 500 and 600 Campus Drive in Florham Park, New Jersey on an approximate 64.80-acre parcel of land. On October 22, 2019, the Company, through indirect wholly owned subsidiaries, entered into a membership interest purchase and sale agreement and escrow instructions (the “Agreement”) for the sale of all of the membership interests of KBSII 300-600 Campus Drive, LLC (the owner of the 300-600 Campus Drive Buildings) and KBSII 100-200 Campus Drive, LLC (the owner of the 100 & 200 Campus Drive Buildings)(together, the “Property Owners”) to a buyer unaffiliated with the Company or the Advisor (the “Purchaser”). Pursuant to the Agreement, the total purchase price for the Property Owners is $320.0 million. On October 30, 2019, the Company, through indirect wholly owned subsidiaries, entered into the first amendment to the Agreement (the “First Amendment”) with the Purchaser to extend the ending date of the due diligence period from October 30, 2019 to October 31, 2019, and on October 31, 2019, the Company, through indirect wholly owned subsidiaries, entered into the second amendment to the Agreement (the “Second Amendment”) with the Purchaser to reduce the total purchase price for the Property Owners to $311.0 million. Per the Agreement, the closing date is expected to be on or before December 16, 2019. Under the Second Amendment, the Purchaser has an option to extend the closing date to January 16, 2020 and a second option to extend the closing date to January 31, 2020, subject to certain conditions set forth in the Second Amendment. There can be no assurance that the Company will complete the sale of the Property Owners. The Purchaser would be obligated to purchase the Property Owners only after satisfaction of agreed upon closing conditions. In some circumstances, if the Purchaser fails to complete the acquisition, it may forfeit up to $4.0 million of earnest money.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2019
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 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, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.
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, 2019 and 2018.
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. As of September 30, 2019, the Company aggregated its investments in real estate properties into one reportable business 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. Upon adoption of the lease accounting standards of Topic 842 on January 1, 2019 (described below), the Company accounted for tenant reimbursements for property taxes, insurance and common area maintenance as variable lease payments and recorded these amounts as rental income on the statement of operations. For the three and nine months ended September 30, 2018, the Company reclassified $2.0 million and $7.6 million, respectively, of tenant reimbursement revenue for property taxes, insurance, and common area maintenance to rental income for comparability purposes. In addition, during the nine months ended September 30, 2019, the Company sold two office properties and classified two office properties as held for sale. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented.
Revenue Recognition	Real Estate On January 1, 2019, the Company adopted the lease accounting standards under Topic 842 including the package of practical expedients for all leases that commenced before the effective date of January 1, 2019. Accordingly, the Company (i) did not reassess whether any expired or existing contracts are or contain leases, (ii) did not reassess the lease classification for any expired or existing lease, and (iii) did not reassess initial direct costs for any existing leases. The Company did not elect the practical expedient related to using hindsight to reevaluate the lease term. In addition, the Company adopted the practical expedient for land easements and did not assess whether existing or expired land easements that were not previously accounted for as leases under the lease accounting standards of Topic 840 are or contain a lease under Topic 842. In addition, Topic 842 provides an optional transition method to allow entities to apply the new lease accounting standards at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The Company adopted this transition method upon its adoption of the lease accounting standards of Topic 842, which did not result in a cumulative effect adjustment to the opening balance of retained earnings on January 1, 2019. The Company’s comparative periods presented in the financial statements will continue to be reported under the lease accounting standards of Topic 840. In accordance with Topic 842, tenant reimbursements for property taxes and insurance are included in the single lease component of the lease contract (the right of the lessee to use the leased space) and therefore are accounted for as variable lease payments and are recorded as rental income on the Company’s statement of operations beginning January 1, 2019. In addition, the Company adopted the practical expedient available under Topic 842 to not separate nonlease components from the associated lease component and instead to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue recognition standard (Topic 606) and if certain conditions are met, specifically related to tenant reimbursements for common area maintenance which would otherwise be accounted for under the revenue recognition standard. The Company believes the two conditions have been met for tenant reimbursements for common area maintenance as (i) the timing and pattern of transfer of the nonlease components and associated lease components are the same and (ii) the lease component would be classified as an operating lease. Accordingly, tenant reimbursements for common area maintenance are also accounted for as variable lease payments and recorded as rental income on the Company’s statement of operations beginning January 1, 2019. The Company recognizes minimum rent, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when collectibility is probable and records amounts expected to be received in later years as deferred rent receivable. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that can be taken in the form of cash or a credit against the tenant’s rent) that is funded is treated as a lease incentive and amortized as a reduction of rental revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how a tenant improvement allowance may be spent; • whether the lessee or lessor supervises the construction and bears the risk of cost overruns; • whether the amount of a tenant improvement allowance is in excess of market rates; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease.
Square Footage, Occupancy and Other Measures	Square footage, occupancy, number of tenants and other similar measures, including annualized base rent and annualized base rent per square foot, used to describe real estate investments included in these condensed notes to the consolidated financial statements 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 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. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework -Changes to the Disclosure Requirements for Fair Value Measurement

REAL ESTATE HELD FOR INVESTME_2

REAL ESTATE HELD FOR INVESTMENT (Tables)	9 Months Ended
	Sep. 30, 2019
Real Estate [Abstract]
Schedule of Real Estate Investments	The following table summarizes the Company’s real estate portfolio as of September 30, 2019 (in thousands): Property Date Acquired City State Property Type Total Real Estate Accumulated Depreciation and Amortization Total Real Estate, Net Willow Oaks Corporate Center 08/26/2009 Fairfax VA Office $ 118,547 $ (24,520) $ 94,027 Union Bank Plaza 09/15/2010 Los Angeles CA Office 195,544 (34,710) 160,834 Granite Tower 12/16/2010 Denver CO Office 144,368 (31,588) 112,780 Fountainhead Plaza 09/13/2011 Tempe AZ Office 119,384 (27,357) 92,027 Corporate Technology Centre 03/28/2013 San Jose CA Office 149,306 (15,254) 134,052 $ 727,149 $ (133,429) $ 593,720
Schedule of Concentration of Risk, by Assets	As of September 30, 2019, the following properties represented more than 10% of the Company’s total assets: Property Location Rentable Total Real Estate, Net Percentage of Annualized Base Rent (in thousands) (1) Average Annualized Base Rent per Sq. Ft. Occupancy Union Bank Plaza Los Angeles, CA 701,888 $ 160,834 15.2 % $ 23,798 $ 42.29 80 % Corporate Technology Centre San Jose, CA 415,492 134,052 12.7 % 5,774 33.39 42 % Granite Tower Denver, CO 591,070 112,780 10.7 % 18,884 34.86 92 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2019, 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. Annualized base rent excludes leases that have been executed but have not commenced as of September 30, 2019.
Schedule of Future Minimum Rental Income for Company's Properties	As of September 30, 2019, the future minimum rental income from the Company’s properties held for investment under non-cancelable operating leases was as follows (in thousands): October 1, 2019 through December 31, 2019 $ 14,264 2020 59,820 2021 55,459 2022 59,634 2023 54,929 Thereafter 388,947 $ 633,053
Schedules of Concentration of Risk, by Industry	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 12 $ 19,363 28.1 % Mining, Oil & Gas Extraction 3 13,154 19.1 % Educational Services 1 11,728 17.0 % $ 44,245 64.2 % _____________________
Schedules of Concentration of Risk, by Risk Factor	As of September 30, 2019, the Company had a concentration of credit risk related to the following tenant leases that represented more than 10% of the Company’s annualized base rent: Annualized Base Rent Statistics Tenant Property Tenant Industry Square Feet % of Portfolio Annualized Base Rent (in thousands) (1) % of Portfolio Annualized Base Rent Annualized Base Rent per Sq. Ft. Lease Expiration Union Bank Union Bank Plaza Finance 295,563 14.6% $ 15,730 22.8% $ 53.22 05/31/2020 03/31/2021/ 05/31/2021/ 05/31/2022 05/31/2035 (2)(3) The University of Phoenix Fountainhead Plaza Educational Services 445,957 22.0% 11,728 17.0% 26.30 08/31/2023 (4) Anadarko Petroleum Corporation Granite Tower Mining, Oil & Gas Extraction 360,584 17.8% 12,256 17.8% 33.99 04/30/2021 / 04/30/2033 (5) _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2019, 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 dates of the lease as of September 30, 2019 and does not take into account any tenant renewal options. Pursuant to a lease amendment that the Company entered into with Union Bank on December 31, 2017, Union Bank surrendered 15,829 rentable square feet of its total rentable square footage on March 31, 2018 and 31,320 rentable square feet of its total rentable square footage on June 30, 2018. In addition, Union Bank also surrendered 321 parking area passes on March 31, 2018. During the year ended December 31, 2018, the Company received $11.4 million of lease termination fees from Union Bank, of which $8.5 million was deferred as of December 31, 2018. During the nine months ended September 30, 2018, $1.4 million was recognized as rental income and $0.8 million was recognized as other operating income in the accompanying consolidated statement of operations. During the nine months ended September 30, 2019, $1.4 million was recognized as rental income and $0.7 million was recognized as other operating income in the accompanying consolidated statements of operations, and $6.4 million was deferred as of September 30, 2019 and included in other liabilities on the accompanying consolidated balance sheets. (3) On August 2, 2019, the Company entered into amended and restated lease agreements with Union Bank relating to Union Bank’s office, retail, and storage spaces, which amended the terms of the leases as follows: (i) remeasured the existing rentable square footage from 295,563 rentable square feet to 307,729 rentable square feet effective June 1, 2020, (ii) of the 307,729 rentable square feet, a total of 131,135 rentable square feet of office space and 11,985 rentable square feet of retail space will be surrendered at various dates between May 31, 2020 and May 31, 2022 and the remaining 164,609 rentable square feet will expire on May 31, 2035, and (iii) the addition of 3,152 rentable square feet of retail space for a 15-year lease term expiring on May 31, 2035. Each of Union Bank’s amended and restated office and retail lease agreements has two five (4) The University of Phoenix has two options to extend the term of this lease for five years per option term. (5) Per the lease agreement, 64,841 rentable square feet will expire on April 30, 2021 and the remainder will expire on April 30, 2033.

TENANT ORIGINATION AND ABSORP_2

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2019
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, 2019 and December 31, 2018, 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 Above-Market Below-Market September 30, December 31, September 30, December 31, September 30, December 31, Cost $ 28,025 $ 30,846 $ 835 $ 835 $ (1,154) $ (2,635) Accumulated amortization (16,785) (16,869) (666) (611) 964 2,327 Net amount $ 11,240 $ 13,977 $ 169 $ 224 $ (190) $ (308)
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, 2019 and 2018 were as follows (in thousands): Tenant Origination and Above-Market Below-Market For the Three Months Ended September 30, For the Three Months Ended September 30, For the Three Months Ended September 30, 2019 2018 2019 2018 2019 2018 Amortization $ (920) $ (1,410) $ (18) $ (555) $ 27 $ 144 Tenant Origination and Above-Market Below-Market For the Nine Months Ended September 30, For the Nine Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 2019 2018 Amortization $ (2,761) $ (5,815) $ (55) $ (1,697) $ 120 $ 749

REAL ESTATE HELD FOR SALE (Tabl

REAL ESTATE HELD FOR SALE (Tables)	9 Months Ended
	Sep. 30, 2019
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, 2018 and the three and nine months ended September 30, 2019 and the two office properties that were classified as held for sale as of September 30, 2019, which were included in continuing operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenues Rental income $ 7,918 $ 12,390 $ 30,575 $ 40,030 Other operating income 354 959 1,786 2,630 Total revenues 8,272 13,349 32,361 42,660 Expenses Operating, maintenance, and management 2,393 3,845 9,845 11,859 Real estate taxes and insurance 750 1,525 3,698 5,156 Asset management fees to affiliate 835 1,117 2,653 3,520 General and administrative expenses 41 36 45 63 Depreciation and amortization 3,599 5,132 12,304 15,961 Interest expense 1,233 1,544 4,379 5,573 Impairment charges on real estate 14,300 — 14,300 — Total expenses $ 23,151 $ 13,199 $ 47,224 $ 42,132
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, 2019 and December 31, 2018 (in thousands). September 30, 2019 December 31, 2018 Assets related to real estate held for sale Total real estate, at cost $ 304,436 $ 427,335 Accumulated depreciation and amortization (47,273) (57,017) Real estate held for sale, net 257,163 370,318 Other assets 38,571 46,817 Total assets related to real estate held for sale $ 295,734 $ 417,135 Liabilities related to real estate held for sale Notes payable, net 115,693 148,912 Other liabilities — 6 Total liabilities related to real estate held for sale $ 115,693 $ 148,918 As of September 30, 2019, the following properties held for sale represented more than 10% of the Company’s total assets: Property Location Rentable Total Real Estate, Net Percentage of Annualized Base Rent (in thousands) (1) Average Annualized Base Rent per Sq. Ft. Occupancy Campus Drive Buildings (2) Florham Park, NJ 1,168,846 $ 257,164 24.3 % $ 32,181 $ 32.78 84 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2019, 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. Annualized base rent excludes leases that have been executed but have not commenced as of September 30, 2019. (2) Subsequent to September 30, 2019, the Company entered into a purchase and sale agreement for the 100 & 200 Campus Driving Buildings and the 300-600 Campus Buildings (together, the “Campus Drive Buildings”) with a buyer unaffiliated with the Company or the Advisor. See Note 10, “Subsequent Events - Purchase and Sale Agreement for Sale of the Membership Interests in KBSII 100-200 Campus Drive, LLC and KBSII 300-600 Campus Drive, LLC.”

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	As of September 30, 2019 and December 31, 2018, the Company’s notes payable, including notes payable related to real estate held for sale, consisted of the following (dollars in thousands): Book Value as of Book Value as of Contractual Interest Rate as of September 30, 2019 (1) Effective Interest Rate as of September 30, 2019 (1) Payment Type Maturity Date (2) Corporate Technology Centre Mortgage Loan (3) $ 40,894 $ 41,868 3.50% 3.5% Principal & Interest 04/01/2020 Portfolio Loan Facility (4) 281,293 375,000 One-month LIBOR + 1.45% 3.6% Interest Only 03/29/2020 Granite Tower Mortgage Loan (5) 95,350 — One-month LIBOR + 1.65% 3.8% (5) 09/01/2023 Total notes payable principal outstanding $ 417,537 $ 416,868 Deferred financing costs, net (944) (1,660) Total notes payable, net $ 416,593 $ 415,208 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of September 30, 2019. Effective interest rate is calculated as the actual interest rate in effect as of September 30, 2019, using interest rate indices as of September 30, 2019, where applicable. (2) Represents the initial maturity date or the maturity date as extended as of September 30, 2019; subject to certain conditions, the maturity dates of certain loans may be extended beyond the maturity date shown. (3) The loan documents require the Company to reserve for the annual charges for real estate taxes by making monthly deposits to an account held by the lender, subject to certain terms and conditions contained in the loan documents. (4) On August 30, 2019, the Company repaid $62.0 million due under this loan and Granite Tower was released as security from the Portfolio Loan Facility. See below, “- Recent Financing Transactions - Granite Tower Mortgage Loan.” As of September 30, 2019, the Portfolio Loan Facility is secured by the 100 & 200 Campus Drive Buildings, the 300-600 Campus Drive Buildings, Willow Oaks Corporate Center, Union Bank Plaza and Fountainhead Plaza. As of September 30, 2019, $281.3 million of term debt of the Portfolio Loan Facility was outstanding and $62.4 million of revolving debt remained available for future disbursements, subject to certain terms and conditions set forth in the loan documents. (5) See below, “- Recent Financing Transaction - Granite Tower Mortgage Loan.”
Schedule of Maturities of Long-term Debt	The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of September 30, 2019 (in thousands): October 1, 2019 through December 31, 2019 $ 330 2020 321,857 2021 — 2022 — 2023 95,350 Thereafter — $ 417,537

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	9 Months Ended
	Sep. 30, 2019
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 notes payable as of September 30, 2019 and December 31, 2018, which carrying amounts do not generally approximate the fair values (in thousands): September 30, 2019 December 31, 2018 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 417,537 $ 416,593 $ 418,212 $ 416,868 $ 415,208 $ 416,163
Schedule of Fair Value Measurements, Nonrecurring	During the nine months ended September 30, 2019, the Company measured the following assets at fair value on a nonrecurring basis (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Significant Other Significant Nonrecurring Basis: Impaired real estate held for sale $ 295,803 $ — $ — $ 295,803

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2019
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 nine months ended September 30, 2019 and 2018, respectively, and any related amounts payable as of September 30, 2019 and December 31, 2018 (in thousands): Incurred Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, December 31, 2019 2018 2019 2018 2019 2018 Expensed Asset management fees $ 2,469 $ 2,688 $ 7,707 $ 8,192 $ — $ — Reimbursement of operating expenses (1) 69 69 222 246 102 55 Disposition fees (2) — — 1,334 972 — — $ 2,538 $ 2,757 $ 9,263 $ 9,410 $ 102 $ 55 _____________________ (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 $55,000 and $53,000 for the three months ended September 30, 2019 and 2018, respectively, and $170,000 and $181,000 for the nine months ended September 30, 2019 and 2018, respectively, and were the only type of employee costs reimbursed under the Advisory Agreement for the nine months ended September 30, 2019 and 2018. 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.

ORGANIZATION (Details)

ORGANIZATION (Details) $ in Thousands	Jun. 06, 2019shares	Sep. 30, 2019USD ($)propertyshares	Sep. 30, 2018USD ($)shares	Sep. 30, 2019USD ($)propertyshares	Sep. 30, 2018USD ($)shares	Mar. 22, 2011USD ($)shares	Sep. 30, 2019USD ($)propertyshares	Dec. 31, 2018property
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%
Issuance of common stock, value | $						$ 1,800,000
Shares of common stock sold under dividend reinvestment plan, value | $							$ 298,200
Redemptions of common stock | $		$ 1,438	$ 2,037	$ 4,345	$ 4,502
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		319,587	416,615	913,358	920,643		28,053,701
Redemptions of common stock | $		$ 3	$ 4	$ 9	$ 9		$ 256,100
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
Office Properties
Organizational Structure [Line Items]
Number of real estate properties | property		6		6			6
Office Properties | Held-for-sale
Organizational Structure [Line Items]
Number of real estate properties | property		2		2			2
Office Campus
Organizational Structure [Line Items]
Number of real estate properties | property		1		1			1
Office Buildings, Campus
Organizational Structure [Line Items]
Number of real estate properties | property		5		5			5	8

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Millions	Jun. 12, 2019$ / shares	Sep. 30, 2019$ / shares	Sep. 30, 2018USD ($)$ / shares	Jun. 30, 2019$ / shares	Sep. 30, 2019segmentproperty$ / sharesshares	Sep. 30, 2018USD ($)$ / sharesshares	Dec. 31, 2018property
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Potentially dilutive securities | shares					0	0
Distributions declared per common share (in dollars per share)	$ 0.45	$ 0.056	$ 0.062		$ 0.630	$ 0.183
Distribution rate per share per day, declared (in dollars per share)		$ 0.01875000		$ 0.02062500
Number of reportable segments | segment					1
Office Properties | Disposed of by Sale
Real Estate [Line Items]
Number of real estate properties sold | property					2		3
Accounting Standards Update 2016-02
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Tenant reimbursement revenue | $			$ 2			$ 7.6

REAL ESTATE HELD FOR INVESTME_3

REAL ESTATE HELD FOR INVESTMENT - Additional Information (Details) ft² in Millions	Sep. 30, 2019ft²property	Dec. 31, 2018property
Real Estate Properties [Line Items]
Occupancy	74.00%
Office Properties
Real Estate Properties [Line Items]
Number of real estate properties	6
Office Properties | Held-for-Investment
Real Estate Properties [Line Items]
Number of real estate properties	4
Office Buildings, Campus
Real Estate Properties [Line Items]
Number of real estate properties	5	8
Rentable square feet | ft²	2.7
Office Buildings, Campus | Excluding Held-for-sale
Real Estate Properties [Line Items]
Number of real estate properties	5

REAL ESTATE HELD FOR INVESTME_4

REAL ESTATE HELD FOR INVESTMENT - Schedule of Real Estate Investments (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Real Estate Properties [Line Items]
Total Real Estate at Cost	$ 727,149	$ 700,603
Accumulated Depreciation and Amortization	(133,429)	(116,714)
Total real estate held for investment, net	593,720	$ 583,889
Office Properties
Real Estate Properties [Line Items]
Total Real Estate at Cost	727,149
Accumulated Depreciation and Amortization	(133,429)
Total real estate held for investment, net	$ 593,720
Willow Oaks Corporate Center | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Aug. 26, 2009
Total Real Estate at Cost	$ 118,547
Accumulated Depreciation and Amortization	(24,520)
Total real estate held for investment, net	$ 94,027
Union Bank Plaza | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Sep. 15, 2010
Total Real Estate at Cost	$ 195,544
Accumulated Depreciation and Amortization	(34,710)
Total real estate held for investment, net	$ 160,834
Granite Tower | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Dec. 16, 2010
Total Real Estate at Cost	$ 144,368
Accumulated Depreciation and Amortization	(31,588)
Total real estate held for investment, net	$ 112,780
Fountainhead Plaza | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Sep. 13, 2011
Total Real Estate at Cost	$ 119,384
Accumulated Depreciation and Amortization	(27,357)
Total real estate held for investment, net	$ 92,027
Corporate Technology Centre | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Mar. 28, 2013
Total Real Estate at Cost	$ 149,306
Accumulated Depreciation and Amortization	(15,254)
Total real estate held for investment, net	$ 134,052

REAL ESTATE HELD FOR INVESTME_5

REAL ESTATE HELD FOR INVESTMENT - Properties Represented More than 10% of Company’s Total Assets (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)ft²$ / ft²	Dec. 31, 2018USD ($)
Real Estate Properties [Line Items]
Total Real Estate, Net	$ 593,720	$ 583,889
Percentage of Total Assets	64.20%
Annualized Base Rent	$ 44,245
Occupancy	74.00%
Assets, Total | Union Bank Plaza
Real Estate Properties [Line Items]
Rentable Square Feet | ft²	701,888
Total Real Estate, Net	$ 160,834
Percentage of Total Assets	15.20%
Annualized Base Rent	$ 23,798
Average Annualized Base Rent per Sq. Ft. | $ / ft²	42.29
Occupancy	80.00%
Assets, Total | Corporate Technology Centre
Real Estate Properties [Line Items]
Rentable Square Feet | ft²	415,492
Total Real Estate, Net	$ 134,052
Percentage of Total Assets	12.70%
Annualized Base Rent	$ 5,774
Average Annualized Base Rent per Sq. Ft. | $ / ft²	33.39
Occupancy	42.00%
Assets, Total | Granite Tower
Real Estate Properties [Line Items]
Rentable Square Feet | ft²	591,070
Total Real Estate, Net	$ 112,780
Percentage of Total Assets	10.70%
Annualized Base Rent	$ 18,884
Average Annualized Base Rent per Sq. Ft. | $ / ft²	34.86
Occupancy	92.00%

REAL ESTATE HELD FOR INVESTME_6

REAL ESTATE HELD FOR INVESTMENT - Operating Leases, Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)tenant	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Operating Leased Assets [Line Items]
Weighted average remaining lease term	6 years 7 months 6 days
Reduction in rental income	$ 2,761	$ 3,096
Deferred rent receivables	78,800		$ 61,700
Unamortized lease incentives	$ 54,800		38,600
Number of tenants | tenant	80
Recorded bad debt expense (recovery) related to tenant	$ 0	213
Other liabilities
Operating Leased Assets [Line Items]
Security deposit liability	3,400		2,500
Accounts payable and accrued liabilities
Operating Leased Assets [Line Items]
Lease incentive, payable	$ 52,100		$ 35,200
Maximum
Operating Leased Assets [Line Items]
Operating lease, term	15 years 8 months 12 days
Adjustment to Rental Income
Operating Leased Assets [Line Items]
Recorded bad debt expense (recovery) related to tenant	$ 900
Operating, Maintenance, and Management Expense
Operating Leased Assets [Line Items]
Recorded bad debt expense (recovery) related to tenant	$ (100)	$ 200

REAL ESTATE HELD FOR INVESTME_7

REAL ESTATE HELD FOR INVESTMENT - Future Minimum Rental Income (Details) $ in Thousands	Sep. 30, 2019USD ($)
Real Estate [Abstract]
October 1, 2019 through December 31, 2019	$ 14,264
2020	59,820
2021	55,459
2022	59,634
2023	54,929
Thereafter	388,947
Future minimum rental income	$ 633,053

REAL ESTATE HELD FOR INVESTME_8

REAL ESTATE HELD FOR INVESTMENT - Highest Tenant Industry Concentrations- Grater than 10% of Annual Base Rent (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)tenant
Concentration Risk [Line Items]
Number of Tenants | tenant	80
Annualized Base Rent | $	$ 44,245
Percentage of Annualized Base Rent	64.20%
Finance
Concentration Risk [Line Items]
Number of Tenants | tenant	12
Annualized Base Rent | $	$ 19,363
Percentage of Annualized Base Rent	28.10%
Mining, Oil & Gas Extraction
Concentration Risk [Line Items]
Number of Tenants | tenant	3
Annualized Base Rent | $	$ 13,154
Percentage of Annualized Base Rent	19.10%
Educational Services
Concentration Risk [Line Items]
Number of Tenants | tenant	1
Annualized Base Rent | $	$ 11,728
Percentage of Annualized Base Rent	17.00%

REAL ESTATE HELD FOR INVESTME_9

REAL ESTATE HELD FOR INVESTMENT - Concentration of Credit Risk for Tenant Leases (Details) $ in Thousands	Aug. 02, 2019ft²extensionnumberOfOptions	Sep. 30, 2019USD ($)ft²	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)ft²extension$ / ft²	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)	Jun. 30, 2018ft²	Mar. 31, 2018ft²numberOfParkingAreaPasses
Real Estate Properties [Line Items]
Annualized Base Rent | $		$ 44,245		$ 44,245
Rental income | $		24,943	$ 30,411	78,619	$ 95,578
Other operating income | $		$ 1,480	$ 2,271	$ 5,359	6,968
Tenant Lease - Union Bank Plaza
Real Estate Properties [Line Items]
Square Feet | ft²	295,563	295,563		295,563
% of Portfolio (Net Rentable Sq. Ft.)		14.60%		14.60%
Annualized Base Rent | $		$ 15,730		$ 15,730
% of Portfolio Annualized Base Rent		22.80%		22.80%
Annualized Base Rent per Sq. Ft. | $ / ft²				53.22
Square feet surrender | ft²							31,320	15,829
Termination of lease | $						$ 11,400
Number of parking area passes | numberOfParkingAreaPasses								321
Rental income | $				$ 1,400	1,400
Extension option | extension	2
Extension period	5 years
Option to terminate	one
Period of termination notice	18 months
Option to terminate and cancel a portion of lease | numberOfOptions	2
Tenant Lease - Union Bank Plaza | Effective June 1, 2020
Real Estate Properties [Line Items]
Square Feet | ft²	307,729
Tenant Lease - Union Bank Plaza | Will be Surrendered at Various Dates Between May 31, 2020 and May 31, 2022 | Office Space
Real Estate Properties [Line Items]
Square Feet | ft²	131,135
Tenant Lease - Union Bank Plaza | Will be Surrendered at Various Dates Between May 31, 2020 and May 31, 2022 | Retail Space
Real Estate Properties [Line Items]
Square Feet | ft²	11,985
Tenant Lease - Union Bank Plaza | Expiring on May 31, 2035
Real Estate Properties [Line Items]
Square Feet | ft²	164,609
Lease term	15 years
Tenant Lease - Union Bank Plaza | Expiring on May 31, 2035 | Retail Space
Real Estate Properties [Line Items]
Square Feet | ft²	3,152
Tenant Lease - Union Bank Plaza | Real Estate, Other
Real Estate Properties [Line Items]
Other operating income | $				700	$ 800
Tenant Lease - Union Bank Plaza | Other Liabilities
Real Estate Properties [Line Items]
Deferred revenue | $		$ 6,400		$ 6,400		$ 8,500
Tenant Lease - The University of Phoenix
Real Estate Properties [Line Items]
Square Feet | ft²		445,957		445,957
% of Portfolio (Net Rentable Sq. Ft.)		22.00%		22.00%
Annualized Base Rent | $		$ 11,728		$ 11,728
% of Portfolio Annualized Base Rent		17.00%		17.00%
Annualized Base Rent per Sq. Ft. | $ / ft²				26.30
Extension option | extension				2
Extension period				5 years
Term Lease - Anadarko Petroleum Corporation
Real Estate Properties [Line Items]
Square Feet | ft²		360,584		360,584
% of Portfolio (Net Rentable Sq. Ft.)		17.80%		17.80%
Annualized Base Rent | $		$ 12,256		$ 12,256
% of Portfolio Annualized Base Rent		17.80%		17.80%
Annualized Base Rent per Sq. Ft. | $ / ft²				33.99
Term Lease - Anadarko Petroleum Corporation | Will Expire on April 30, 2021
Real Estate Properties [Line Items]
Square Feet | ft²		64,841		64,841

REAL ESTATE HELD FOR INVESTM_10

REAL ESTATE HELD FOR INVESTMENT - Geographic Concentration Risk (Details)	9 Months Ended
	Sep. 30, 2019
Concentration Risk [Line Items]
Concentration risk, percentage	64.20%
Assets, Total | California
Concentration Risk [Line Items]
Concentration risk, percentage	27.90%
Assets, Total | Colorado
Concentration Risk [Line Items]
Concentration risk, percentage	10.70%

TENANT ORIGINATION AND ABSORP_3

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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination And Absorption Costs, Cost	$ 28,025		$ 28,025		$ 30,846
Tenant Origination and Absorption Costs, Accumulated amortization	(16,785)		(16,785)		(16,869)
Tenant Origination and Absorption Costs, Net amount	11,240		11,240		13,977
Tenant Origination and Absorption Costs, Amortization	(920)	$ (1,410)	(2,761)	$ (5,815)
Above-Market Lease Assets, Cost	835		835		835
Above-Market Lease Assets, Accumulated amortization	(666)		(666)		(611)
Above-Market Lease Assets, Net amount	169		169		224
Above-Market Lease Assets, Amortization	(18)	(555)	(55)	(1,697)
Below-Market Lease Liabilities, Cost	(1,154)		(1,154)		(2,635)
Below-Market Lease Liabilities, Accumulated amortization	964		964		2,327
Below-Market Lease Liabilities, Net amount	(190)		(190)		$ (308)
Below-Market Lease Liabilities, Amortization	$ 27	$ 144	$ 120	$ 749

REAL ESTATE HELD FOR SALE - Add

REAL ESTATE HELD FOR SALE - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019USD ($)property	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)property	Sep. 30, 2018USD ($)	Dec. 31, 2018property
Real Estate Properties [Line Items]
Impairment charges on real estate | $	$ 14,300	$ 0	$ 14,300	$ 0
Disposed of by Sale
Real Estate Properties [Line Items]
Impairment charges on real estate | $	$ 14,300	$ 0	$ 14,300	$ 0
Office Properties
Real Estate Properties [Line Items]
Number of real estate properties	6		6
Office Properties | Disposed of by Sale
Real Estate Properties [Line Items]
Number of real estate properties sold			2		3
Office Properties | Held-for-sale
Real Estate Properties [Line Items]
Number of real estate properties	2		2
Office Buildings, Campus
Real Estate Properties [Line Items]
Number of real estate properties	5		5		8

REAL ESTATE HELD FOR SALE - Rev

REAL ESTATE HELD FOR SALE - Revenue and Expenses of Real Estate Held-for-Sale (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Expenses
Impairment charges on real estate	$ 14,300	$ 0	$ 14,300	$ 0
Disposed of by Sale
Revenues
Rental income	7,918	12,390	30,575	40,030
Other operating income	354	959	1,786	2,630
Total revenues	8,272	13,349	32,361	42,660
Expenses
Operating, maintenance, and management	2,393	3,845	9,845	11,859
Real estate taxes and insurance	750	1,525	3,698	5,156
Asset management fees to affiliate	835	1,117	2,653	3,520
General and administrative expenses	41	36	45	63
Depreciation and amortization	3,599	5,132	12,304	15,961
Interest expense	1,233	1,544	4,379	5,573
Impairment charges on real estate	14,300	0	14,300	0
Total expenses	$ 23,151	$ 13,199	$ 47,224	$ 42,132

REAL ESTATE HELD FOR SALE - Sch

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, 2019	Dec. 31, 2018
Assets related to real estate held for sale
Total real estate, at cost	$ 304,436	$ 427,335
Accumulated depreciation and amortization	(47,273)	(57,017)
Real estate held for sale, net	257,163	370,318
Other assets	38,571	46,817
Total assets related to real estate held for sale	295,734	417,135
Liabilities related to real estate held for sale
Notes payable, net	115,693	148,912
Other liabilities	0	6
Total liabilities related to real estate held for sale	$ 115,693	$ 148,918

REAL ESTATE HELD FOR SALE - As

REAL ESTATE HELD FOR SALE - As Percent of Total Assets (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)ft²$ / ft²	Dec. 31, 2018USD ($)
Real Estate [Line Items]
Total Real Estate, Net	$ 593,720	$ 583,889
Percentage of Total Assets	64.20%
Annualized Base Rent	$ 44,245
Occupancy	74.00%
Campus Drive Buildings | Assets, Total
Real Estate [Line Items]
Rentable square feet | ft²	1,168,846
Total Real Estate, Net	$ 257,164
Percentage of Total Assets	24.30%
Annualized Base Rent	$ 32,181
Average Annualized Base Rent per Sq. Ft. | $ / ft²	32.78
Occupancy	84.00%

NOTES PAYABLE - Schedule of Lon

NOTES PAYABLE - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands	Aug. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total notes payable principal outstanding		$ 417,537	$ 416,868
Deferred financing costs, net		(944)	(1,660)
Total notes payable, net		416,593	415,208
Portfolio Loan Facility
Debt Instrument [Line Items]
Extinguishment of debt, amount	$ 62,000
Portfolio Loan Facility | Secured Debt
Debt Instrument [Line Items]
Total notes payable principal outstanding		281,300
Remaining borrowing capacity		62,400
Granite Tower Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding		95,400
Remaining borrowing capacity		$ 49,600
Granite Tower Mortgage Loan | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		1.65%
Mortgage | Corporate Technology Centre Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding		$ 40,894	41,868
Contractual Interest Rate		3.50%
Effective Interest Rate		3.50%
Mortgage | Portfolio Loan Facility
Debt Instrument [Line Items]
Total notes payable principal outstanding		$ 281,293	375,000
Effective Interest Rate		3.60%
Mortgage | Portfolio Loan Facility | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		1.45%
Mortgage | Granite Tower Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding		$ 95,350	$ 0
Effective Interest Rate		3.80%
Mortgage | Granite Tower Mortgage Loan | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		1.65%

NOTES PAYABLE - Additional Info

NOTES PAYABLE - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Debt Disclosure [Abstract]
Interest expense	$ 4,418	$ 4,175	$ 13,262	$ 13,494
Interest payable, current	1,300		1,300		$ 1,300
Amortization of deferred financing costs	$ 400	$ 300	$ 1,169	940
Debt refinancing costs				$ 300

NOTES PAYABLE - Schedule of Mat

NOTES PAYABLE - Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
October 1, 2019 through December 31, 2019	$ 330
2020	321,857
2021	0
2022	0
2023	95,350
Thereafter	0
Total notes payable, net	$ 417,537	$ 416,868

NOTES PAYABLE - Recent Financin

NOTES PAYABLE - Recent Financing Transactions (Details) - USD ($)	Aug. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Debt instrument, face amount		$ 417,537,000	$ 416,868,000
Total notes payable principal outstanding		417,537,000	$ 416,868,000
Granite Tower Mortgage Loan
Debt Instrument [Line Items]
Duration period	4 years
Debt instrument, face amount	$ 145,000,000
Total notes payable principal outstanding		95,400,000
Remaining borrowing capacity		49,600,000
Amortization schedule of mortgage loans	30 years
Limited Completion Guaranty of Major Tenant Lease		$ 45,700,000
Granite Tower Mortgage Loan | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		1.65%

FAIR VALUE DISCLOSURES - Notes

FAIR VALUE DISCLOSURES - Notes Payable (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Face Value	$ 417,537,000	$ 416,868,000
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Value	416,593,000	415,208,000
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Value	$ 418,212,000	$ 416,163,000

FAIR VALUE DISCLOSURES - Real E

FAIR VALUE DISCLOSURES - Real Estate (Details) - Nonrecurring Basis: $ in Thousands	Sep. 30, 2019USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate held for sale	$ 295,803
Quoted Prices in Active  Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate held for sale	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate held for sale	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate held for sale	$ 295,803

RELATED PARTY TRANSACTIONS - Co

RELATED PARTY TRANSACTIONS - Cost Incurred (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Related Party Transaction [Line Items]
Payable as of	$ 102		$ 102		$ 55
Administrative fees	55	$ 53	170	$ 181
Advisor and Dealer Manager
Related Party Transaction [Line Items]
Expenses	2,538	2,757	9,263	9,410
Payable as of	102		102		55
Advisor and Dealer Manager | Asset management fees
Related Party Transaction [Line Items]
Expenses	2,469	2,688	7,707	8,192
Payable as of	0		0		0
Advisor and Dealer Manager | Reimbursement of operating expenses
Related Party Transaction [Line Items]
Expenses	69	69	222	246
Payable as of	102		102		55
Advisor and Dealer Manager | Disposition fees
Related Party Transaction [Line Items]
Expenses	0	$ 0	1,334	$ 972
Payable as of	$ 0		$ 0		$ 0

RELATED PARTY TRANSACTIONS - Ad

RELATED PARTY TRANSACTIONS - Additional Information (Details) - KBS Capital Advisors LLC - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Nov. 01, 2019
Property Insurance Rebate
Related Party Transaction [Line Items]
Paid from related parties	$ 0.1
GKP Holding LLC | Subsequent Event
Related Party Transaction [Line Items]
Ownership percentage		33.33%

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Millions	Nov. 01, 2019USD ($)	Oct. 01, 2019USD ($)	Oct. 10, 2008aproperty	Sep. 09, 2008aproperty	Oct. 31, 2019USD ($)$ / shares	Sep. 30, 2019ft²$ / shares	Oct. 22, 2019USD ($)
100 & 200 Campus Drive Buildings
Subsequent Event [Line Items]
Number of real estate properties acquired | property				2
Rentable square feet | ft²						590,458
Area of land | a				71.1
300-600 Campus Drive Buildings
Subsequent Event [Line Items]
Number of real estate properties acquired | property			4
Rentable square feet | ft²						578,388
Area of land | a			64.80
Dividend Paid
Subsequent Event [Line Items]
Distribution rate per share per day, declared | $ / shares						$ 0.01875000
Subsequent Event | Property Owners | Scenario, Forecast
Subsequent Event [Line Items]
Consideration					$ 311		$ 320
Earnest money deposit, amount that may be forfeited							$ 4
Subsequent Event | Dividend Paid
Subsequent Event [Line Items]
Paid distributions	$ 3.5	$ 3.5
Distribution rate per share per day, declared | $ / shares					$ 0.01875000