KBS Real Estate Investment Trust II (KBRS) 10-Q 9 Nov 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Nov. 07, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
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	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		183,346,918
Entity Central Index Key	0001411059
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF NET ASSETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets
Real estate	$ 145,255	$ 188,383
Cash and cash equivalents	37,432	45,163
Rents and other receivables	273	342
Due from affiliate	0	727
Other assets	34	171
Total assets	182,994	234,786
Liabilities
Liabilities for estimated costs in excess of estimated receipts during liquidation	5,587	22,021
Accounts payable and accrued liabilities	1,777	1,833
Due to affiliate	4	29
Liabilities for estimated closing costs and disposition fees	3,213	4,008
Other liabilities	1,117	1,374
Total liabilities	11,698	29,265
Commitments and contingencies (Note 8)
Net assets in liquidation	$ 171,296	$ 205,521

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Changes in Net Assets in Liquidation [Roll Forward]
Net assets in liquidation, beginning of period	$ 205,521
Changes in net assets in liquidation
Change in liquidation value of real estate property after closing costs/disposition fees	(42,333)
Change in estimated cash flow during liquidation	537
Change in estimated capital expenditures	7,951
Other changes, net	(380)
Changes in net assets in liquidation	(34,225)
Net assets in liquidation, end of period	$ 171,296

ORGANIZATION

ORGANIZATION	9 Months Ended
	Sep. 30, 2022
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 September 30, 2022, the Company owned one office property. 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, 2023 and may be renewed for an unlimited number of one-year periods upon the mutual consent of the Advisor and the Company. Either party may terminate the Advisory Agreement upon 60 days’ written notice. The Advisor owns 20,000 shares of the Company’s common stock. As of September 30, 2022, the Company had 183,346,918 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, and in particular office REITs like the Company, continues to be the effect of the public health crisis of the novel coronavirus disease (“COVID-19”) pandemic. To date, the Company has not experienced significant disruptions in its operations from the COVID-19 pandemic, although the Company’s completion of the Plan of Liquidation has been delayed. During the nine months ended September 30, 2022, the Company reduced the estimated liquidation value of its remaining real estate property by $42.3 million (after estimated closing costs and disposition fees) partly due to changes in leasing projections resulting in lower projected cash flow and a lower projected sale price caused by the impact of the COVID-19 pandemic. During the years ended December 31, 2021 and 2020, the Company reduced the estimated liquidation value of its real estate portfolio by $78.1 million (or $54.6 million after accounting for the decrease in estimated capital expenditures of $23.5 million that was previously projected to be spent) and $90.2 million, respectively, 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.

PLAN OF LIQUIDATION

PLAN OF LIQUIDATION	9 Months Ended
	Sep. 30, 2022
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 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. At the time of adopting the Plan of Liquidation, the Company had anticipated completing its orderly liquidation and paying substantially all of its liquidating distributions from the net proceeds from liquidation within 24 months after stockholder approval of the Plan of Liquidation, which occurred on March 5, 2020. Given the uncertainty and business disruptions as a result of the outbreak of COVID-19 and more recently the rising interest rate environment, the Company’s completion of the Plan of Liquidation has been delayed. Although the Company was not able to complete its liquidation within the 24-month period described above, the Company does not anticipate any material unfavorable tax consequences to its stockholders or to its status as a REIT. For U.S. federal income tax purposes, (i) the Company did not have any current and accumulated earnings and profits (including any gain) or taxable income or gain for the taxable years ended December 31, 2020 and December 31, 2021 and (ii) the Company does not anticipate any current and accumulated earnings and profits (including any gain) or taxable income or gain for the taxable year ended December 31, 2022 or in future periods.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2022
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, 2021. 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, 2021 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,” 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 value of the Company’s real estate property is presented on an undiscounted basis. Estimated costs to dispose of assets and estimated capital expenditures through the anticipated disposition date of the real estate property 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 September 30, 2022 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 property 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	9 Months Ended
	Sep. 30, 2022
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 September 30, 2022, 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 September 30, 2022 is as follows (in thousands): December 31, 2021 Cash Payments Remeasurement of September 30, 2022 Assets: Estimated net inflows from investments in real estate $ 4,415 $ (5,722) $ 1,518 $ 211 4,415 (5,722) 1,518 211 Liabilities: Liquidation transaction costs (2,760) 561 449 (1,750) Corporate expenditures (4,246) 4,257 (1,430) (1,419) Capital expenditures (19,430) 8,850 7,951 (2,629) (26,436) 13,668 6,970 (5,798) Total liabilities for estimated costs in excess of estimated receipts during liquidation $ (22,021) $ 7,946 $ 8,488 $ (5,587)

NET ASSETS IN LIQUIDATION

NET ASSETS IN LIQUIDATION	9 Months Ended
	Sep. 30, 2022
Assets in Liquidation [Abstract]
NET ASSETS IN LIQUIDATION	NET ASSETS IN LIQUIDATION Net assets in liquidation decreased by approximately $34.2 million during the nine months ended September 30, 2022 as follows (in thousands): Changes in net assets in liquidation Change in liquidation value of real estate property after closing costs/disposition fees $ (42,333) Change in estimated cash flow during liquidation 537 Change in estimated capital expenditures 7,951 Other changes, net (380) Changes in net assets in liquidation $ (34,225)

REAL ESTATE

REAL ESTATE	9 Months Ended
	Sep. 30, 2022
Real Estate [Abstract]
REAL ESTATE	REAL ESTATE As of September 30, 2022, the Company owned Union Bank Plaza, encompassing in the aggregate 701,888 rentable square feet with an estimated liquidation value of $145.3 million, exclusive of net operating income to be earned and projected capital expenditures to be incurred over the expected hold period through sale. As of September 30, 2022, Union Bank Plaza was 57% occupied. As a result of adopting the liquidation basis of accounting as of February 1, 2020, as of September 30, 2022, Union Bank Plaza was recorded at its estimated liquidation value, which represents the estimated gross amount of cash that the Company will collect through the sale of Union Bank Plaza as it carries out its Plan of Liquidation.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONSThe 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. 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, 2021, 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 was allocated by the Advisor and its insurance broker among each of the various entities covered by the program, and was billed directly to each entity. The program was effective through June 30, 2022. In connection with the Company’s liquidation, the Company ceased participation in the program as of June 30, 2022 and obtained separate insurance coverage. During the nine months ended September 30, 2022 and 2021, 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 and nine months ended September 30, 2022 and 2021, respectively, and any related amounts receivable and payable as of September 30, 2022 and December 31, 2021 (in thousands): Incurred Receivable as of Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, December 31, September 30, December 31, 2022 2021 2022 2021 2022 2021 2022 2021 Expensed Asset management fees $ 536 $ 1,363 $ 1,575 $ 4,277 $ — $ — $ — $ — Reimbursement of operating expenses (1) 1 64 27 285 — 727 4 29 Disposition fees — 2,919 — 2,919 — — — — $ 537 $ 4,346 $ 1,602 $ 7,481 $ — $ 727 $ 4 $ 29 _____________________

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2022
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 the Company’s remaining real estate investment; management of the Company’s remaining real estate investment; 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, 2022. Legal Matters

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Amended Purchase and Sale Agreement for Sale of Union Bank Plaza On September 15, 2010, the Company, through an indirect wholly owned subsidiary, purchased Union Bank Plaza, a 40-story office building located in Los Angeles, California containing 701,888 rentable square feet on approximately 3.7 acres of land. On July 20, 2022, the Company, through an indirect wholly owned subsidiary, entered into a purchase and sale agreement and escrow instructions (the “Agreement”) for the sale of Union Bank to WB Union Plaza Holdings LLC (the “Purchaser”), an affiliate of Waterbridge Capital. The Purchaser is unaffiliated with the Company or the Advisor. Pursuant to the Agreement, the sale price for Union Bank Plaza is $155.0 million, subject to prorations and adjustments as provided in the Agreement. On October 14, 2022, the Company, through an indirect wholly owned subsidiary, entered into an amendment to the Agreement (the “Amended Agreement”) with the Purchaser to extend the closing date to November 7, 2022. On October 31, 2022, the Purchaser further extended the closing date to November 15, 2022 and on November 9, 2022, the Purchaser exercised its final extension option pursuant to the Amended Agreement and extended the closing date to November 30, 2022. There can be no assurance that the Company will complete the sale of Union Bank Plaza. The Purchaser would be obligated to purchase Union Bank Plaza only after satisfaction of agreed upon closing conditions. In certain circumstances, if the Purchaser fails to complete the acquisition, it may forfeit up to $10.5 million of earnest money.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
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,” 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)	9 Months Ended
	Sep. 30, 2022
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 September 30, 2022 is as follows (in thousands): December 31, 2021 Cash Payments Remeasurement of September 30, 2022 Assets: Estimated net inflows from investments in real estate $ 4,415 $ (5,722) $ 1,518 $ 211 4,415 (5,722) 1,518 211 Liabilities: Liquidation transaction costs (2,760) 561 449 (1,750) Corporate expenditures (4,246) 4,257 (1,430) (1,419) Capital expenditures (19,430) 8,850 7,951 (2,629) (26,436) 13,668 6,970 (5,798) Total liabilities for estimated costs in excess of estimated receipts during liquidation $ (22,021) $ 7,946 $ 8,488 $ (5,587)

NET ASSETS IN LIQUIDATION (Tabl

NET ASSETS IN LIQUIDATION (Tables)	9 Months Ended
	Sep. 30, 2022
Assets in Liquidation [Abstract]
Schedule of Change in Net Assets in Liquidation	Net assets in liquidation decreased by approximately $34.2 million during the nine months ended September 30, 2022 as follows (in thousands): Changes in net assets in liquidation Change in liquidation value of real estate property after closing costs/disposition fees $ (42,333) Change in estimated cash flow during liquidation 537 Change in estimated capital expenditures 7,951 Other changes, net (380) Changes in net assets in liquidation $ (34,225)

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Schedule of Related Party Costs	Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three and nine months ended September 30, 2022 and 2021, respectively, and any related amounts receivable and payable as of September 30, 2022 and December 31, 2021 (in thousands): Incurred Receivable as of Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, December 31, September 30, December 31, 2022 2021 2022 2021 2022 2021 2022 2021 Expensed Asset management fees $ 536 $ 1,363 $ 1,575 $ 4,277 $ — $ — $ — $ — Reimbursement of operating expenses (1) 1 64 27 285 — 727 4 29 Disposition fees — 2,919 — 2,919 — — — — $ 537 $ 4,346 $ 1,602 $ 7,481 $ — $ 727 $ 4 $ 29 _____________________

ORGANIZATION (Details)

ORGANIZATION (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022 USD ($) property shares	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Organizational Structure [Line Items]
Common stock, shares issued (in shares) | shares	183,346,918
Common stock, shares outstanding (in shares) | shares	183,346,918
Decrease in estimated capital expenditures, COVID-19	$ 8,000
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	1
Decrease in real estate property values, COVID-19	$ 42,300	$ 78,100	$ 90,200
Decrease in real estate property values, after decrease in capital expenditures, COVID-19		54,600
Decrease in estimated capital expenditures, COVID-19		$ 23,500
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)	Mar. 05, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Period of payment activities upon plan of liquidation	24 months

LIABILITIES FOR ESTIMATED COS_3

LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	$ (22,021)
Cash Payments (Receipts)	7,946
Remeasurement of Assets and Liabilities	8,488
Ending balance	(5,587)
Assets:
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	4,415
Cash Payments (Receipts)	(5,722)
Remeasurement of Assets and Liabilities	1,518
Ending balance	211
Estimated net inflows from investments in real estate
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	4,415
Cash Payments (Receipts)	(5,722)
Remeasurement of Assets and Liabilities	1,518
Ending balance	211
Liabilities:
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	(26,436)
Cash Payments (Receipts)	13,668
Remeasurement of Assets and Liabilities	6,970
Ending balance	(5,798)
Liquidation transaction costs
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	(2,760)
Cash Payments (Receipts)	561
Remeasurement of Assets and Liabilities	449
Ending balance	(1,750)
Corporate expenditures
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	(4,246)
Cash Payments (Receipts)	4,257
Remeasurement of Assets and Liabilities	(1,430)
Ending balance	(1,419)
Capital expenditures
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	(19,430)
Cash Payments (Receipts)	8,850
Remeasurement of Assets and Liabilities	7,951
Ending balance	$ (2,629)

NET ASSETS IN LIQUIDATION - Add

NET ASSETS IN LIQUIDATION - Additional Information (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares
Assets in Liquidation [Abstract]
Decrease in assets, net	$ 34,200
Change in liquidation value of real estate property after closing costs/disposition fees	42,333
Decrease in estimated capital expenditures, COVID-19	$ 8,000
Additional estimated liquidation distribution (in dollars per share) | $ / shares	$ 0.93

NET ASSETS IN LIQUIDATION - Cha

NET ASSETS IN LIQUIDATION - Change in Liquidation Value (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Assets in Liquidation [Abstract]
Change in liquidation value of real estate property after closing costs/disposition fees	$ (42,333)
Change in estimated cash flow during liquidation	537
Change in estimated capital expenditures	7,951
Other changes, net	(380)
Changes in net assets in liquidation	$ (34,225)

REAL ESTATE (Details)

REAL ESTATE (Details) $ in Thousands	Sep. 30, 2022 USD ($) ft²	Dec. 31, 2021 USD ($)
Real Estate Properties [Line Items]
Real estate	$ 145,255	$ 188,383
Office Properties | Union Bank Plaza
Real Estate Properties [Line Items]
Rentable square feet | ft²	701,888
Real estate	$ 145,300
Percentage of real estate occupied	57%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Receivable as of	$ 0		$ 0		$ 727,000
Payable as of	4,000		4,000		29,000
Administrative fees	0	$ 66,000	24,000	$ 229,000
Advisor and Dealer Manager
Related Party Transaction [Line Items]
Expenses	537,000	4,346,000	1,602,000	7,481,000
Receivable as of	0		0		727,000
Payable as of	4,000		4,000		29,000
Advisor and Dealer Manager | Overcharged Fees
Related Party Transaction [Line Items]
Incurred (reimbursed)					700,000
Advisor and Dealer Manager | Legal and Accounting Costs
Related Party Transaction [Line Items]
Incurred (reimbursed)			200,000
Advisor and Dealer Manager | Overcharged Fees, Legal and Accounting
Related Party Transaction [Line Items]
Incurred (reimbursed)			(900,000)
Advisor and Dealer Manager | Asset management fees
Related Party Transaction [Line Items]
Expenses	536,000	1,363,000	1,575,000	4,277,000
Receivable as of	0		0		0
Payable as of	0		0		0
Advisor and Dealer Manager | Reimbursement of operating expenses
Related Party Transaction [Line Items]
Expenses	1,000	64,000	27,000	285,000
Receivable as of	0		0		727,000
Payable as of	4,000		4,000		29,000
Advisor and Dealer Manager | Disposition fees
Related Party Transaction [Line Items]
Expenses	0	$ 2,919,000	0	$ 2,919,000
Receivable as of	0		0		0
Payable as of	$ 0		$ 0		$ 0

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Office Properties $ in Thousands	Oct. 14, 2022 USD ($)	Jul. 20, 2022 USD ($)	Sep. 15, 2010 a ft²
Union Bank Plaza | Disposed of by Sale
Subsequent Event [Line Items]
Consideration		$ 155,000
Union Bank Plaza | Disposed of by Sale | Subsequent Event
Subsequent Event [Line Items]
Earnest money maybe forfeited	$ 10,500
Union Bank Plaza
Subsequent Event [Line Items]
Net rentable area (in sq feet) | ft²			701,888
Area of land (in acres) | a			3.7