KBS Real Estate Investment Trust II (KBRS) 10-Q 14 May 21 2021 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2021	May 10, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
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		183,927,976
Entity Central Index Key	0001411059
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF NET ASSETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets
Real estate	$ 698,491	$ 698,491
Cash and cash equivalents	10,305	21,796
Rents and other receivables	562	489
Other assets	731	461
Total assets	710,089	721,237
Liabilities
Liabilities for estimated costs in excess of estimated receipts during liquidation	64,210	72,528
Notes payable	240,520	240,520
Accounts payable and accrued liabilities	6,271	7,308
Due to affiliate	66	49
Liabilities for estimated closing costs and disposition fees	16,458	16,458
Other liabilities	2,691	2,879
Total liabilities	330,216	339,742
Commitments and contingencies (Note 9)
Net assets in liquidation	$ 379,873	$ 381,495

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Changes in Net Assets in Liquidation [Roll Forward]
Net assets in liquidation, beginning of period	$ 381,495
Changes in net assets in liquidation
Change in estimated cash flow during liquidation	1,661
Change in estimated capital expenditures	(2,576)
Redemptions	(494)
Other changes, net	(213)
Changes in net assets in liquidation	(1,622)
Net assets in liquidation, end of period	$ 379,873

ORGANIZATION

ORGANIZATION	3 Months Ended
	Mar. 31, 2021
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. As of March 31, 2021, the Company owned four office properties and an office building that is part of an office campus. 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 entered into with the Advisor (the “Advisory Agreement”). The Advisory Agreement is effective through May 21, 2021 and may be renewed for an unlimited number of one As of March 31, 2021, the Company had 184,055,532 shares of common stock issued and outstanding. On November 13, 2019, in connection with a review of potential strategic alternatives available to the Company, a special committee composed of all of the Company’s independent directors (the “Special Committee”) and the board of directors unanimously approved the sale of all of the Company’s assets and the dissolution of the Company pursuant to the terms of the plan of complete liquidation and dissolution (the “Plan of Liquidation”). The principal purpose of the Plan of Liquidation is to provide liquidity to the Company’s stockholders by selling the Company’s assets, paying its debts and distributing the net proceeds from liquidation to the Company’s stockholders. On March 5, 2020, the Company’s stockholders approved the Plan of Liquidation. The Plan of Liquidation is included as an exhibit to this Quarterly Report on Form 10-Q. COVID-19 Pandemic One of the most significant risks and uncertainties facing the Company and the real estate industry generally continues to be the effect of the ongoing public health crisis of the novel coronavirus disease (“COVID-19”) pandemic. The Company continues to closely monitor the impact of the COVID-19 pandemic on all aspects of its business and its liquidation, including how the pandemic is affecting its tenants and the Company’s ability to sell its remaining real estate properties at the times and prices it expects. From March 2020 through March 31, 2021, the Company did not experience significant disruptions in its operations from the COVID-19 pandemic. During the year ended December 31, 2020, the Company reduced the estimated liquidation value of its real estate portfolio by $90.2 million due to changes in leasing projections across its portfolio resulting in lower projected cash flow and projected sales prices caused by the impact of the COVID-19 pandemic. Many of the Company’s tenants have experienced disruptions in their business, some more severely than others. As of March 31, 2021, the Company had granted rent relief to eight tenants as a result of the pandemic, but as the impact of the pandemic continues to be felt, these tenants or additional tenants may request rent relief in future periods or become unable to pay rent and therefore, the Company is unable to predict the ultimate impact the pandemic will have on its business and implementation of the Plan of Liquidation due to numerous uncertainties. The Company is evaluating each tenant rent relief request on an individual basis, considering a number of factors. Not all tenant requests will ultimately result in modified agreements, nor is the Company forgoing its contractual rights under its lease agreements. Further, significant reductions in rental revenue in the future related to the impact of the COVID-19 pandemic may limit the Company’s ability to draw on its portfolio loan facility due to covenants described in the Company’s loan agreements.

PLAN OF LIQUIDATION

PLAN OF LIQUIDATION	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
PLAN OF LIQUIDATION	PLAN OF LIQUIDATION The Plan of Liquidation authorizes the Company to undertake an orderly liquidation. In an orderly liquidation, the Company will sell all of its remaining properties, pay all of its known liabilities, provide for the payment of its unknown or contingent liabilities, distribute its remaining cash to its stockholders, wind up its operations and dissolve. The Company is authorized to provide for the payment of any unascertained or contingent liabilities and may do so by purchasing insurance, by establishing a reserve fund or in other ways. The Plan of Liquidation enables the Company to sell any and all of its assets without further approval of its stockholders and provides that the amounts and timing of liquidating distributions will be determined by the Company’s board of directors or, if a liquidating trust is formed, by the trustees of the liquidating trust, in their discretion. Pursuant to applicable REIT rules, liquidating distributions the Company pays pursuant to the Plan of Liquidation will qualify for the dividends paid deduction, provided that they are paid within 24 months of the March 5, 2020 approval of the plan by the Company’s stockholders. However, if the Company cannot sell its properties and pay its debts within such time period, or if the board of directors and the Special Committee determine that it is otherwise advisable to do so, the Company may transfer and assign its remaining assets to a liquidating trust. Upon such transfer and assignment, the Company’s stockholders would receive beneficial interests in the liquidating trust. The liquidating trust would pay or provide for all of the Company’s liabilities and distribute any remaining net proceeds from liquidation to the holders of beneficial interests in the liquidating trust. If the Company is not able to sell its properties and pay its debt within the 24-month period and the remaining assets are not transferred to a liquidating trust, the distributions made during the 24 months may not qualify for the dividends paid deduction and may increase the Company’s tax liability. The Company’s expectations about the implementation of the Plan of Liquidation and the amount of any additional liquidating distributions that the Company pays to its stockholders and when the Company will pay them are subject to risks and uncertainties and are based on certain estimates and assumptions, one or more of which may prove to be incorrect. As a result, the actual amount of any additional liquidating distributions the Company pays to its stockholders may be more or less than the Company estimates and the liquidating distributions may be paid later than the Company predicts. There are many factors that may affect the amount of liquidating distributions the Company will ultimately pay to its stockholders. If the Company underestimates its existing obligations and liabilities or the amount of taxes, transaction fees and expenses relating to the liquidation and dissolution, or if unanticipated or contingent liabilities arise, the amount of liquidating distributions ultimately paid to the Company’s stockholders could be less than estimated. Moreover, the liquidation value will fluctuate over time in response to developments related to individual assets in the Company’s portfolio and the management of those assets, in response to the real estate and finance markets, based on the actual liquidation timing and the amount of net proceeds received from the disposition of the remaining assets and due to other factors. In particular, the outbreak of COVID-19, together with the resulting measures imposed to help control the spread of the virus, including quarantines, “shelter-in-place” and “stay-at-home” orders, travel restrictions, restrictions on businesses and school closures, has had a negative impact on the economy and business activity globally. As of March 31, 2021, tenants in the mining and oil and gas extraction industry represented approximately 19% of the Company’s base rent. Tenants in this sector have been adversely impacted by the reduced demand for oil as a result of the slowdown in economic activity resulting from the pandemic spread of COVID-19 and the increased volatility in oil prices. Many of the Company’s tenants have suffered reductions in revenue, and as of March 31, 2021, the Company had granted rent relief to eight tenants as a result of the pandemic. Depending upon the duration of the pandemic, the various measures imposed to help control the spread of the virus and the corresponding economic slowdown, these tenants or additional tenants may seek rent deferrals or abatements in future periods or become unable to pay their rent. While the Company has considered the impact from COVID-19 in its net assets in liquidation presented on the Condensed Consolidated Statement of Net Assets as of March 31, 2021, the extent to which the Company’s business may be affected by COVID-19 depends on future developments with respect to the continued spread and treatment of the virus, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures. Any long-term impact of this situation, even after an economic rebound, remains unclear. Given the uncertainty and current business disruptions as a result of the outbreak of COVID-19, the Company’s implementation of the Plan of Liquidation may be materially and adversely impacted and this may have a material effect on the ultimate amount and timing of liquidating distributions received by stockholders. Accordingly, it is not possible to precisely predict the timing of any additional liquidating distributions the Company pays to it stockholders or the aggregate amount of liquidating distributions that the Company will ultimately pay to its stockholders. No assurance can be given that any additional liquidating distributions the Company pays to its stockholders will equal or exceed the estimate of net assets in liquidation presented on the Condensed Consolidated Statement of Net Assets as of March 31, 2021. The Company expects to comply with the requirements necessary to continue to qualify as a REIT through the completion of the liquidation process, or until such time as any remaining assets are transferred into a liquidating trust. The board of directors shall use commercially reasonable efforts to continue to cause the Company to maintain its REIT status; provided, however, that the board of directors may elect to terminate the Company’s status as a REIT if it determines that such termination would be in the best interest of the stockholders.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2021
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, 2020. 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, 2020 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”). Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), including Subtopic 205-30, “Liquidation Basis of Accounting,” as indicated, 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. Pursuant to the Company’s stockholders’ approval of the Plan of Liquidation, the Company adopted the liquidation basis of accounting as of and for the periods subsequent to February 1, 2020 (as the approval of the Plan of Liquidation by the Company’s stockholders became imminent within the first week of February 2020 based on the results of the Company’s solicitation of proxies from its stockholders for their approval of the Plan of Liquidation). Accordingly, on February 1, 2020, assets were adjusted to their estimated net realizable value, or liquidation value, which represents the estimated amount of cash that the Company will collect through the disposal of assets as it carries out the Plan of Liquidation. The liquidation values of the Company’s remaining real estate properties are presented on an undiscounted basis. Estimated costs to dispose of assets and estimated capital expenditures through the anticipated disposition date of the properties have been presented separately from the related assets. Liabilities are carried at their contractual amounts due or estimated settlement amounts. The Company accrues costs and income that it expects to incur and earn through the completion of its liquidation, including the estimated amount of cash the Company expects to collect through the disposal of its assets and the estimated costs to dispose of its assets, to the extent it has a reasonable basis for estimation. These amounts are classified as a liability for estimated costs in excess of estimated receipts during liquidation on the Condensed Consolidated Statement of Net Assets. Actual costs and income may differ from amounts reflected in the financial statements because of the inherent uncertainty in estimating future events. These differences may be material. See Note 2, “Plan of Liquidation” and Note 4, “Liabilities for Estimated Costs in Excess of Estimated Receipts During Liquidation” for further discussion. Actual costs incurred but unpaid as of March 31, 2021 are included in accounts payable and accrued liabilities, due to affiliates and other liabilities on the Condensed Consolidated Statement of Net Assets. Net assets in liquidation represents the remaining estimated liquidation value available to stockholders upon liquidation. Due to the uncertainty in the timing of the sale of the Company’s remaining real estate properties and the estimated cash flows from operations, actual liquidation costs and sale proceeds may differ materially from the amounts estimated. Use of Estimates

LIABILITIES FOR ESTIMATED COSTS

LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION	3 Months Ended
	Mar. 31, 2021
Liability during Liquidation [Abstract]
LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION	LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION The liquidation basis of accounting requires the Company to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the Plan of Liquidation. As of March 31, 2021, the Company estimated that it will have costs in excess of estimated receipts during the liquidation process. These amounts can vary significantly due to, among other things, the timing and estimates for executing and renewing leases, estimates of tenant improvement costs and capital expenditures, the timing of property sales, direct costs incurred to complete the sales, the timing and amounts associated with discharging known and contingent liabilities and the costs associated with the winding down of operations. These costs are estimated and are anticipated to be paid out over the liquidation period. The change in the liabilities for estimated costs in excess of estimated receipts during liquidation as of March 31, 2021 is as follows (in thousands): December 31, 2020 Cash Payments Remeasurement of March 31, 2021 Assets: Estimated net inflows from investments in real estate $ 12,667 $ (7,492) $ 1,191 $ 6,366 12,667 (7,492) 1,191 6,366 Liabilities: Liquidation transaction costs (2,760) — — (2,760) Corporate expenditures (11,466) 2,629 470 (8,367) Capital expenditures (70,969) 14,096 (2,576) (59,449) (85,195) 16,725 (2,106) (70,576) Total liabilities for estimated costs in excess of estimated receipts during liquidation $ (72,528) $ 9,233 $ (915) $ (64,210)

NET ASSETS IN LIQUIDATION

NET ASSETS IN LIQUIDATION	3 Months Ended
	Mar. 31, 2021
Assets in Liquidation [Abstract]
NET ASSETS IN LIQUIDATION	NET ASSETS IN LIQUIDATION Net assets in liquidation decreased by approximately $1.6 million during the three months ended March 31, 2021 as follows (in thousands): Changes in net assets in liquidation Change in estimated cash flow during liquidation $ 1,661 Change in estimated capital expenditures (2,576) Redemptions (494) Other changes, net (213) Changes in net assets in liquidation $ (1,622) The net assets in liquidation as of March 31, 2021 would result in the payment of additional estimated liquidating distributions of approximately $2.06 per share of common stock to the Company’s stockholders of record as of March 31, 2021. This estimate of additional liquidating distributions includes projections of costs and expenses to be incurred during the estimated period required to complete the Plan of Liquidation. There is inherent uncertainty with these estimates and projections, and they could change materially based on the timing of the sales of the Company’s remaining real estate properties, the performance of the Company’s remaining assets and any changes in the underlying assumptions of the projected cash flows from such properties. See Note 2, “Plan of Liquidation.”

REAL ESTATE

REAL ESTATE	3 Months Ended
	Mar. 31, 2021
Real Estate [Abstract]
REAL ESTATE	REAL ESTATE As of March 31, 2021, the Company’s real estate investments were composed of four office properties and an office building that is part of an office campus, encompassing in the aggregate approximately 2.4 million rentable square feet. As of March 31, 2021, the Company’s real estate portfolio was 73% occupied. As of March 31, 2021, the Company’s liquidation value of real estate was $698.5 million, exclusive of net operating income to be earned and projected capital expenditures to be incurred over the expected hold period through sale. As a result of adopting the liquidation basis of accounting as of February 1, 2020, as of March 31, 2021, real estate properties were recorded at their estimated liquidation value, which represents the estimated gross amount of cash that the Company will collect through the sale of its real estate properties owned as of March 31, 2021 as it carries out its Plan of Liquidation.

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTES PAYABLE As of March 31, 2021 and December 31, 2020, the Company’s notes payable consisted of the following (dollars in thousands): Book Value as of Book Value as of Contractual Interest Rate as of March 31, 2021 (1) Effective Interest Rate as of March 31, 2021 (1) Payment Type Maturity Date (2) Portfolio Loan Facility (3) $ 145,170 $ 145,170 One-month LIBOR + 1.45% 1.6% Interest Only 03/29/2022 Granite Tower Mortgage Loan (4) 95,350 95,350 One-month LIBOR + 1.65% 1.8% (4) 09/01/2023 Total notes payable principal outstanding $ 240,520 $ 240,520 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of March 31, 2021. Effective interest rate is calculated as the actual interest rate in effect as of March 31, 2021, using interest rate indices as of March 31, 2021, where applicable. (2) Represents the initial maturity date or the maturity date as extended as of March 31, 2021. (3) As of March 31, 2021, the Portfolio Loan Facility was secured by Willow Oaks Corporate Center, Union Bank Plaza and Fountainhead Plaza. As of March 31, 2021, $145.2 million of term debt of the Portfolio Loan Facility was outstanding and $48.4 million of revolving debt remained available for future disbursements, subject to certain terms and conditions set forth in the loan documents.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2021
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 KBS Capital Markets Group LLC (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. During the three months ended March 31, 2021 and 2020, the Advisor and Dealer Manager also serve or served as the advisor and dealer manager, respectively, for KBS Real Estate Investment Trust III, Inc. (“KBS REIT III”) and KBS Growth & Income REIT, Inc. (“KBS Growth & Income REIT”). As of January 1, 2020, the Company, together with KBS REIT III, KBS Growth & Income REIT, 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. In June 2020, the Company renewed its participation in the program. The program is effective through June 30, 2021. During the three months ended March 31, 2021 and 2020, no other business transactions occurred between the Company and KBS REIT III, 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 three months ended March 31, 2021 and 2020, respectively, and any related amounts payable as of March 31, 2021 and December 31, 2020 (in thousands): Payable as of Three Months Ended March 31, March 31, December 31, 2021 2020 2021 2020 Expensed Asset management fees $ 1,438 $ 1,839 $ — $ — Reimbursement of operating expenses (1) 126 76 66 49 Disposition fees — 3,082 — — $ 1,564 $ 4,997 $ 66 $ 49 _____________________

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2021
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 execution of the Plan of Liquidation; 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 March 31, 2021. Legal Matters

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), including Subtopic 205-30, “Liquidation Basis of Accounting,” as indicated, 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.
Use of Estimates	The preparation of the unaudited consolidated financial statements and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and condensed notes. Actual results could materially differ from those estimates.

LIABILITIES FOR ESTIMATED COS_2

LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION (Tables)	3 Months Ended
	Mar. 31, 2021
Liability during Liquidation [Abstract]
Summary of Changes in Liquidation Accrual of Company	The change in the liabilities for estimated costs in excess of estimated receipts during liquidation as of March 31, 2021 is as follows (in thousands): December 31, 2020 Cash Payments Remeasurement of March 31, 2021 Assets: Estimated net inflows from investments in real estate $ 12,667 $ (7,492) $ 1,191 $ 6,366 12,667 (7,492) 1,191 6,366 Liabilities: Liquidation transaction costs (2,760) — — (2,760) Corporate expenditures (11,466) 2,629 470 (8,367) Capital expenditures (70,969) 14,096 (2,576) (59,449) (85,195) 16,725 (2,106) (70,576) Total liabilities for estimated costs in excess of estimated receipts during liquidation $ (72,528) $ 9,233 $ (915) $ (64,210)

NET ASSETS IN LIQUIDATION (Tabl

NET ASSETS IN LIQUIDATION (Tables)	3 Months Ended
	Mar. 31, 2021
Assets in Liquidation [Abstract]
Schedule of Change in Net Assets in Liquidation	Net assets in liquidation decreased by approximately $1.6 million during the three months ended March 31, 2021 as follows (in thousands): Changes in net assets in liquidation Change in estimated cash flow during liquidation $ 1,661 Change in estimated capital expenditures (2,576) Redemptions (494) Other changes, net (213) Changes in net assets in liquidation $ (1,622)

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	As of March 31, 2021 and December 31, 2020, the Company’s notes payable consisted of the following (dollars in thousands): Book Value as of Book Value as of Contractual Interest Rate as of March 31, 2021 (1) Effective Interest Rate as of March 31, 2021 (1) Payment Type Maturity Date (2) Portfolio Loan Facility (3) $ 145,170 $ 145,170 One-month LIBOR + 1.45% 1.6% Interest Only 03/29/2022 Granite Tower Mortgage Loan (4) 95,350 95,350 One-month LIBOR + 1.65% 1.8% (4) 09/01/2023 Total notes payable principal outstanding $ 240,520 $ 240,520 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of March 31, 2021. Effective interest rate is calculated as the actual interest rate in effect as of March 31, 2021, using interest rate indices as of March 31, 2021, where applicable. (2) Represents the initial maturity date or the maturity date as extended as of March 31, 2021. (3) As of March 31, 2021, the Portfolio Loan Facility was secured by Willow Oaks Corporate Center, Union Bank Plaza and Fountainhead Plaza. As of March 31, 2021, $145.2 million of term debt of the Portfolio Loan Facility was outstanding and $48.4 million of revolving debt remained available for future disbursements, subject to certain terms and conditions set forth in the loan documents.

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Schedule of Related Party Costs	Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three months ended March 31, 2021 and 2020, respectively, and any related amounts payable as of March 31, 2021 and December 31, 2020 (in thousands): Payable as of Three Months Ended March 31, March 31, December 31, 2021 2020 2021 2020 Expensed Asset management fees $ 1,438 $ 1,839 $ — $ — Reimbursement of operating expenses (1) 126 76 66 49 Disposition fees — 3,082 — — $ 1,564 $ 4,997 $ 66 $ 49 _____________________

ORGANIZATION (Details)

ORGANIZATION (Details) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2021propertyshares	Dec. 31, 2020USD ($)
Organizational Structure [Line Items]
Common stock, shares issued (in shares) | shares	184,055,532
Common stock, shares outstanding (in shares) | shares	184,055,532
Number of tenants with rent relief, COVID-19	8
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	4
Decrease in real estate property values, COVID-19 | $		$ 90.2
Office Campus
Organizational Structure [Line Items]
Number of real estate properties	1
Office Buildings, Campus
Organizational Structure [Line Items]
Number of real estate properties	1
KBS Limited Partnership II
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%

PLAN OF LIQUIDATION (Details)

PLAN OF LIQUIDATION (Details) - property	Mar. 05, 2020	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Period of payment activities upon plan of liquidation	24 months
Percent of base rent from tenants in mining and oil and gas extraction industry		19.00%
Number of tenants with rent relief, COVID-19		8

LIABILITIES FOR ESTIMATED COS_3

LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION - Change in Liability (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	$ (72,528)
Cash Payments (Receipts)	9,233
Remeasurement of Assets and Liabilities	(915)
Ending balance	(64,210)
Assets:
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	12,667
Cash Payments (Receipts)	(7,492)
Remeasurement of Assets and Liabilities	1,191
Ending balance	6,366
Estimated net inflows from investments in real estate
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	12,667
Cash Payments (Receipts)	(7,492)
Remeasurement of Assets and Liabilities	1,191
Ending balance	6,366
Liabilities:
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	(85,195)
Cash Payments (Receipts)	16,725
Remeasurement of Assets and Liabilities	(2,106)
Ending balance	(70,576)
Liquidation transaction costs
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	(2,760)
Cash Payments (Receipts)	0
Remeasurement of Assets and Liabilities	0
Ending balance	(2,760)
Corporate expenditures
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	(11,466)
Cash Payments (Receipts)	2,629
Remeasurement of Assets and Liabilities	470
Ending balance	(8,367)
Capital expenditures
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	(70,969)
Cash Payments (Receipts)	14,096
Remeasurement of Assets and Liabilities	(2,576)
Ending balance	$ (59,449)

NET ASSETS IN LIQUIDATION - Add

NET ASSETS IN LIQUIDATION - Additional Information (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)$ / shares
Assets in Liquidation [Abstract]
Decrease in assets, net | $	$ (1.6)
Additional estimated liquidation distribution (in dollars per share) | $ / shares	$ 2.06

NET ASSETS IN LIQUIDATION - Cha

NET ASSETS IN LIQUIDATION - Change in Liquidation Value (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Assets in Liquidation [Abstract]
Change in estimated cash flow during liquidation	$ 1,661
Change in estimated capital expenditures	(2,576)
Redemptions	(494)
Other changes, net	(213)
Changes in net assets in liquidation	$ (1,622)

REAL ESTATE (Details)

REAL ESTATE (Details) $ in Thousands, ft² in Millions	Mar. 31, 2021USD ($)ft²property	Dec. 31, 2020USD ($)
Real Estate Properties [Line Items]
Rentable square feet | ft²	2.4
Percentage of real estate occupied	73.00%
Real estate | $	$ 698,491	$ 698,491
Office Properties
Real Estate Properties [Line Items]
Number of real estate properties	4
Office Campus
Real Estate Properties [Line Items]
Number of real estate properties	1
Office Buildings, Campus
Real Estate Properties [Line Items]
Number of real estate properties	1

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 240,520	$ 240,520
Portfolio Loan Facility | Secured Debt
Debt Instrument [Line Items]
Total notes payable principal outstanding	145,200
Remaining borrowing capacity	48,400
Granite Tower Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding	95,400
Remaining borrowing capacity	$ 49,600
Amortization schedule of mortgage loans	30 years
Mortgage | Portfolio Loan Facility
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 145,170	145,170
Effective Interest Rate	1.60%
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	$ 95,350
Effective Interest Rate	1.80%
Mortgage | Granite Tower Mortgage Loan | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.65%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Related Party Transaction [Line Items]
Payable as of	$ 66		$ 49
Administrative fees	87	$ 58
Advisor and Dealer Manager
Related Party Transaction [Line Items]
Expenses	1,564	4,997
Payable as of	66		49
Advisor and Dealer Manager | Asset management fees
Related Party Transaction [Line Items]
Expenses	1,438	1,839
Payable as of	0		0
Advisor and Dealer Manager | Reimbursement of operating expenses
Related Party Transaction [Line Items]
Expenses	126	76
Payable as of	66		49
Advisor and Dealer Manager | Disposition fees
Related Party Transaction [Line Items]
Expenses	0	$ 3,082
Payable as of	$ 0		$ 0