Pacific Oak Strategic Opportunity REIT (PCOK) 10-Q 12 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 08, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	KBS Strategic Opportunity REIT, Inc.
Entity Central Index Key	1,452,936
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		58,645,297

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets
Real estate held for investment, net	$ 940,244	$ 822,514
Real estate loan receivable, net	0	27,850
Total real estate and real estate-related investments, net	940,244	850,364
Cash and cash equivalents	117,310	23,058
Restricted cash	21,763	5,807
Investments in unconsolidated joint ventures	75,889	74,437
Rents and other receivables, net	26,624	24,487
Above-market leases, net	852	1,038
Prepaid expenses and other assets	41,589	25,023
Total assets	1,224,271	1,004,214
Liabilities and equity
Notes and bonds payable, net	821,772	547,323
Accounts payable and accrued liabilities	20,181	17,543
Due to affiliate	59	59
Below-market leases, net	2,602	2,735
Other liabilities	24,392	17,905
Total liabilities	869,006	585,565
Commitments and contingencies (Note 12)
Redeemable common stock	1,574	9,859
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, 58,644,697 and 58,696,115 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	586	587
Additional paid-in capital	480,362	504,303
Cumulative distributions and net losses	(129,321)	(111,527)
Total KBS Strategic Opportunity REIT, Inc. stockholders’ equity	351,627	393,363
Noncontrolling interests	2,064	15,427
Total equity	353,691	408,790
Total Liabilities and Equity	$ 1,224,271	$ 1,004,214

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	58,644,697	58,696,115
Common stock, shares outstanding	58,644,697	58,696,115

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Rental income	$ 24,585	$ 22,118	$ 47,417	$ 43,979
Tenant reimbursements	4,828	4,740	9,582	9,050
Interest income from real estate loan receivable	3,655	993	3,655	1,968
Other operating income	798	816	1,578	1,613
Total revenues	33,866	28,667	62,232	56,610
Expenses:
Operating, maintenance, and management	9,303	8,980	18,823	17,924
Real estate taxes and insurance	4,029	3,839	7,903	7,498
Asset management fees to affiliate	2,205	2,077	4,293	4,130
Real estate acquisition fees to affiliate	1,274	0	1,274	0
Real estate acquisition fees and expenses	268	0	268	0
General and administrative expenses	1,699	869	2,835	1,732
Foreign currency transaction gain	(2,340)	0	(2,037)	0
Depreciation and amortization	12,091	11,159	23,099	22,387
Interest expense	7,185	3,857	12,362	7,769
Total expenses	35,714	30,781	68,820	61,440
Other income (loss):
Other interest income	11	6	15	14
Other income	0	4,889	0	4,889
Equity in loss of unconsolidated joint venture	(152)	(118)	(348)	(336)
(Loss) gain on sale of real estate, net	0	(24)	0	8,287
Total other (loss) income	(141)	4,753	(333)	12,854
Net (loss) income	(1,989)	2,639	(6,921)	8,024
Net loss (income) attributable to noncontrolling interests	30	(1,113)	68	(4,263)
Net (loss) income attributable to common stockholders	$ (1,959)	$ 1,526	$ (6,853)	$ 3,761
Net (loss) income per common share, basic and diluted (in dollars per share)	$ (0.03)	$ 0.03	$ (0.12)	$ 0.06
Weighted-average number of common shares outstanding, basic and diluted (in shares)	58,688,129	60,193,459	58,693,629	60,115,426

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Total Stockholders' Equity [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Cumulative Distributions and Net Losses [Member]	Noncontrolling Interests [Member]
Balance, shares at Dec. 31, 2014			60,044,329
Balance, value at Dec. 31, 2014	$ 450,136	$ 433,398	$ 600	$ 524,489	$ (91,691)	$ 16,738
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	7,132	2,444			2,444	4,688
Issuance of common stock, shares			1,114,532
Issuance of common stock, value	13,573	13,573	$ 11	13,562
Transfers to redeemable common stock	(3,663)	(3,663)		(3,663)
Redemptions of common stock, shares			(2,462,746)
Redemptions of common stock, value	(30,100)	(30,100)	$ (24)	(30,076)
Distributions declared	(22,280)	(22,280)			(22,280)
Other offering costs	(9)	(9)		(9)
Noncontrolling interests contributions	1,343					1,343
Distributions to noncontrolling interest	$ (7,342)					(7,342)
Balance, shares at Dec. 31, 2015	58,696,115		58,696,115
Balance, value at Dec. 31, 2015	$ 408,790	393,363	$ 587	504,303	(111,527)	15,427
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(6,921)	(6,853)			(6,853)	(68)
Issuance of common stock, shares			473,267
Issuance of common stock, value	6,361	6,361	$ 4	6,357
Transfers from redeemable common stock	638	638		638
Redemptions of common stock, shares			(524,685)
Redemptions of common stock, value	(6,999)	(6,999)	$ (5)	(6,994)
Distributions declared	(10,941)	(10,941)			(10,941)
Acquisitions of noncontrolling interests	(37,986)	(23,942)		(23,942)		(14,044)
Noncontrolling interests contributions	766					766
Distributions to noncontrolling interest	$ (17)					(17)
Balance, shares at Jun. 30, 2016	58,644,697		58,644,697
Balance, value at Jun. 30, 2016	$ 353,691	$ 351,627	$ 586	$ 480,362	$ (129,321)	$ 2,064

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Flows from Operating Activities:
Net (loss) income	$ (6,921)	$ 8,024
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Loss due to property damages	2,017	2,660
Equity in loss of unconsolidated joint venture	348	336
Depreciation and amortization	23,099	22,387
Non-cash interest income on real estate-related investments	0	(428)
Gain on sale of real estate, net	0	(8,287)
Other income	0	(4,889)
Deferred rent	(975)	(2,734)
Bad debt expense	307	107
Amortization of above- and below-market leases, net	(449)	(408)
Amortization of deferred financing costs	1,772	1,532
Amortization of discount on bonds and notes payable, net	17	11
Foreign currency transaction gain	(2,037)	0
Changes in assets and liabilities:
Restricted cash for operational expenditures	(895)	1,194
Rents and other receivables	(1,567)	(976)
Prepaid expenses and other assets	(4,883)	(4,963)
Accounts payable and accrued liabilities	1,725	(1,697)
Due to affiliates	0	33
Other liabilities	1,010	253
Net cash provided by operating activities	12,568	12,155
Cash Flows from Investing Activities:
Acquisition of real estate	(125,810)	0
Improvements to real estate	(14,008)	(17,641)
Proceeds from sales of real estate, net	0	15,738
Proceeds from condemnation agreements	0	5,719
Escrow deposits for future real estate purchases	(16,000)	0
Principal proceeds from assignment of real estate loan receivable	27,850	0
Insurance proceeds received for property damages	256	258
Investment in unconsolidated joint venture	(1,800)	(1,680)
Restricted cash for capital expenditures	(7,762)	0
Funding of restricted cash for development obligations	(2,500)	0
Net cash (used in) provided by investing activities	(139,774)	2,394
Cash Flows from Financing Activities:
Proceeds from notes and bonds payable	338,637	39,706
Principal payments on notes and bonds payable	(58,196)	(30,016)
Payments of deferred financing costs	(9,154)	(49)
Restricted cash for debt service obligations	(5,136)	0
Payments to redeem common stock	(6,999)	(5,284)
Distributions paid	(4,580)	(4,232)
Noncontrolling interests contributions	766	360
Distributions to noncontrolling interests	(17)	(4,040)
Acquisitions of noncontrolling interests	(37,986)	0
Net cash provided by (used in) financing activities	217,335	(3,555)
Effect of exchange rate changes on cash and cash equivalents	4,123	0
Net increase in cash and cash equivalents	94,252	10,994
Cash and cash equivalents, beginning of period	23,058	19,093
Cash and cash equivalents, end of period	117,310	30,087
Supplemental Disclosure of Cash Flow Information:
Interest paid, net of capitalized interest of $952 and $992 for the six months ended June 30, 2016 and 2015, respectively	7,080	6,334
Supplemental Disclosure of Noncash Investing and Financing Activities:
Decrease in restricted cash in connection with development obligations	(1,867)	0
Increase in accrued improvements to real estate	588	0
Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan	6,361	6,935
Increase in redeemable common stock payable	7,647	0
Increase in restricted cash related to insurance proceeds	$ 1,483	$ 0

CONSOLIDATED STATEMENTS OF CAS7

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Interest capitalized	$ 500	$ 500	$ 952	$ 992

ORGANIZATION

ORGANIZATION	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION KBS Strategic Opportunity REIT, Inc. (the “Company”) was formed on October 8, 2008 as a Maryland corporation and elected to be taxed as a real estate investment trust (“REIT”) beginning with the taxable year ended December 31, 2010. The Company conducts its business primarily through KBS Strategic Opportunity (BVI) Holdings, Ltd. (“KBS Strategic Opportunity BVI”), a private company limited by shares according to the British Virgin Islands Business Companies Act, 2004, which was incorporated on December 18, 2015 and is authorized to issue a maximum of 50,000 common shares with no par value. Upon incorporation, KBS Strategic Opportunity BVI issued one certificate containing 10,000 common shares with no par value to KBS Strategic Opportunity Limited Partnership (the “Operating Partnership”), a Delaware limited partnership formed on December 10, 2008. The Company is the sole general partner of, and owns a 0.1% partnership interest in the Operating Partnership. KBS Strategic Opportunity Holdings LLC (“REIT Holdings”), a Delaware limited liability company formed on December 9, 2008, owns the remaining 99.9% interest in the Operating Partnership and is its sole limited partner. The Company is the sole member and manager of REIT Holdings. Subject to certain restrictions and limitations, the business of the Company is externally 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 October 8, 2015 (the “Advisory Agreement”). The Advisor conducts the Company’s operations and manages its portfolio of real estate. The Advisor owns 20,000 shares of the Company’s common stock. On January 8, 2009, the Company filed a registration statement on Form S-11 with the Securities and Exchange Commission (the “SEC”) to offer a minimum of 250,000 shares and a maximum of 140,000,000 shares of common stock for sale to the public (the “Offering”), of which 100,000,000 shares were registered in a primary offering and 40,000,000 shares were registered to be sold under the Company’s dividend reinvestment plan. The SEC declared the Company’s registration statement effective on November 20, 2009. The Company ceased offering shares of common stock in its primary offering on November 14, 2012 and continues to offer shares under its dividend reinvestment plan. The Company sold 56,584,976 shares of common stock in its primary offering for gross offering proceeds of $561.7 million . As of June 30, 2016 , the Company had sold 5,569,775 shares of common stock under its dividend reinvestment plan for gross offering proceeds of $ 59.1 million . Also, as of June 30, 2016 , the Company had redeemed 3,806,297 shares sold in the Offering for $ 45.4 million . Additionally, on December 29, 2011 and October 23, 2012, the Company issued 220,994 shares and 55,249 shares of common stock, respectively, for $2.0 million and $0.5 million , respectively, in private transactions exempt from the registration requirements pursuant to Section 4(2) of the Securities Act of 1933. On March 2, 2016, KBS Strategic Opportunity BVI filed a final prospectus with the Israel Securities Authority for a proposed offering of up to 1,000,000,000 Israeli new Shekels of Series A debentures (the “Debentures”) at an annual interest rate not to exceed 4.25% . On March 1, 2016, KBS Strategic Opportunity BVI commenced the institutional tender of the Debentures and accepted application for 842.5 million Israeli new Shekels. On March 7, 2016, KBS Strategic Opportunity BVI commenced the public tender of the Debentures and accepted 127.7 million Israeli new Shekels. In the aggregate, KBS Strategic Opportunity BVI accepted 970.2 million Israeli new Shekels (approximately $251.4 million as of June 30, 2016) in both the institutional and public tenders at an annual interest rate of 4.25% . KBS Strategic Opportunity BVI issued the Debentures on March 8, 2016. The terms of the Debentures require principal installment payments equal to 20% of the face value of the Debentures on March 1st of each year from 2019 to 2023. In connection with the above-referenced offering, on March 8, 2016, the Operating Partnership assigned to KBS Strategic Opportunity BVI all of its interests in the subsidiaries through which the Company indirectly owns all of its real estate and real estate-related investments. The Operating Partnership owns all of the issued and outstanding equity of KBS Strategic Opportunity BVI. As a result of these transactions, the Company now holds all of its real estate and real estate-related investments indirectly through KBS Strategic Opportunity BVI. As of June 30, 2016 , the Company owned 10 office properties, one office campus consisting of nine office buildings, one office portfolio consisting of four office buildings and 25 acres of undeveloped land, one office portfolio consisting of three office properties, one office/flex/industrial portfolio consisting of 21 buildings, one retail property, two apartment properties, two investments in undeveloped land encompassing an aggregate of 1,670 acres and two investments in unconsolidated joint ventures.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2015 , except for the addition of an accounting policy with respect to foreign currency transactions. For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the SEC. Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership, KBS Strategic Opportunity BVI and their direct and indirect wholly owned subsidiaries, and joint ventures in which the Company has a controlling interest. All significant intercompany balances and transactions are eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. Foreign Currency Transactions The U.S. dollar is the Company’s functional currency. Transactions denominated in currency other than the Company’s functional currency are recorded upon initial recognition at the exchange rate on the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are remeasured at each reporting date into the foreign currency at the exchange rate on that date. Exchange rate differences, other than those accounted for as hedging transactions, are recognized as foreign currency transaction gain or loss included in the Company’s consolidated statements of operations. 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 the prior period. Segments The Company has invested in non-performing loans, opportunistic real estate and other real estate-related assets. In general, the Company intends to hold its investments in non-performing loans, opportunistic real estate and other real estate-related assets for capital appreciation. Traditional performance metrics of non-performing loans, opportunistic real estate and other real estate-related assets may not be meaningful as these investments are generally non-stabilized and do not provide a consistent stream of interest income or rental revenue. These investments exhibit similar long-term financial performance and have similar economic characteristics. These investments typically involve a higher degree of risk and do not provide a constant stream of ongoing cash flows. As a result, the Company’s management views non-performing loans, opportunistic real estate and other real estate-related assets as similar investments. Substantially all of its revenue and net income (loss) is from non-performing loans, opportunistic real estate and other real estate-related assets, and therefore, the Company currently aggregates its operating segments into one reportable business segment. Per Share Data Basic net income (loss) per share of common stock is calculated by dividing net income (loss) attributable to common stockholders 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 three and six months ended June 30, 2016 and 2015. Distributions declared per share were $0.09323770 and $0.18647540 during the three and six months ended June 30, 2016 and $0.09246575 and $0.18595890 during the three and six months ended June 30, 2015, respectively. Square Footage, Occupancy and Other Measures Any references to square footage, occupancy or annualized base rent are unaudited and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. Recently Issued Accounting Standards Updates In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). ASU No. 2014-09 requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU No. 2014-09 supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU No. 2014-09 does not apply to lease contracts within the scope of Leases (Topic 840). ASU No. 2014-09 was to be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU No. 2015-14”), which defers the effective date of ASU No. 2014-09 by one year. Early adoption is permitted but not before the original effective date. The Company is still evaluating the impact of adopting ASU No. 2014-09 on its financial statements, but does not expect the adoption of ASU No. 2014-09 to have a material impact on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”). The amendments in ASU No. 2014-15 require management to evaluate, for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued when applicable) and, if so, provide related disclosures. ASU No. 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect the adoption of ASU No. 2014-15 to have a significant impact on its financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU No. 2015-02”), which amended the existing accounting standards for consolidation under both the variable interest model and the voting model. ASU No. 2015-02 modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. ASU No. 2015-02 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments in ASU No. 2015-02 using: (a) a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption; or (b) by applying the amendments retrospectively. On January 1, 2016, the Company adopted ASU No. 2015-02 and re-evaluated its consolidation analysis of its joint ventures, concluding that such adoption did not result in (a) the classification of any entities as VIEs, (b) a consolidation of entities not previously consolidated or (c) a deconsolidation of entities previously consolidated. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU No. 2016-01”). The amendments in ASU No. 2016-01 address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU No. 2016-01 primarily affects accounting for equity investments and financial liabilities where the fair value option has been elected. ASU No. 2016-01 also requires entities to present financial assets and financial liabilities separately, grouped by measurement category and form of financial asset in the balance sheet or in the accompanying notes to the financial statements. ASU No. 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU No. 2016-01 to have a significant impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). The amendments in ASU No. 2016-02 change the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU No. 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of ASU No. 2016-02 is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the new leases standard on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU No. 2016-13”). ASU No. 2016-13 affects entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. The amendments in ASU No. 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU No. 2016-13 also amends the impairment model for available-for-sale securities. An entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra-account to the amortized cost basis rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. ASU No. 2016-13 also requires new disclosures. For financial assets measured at amortized cost, an entity will be required to disclose information about how it developed its allowance for credit losses, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. For financing receivables and net investments in leases measured at amortized cost, an entity will be required to further disaggregate the information it currently discloses about the credit quality of these assets by year of the asset’s origination for as many as five annual periods. For available for sale securities, an entity will be required to provide a roll-forward of the allowance for credit losses and an aging analysis for securities that are past due. ASU No. 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the impact of adopting ASU No. 2016-13 on its financial statements, but does not expect the adoption of ASU No. 2016-13 to have a material impact on its financial statements.

REAL ESTATE HELD FOR INVESTMENT

REAL ESTATE HELD FOR INVESTMENT	6 Months Ended
	Jun. 30, 2016
Real Estate [Abstract]
REAL ESTATE FOR INVESTMENT	REAL ESTATE HELD FOR INVESTMENT As of June 30, 2016 , the Company owned 10 office properties, one office campus consisting of nine office buildings, one office portfolio consisting of four office buildings and 25 acres of undeveloped land, one office portfolio consisting of three office properties, one office/flex/industrial portfolio consisting of 21 buildings and one retail property encompassing, in the aggregate, approximately 5.2 million rentable square feet. As of June 30, 2016 , these properties were 85% occupied. In addition, the Company owned two apartment properties, containing 383 units and encompassing approximately 0.3 million rentable square feet, which were 92% occupied. The Company also owned two investments in undeveloped land encompassing an aggregate of 1,670 acres. The following table summarizes the Company’s real estate held for investment as of June 30, 2016 and December 31, 2015 , respectively (in thousands): June 30, 2016 December 31, 2015 Land $ 261,775 $ 223,201 Buildings and improvements 734,695 646,979 Tenant origination and absorption costs 48,602 43,894 Total real estate, cost 1,045,072 914,074 Accumulated depreciation and amortization (104,828 ) (91,560 ) Total real estate, net $ 940,244 $ 822,514 The following table provides summary information regarding the Company’s real estate held for investment as of June 30, 2016 (in thousands): Property Date Acquired or Foreclosed on City State Property Type Land Building and Improvements Tenant Origination and Absorption Total Real Estate at Cost Accumulated Depreciation and Amortization Total Real Estate, Net Ownership % Northridge Center I & II 03/25/2011 Atlanta GA Office $ 2,234 $ 7,648 $ — $ 9,882 $ (2,361 ) $ 7,521 100.0 % Iron Point Business Park 06/21/2011 Folsom CA Office 2,671 19,630 — 22,301 (4,384 ) 17,917 100.0 % Richardson Portfolio: Palisades Central I 11/23/2011 Richardson TX Office 1,037 10,390 684 12,111 (2,407 ) 9,704 90.0 % Palisades Central II 11/23/2011 Richardson TX Office 810 17,989 749 19,548 (4,460 ) 15,088 90.0 % Greenway I 11/23/2011 Richardson TX Office 561 2,377 — 2,938 (661 ) 2,277 90.0 % Greenway III 11/23/2011 Richardson TX Office 702 3,734 559 4,995 (1,353 ) 3,642 90.0 % Undeveloped Land 11/23/2011 Richardson TX Undeveloped Land 3,134 — — 3,134 — 3,134 90.0 % Total Richardson Portfolio 6,244 34,490 1,992 42,726 (8,881 ) 33,845 Park Highlands (1) 12/30/2011 North Las Vegas NV Undeveloped Land 32,505 — — 32,505 — 32,505 100.0 % Bellevue Technology Center 07/31/2012 Bellevue WA Office 25,506 56,292 3,813 85,611 (9,682 ) 75,929 100.0 % Powers Ferry Landing East 09/24/2012 Atlanta GA Office 1,643 8,016 99 9,758 (1,982 ) 7,776 100.0 % 1800 West Loop 12/04/2012 Houston TX Office 8,360 59,960 5,184 73,504 (11,931 ) 61,573 100.0 % West Loop I & II 12/07/2012 Houston TX Office 7,300 31,418 2,139 40,857 (5,450 ) 35,407 100.0 % Burbank Collection 12/12/2012 Burbank CA Retail 4,175 9,426 725 14,326 (1,462 ) 12,864 90.0 % Austin Suburban Portfolio 03/28/2013 Austin TX Office 8,288 68,497 2,835 79,620 (10,483 ) 69,137 100.0 % Westmoor Center 06/12/2013 Westminster CO Office 10,058 65,284 6,813 82,155 (12,852 ) 69,303 100.0 % Central Building 07/10/2013 Seattle WA Office 7,015 26,914 1,914 35,843 (3,757 ) 32,086 100.0 % 50 Congress Street 07/11/2013 Boston MA Office 9,876 41,059 2,485 53,420 (5,800 ) 47,620 100.0 % 1180 Raymond 08/20/2013 Newark NJ Apartment 8,292 37,379 136 45,807 (3,400 ) 42,407 100.0 % Park Highlands II (2) 12/10/2013 North Las Vegas NV Undeveloped Land 22,759 — — 22,759 — 22,759 100.0 % Maitland Promenade II 12/18/2013 Orlando FL Office 3,434 24,300 3,757 31,491 (4,052 ) 27,439 100.0 % Plaza Buildings 01/14/2014 Bellevue WA Office 53,040 137,551 7,748 198,339 (15,689 ) 182,650 100.0 % 424 Bedford 01/31/2014 Brooklyn NY Apartment 8,860 25,395 — 34,255 (1,679 ) 32,576 90.0 % Richardson Land II 09/04/2014 Richardson TX Undeveloped Land 3,430 — — 3,430 — 3,430 90.0 % Westpark Portfolio 05/10/2016 Redmond WA Office/Flex/Industrial 36,085 81,436 8,962 126,483 (983 ) 125,500 100.0 % $ 261,775 $ 734,695 $ 48,602 $ 1,045,072 $ (104,828 ) $ 940,244 _____________________ (1) On March 18, 2016, the Company increased its membership interest in the Park Highlands joint venture from 50.1% to 51.58% by acquiring an additional 1.48% membership interest from one of the joint venture partners. On June 6, 2016, the Company increased its membership interest in the Park Highlands joint venture from 51.58% to 97.62% by acquiring an additional 46.04% membership interest from one of the joint venture partners. On June 25, 2016, the Company increased its membership interest in the Park Highlands joint venture from 97.62% to 100% by acquiring the remaining 2.38% membership interest from the remaining joint venture partner. (2) On March 18, 2016, the Company increased its membership interest in the Park Highlands II joint venture from 99.5% to 100% by acquiring the remaining 0.5% membership interest from its joint venture partner. Operating Leases Certain of the Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of June 30, 2016 , the leases, excluding options to extend and apartment leases, which have terms that are generally one year or less, had remaining terms of up to 11.8 years with a weighted-average remaining term of 3.6 years. Some of the leases have provisions to extend the lease agreements, options for early termination 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 tenants 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 leases and the creditworthiness of the tenant, but generally are not significant amounts. 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 and assumed in real estate acquisitions or foreclosures related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled $6.4 million and $5.3 million as of June 30, 2016 and December 31, 2015 , respectively. During the six months ended June 30, 2016 and 2015, the Company recognized deferred rent from tenants of $1.0 million and $2.7 million , respectively, net of lease incentive amortization. As of June 30, 2016 and December 31, 2015 , the cumulative deferred rent receivable balance, including unamortized lease incentive receivables, was $24.6 million and $22.8 million , respectively, and is included in rents and other receivables on the accompanying balance sheets. The cumulative deferred rent balance included $ 3.4 million and $2.8 million of unamortized lease incentives as of June 30, 2016 and December 31, 2015 , respectively. The Company records property operating expense reimbursements due from tenants for common area maintenance, real estate taxes, and other recoverable costs in the period the related expenses are incurred. As of June 30, 2016 , the future minimum rental income from the Company’s properties, excluding apartment leases, under non-cancelable operating leases was as follows (in thousands): July 1, 2016 through December 31, 2016 $ 44,308 2017 86,421 2018 74,228 2019 60,947 2020 47,155 Thereafter 109,071 $ 422,130 As of June 30, 2016 , the Company’s commercial real estate properties were leased to approximately 600 tenants over a diverse range of industries and geographic areas. The Company’s highest tenant industry concentrations (greater than 10% of annualized base rent) were as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Annualized Base Rent Computer System Design & Programming 57 $ 11,320 12.4 % Finance 55 10,600 11.6 % $ 21,920 24.0 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2016 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. No other tenant industries accounted for more than 10% of annualized base rent. No material tenant credit issues have been identified at this time. Geographic Concentration Risk As of June 30, 2016 , the Company’s real estate investments in Washington and Texas represented 34.0% and 16.6% of the Company’s total assets, respectively. As a result, the geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the Washington and Texas real estate markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for office space resulting from the local business climate, could adversely affect the Company’s operating results and its ability to make distributions to stockholders. Property Damage During the six months ended June 30, 2016, 1800 West Loop suffered physical damages due to floods. The Company’s insurance policy provides coverage for property damage and business interruption subject to a deductible of up to $100,000 per incident. Based on management’s estimates, the Company recognized an estimated aggregate loss due to damages of $1.6 million during the six months ended June 30 2016, which was reduced by $1.5 million of estimated insurance recoveries related to such damages, which the Company determined were probable of collection. The aggregate net loss due to damages of $0.1 million during the six months ended June 30, 2016 was classified as operating, maintenance and management expenses on the accompanying consolidated statements of operations and relates to the Company’s insurance deductible. Recent Acquisition Westpark Portfolio On May 10, 2016, the Company, through an indirect wholly owned subsidiary (the “Westpark Portfolio Buyer”), acquired a portfolio of 21 office/flex/industrial buildings containing a total of 778,472 rentable square feet located on approximately 41 acres of land in Redmond, Washington (the “Westpark Portfolio”). The purchase price (net of closing credits) of the Westpark Portfolio was $125.8 million plus closing costs. The seller is not affiliated with the Company or the Advisor. The Company recorded $36.1 million to land, $81.2 million to building and improvements, $9.0 million to tenant origination and absorption costs, $0.1 million to above-market lease assets and $0.6 million to below-market lease liabilities during the six months ended June 30, 2016. The intangible assets and liabilities acquired in connection with this acquisition have weighted-average amortization periods as of the date of acquisition of 4.4 years for tenant origination and absorption costs, 2.7 years for above-market lease assets and 3.5 years for below-market lease liabilities. The Company recorded the acquisition as a business combination and expensed $1.5 million of acquisition costs related to this portfolio for the six months ended June 30, 2016. During the six months ended June 30, 2016, the Company recognized $1.7 million of total revenues and $0.4 million of operating expenses from this portfolio.

TENANT ORIGINATION AND ABSORPTI

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	6 Months Ended
	Jun. 30, 2016
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES As of June 30, 2016 and December 31, 2015 , the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities June 30, December 31, June 30, December 31, June 30, December 31, Cost $ 48,602 $ 43,894 $ 2,315 $ 2,399 $ (5,839 ) $ (5,826 ) Accumulated Amortization (23,191 ) (22,749 ) (1,463 ) (1,361 ) 3,237 3,091 Net Amount $ 25,411 $ 21,145 $ 852 $ 1,038 $ (2,602 ) $ (2,735 ) Increases (decreases) in net income as a result of amortization of the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities for the three and six months ended June 30, 2016 and 2015 were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Three Months Ended For the Three Months Ended For the Three Months Ended 2016 2015 2016 2015 2016 2015 Amortization $ (2,486 ) $ (2,716 ) $ (120 ) $ (258 ) $ 381 $ 445 Tenant Origination and Above-Market Below-Market For the Six Months Ended For the Six Months Ended For the Six Months Ended 2016 2015 2016 2015 2016 2015 Amortization $ (4,697 ) $ (5,639 ) $ (240 ) $ (531 ) $ 689 $ 939 Additionally, as of June 30, 2016 and December 31, 2015 , the Company had recorded unamortized tax abatement intangible assets, which are included in prepaid expenses and other assets in the accompanying balance sheets, of $6.8 million and $7.2 million , respectively. During the three and six months ended June 30, 2016 , the Company recorded amortization expense of $0.2 million and $0.5 million related to tax abatement intangible assets, respectively. During the three and six months ended June 30, 2015, the Company recorded amortization expense of $0.2 million and $0.5 million related to tax abatement intangible assets, respectively.

REAL ESTATE LOAN RECEIVABLE

REAL ESTATE LOAN RECEIVABLE	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
REAL ESTATE LOAN RECEIVABLE	REAL ESTATE LOAN RECEIVABLE As of December 31, 2015, the Company owned one real estate loan receivable, which was repaid during the six months ended June 30, 2016. The information for that real estate loan receivable as of June 30, 2016 and December 31, 2015 is set forth below (in thousands): Loan Name Location of Related Property or Collateral Date Originated Property Type Loan Type Outstanding Principal Balance as of June 30, 2016 Book Value as of June 30, 2016 Book Value as of December 31, 2015 (1) Contractual Interest Rate Annualized Effective Interest Rate Maturity Date University House First Mortgage New York, New York 3/20/2013 Student Housing Mortgage $ — $ — $ 27,850 (2) (2) (2) _____________________ (1) Book value of the real estate loan receivable represents outstanding principal balance adjusted for unamortized acquisition discounts, origination fees and direct origination and acquisition costs and additional interest accretion. (2) See below for a discussion of the assignment of the University House First Mortgage. On June 30, 2015, the University House First Mortgage matured without repayment. As a result, on July 1, 2015, the Company provided notice to the borrower of default. As of July 1, 2015, the Company had determined the University House Mortgage to be impaired and began recognizing income on a cash basis. The Company did not record a provision for loan loss reserves during the six months ended June 30, 2016 or 2015 as the Company believed the entire principal balance of $27.9 million related to the University House First Mortgage to be fully recoverable. On April 21, 2016, the Company, through an indirect wholly owned subsidiary, entered into an assignment of mortgage to assign the University House First Mortgage to an assignee unaffiliated with the Company or the Advisor. On April 22, 2016, the Company received $31.6 million in connection with the assignment of the University House First Mortgage. The proceeds received from the assignment reflect the entire principal balance and interest due, including any default interest, as of April 21, 2016, plus any legal costs incurred by the Company in connection with the assignment. For the three and six months ended June 30, 2016 and 2015, interest income from the real estate loan receivable consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Contractual interest income $ 3,655 $ 774 $ 3,655 $ 1,540 Accretion of closing costs, origination fees and extension fees, net — 219 — 428 Interest income from real estate loan receivable $ 3,655 $ 993 $ 3,655 $ 1,968

REAL ESTATE SALES

REAL ESTATE SALES	6 Months Ended
	Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
REAL ESTATE SALES	REAL ESTATE SALES In accordance with ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU No. 2014-08”), results of operations from properties that are classified as held for sale in the ordinary course of business on or subsequent to January 1, 2014 would generally be included in continuing operations on the Company’s consolidated statements of operations. Results of operations from properties that were classified as held for sale in financial statements issued prior to January 1, 2014 will remain in discontinued operations on the Company’s consolidated statements of operations. Prior to the adoption of ASU 2014-08, the operations of properties held for sale or to be disposed of and the aggregate net gains recognized upon their disposition were presented as discontinued operations in the accompanying consolidated statements of operations for all periods presented. During the year ended December 31, 2015, the Company sold two office properties. The results of operations of these properties and gain on sale are included in continuing operations on the accompanying statements of operations. During the six months ended June 30, 2016 , the Company did not have any dispositions and no properties were classified as held for sale as of June 30, 2016 . The following table summarizes certain revenue and expenses related to these properties for the three and six months ended June 30, 2016, and 2015 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Total revenues $ — $ 6 $ — $ 216 Total expenses 15 130 17 565

NOTES AND BONDS PAYABLE

NOTES AND BONDS PAYABLE	6 Months Ended
	Jun. 30, 2016
Notes and Bonds Payable [Abstract]
NOTES AND BONDS PAYABLE	NOTES AND BONDS PAYABLE As of June 30, 2016 and December 31, 2015 , the Company’s notes and bonds payable consisted of the following (dollars in thousands): Book Value as Book Value as of December 31, 2015 Contractual Interest Rate as of June 30, 2016 (1) Effective Interest Rate at June 30, 2016 (1) Payment Type Maturity Date (2) Richardson Portfolio Mortgage Loan $ 40,889 $ 41,177 One-Month LIBOR + 2.10% 2.56% Principal 05/01/2017 Bellevue Technology Center Mortgage Loan 59,720 52,960 One-Month LIBOR + 2.25% 2.71% Principal 03/01/2017 Portfolio Revolving Loan Facility (3) 58,954 47,087 One-Month LIBOR + 2.25% 2.71% Principal 05/01/2017 Portfolio Mortgage Loan 103,932 100,032 One-Month LIBOR + 2.25% 2.71% Interest Only (4) 07/01/2017 Burbank Collection Mortgage Loan 9,098 9,098 One-Month LIBOR + 2.35% 2.85% Interest Only 09/30/2016 50 Congress Mortgage Loan 28,766 28,075 One-Month LIBOR + 1.90% 2.36% Interest Only (4) 10/01/2017 1180 Raymond Bond Payable 6,715 6,795 6.50% 6.50% Principal 09/01/2036 Central Building Mortgage Loan 25,969 24,896 One-Month LIBOR + 1.75% 2.21% Interest Only 11/13/2018 Maitland Promenade II Mortgage Loan (5) 20,019 20,182 One-Month LIBOR + 2.90% 3.36% Principal 01/01/2017 Westmoor Center Mortgage Loan 61,373 56,036 One-Month LIBOR + 2.25% 2.71% Interest Only (4) 02/01/2018 Plaza Buildings Senior Loan 110,493 111,000 One-Month LIBOR + 1.90% 2.36% Principal 01/14/2017 424 Bedford Mortgage Loan 25,098 25,358 3.91% 3.91% Principal 10/01/2022 1180 Raymond Mortgage Loan 31,000 28,100 One-Month LIBOR + 2.25% 2.71% Interest Only 12/01/2017 KBS SOR (BVI) Holdings, Ltd. Series A Debentures (6) 251,380 — 4.25% 4.25% (6) 03/01/2023 Total Notes and Bonds Payable principal outstanding 833,406 550,796 Net Premium/Discount on Notes and Bonds Payable (7) 68 50 Deferred financing costs, net (11,702 ) (3,523 ) Total Notes and Bonds Payable, net $ 821,772 $ 547,323 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of June 30, 2016 . Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2016 (consisting of the contractual interest rate and contractual floor rates), using interest rate indices at June 30, 2016 , where applicable. (2) Represents the initial maturity date or the maturity date as extended as of June 30, 2016 ; subject to certain conditions, the maturity dates of certain loans may be extended beyond the date shown. (3) The Portfolio Revolving Loan Facility is secured by the 1800 West Loop Building and the Iron Point Business Park. The Portfolio Revolving Loan Facility is comprised of $63.5 million of revolving debt and $13.0 million of non-revolving debt available to be used for tenant improvements, leasing commissions and capital improvements, subject to certain terms and conditions contained in the loan documents. As of June 30, 2016 , $47.2 million of revolving debt and $11.8 million of non-revolving debt had been disbursed to the Company and the remaining $16.3 million of revolving debt and $ 1.2 million of non-revolving debt is available for future disbursements, subject to certain conditions contained in the loan documents. (4) Represents the payment type required under the loan as of June 30, 2016 . Certain future monthly payments due under this loan also include amortizing principal payments. For more information of the Company’s contractual obligations under its notes and bonds payable, see five-year maturity table below. (5) Interest on the Maitland Promenade II Mortgage Loan is calculated at a variable annual rate of 290 basis points over one-month LIBOR, but at no point shall the interest rate be less than 3.25% . (6) See “– Recent Financing Transaction – Israeli Bond Financing” below. (7) Represents the unamortized premium/discount on notes and bonds payable due to the above- and below-market interest rates when the debt was assumed. The discount/premium is amortized over the remaining life of the notes and bonds payable. During the three and six months ended June 30, 2016 , the Company incurred $7.2 million and $12.4 million of interest expense, respectively. Included in interest expense for the three and six months ended June 30, 2016 was $1.0 million and $ 1.8 million of amortization of deferred financing costs, respectively. Additionally, during the three and six months ended June 30, 2016 , the Company capitalized $0.5 million and $1.0 million of interest to its investments in undeveloped land, respectively. During the three and six months ended June 30, 2015, the Company incurred $3.9 million and $7.8 million of interest expense, respectively. Included in interest expense for the three and six months ended June 30, 2015 was $0.8 million and $1.5 million of amortization of deferred financing costs, respectively. Additionally, during the three and six months ended June 30, 2015, the Company capitalized $0.5 million and $1.0 million of interest to its investments in undeveloped land, respectively. As of June 30, 2016 , the Company’s deferred financing costs were $ 11.7 million , net of amortization, which are included in notes and bonds payable, net. As of December 31, 2015 , the Company’s deferred financing costs were $ 4.7 million , net of amortization, of which $3.5 million is included in notes and bonds payable, net and $1.2 million is included in prepaid expenses and other assets on the accompanying consolidated balance sheets, respectively. As of June 30, 2016 and December 31, 2015 , the Company’s interest payable was $ 4.7 million and $ 1.2 million , respectively. The following is a schedule of maturities, including principal amortization payments, for all notes and bonds payable outstanding as of June 30, 2016 (in thousands): July 1, 2016 through December 31, 2016 $ 12,073 2017 452,461 2018 87,542 2019 51,088 2020 51,122 Thereafter 179,120 $ 833,406 The Company’s notes payable contain financial debt covenants. As of June 30, 2016 , the Company was in compliance with all of these debt covenants, except that, as of June 30, 2016, the borrower under the Westmoor Center Mortgage Loan was out of debt service coverage compliance. Such non-compliance does not constitute an event of default under the applicable loan agreement. As a result of such non-compliance, under the loan, the borrower may be required to fund an interest reserve account equal to six months of interest. Recent Financing Transactions Israeli Bond Financing On March 2, 2016, KBS Strategic Opportunity BVI, a wholly owned subsidiary of the Company, filed a final prospectus with the Israel Securities Authority for a proposed offering of up to 1,000,000,000 Israeli new Shekels of Series A debentures (the “Debentures”) at an annual interest rate not to exceed 4.25% . On March 1, 2016, KBS Strategic Opportunity BVI commenced the institutional tender of the Debentures and accepted application for 842.5 million Israeli new Shekels. On March 7, 2016, KBS Strategic Opportunity BVI commenced the public tender of the Debentures and accepted 127.7 million Israeli new Shekels. In the aggregate, KBS Strategic Opportunity BVI accepted 970.2 million Israeli new Shekels (approximately $251.4 million as of June 30, 2016) in both the institutional and public tenders at an annual interest rate of 4.25% . KBS Strategic Opportunity BVI issued the Debentures on March 8, 2016. The terms of the Debentures require principal installment payments equal to 20% of the face value of the Debentures on March 1st of each year from 2019 to 2023. As of June 30, 2016, the Company incurred legal, rating and underwriting fees of approximately $9.8 million in connection with the offering. In addition, the Company funded interest reserves of 20.0 million Israeli new Shekels (approximately $5.2 million as of June 30, 2016) and 1.0 million Israeli new Shekels (approximately $0.3 million as of June 30, 2016) of expense reserve required by the Debenture documents. The deed of trust that governs the terms of the Debentures contains various financial covenants. As of June 30, 2016 , the Company was in compliance with all of these financial debt covenants.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURES	FAIR VALUE DISCLOSURES Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other non-financial and financial assets at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. The fair value for certain financial instruments is derived using 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 financial instruments for which it is practicable to estimate the fair value: Cash and cash equivalents, rent and other receivables and accounts payable and accrued liabilities: These balances approximate their fair values due to the short maturities of these items. Real estate loan receivable: The Company’s real estate loan receivable is presented in the accompanying consolidated balance sheets at its amortized cost net of recorded loan loss reserves and not at fair value. The fair value of real estate loan receivable was estimated using an internal valuation model that considers the expected cash flows for the loans, underlying collateral values (for collateral dependent loans) and estimated yield requirements of institutional investors for loans with similar characteristics, including remaining loan term, loan-to-value, type of collateral and other credit enhancements. The Company classifies these inputs as Level 3 inputs. Notes and bonds payable: The fair values of the Company’s notes and bonds payable are estimated using a discounted cash flow analysis based on management’s estimates of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. Additionally, when determining the fair value of 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 or 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 Company’s bonds issued in Israel are publicly traded on the Tel-Aviv Stock Exchange. The Company used the quoted price as of June 30, 2016 for the fair value of its bonds issued in Israel. The Company classifies this input as a Level 1 input. The following were the face values, carrying amounts and fair values of the Company’s financial instruments as of June 30, 2016 and December 31, 2015 , which carrying amounts do not approximate the fair values (in thousands): June 30, 2016 December 31, 2015 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial assets: Real estate loan receivable $ — $ — $ — $ 27,850 $ 27,850 $ 27,850 Financial liabilities: Notes and bonds payable $ 582,026 $ 579,655 $ 584,342 $ 550,796 $ 547,323 $ 554,007 KBS SOR (BVI) Holdings, Ltd. Series A Debentures $ 251,380 $ 242,117 $ 247,107 $ — $ — $ — Disclosure of the fair value of financial instruments is based on pertinent information available to the Company as of the period end and requires a significant amount of judgment. This has made the estimation of fair values difficult and, therefore, both the actual results and the Company’s estimate of value at a future date could be materially different.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Advisory Agreement entitles the Advisor to specified fees upon the provision of certain services with regard to the investment of funds in real estate and real estate-related investments and the disposition of real estate and real estate-related investments (including the discounted payoff of non-performing loans) among other services, as well as reimbursement of certain costs incurred by the Advisor in providing services to the Company. The Advisory Agreement may also entitle the Advisor to certain back-end cash flow participation fees. The Company also entered into a fee reimbursement agreement (the “AIP Reimbursement Agreement”) with KBS Capital Markets Group LLC, the dealer manager for the Company’s initial public offering (the “Dealer Manager”), pursuant to which the Company agreed to reimburse the Dealer Manager for certain fees and expenses it incurs for administering the Company’s participation in the Depository Trust & Clearing Corporation Alternative Investment Product Platform with respect to certain accounts of the Company’s investors serviced through the platform. The Advisor and Dealer Manager also serve as the advisor and dealer manager, respectively, for KBS Real Estate Investment Trust, Inc. (“KBS REIT I”), KBS Real Estate Investment Trust II, Inc. (“KBS REIT II”), KBS Real Estate Investment Trust III, Inc. (“KBS REIT III”), KBS Legacy Partners Apartment REIT, Inc. (“KBS Legacy Partners Apartment REIT”), KBS Strategic Opportunity REIT II, Inc. (“KBS Strategic Opportunity REIT II”) and KBS Growth & Income REIT, Inc. (“KBS Growth & Income REIT”). On January 6, 2014, the Company, together with KBS REIT I, KBS REIT II, KBS REIT III, KBS Legacy Partners Apartment REIT, KBS Strategic Opportunity REIT II, the Dealer Manager, the Advisor and other KBS-affiliated entities, entered into an errors and omissions and directors and officers liability insurance program where the lower tiers of coverage are shared. The cost of these lower tiers is allocated by the Advisor and its insurance broker among each of the various entities covered by the plan, and is billed directly to each entity. The allocation of these shared coverage costs is proportionate to the pricing by the insurance marketplace for the first tiers of directors and officers liability coverage purchased individually by each REIT. The Advisor’s and the Dealer Manager’s portion of the shared lower tiers’ cost is proportionate to the respective entities’ prior cost for the errors and omissions insurance. In June 2015, KBS Growth & Income REIT was added to the insurance program at terms similar to those described above. During the three and six months ended June 30, 2016 and 2015, no other business transactions occurred between the Company and these other KBS-sponsored programs. Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three and six months ended June 30, 2016 and 2015, respectively, and any related amounts payable as of June 30, 2016 and December 31, 2015 (in thousands): Incurred Payable as of Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2016 2015 2016 2015 2016 2015 Expensed Asset management fees $ 2,205 $ 2,077 $ 4,293 $ 4,130 $ — $ — Real estate acquisition fees 1,274 — 1,274 — — — Reimbursable operating expenses (1) 69 32 113 77 59 59 Disposition fees (2) 279 — 279 102 — — $ 3,827 $ 2,109 $ 5,959 $ 4,309 $ 59 $ 59 _____________________ (1) The Advisor may seek reimbursement for certain employee costs 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 $ 41,000 and $ 29,000 for the three months ended June 30, 2016 and 2015 , respectively and $85,000 and $62,000 for the six months ended June 30, 2016 and 2015, respectively, and were the only employee costs reimbursed under the Advisory Agreement during these periods. 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 in the accompanying consolidated statements of operations. Disposition fees with respect to the assignment of the Company's real estate loan receivable are included in general and administrative expenses in the accompanying consolidated statements of operations. During the three and six months ended June 30, 2016, the Advisor reimbursed the Company $66,000 for property insurance rebate and $69,000 for legal and professional fees.

INVESTMENT IN UNCONSOLIDATED JO

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES	6 Months Ended
	Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES	INVESTMENT IN UNCONSOLIDATED JOINT VENTURES As of June 30, 2016 and December 31, 2015 , the Company’s investments in unconsolidated joint ventures were composed of the following (dollars in thousands): Investment Balance at Joint Venture Number of Properties Location Ownership % June 30, 2016 December 31, 2015 NIP Joint Venture 21 Various Less than 5.0% $ 5,305 $ 5,305 110 William Joint Venture 1 New York, New York 60.0% 70,584 69,132 $ 75,889 $ 74,437 Investment in National Industrial Portfolio Joint Venture On May 18, 2012, the Company, through an indirect wholly owned subsidiary, entered into a joint venture (the “NIP Joint Venture”) with OCM NIP JV Holdings, L.P. and HC KBS NIP JV, LLC (“HC-KBS”). The NIP Joint Venture owns 21 industrial properties and a master lease with respect to another industrial property encompassing 10.8 million square feet. The Company made an initial capital contribution of $8.0 million which represents less than a 5.0% ownership interest in the NIP Joint Venture as of June 30, 2016 . The Company has virtually no influence over the NIP Joint Venture’s operations, financial policies or decision making. Accordingly, the Company has accounted for its investment in the NIP Joint Venture under the cost method of accounting. Income, losses and distributions from the NIP Joint Venture are generally allocated among the members based on their respective equity interests. KBS REIT I, an affiliate of the Advisor, is a member of HC-KBS and has a participation interest in certain future potential profits generated by the NIP Joint Venture. However, KBS REIT I does not have any equity interest in the NIP Joint Venture. None of the other joint venture partners are affiliated with the Company or the Advisor. As of June 30, 2016 and December 31, 2015 , the book value of the Company’s investment in the NIP Joint Venture was $5.3 million . During the three and six months ended June 30, 2016 and 2015, the Company did not receive any distributions related to its investment in the NIP Joint Venture. Investment in 110 William Joint Venture On December 23, 2013, the Company, through an indirect wholly owned subsidiary, entered into an agreement with SREF III 110 William JV, LLC (the “110 William JV Partner”) to form a joint venture (the “110 William Joint Venture”). On May 2, 2014, the 110 William Joint Venture acquired an office property containing 928,157 rentable square feet located on approximately 0.8 acres of land in New York, New York (“110 William Street”). Each of the Company and the 110 William JV Partner hold a 60% and 40% ownership interest in the 110 William Joint Venture, respectively. The Company exercises significant influence over the operations, financial policies and decision making with respect to the 110 William Joint Venture but significant decisions require approval from both members. Accordingly, the Company has accounted for its investment in the 110 William Joint Venture under the equity method of accounting. Income, losses, contributions and distributions are generally allocated based on the members’ respective equity interests. As of June 30, 2016 and December 31, 2015 , the book value of the Company’s investment in the 110 William Joint Venture was $70.6 million and $69.1 million , respectively, which includes $1.5 million of unamortized acquisition fees and expenses incurred directly by the Company. Summarized financial information for the 110 William Joint Venture follows (in thousands): June 30, 2016 December 31, 2015 Assets: Real estate assets, net of accumulated depreciation and amortization $ 267,708 $ 269,664 Other assets 20,276 18,973 Total assets $ 287,984 $ 288,637 Liabilities and Equity: Notes payable, net (1) $ 160,035 $ 162,395 Other liabilities 12,870 13,617 Partners’ capital 115,079 112,625 Total Liabilities and Equity $ 287,984 $ 288,637 _____________________ (1) Includes (i) a first mortgage loan with an outstanding principal balance of $137.5 million and $138.6 million as of June 30, 2016 and December 31, 2015 , respectively, bearing interest at a fixed rate of 4.8% per annum and maturing on July 6, 2017 and (ii) a mezzanine loan with an outstanding principal balance of $20.0 million as of June 30, 2016 and December 31, 2015 bearing interest at a fixed rate of 9.5% per annum and maturing on July 6, 2017. The amount presented includes a premium on notes payable of $3.0 million and $4.5 million as of June 30, 2016 and December 31, 2015 , respectively and deferred financing costs, net of $0.5 million and $0.7 million as of June 30, 2016 and December 31, 2015, respectively. Three Months Ended June 30, Six Months Ended 2016 2015 2016 2015 Revenues $ 8,388 $ 8,413 $ 16,639 $ 16,698 Expenses: Operating, maintenance, and management 2,453 2,784 4,958 5,487 Real estate taxes and insurance 1,533 1,352 2,967 2,687 Depreciation and amortization 3,147 3,222 6,268 6,282 Interest expense 1,508 1,542 3,024 3,075 Total expenses 8,641 8,900 17,217 17,531 Other income 16 307 32 308 Net loss $ (237 ) $ (180 ) $ (546 ) $ (525 ) Company’s equity in loss of unconsolidated joint venture $ (152 ) $ (118 ) $ (348 ) $ (336 )

UNAUDITED PRO FORMA FINANCIAL I

UNAUDITED PRO FORMA FINANCIAL INFORMATION	6 Months Ended
	Jun. 30, 2016
Business Acquisition, Pro Forma Information [Abstract]
UNAUDITED PRO FORMA FINANCIAL INFORMATION	UNAUDITED PRO FORMA FINANCIAL INFORMATION The Company acquired one office portfolio during the six months ended June 30, 2016, which was accounted for as a business combination. The following unaudited pro forma information for the three and six months ended June 30, 2016 and 2015 has been prepared to give effect to the acquisition of the Westpark Portfolio as if this acquisition occurred on January 1, 2015. This pro forma information does not purport to represent what the actual results of operations of the Company would have been had the acquisitions occurred on this date, nor does it purport to predict the results of operations for future periods (in thousands). For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 Revenues $ 35,037 $ 31,137 $ 66,068 $ 61,549 Depreciation and amortization $ 12,694 $ 12,224 $ 25,074 $ 24,516 Net (loss) income $ (360 ) $ 3,015 $ (5,093 ) $ 8,776 The unaudited pro forma information for the three and six months ended June 30, 2016 was adjusted to exclude $1.5 million of acquisition costs related to the Westpark Portfolio incurred by the Company in 2016, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
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 identification, evaluation, negotiation, origination, acquisition and disposition of investments; management of the daily operations of the Company’s investment portfolio; and other general and administrative responsibilities. In the event that the Advisor is unable to provide 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. Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations as of June 30, 2016 . However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities. Legal Matters From time to time, the Company is a party to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on the Company’s results of operations or financial condition, which would require accrual or disclosure of the contingency and the possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Real Estate Acquisition and Probable Acquisition Subsequent to June 30, 2016 Acquisition of 353 Sacramento On July 11, 2016, the Company, through an indirect wholly owned subsidiary, acquired an office building containing 284,751 rentable square feet located on approximately 0.35 acres of land in San Francisco, California (“353 Sacramento”). The seller is not affiliated with the Company or the Advisor. The purchase price of 353 Sacramento was $169.5 million plus closing costs. The Company is in process of assessing the fair value of the acquired tangible assets and any applicable intangible assets and liabilities for this business combination. 353 Sacramento was built in 1982 and at acquisition was 85% leased to 25 tenants. Financing Subsequent to June 30, 2016 Westpark Portfolio Mortgage Loan On July 8, 2016, the Westpark Portfolio Buyer, entered into a four -year mortgage loan with an unaffiliated lender, for borrowings of up to $85.2 million secured by the Westpark Portfolio (the “Westpark Portfolio Mortgage Loan”). At closing, $83.2 million of the loan was funded and the remaining $2.0 million was available for future disbursements to be used for tenant improvement costs, subject to certain terms and conditions contained in the loan documents. The Westpark Portfolio Mortgage Loan matures on July 1, 2020, with a one -year extension option, subject to certain terms and conditions contained in the loan documents. The Westpark Portfolio Mortgage Loan bears interest at a floating rate of 250 basis points over one-month LIBOR. The Westpark Portfolio Buyer has the right to prepay the loan in whole at any time, or in part from time to time. KBS SOR Properties LLC (“SOR Properties”), the Company’s indirect wholly owned subsidiary, is providing a limited guaranty of the Westpark Portfolio Mortgage Loan with respect to certain potential fees, costs, expenses, losses or damages incurred or suffered by the lender as a result of certain intentional actions committed by the Westpark Portfolio Buyer in violation of the loan documents. SOR Properties is also providing a guaranty of the principal balance and any interest or other sums outstanding under the Westpark Portfolio Mortgage Loan in the event of certain bankruptcy or insolvency proceedings involving the Westpark Portfolio Buyer, certain direct or indirect transfers or financings of Westpark Portfolio in violation of the loan documents and the violation of certain other terms of the loan documents by the Westpark Portfolio Buyer. Foreign Currency Collar On August 8, 2016, the Company, through an indirect wholly owned subsidiary, entered into a foreign currency collar to hedge against a change in the exchange rate of the Israeli new Shekel versus the U.S. Dollar. The foreign currency collar expires on August 8, 2017 and has a U.S. Dollar notional amount of $100.0 million . The foreign currency collar consists of a purchased call option to buy and a sold put option to sell the Israeli new Shekels at 3.7245 and 3.826 Israeli new Shekels, respectively. The foreign currency collar is intended to permit the Company to exchange, on the settlement date of the collar and net of the effect of the collar, $100.0 million U.S. Dollars for an amount of Israeli new Shekels ranging from 372.5 million to 382.6 million .

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.
Principles of Consolidation	The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership, KBS Strategic Opportunity BVI and their direct and indirect wholly owned subsidiaries, and joint ventures in which the Company has a controlling interest. All significant intercompany balances and transactions are eliminated in consolidation.
Use of Estimates	The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates.
Foreign Currency Transactions	The U.S. dollar is the Company’s functional currency. Transactions denominated in currency other than the Company’s functional currency are recorded upon initial recognition at the exchange rate on the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are remeasured at each reporting date into the foreign currency at the exchange rate on that date. Exchange rate differences, other than those accounted for as hedging transactions, are recognized as foreign currency transaction gain or loss included in the Company’s consolidated statements of operations.
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 the prior period.
Segments	The Company has invested in non-performing loans, opportunistic real estate and other real estate-related assets. In general, the Company intends to hold its investments in non-performing loans, opportunistic real estate and other real estate-related assets for capital appreciation. Traditional performance metrics of non-performing loans, opportunistic real estate and other real estate-related assets may not be meaningful as these investments are generally non-stabilized and do not provide a consistent stream of interest income or rental revenue. These investments exhibit similar long-term financial performance and have similar economic characteristics. These investments typically involve a higher degree of risk and do not provide a constant stream of ongoing cash flows. As a result, the Company’s management views non-performing loans, opportunistic real estate and other real estate-related assets as similar investments. Substantially all of its revenue and net income (loss) is from non-performing loans, opportunistic real estate and other real estate-related assets, and therefore, the Company currently aggregates its operating segments into one reportable business segment.
Per Share Data	Basic net income (loss) per share of common stock is calculated by dividing net income (loss) attributable to common stockholders 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 three and six months ended June 30, 2016 and 2015. Distributions declared per share were $0.09323770 and $0.18647540 during the three and six months ended June 30, 2016 and $0.09246575 and $0.18595890 during the three and six months ended June 30, 2015, respectively.
Square Footage, Occupancy and Other Measures	Any references to square footage, occupancy or annualized base rent are unaudited and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board.
Recently Issued Accounting Standards Updates	In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). ASU No. 2014-09 requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU No. 2014-09 supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU No. 2014-09 does not apply to lease contracts within the scope of Leases (Topic 840). ASU No. 2014-09 was to be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU No. 2015-14”), which defers the effective date of ASU No. 2014-09 by one year. Early adoption is permitted but not before the original effective date. The Company is still evaluating the impact of adopting ASU No. 2014-09 on its financial statements, but does not expect the adoption of ASU No. 2014-09 to have a material impact on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”). The amendments in ASU No. 2014-15 require management to evaluate, for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued when applicable) and, if so, provide related disclosures. ASU No. 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect the adoption of ASU No. 2014-15 to have a significant impact on its financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU No. 2015-02”), which amended the existing accounting standards for consolidation under both the variable interest model and the voting model. ASU No. 2015-02 modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. ASU No. 2015-02 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments in ASU No. 2015-02 using: (a) a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption; or (b) by applying the amendments retrospectively. On January 1, 2016, the Company adopted ASU No. 2015-02 and re-evaluated its consolidation analysis of its joint ventures, concluding that such adoption did not result in (a) the classification of any entities as VIEs, (b) a consolidation of entities not previously consolidated or (c) a deconsolidation of entities previously consolidated. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU No. 2016-01”). The amendments in ASU No. 2016-01 address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU No. 2016-01 primarily affects accounting for equity investments and financial liabilities where the fair value option has been elected. ASU No. 2016-01 also requires entities to present financial assets and financial liabilities separately, grouped by measurement category and form of financial asset in the balance sheet or in the accompanying notes to the financial statements. ASU No. 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU No. 2016-01 to have a significant impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). The amendments in ASU No. 2016-02 change the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU No. 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of ASU No. 2016-02 is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the new leases standard on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU No. 2016-13”). ASU No. 2016-13 affects entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. The amendments in ASU No. 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU No. 2016-13 also amends the impairment model for available-for-sale securities. An entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra-account to the amortized cost basis rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. ASU No. 2016-13 also requires new disclosures. For financial assets measured at amortized cost, an entity will be required to disclose information about how it developed its allowance for credit losses, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. For financing receivables and net investments in leases measured at amortized cost, an entity will be required to further disaggregate the information it currently discloses about the credit quality of these assets by year of the asset’s origination for as many as five annual periods. For available for sale securities, an entity will be required to provide a roll-forward of the allowance for credit losses and an aging analysis for securities that are past due. ASU No. 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the impact of adopting ASU No. 2016-13 on its financial statements, but does not expect the adoption of ASU No. 2016-13 to have a material impact on its financial statements.

REAL ESTATE HELD FOR INVESTME22

REAL ESTATE HELD FOR INVESTMENT (Tables)	6 Months Ended
	Jun. 30, 2016
Real Estate [Abstract]
Schedule of Real Estate Investments	The following table summarizes the Company’s real estate held for investment as of June 30, 2016 and December 31, 2015 , respectively (in thousands): June 30, 2016 December 31, 2015 Land $ 261,775 $ 223,201 Buildings and improvements 734,695 646,979 Tenant origination and absorption costs 48,602 43,894 Total real estate, cost 1,045,072 914,074 Accumulated depreciation and amortization (104,828 ) (91,560 ) Total real estate, net $ 940,244 $ 822,514 The following table provides summary information regarding the Company’s real estate held for investment as of June 30, 2016 (in thousands): Property Date Acquired or Foreclosed on City State Property Type Land Building and Improvements Tenant Origination and Absorption Total Real Estate at Cost Accumulated Depreciation and Amortization Total Real Estate, Net Ownership % Northridge Center I & II 03/25/2011 Atlanta GA Office $ 2,234 $ 7,648 $ — $ 9,882 $ (2,361 ) $ 7,521 100.0 % Iron Point Business Park 06/21/2011 Folsom CA Office 2,671 19,630 — 22,301 (4,384 ) 17,917 100.0 % Richardson Portfolio: Palisades Central I 11/23/2011 Richardson TX Office 1,037 10,390 684 12,111 (2,407 ) 9,704 90.0 % Palisades Central II 11/23/2011 Richardson TX Office 810 17,989 749 19,548 (4,460 ) 15,088 90.0 % Greenway I 11/23/2011 Richardson TX Office 561 2,377 — 2,938 (661 ) 2,277 90.0 % Greenway III 11/23/2011 Richardson TX Office 702 3,734 559 4,995 (1,353 ) 3,642 90.0 % Undeveloped Land 11/23/2011 Richardson TX Undeveloped Land 3,134 — — 3,134 — 3,134 90.0 % Total Richardson Portfolio 6,244 34,490 1,992 42,726 (8,881 ) 33,845 Park Highlands (1) 12/30/2011 North Las Vegas NV Undeveloped Land 32,505 — — 32,505 — 32,505 100.0 % Bellevue Technology Center 07/31/2012 Bellevue WA Office 25,506 56,292 3,813 85,611 (9,682 ) 75,929 100.0 % Powers Ferry Landing East 09/24/2012 Atlanta GA Office 1,643 8,016 99 9,758 (1,982 ) 7,776 100.0 % 1800 West Loop 12/04/2012 Houston TX Office 8,360 59,960 5,184 73,504 (11,931 ) 61,573 100.0 % West Loop I & II 12/07/2012 Houston TX Office 7,300 31,418 2,139 40,857 (5,450 ) 35,407 100.0 % Burbank Collection 12/12/2012 Burbank CA Retail 4,175 9,426 725 14,326 (1,462 ) 12,864 90.0 % Austin Suburban Portfolio 03/28/2013 Austin TX Office 8,288 68,497 2,835 79,620 (10,483 ) 69,137 100.0 % Westmoor Center 06/12/2013 Westminster CO Office 10,058 65,284 6,813 82,155 (12,852 ) 69,303 100.0 % Central Building 07/10/2013 Seattle WA Office 7,015 26,914 1,914 35,843 (3,757 ) 32,086 100.0 % 50 Congress Street 07/11/2013 Boston MA Office 9,876 41,059 2,485 53,420 (5,800 ) 47,620 100.0 % 1180 Raymond 08/20/2013 Newark NJ Apartment 8,292 37,379 136 45,807 (3,400 ) 42,407 100.0 % Park Highlands II (2) 12/10/2013 North Las Vegas NV Undeveloped Land 22,759 — — 22,759 — 22,759 100.0 % Maitland Promenade II 12/18/2013 Orlando FL Office 3,434 24,300 3,757 31,491 (4,052 ) 27,439 100.0 % Plaza Buildings 01/14/2014 Bellevue WA Office 53,040 137,551 7,748 198,339 (15,689 ) 182,650 100.0 % 424 Bedford 01/31/2014 Brooklyn NY Apartment 8,860 25,395 — 34,255 (1,679 ) 32,576 90.0 % Richardson Land II 09/04/2014 Richardson TX Undeveloped Land 3,430 — — 3,430 — 3,430 90.0 % Westpark Portfolio 05/10/2016 Redmond WA Office/Flex/Industrial 36,085 81,436 8,962 126,483 (983 ) 125,500 100.0 % $ 261,775 $ 734,695 $ 48,602 $ 1,045,072 $ (104,828 ) $ 940,244 _____________________ (1) On March 18, 2016, the Company increased its membership interest in the Park Highlands joint venture from 50.1% to 51.58% by acquiring an additional 1.48% membership interest from one of the joint venture partners. On June 6, 2016, the Company increased its membership interest in the Park Highlands joint venture from 51.58% to 97.62% by acquiring an additional 46.04% membership interest from one of the joint venture partners. On June 25, 2016, the Company increased its membership interest in the Park Highlands joint venture from 97.62% to 100% by acquiring the remaining 2.38% membership interest from the remaining joint venture partner. (2) On March 18, 2016, the Company increased its membership interest in the Park Highlands II joint venture from 99.5% to 100% by acquiring the remaining 0.5% membership interest from its joint venture partner.
Schedule of Future Minimum Rental Income for Company's Properties	As of June 30, 2016 , the future minimum rental income from the Company’s properties, excluding apartment leases, under non-cancelable operating leases was as follows (in thousands): July 1, 2016 through December 31, 2016 $ 44,308 2017 86,421 2018 74,228 2019 60,947 2020 47,155 Thereafter 109,071 $ 422,130
Schedules of Concentration of Risk, by Risk Factor	As of June 30, 2016 , the Company’s commercial real estate properties were leased to approximately 600 tenants over a diverse range of industries and geographic areas. The Company’s highest tenant industry concentrations (greater than 10% of annualized base rent) were as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Annualized Base Rent Computer System Design & Programming 57 $ 11,320 12.4 % Finance 55 10,600 11.6 % $ 21,920 24.0 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2016 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term.

TENANT ORIGINATION AND ABSORP23

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2016
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities	As of June 30, 2016 and December 31, 2015 , the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities June 30, December 31, June 30, December 31, June 30, December 31, Cost $ 48,602 $ 43,894 $ 2,315 $ 2,399 $ (5,839 ) $ (5,826 ) Accumulated Amortization (23,191 ) (22,749 ) (1,463 ) (1,361 ) 3,237 3,091 Net Amount $ 25,411 $ 21,145 $ 852 $ 1,038 $ (2,602 ) $ (2,735 )
Amortization of Tenant Origination and Absorption Costs, Above-Market Leases and Below-Market Lease Liabilities	Increases (decreases) in net income as a result of amortization of the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities for the three and six months ended June 30, 2016 and 2015 were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Three Months Ended For the Three Months Ended For the Three Months Ended 2016 2015 2016 2015 2016 2015 Amortization $ (2,486 ) $ (2,716 ) $ (120 ) $ (258 ) $ 381 $ 445 Tenant Origination and Above-Market Below-Market For the Six Months Ended For the Six Months Ended For the Six Months Ended 2016 2015 2016 2015 2016 2015 Amortization $ (4,697 ) $ (5,639 ) $ (240 ) $ (531 ) $ 689 $ 939

REAL ESTATE LOAN RECEIVABLE (Ta

REAL ESTATE LOAN RECEIVABLE (Tables)	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
Schedule of Real Estate Loans Receivable	The information for that real estate loan receivable as of June 30, 2016 and December 31, 2015 is set forth below (in thousands): Loan Name Location of Related Property or Collateral Date Originated Property Type Loan Type Outstanding Principal Balance as of June 30, 2016 Book Value as of June 30, 2016 Book Value as of December 31, 2015 (1) Contractual Interest Rate Annualized Effective Interest Rate Maturity Date University House First Mortgage New York, New York 3/20/2013 Student Housing Mortgage $ — $ — $ 27,850 (2) (2) (2) _____________________ (1) Book value of the real estate loan receivable represents outstanding principal balance adjusted for unamortized acquisition discounts, origination fees and direct origination and acquisition costs and additional interest accretion. (2) See below for a discussion of the assignment of the University House First Mortgage.
Schedule of Interest Income from Real Estate Loans Receivable	For the three and six months ended June 30, 2016 and 2015, interest income from the real estate loan receivable consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Contractual interest income $ 3,655 $ 774 $ 3,655 $ 1,540 Accretion of closing costs, origination fees and extension fees, net — 219 — 428 Interest income from real estate loan receivable $ 3,655 $ 993 $ 3,655 $ 1,968

REAL ESTATE SALES (Tables)

REAL ESTATE SALES (Tables)	6 Months Ended
	Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Revenue and Expenses of Real Estate Held-for-Sale	The following table summarizes certain revenue and expenses related to these properties for the three and six months ended June 30, 2016, and 2015 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Total revenues $ — $ 6 $ — $ 216 Total expenses 15 130 17 565

NOTES AND BONDS PAYABLE (Tables

NOTES AND BONDS PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2016
Notes and Bonds Payable [Abstract]
Schedule of Long-term Debt Instruments	As of June 30, 2016 and December 31, 2015 , the Company’s notes and bonds payable consisted of the following (dollars in thousands): Book Value as Book Value as of December 31, 2015 Contractual Interest Rate as of June 30, 2016 (1) Effective Interest Rate at June 30, 2016 (1) Payment Type Maturity Date (2) Richardson Portfolio Mortgage Loan $ 40,889 $ 41,177 One-Month LIBOR + 2.10% 2.56% Principal 05/01/2017 Bellevue Technology Center Mortgage Loan 59,720 52,960 One-Month LIBOR + 2.25% 2.71% Principal 03/01/2017 Portfolio Revolving Loan Facility (3) 58,954 47,087 One-Month LIBOR + 2.25% 2.71% Principal 05/01/2017 Portfolio Mortgage Loan 103,932 100,032 One-Month LIBOR + 2.25% 2.71% Interest Only (4) 07/01/2017 Burbank Collection Mortgage Loan 9,098 9,098 One-Month LIBOR + 2.35% 2.85% Interest Only 09/30/2016 50 Congress Mortgage Loan 28,766 28,075 One-Month LIBOR + 1.90% 2.36% Interest Only (4) 10/01/2017 1180 Raymond Bond Payable 6,715 6,795 6.50% 6.50% Principal 09/01/2036 Central Building Mortgage Loan 25,969 24,896 One-Month LIBOR + 1.75% 2.21% Interest Only 11/13/2018 Maitland Promenade II Mortgage Loan (5) 20,019 20,182 One-Month LIBOR + 2.90% 3.36% Principal 01/01/2017 Westmoor Center Mortgage Loan 61,373 56,036 One-Month LIBOR + 2.25% 2.71% Interest Only (4) 02/01/2018 Plaza Buildings Senior Loan 110,493 111,000 One-Month LIBOR + 1.90% 2.36% Principal 01/14/2017 424 Bedford Mortgage Loan 25,098 25,358 3.91% 3.91% Principal 10/01/2022 1180 Raymond Mortgage Loan 31,000 28,100 One-Month LIBOR + 2.25% 2.71% Interest Only 12/01/2017 KBS SOR (BVI) Holdings, Ltd. Series A Debentures (6) 251,380 — 4.25% 4.25% (6) 03/01/2023 Total Notes and Bonds Payable principal outstanding 833,406 550,796 Net Premium/Discount on Notes and Bonds Payable (7) 68 50 Deferred financing costs, net (11,702 ) (3,523 ) Total Notes and Bonds Payable, net $ 821,772 $ 547,323 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of June 30, 2016 . Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2016 (consisting of the contractual interest rate and contractual floor rates), using interest rate indices at June 30, 2016 , where applicable. (2) Represents the initial maturity date or the maturity date as extended as of June 30, 2016 ; subject to certain conditions, the maturity dates of certain loans may be extended beyond the date shown. (3) The Portfolio Revolving Loan Facility is secured by the 1800 West Loop Building and the Iron Point Business Park. The Portfolio Revolving Loan Facility is comprised of $63.5 million of revolving debt and $13.0 million of non-revolving debt available to be used for tenant improvements, leasing commissions and capital improvements, subject to certain terms and conditions contained in the loan documents. As of June 30, 2016 , $47.2 million of revolving debt and $11.8 million of non-revolving debt had been disbursed to the Company and the remaining $16.3 million of revolving debt and $ 1.2 million of non-revolving debt is available for future disbursements, subject to certain conditions contained in the loan documents. (4) Represents the payment type required under the loan as of June 30, 2016 . Certain future monthly payments due under this loan also include amortizing principal payments. For more information of the Company’s contractual obligations under its notes and bonds payable, see five-year maturity table below. (5) Interest on the Maitland Promenade II Mortgage Loan is calculated at a variable annual rate of 290 basis points over one-month LIBOR, but at no point shall the interest rate be less than 3.25% . (6) See “– Recent Financing Transaction – Israeli Bond Financing” below. (7) Represents the unamortized premium/discount on notes and bonds payable due to the above- and below-market interest rates when the debt was assumed. The discount/premium is amortized over the remaining life of the notes and bonds payable.
Schedule of Maturities of Long-term Debt	The following is a schedule of maturities, including principal amortization payments, for all notes and bonds payable outstanding as of June 30, 2016 (in thousands): July 1, 2016 through December 31, 2016 $ 12,073 2017 452,461 2018 87,542 2019 51,088 2020 51,122 Thereafter 179,120 $ 833,406

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of Face Value, Carrying Amounts and Fair Value	The following were the face values, carrying amounts and fair values of the Company’s financial instruments as of June 30, 2016 and December 31, 2015 , which carrying amounts do not approximate the fair values (in thousands): June 30, 2016 December 31, 2015 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial assets: Real estate loan receivable $ — $ — $ — $ 27,850 $ 27,850 $ 27,850 Financial liabilities: Notes and bonds payable $ 582,026 $ 579,655 $ 584,342 $ 550,796 $ 547,323 $ 554,007 KBS SOR (BVI) Holdings, Ltd. Series A Debentures $ 251,380 $ 242,117 $ 247,107 $ — $ — $ —

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Schedule of Related Party Costs	Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three and six months ended June 30, 2016 and 2015, respectively, and any related amounts payable as of June 30, 2016 and December 31, 2015 (in thousands): Incurred Payable as of Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2016 2015 2016 2015 2016 2015 Expensed Asset management fees $ 2,205 $ 2,077 $ 4,293 $ 4,130 $ — $ — Real estate acquisition fees 1,274 — 1,274 — — — Reimbursable operating expenses (1) 69 32 113 77 59 59 Disposition fees (2) 279 — 279 102 — — $ 3,827 $ 2,109 $ 5,959 $ 4,309 $ 59 $ 59 _____________________ (1) The Advisor may seek reimbursement for certain employee costs 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 $ 41,000 and $ 29,000 for the three months ended June 30, 2016 and 2015 , respectively and $85,000 and $62,000 for the six months ended June 30, 2016 and 2015, respectively, and were the only employee costs reimbursed under the Advisory Agreement during these periods. 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 in the accompanying consolidated statements of operations. Disposition fees with respect to the assignment of the Company's real estate loan receivable are included in general and administrative expenses in the accompanying consolidated statements of operations.

INVESTMENT IN UNCONSOLIDATED 29

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Tables)	6 Months Ended
	Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Investments in Unconsolidated Joint Ventures	As of June 30, 2016 and December 31, 2015 , the Company’s investments in unconsolidated joint ventures were composed of the following (dollars in thousands): Investment Balance at Joint Venture Number of Properties Location Ownership % June 30, 2016 December 31, 2015 NIP Joint Venture 21 Various Less than 5.0% $ 5,305 $ 5,305 110 William Joint Venture 1 New York, New York 60.0% 70,584 69,132 $ 75,889 $ 74,437 Summarized financial information for the 110 William Joint Venture follows (in thousands): June 30, 2016 December 31, 2015 Assets: Real estate assets, net of accumulated depreciation and amortization $ 267,708 $ 269,664 Other assets 20,276 18,973 Total assets $ 287,984 $ 288,637 Liabilities and Equity: Notes payable, net (1) $ 160,035 $ 162,395 Other liabilities 12,870 13,617 Partners’ capital 115,079 112,625 Total Liabilities and Equity $ 287,984 $ 288,637 _____________________ (1) Includes (i) a first mortgage loan with an outstanding principal balance of $137.5 million and $138.6 million as of June 30, 2016 and December 31, 2015 , respectively, bearing interest at a fixed rate of 4.8% per annum and maturing on July 6, 2017 and (ii) a mezzanine loan with an outstanding principal balance of $20.0 million as of June 30, 2016 and December 31, 2015 bearing interest at a fixed rate of 9.5% per annum and maturing on July 6, 2017. The amount presented includes a premium on notes payable of $3.0 million and $4.5 million as of June 30, 2016 and December 31, 2015 , respectively and deferred financing costs, net of $0.5 million and $0.7 million as of June 30, 2016 and December 31, 2015, respectively. Three Months Ended June 30, Six Months Ended 2016 2015 2016 2015 Revenues $ 8,388 $ 8,413 $ 16,639 $ 16,698 Expenses: Operating, maintenance, and management 2,453 2,784 4,958 5,487 Real estate taxes and insurance 1,533 1,352 2,967 2,687 Depreciation and amortization 3,147 3,222 6,268 6,282 Interest expense 1,508 1,542 3,024 3,075 Total expenses 8,641 8,900 17,217 17,531 Other income 16 307 32 308 Net loss $ (237 ) $ (180 ) $ (546 ) $ (525 ) Company’s equity in loss of unconsolidated joint venture $ (152 ) $ (118 ) $ (348 ) $ (336 )

UNAUDITED PRO FORMA FINANCIAL30

UNAUDITED PRO FORMA FINANCIAL INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2016
Business Acquisition, Pro Forma Information [Abstract]
Business Acquisition, Pro Forma Information	The following unaudited pro forma information for the three and six months ended June 30, 2016 and 2015 has been prepared to give effect to the acquisition of the Westpark Portfolio as if this acquisition occurred on January 1, 2015. This pro forma information does not purport to represent what the actual results of operations of the Company would have been had the acquisitions occurred on this date, nor does it purport to predict the results of operations for future periods (in thousands). For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 Revenues $ 35,037 $ 31,137 $ 66,068 $ 61,549 Depreciation and amortization $ 12,694 $ 12,224 $ 25,074 $ 24,516 Net (loss) income $ (360 ) $ 3,015 $ (5,093 ) $ 8,776

ORGANIZATION (Details)

ORGANIZATION (Details) $ in Thousands	Mar. 07, 2016ILS (₪)	Mar. 02, 2016ILS (₪)	Mar. 01, 2016ILS (₪)	Mar. 31, 2016USD ($)	Mar. 31, 2016ILS (₪)	Jun. 30, 2016USD ($)aPortfoliospropertyInvestmentsshares	Dec. 31, 2015USD ($)shares	Sep. 30, 2015USD ($)shares	Jun. 30, 2016USD ($)aPortfoliospropertyInvestmentsshares	Dec. 18, 2015shares	Oct. 23, 2012USD ($)shares	Dec. 29, 2011USD ($)shares	Jan. 08, 2009shares
Organizational Structure [Line Items]
Common stock, shares authorized						1,000,000,000	1,000,000,000		1,000,000,000
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 | $						$ 6,361	$ 13,573	$ 561,700
Shares of common stock sold under dividend reinvestment plan, value | $									$ 59,100
Redemptions of common stock, value | $						$ 6,999	$ 30,100		$ 45,400
Common stock, shares issued						58,644,697	58,696,115		58,644,697		55,249	220,994
Common stock, value, issued | $						$ 586	$ 587		$ 586		$ 500	$ 2,000
Real estate area of undeveloped land | a						1,670			1,670
Number of Investments in Unconsolidated Joint Venture | Investments						2			2
Office Properties [Member]
Organizational Structure [Line Items]
Number of real estate properties | property						10			10
Office Campus [Member]
Organizational Structure [Line Items]
Number of real estate properties | property						1			1
Office Portfolio [Member]
Organizational Structure [Line Items]
Number of real estate properties | Portfolios						1			1
Office Portfolio [Member] | Austin Suburban Portfolio [Member]
Organizational Structure [Line Items]
Number of real estate properties | Portfolios						1			1
Office Buildings, Portfolio [Member]
Organizational Structure [Line Items]
Number of real estate properties | property						4			4
Real estate area of undeveloped land | a						25			25
Office Property, Portfolio [Member]
Organizational Structure [Line Items]
Number of real estate properties | property						9			9
Office Property, Portfolio [Member] | Austin Suburban Portfolio [Member]
Organizational Structure [Line Items]
Number of real estate properties | property						3			3
Office/Flex/Industrial Portfolio [Member]
Organizational Structure [Line Items]
Number of real estate properties | property						1			1
Office/Flex/Industrial Buildings [Member]
Organizational Structure [Line Items]
Number of real estate properties | property						21			21
Retail Properties [Member]
Organizational Structure [Line Items]
Number of real estate properties | property						1			1
Apartment Property [Member]
Organizational Structure [Line Items]
Number of real estate properties | property						2			2
Undeveloped Land [Member]
Organizational Structure [Line Items]
Number of investments in real estate properties | property						2			2
Series A Debentures [Member] | Bonds Payable [Member]
Organizational Structure [Line Items]
Maximum borrowing capacity | ₪		₪ 1,000,000,000
Interest rate during period				4.25%	4.25%
Proceeds from issuance of debt	₪ 127,700,000		₪ 842,500,000	$ 251,400	₪ 970,200,000
Principal installment payments required as percent of total debt		20.00%
Common Stock [Member]
Organizational Structure [Line Items]
Shares registered in primary offering													100,000,000
Shares registered for sale under dividend reinvestment plan													40,000,000
Issuance of common stock, shares						473,267	1,114,532	56,584,976
Issuance of common stock, value | $						$ 4	$ 11
Shares of common stock sold under dividend reinvestment plan, shares									5,569,775
Redemptions of common stock, shares						524,685	2,462,746		3,806,297
Redemptions of common stock, value | $						$ 5	$ 24
Minimum [Member] | Common Stock [Member]
Organizational Structure [Line Items]
Stock offering, shares authorized for issuance													250,000
Maximum [Member] | Series A Debentures [Member] | Bonds Payable [Member]
Organizational Structure [Line Items]
Interest rate during period		4.25%
Maximum [Member] | Common Stock [Member]
Organizational Structure [Line Items]
Stock offering, shares authorized for issuance													140,000,000
KBS Strategic Opportunity BVI [Member]
Organizational Structure [Line Items]
Common stock, shares authorized										50,000
KBS Strategic Opportunity BVI [Member] | Operating Partnership [Member]
Organizational Structure [Line Items]
Common stock, shares issued										10,000
KBS Capital Advisors LLC [Member]
Organizational Structure [Line Items]
Shares held by affiliate						20,000			20,000

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016$ / shares	Jun. 30, 2015$ / shares	Jun. 30, 2016segments$ / shares	Jun. 30, 2015$ / shares
Accounting Policies [Abstract]
Number of reportable segments | segments			1
Distributions declared per share | $ / shares	$ 0.09323770	$ 0.09246575	$ 0.18647540	$ 0.18595890

REAL ESTATE HELD FOR INVESTME33

REAL ESTATE HELD FOR INVESTMENT (Narrative) (Details) ft² in Millions	Jun. 30, 2016aft²PortfoliosUnitspropertyInvestments
Real Estate Properties [Line Items]
Real estate area of undeveloped land | a	1,670
Rentable square feet | ft²	5.2
Percentage of portfolio occupied	85.00%
Office Properties [Member]
Real Estate Properties [Line Items]
Number of real estate properties	10
Office Campus [Member]
Real Estate Properties [Line Items]
Number of real estate properties	1
Office Portfolio [Member]
Real Estate Properties [Line Items]
Number of real estate properties | Portfolios	1
Office Portfolio [Member] | Austin Suburban Portfolio [Member]
Real Estate Properties [Line Items]
Number of real estate properties | Portfolios	1
Office Buildings, Portfolio [Member]
Real Estate Properties [Line Items]
Number of real estate properties	4
Real estate area of undeveloped land | a	25
Office Property, Portfolio [Member]
Real Estate Properties [Line Items]
Number of real estate properties	9
Office Property, Portfolio [Member] | Austin Suburban Portfolio [Member]
Real Estate Properties [Line Items]
Number of real estate properties	3
Office/Flex/Industrial Portfolio [Member]
Real Estate Properties [Line Items]
Number of real estate properties	1
Office/Flex/Industrial Buildings [Member]
Real Estate Properties [Line Items]
Number of real estate properties	21
Retail Properties [Member]
Real Estate Properties [Line Items]
Number of real estate properties	1
Apartment Property [Member]
Real Estate Properties [Line Items]
Number of real estate properties	2
Rentable square feet | ft²	0.3
Percentage of portfolio occupied	92.00%
Apartment Property [Member] | 1180 Raymond [Member] | Multifamily Tower [Member]
Real Estate Properties [Line Items]
Number of units in real estate property | Units	383
Undeveloped Land [Member]
Real Estate Properties [Line Items]
Number of investments in real estate | Investments	2

REAL ESTATE HELD FOR INVESTME34

REAL ESTATE HELD FOR INVESTMENT (Schedule of Real Estate Investments) (Details) - USD ($) $ in Thousands	Jun. 25, 2016	Jun. 06, 2016	Jun. 05, 2016	Mar. 18, 2016	Mar. 17, 2016	Jun. 30, 2016	Dec. 31, 2015
Real Estate Properties [Line Items]
Total real estate, cost						$ 1,045,072	$ 914,074
Accumulated depreciation and amortization						(104,828)	(91,560)
Total real estate, net						$ 940,244	822,514
Northridge Center I & II [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Mar. 25, 2011
Total real estate, cost						$ 9,882
Accumulated depreciation and amortization						(2,361)
Total real estate, net						$ 7,521
Ownership %						100.00%
Iron Point Business Park [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Jun. 21, 2011
Total real estate, cost						$ 22,301
Accumulated depreciation and amortization						(4,384)
Total real estate, net						$ 17,917
Ownership %						100.00%
Palisades Central I [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Nov. 23, 2011
Total real estate, cost						$ 12,111
Accumulated depreciation and amortization						(2,407)
Total real estate, net						$ 9,704
Ownership %						90.00%
Palisades Central II [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Nov. 23, 2011
Total real estate, cost						$ 19,548
Accumulated depreciation and amortization						(4,460)
Total real estate, net						$ 15,088
Ownership %						90.00%
Greenway I [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Nov. 23, 2011
Total real estate, cost						$ 2,938
Accumulated depreciation and amortization						(661)
Total real estate, net						$ 2,277
Ownership %						90.00%
Greenway III [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Nov. 23, 2011
Total real estate, cost						$ 4,995
Accumulated depreciation and amortization						(1,353)
Total real estate, net						$ 3,642
Ownership %						90.00%
Undeveloped Land [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Nov. 23, 2011
Total real estate, cost						$ 3,134
Accumulated depreciation and amortization						0
Total real estate, net						$ 3,134
Ownership %						90.00%
Richardson Portfolio [Member]
Real Estate Properties [Line Items]
Total real estate, cost						$ 42,726
Accumulated depreciation and amortization						(8,881)
Total real estate, net						$ 33,845
Park Highlands [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Dec. 30, 2011
Total real estate, cost						$ 32,505
Accumulated depreciation and amortization						0
Total real estate, net						$ 32,505
Ownership %	100.00%	97.62%	51.58%	51.58%	50.10%	100.00%
Increase in percentage ownership	2.38%	46.04%		1.48%
Bellevue Technology Center [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Jul. 31, 2012
Total real estate, cost						$ 85,611
Accumulated depreciation and amortization						(9,682)
Total real estate, net						$ 75,929
Ownership %						100.00%
Powers Ferry Landing East [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Sep. 24, 2012
Total real estate, cost						$ 9,758
Accumulated depreciation and amortization						(1,982)
Total real estate, net						$ 7,776
Ownership %						100.00%
1800 West Loop [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Dec. 4, 2012
Total real estate, cost						$ 73,504
Accumulated depreciation and amortization						(11,931)
Total real estate, net						$ 61,573
Ownership %						100.00%
West Loop I and II [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Dec. 7, 2012
Total real estate, cost						$ 40,857
Accumulated depreciation and amortization						(5,450)
Total real estate, net						$ 35,407
Ownership %						100.00%
Burbank Collection [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Dec. 12, 2012
Total real estate, cost						$ 14,326
Accumulated depreciation and amortization						(1,462)
Total real estate, net						$ 12,864
Ownership %						90.00%
Austin Suburban Portfolio [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Mar. 28, 2013
Total real estate, cost						$ 79,620
Accumulated depreciation and amortization						(10,483)
Total real estate, net						$ 69,137
Ownership %						100.00%
Westmoor Center [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Jun. 12, 2013
Total real estate, cost						$ 82,155
Accumulated depreciation and amortization						(12,852)
Total real estate, net						$ 69,303
Ownership %						100.00%
Central Building [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Jul. 10, 2013
Total real estate, cost						$ 35,843
Accumulated depreciation and amortization						(3,757)
Total real estate, net						$ 32,086
Ownership %						100.00%
50 Congress Street [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Jul. 11, 2013
Total real estate, cost						$ 53,420
Accumulated depreciation and amortization						(5,800)
Total real estate, net						$ 47,620
Ownership %						100.00%
1180 Raymond [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Aug. 20, 2013
Total real estate, cost						$ 45,807
Accumulated depreciation and amortization						(3,400)
Total real estate, net						$ 42,407
Ownership %						100.00%
Park Highlands II [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Dec. 10, 2013
Total real estate, cost						$ 22,759
Accumulated depreciation and amortization						0
Total real estate, net						$ 22,759
Ownership %				100.00%	99.50%	100.00%
Increase in percentage ownership				0.50%
Maitland Promenade II [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Dec. 18, 2013
Total real estate, cost						$ 31,491
Accumulated depreciation and amortization						(4,052)
Total real estate, net						$ 27,439
Ownership %						100.00%
Plaza Buildings [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Jan. 14, 2014
Total real estate, cost						$ 198,339
Accumulated depreciation and amortization						(15,689)
Total real estate, net						$ 182,650
Ownership %						100.00%
424 Bedford [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Jan. 31, 2014
Total real estate, cost						$ 34,255
Accumulated depreciation and amortization						(1,679)
Total real estate, net						$ 32,576
Ownership %						90.00%
Richardson Land II [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on						Sep. 4, 2014
Total real estate, cost						$ 3,430
Accumulated depreciation and amortization						0
Total real estate, net						$ 3,430
Ownership %						90.00%
Westpark Portfolio [Member]
Real Estate Properties [Line Items]
Total real estate, cost						$ 126,483
Accumulated depreciation and amortization						(983)
Total real estate, net						$ 125,500
Ownership %						100.00%
Land [Member]
Real Estate Properties [Line Items]
Total real estate, cost						$ 261,775	223,201
Land [Member] | Northridge Center I & II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						2,234
Land [Member] | Iron Point Business Park [Member]
Real Estate Properties [Line Items]
Total real estate, cost						2,671
Land [Member] | Palisades Central I [Member]
Real Estate Properties [Line Items]
Total real estate, cost						1,037
Land [Member] | Palisades Central II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						810
Land [Member] | Greenway I [Member]
Real Estate Properties [Line Items]
Total real estate, cost						561
Land [Member] | Greenway III [Member]
Real Estate Properties [Line Items]
Total real estate, cost						702
Land [Member] | Undeveloped Land [Member]
Real Estate Properties [Line Items]
Total real estate, cost						3,134
Land [Member] | Richardson Portfolio [Member]
Real Estate Properties [Line Items]
Total real estate, cost						6,244
Land [Member] | Park Highlands [Member]
Real Estate Properties [Line Items]
Total real estate, cost						32,505
Land [Member] | Bellevue Technology Center [Member]
Real Estate Properties [Line Items]
Total real estate, cost						25,506
Land [Member] | Powers Ferry Landing East [Member]
Real Estate Properties [Line Items]
Total real estate, cost						1,643
Land [Member] | 1800 West Loop [Member]
Real Estate Properties [Line Items]
Total real estate, cost						8,360
Land [Member] | West Loop I and II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						7,300
Land [Member] | Burbank Collection [Member]
Real Estate Properties [Line Items]
Total real estate, cost						4,175
Land [Member] | Austin Suburban Portfolio [Member]
Real Estate Properties [Line Items]
Total real estate, cost						8,288
Land [Member] | Westmoor Center [Member]
Real Estate Properties [Line Items]
Total real estate, cost						10,058
Land [Member] | Central Building [Member]
Real Estate Properties [Line Items]
Total real estate, cost						7,015
Land [Member] | 50 Congress Street [Member]
Real Estate Properties [Line Items]
Total real estate, cost						9,876
Land [Member] | 1180 Raymond [Member]
Real Estate Properties [Line Items]
Total real estate, cost						8,292
Land [Member] | Park Highlands II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						22,759
Land [Member] | Maitland Promenade II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						3,434
Land [Member] | Plaza Buildings [Member]
Real Estate Properties [Line Items]
Total real estate, cost						53,040
Land [Member] | 424 Bedford [Member]
Real Estate Properties [Line Items]
Total real estate, cost						8,860
Land [Member] | Richardson Land II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						3,430
Land [Member] | Westpark Portfolio [Member]
Real Estate Properties [Line Items]
Total real estate, cost						36,085
Buildings and Improvements [Member]
Real Estate Properties [Line Items]
Total real estate, cost						734,695	646,979
Buildings and Improvements [Member] | Northridge Center I & II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						7,648
Buildings and Improvements [Member] | Iron Point Business Park [Member]
Real Estate Properties [Line Items]
Total real estate, cost						19,630
Buildings and Improvements [Member] | Palisades Central I [Member]
Real Estate Properties [Line Items]
Total real estate, cost						10,390
Buildings and Improvements [Member] | Palisades Central II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						17,989
Buildings and Improvements [Member] | Greenway I [Member]
Real Estate Properties [Line Items]
Total real estate, cost						2,377
Buildings and Improvements [Member] | Greenway III [Member]
Real Estate Properties [Line Items]
Total real estate, cost						3,734
Buildings and Improvements [Member] | Undeveloped Land [Member]
Real Estate Properties [Line Items]
Total real estate, cost						0
Buildings and Improvements [Member] | Richardson Portfolio [Member]
Real Estate Properties [Line Items]
Total real estate, cost						34,490
Buildings and Improvements [Member] | Park Highlands [Member]
Real Estate Properties [Line Items]
Total real estate, cost						0
Buildings and Improvements [Member] | Bellevue Technology Center [Member]
Real Estate Properties [Line Items]
Total real estate, cost						56,292
Buildings and Improvements [Member] | Powers Ferry Landing East [Member]
Real Estate Properties [Line Items]
Total real estate, cost						8,016
Buildings and Improvements [Member] | 1800 West Loop [Member]
Real Estate Properties [Line Items]
Total real estate, cost						59,960
Buildings and Improvements [Member] | West Loop I and II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						31,418
Buildings and Improvements [Member] | Burbank Collection [Member]
Real Estate Properties [Line Items]
Total real estate, cost						9,426
Buildings and Improvements [Member] | Austin Suburban Portfolio [Member]
Real Estate Properties [Line Items]
Total real estate, cost						68,497
Buildings and Improvements [Member] | Westmoor Center [Member]
Real Estate Properties [Line Items]
Total real estate, cost						65,284
Buildings and Improvements [Member] | Central Building [Member]
Real Estate Properties [Line Items]
Total real estate, cost						26,914
Buildings and Improvements [Member] | 50 Congress Street [Member]
Real Estate Properties [Line Items]
Total real estate, cost						41,059
Buildings and Improvements [Member] | 1180 Raymond [Member]
Real Estate Properties [Line Items]
Total real estate, cost						37,379
Buildings and Improvements [Member] | Park Highlands II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						0
Buildings and Improvements [Member] | Maitland Promenade II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						24,300
Buildings and Improvements [Member] | Plaza Buildings [Member]
Real Estate Properties [Line Items]
Total real estate, cost						137,551
Buildings and Improvements [Member] | 424 Bedford [Member]
Real Estate Properties [Line Items]
Total real estate, cost						25,395
Buildings and Improvements [Member] | Richardson Land II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						0
Buildings and Improvements [Member] | Westpark Portfolio [Member]
Real Estate Properties [Line Items]
Total real estate, cost						81,436
Tenant Origination and Absorption Costs [Member]
Real Estate Properties [Line Items]
Total real estate, cost						48,602	$ 43,894
Tenant Origination and Absorption Costs [Member] | Northridge Center I & II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						0
Tenant Origination and Absorption Costs [Member] | Iron Point Business Park [Member]
Real Estate Properties [Line Items]
Total real estate, cost						0
Tenant Origination and Absorption Costs [Member] | Palisades Central I [Member]
Real Estate Properties [Line Items]
Total real estate, cost						684
Tenant Origination and Absorption Costs [Member] | Palisades Central II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						749
Tenant Origination and Absorption Costs [Member] | Greenway I [Member]
Real Estate Properties [Line Items]
Total real estate, cost						0
Tenant Origination and Absorption Costs [Member] | Greenway III [Member]
Real Estate Properties [Line Items]
Total real estate, cost						559
Tenant Origination and Absorption Costs [Member] | Undeveloped Land [Member]
Real Estate Properties [Line Items]
Total real estate, cost						0
Tenant Origination and Absorption Costs [Member] | Richardson Portfolio [Member]
Real Estate Properties [Line Items]
Total real estate, cost						1,992
Tenant Origination and Absorption Costs [Member] | Park Highlands [Member]
Real Estate Properties [Line Items]
Total real estate, cost						0
Tenant Origination and Absorption Costs [Member] | Bellevue Technology Center [Member]
Real Estate Properties [Line Items]
Total real estate, cost						3,813
Tenant Origination and Absorption Costs [Member] | Powers Ferry Landing East [Member]
Real Estate Properties [Line Items]
Total real estate, cost						99
Tenant Origination and Absorption Costs [Member] | 1800 West Loop [Member]
Real Estate Properties [Line Items]
Total real estate, cost						5,184
Tenant Origination and Absorption Costs [Member] | West Loop I and II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						2,139
Tenant Origination and Absorption Costs [Member] | Burbank Collection [Member]
Real Estate Properties [Line Items]
Total real estate, cost						725
Tenant Origination and Absorption Costs [Member] | Austin Suburban Portfolio [Member]
Real Estate Properties [Line Items]
Total real estate, cost						2,835
Tenant Origination and Absorption Costs [Member] | Westmoor Center [Member]
Real Estate Properties [Line Items]
Total real estate, cost						6,813
Tenant Origination and Absorption Costs [Member] | Central Building [Member]
Real Estate Properties [Line Items]
Total real estate, cost						1,914
Tenant Origination and Absorption Costs [Member] | 50 Congress Street [Member]
Real Estate Properties [Line Items]
Total real estate, cost						2,485
Tenant Origination and Absorption Costs [Member] | 1180 Raymond [Member]
Real Estate Properties [Line Items]
Total real estate, cost						136
Tenant Origination and Absorption Costs [Member] | Park Highlands II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						0
Tenant Origination and Absorption Costs [Member] | Maitland Promenade II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						3,757
Tenant Origination and Absorption Costs [Member] | Plaza Buildings [Member]
Real Estate Properties [Line Items]
Total real estate, cost						7,748
Tenant Origination and Absorption Costs [Member] | 424 Bedford [Member]
Real Estate Properties [Line Items]
Total real estate, cost						0
Tenant Origination and Absorption Costs [Member] | Richardson Land II [Member]
Real Estate Properties [Line Items]
Total real estate, cost						0
Tenant Origination and Absorption Costs [Member] | Westpark Portfolio [Member]
Real Estate Properties [Line Items]
Total real estate, cost						$ 8,962

REAL ESTATE HELD FOR INVESTME35

REAL ESTATE HELD FOR INVESTMENT (Operating Leases) (Narrative) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)Tenants	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Operating Leased Assets [Line Items]
Recognition of Deferred Revenue	$ 975	$ 2,734
Deferred rent receivables	24,600		$ 22,800
Incentive to Lessee	$ 3,400		2,800
Number of tenants | Tenants	600
Maximum [Member]
Operating Leased Assets [Line Items]
Operating lease, term	11 years 9 months 18 days
Weighted Average [Member]
Operating Leased Assets [Line Items]
Operating lease, term	3 years 7 months 6 days
Other Liabilities [Member]
Operating Leased Assets [Line Items]
Security deposit liability	$ 6,400		$ 5,300
Apartment Building [Member]
Operating Leased Assets [Line Items]
Operating lease, term	1 year

REAL ESTATE HELD FOR INVESTME36

REAL ESTATE HELD FOR INVESTMENT (Future Minimum Rental Income) (Details) $ in Thousands	Jun. 30, 2016USD ($)
Real Estate [Abstract]
July 1, 2016 through December 31, 2016	$ 44,308
2,017	86,421
2,018	74,228
2,019	60,947
2,020	47,155
Thereafter	109,071
Future minimum rental income	$ 422,130

REAL ESTATE HELD FOR INVESTME37

REAL ESTATE HELD FOR INVESTMENT (Highest Tenant Industry Concentrations- Greater than 10% of Annual Base Rent) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)Tenants
Concentration Risk [Line Items]
Number of tenants | Tenants	600
Annualized Base Rent | $	$ 21,920
Percentage of Annualized Base Rent	24.00%
Industry - Computer System Design & Programming [Member]
Concentration Risk [Line Items]
Number of tenants | Tenants	57
Annualized Base Rent | $	$ 11,320
Percentage of Annualized Base Rent	12.40%
Industry - Finance [Member]
Concentration Risk [Line Items]
Number of tenants | Tenants	55
Annualized Base Rent | $	$ 10,600
Percentage of Annualized Base Rent	11.60%

REAL ESTATE HELD FOR INVESTME38

REAL ESTATE HELD FOR INVESTMENT (Geographic Concentration Risk) (Details)	6 Months Ended
	Jun. 30, 2016
Concentration Risk [Line Items]
Concentration risk, percentage	24.00%
Washington [Member] | Assets, Total [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	34.00%
Texas [Member] | Assets, Total [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	16.60%

REAL ESTATE HELD FOR INVESTME39

REAL ESTATE HELD FOR INVESTMENT (Property Damages) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Real Estate Properties [Line Items]
Loss due to property damages	$ 2,017,000	$ 2,660,000
Damaged Properties [Member]
Real Estate Properties [Line Items]
Maximum deductible per incident	100,000
Property damages	1,600,000
Estimated insurance recoveries	1,500,000
Loss due to property damages	$ 100,000

REAL ESTATE HELD FOR INVESTME40

REAL ESTATE HELD FOR INVESTMENT (Acquisition) (Details) $ in Thousands	May 10, 2016USD ($)aft²property	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total real estate, cost		$ 1,045,072		$ 1,045,072		$ 914,074
Above-market leases, net		852		852		1,038
Below-market leases, net		2,602		2,602		2,735
Real estate acquisition fees and expenses		268	$ 0	268	$ 0
Revenues		33,866	28,667	62,232	56,610
Operating expenses		35,714	$ 30,781	68,820	$ 61,440
Land [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total real estate, cost		261,775		261,775		223,201
Buildings and Improvements [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total real estate, cost		734,695		734,695		646,979
Tenant Origination and Absorption Costs [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total real estate, cost		48,602		48,602		$ 43,894
Westpark Portfolio [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net rentable area | ft²	778,472
Area of land | a	41
Purchase price	$ 125,800
Above-market leases, net		100		100
Below-market leases, net		600		600
Real estate acquisition fees and expenses				1,500
Revenues				1,700
Operating expenses				400
Westpark Portfolio [Member] | Tenant Origination and Absorption Costs [Member] | Weighted Average [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Remaining amortization period	4 years 4 months 24 days
Westpark Portfolio [Member] | Above Market Leases [Member] | Weighted Average [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Remaining amortization period	2 years 8 months 12 days
Westpark Portfolio [Member] | Below-Market Lease Liabilities [Member] | Weighted Average [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Remaining amortization period	3 years 6 months
Westpark Portfolio [Member] | Land [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total real estate, cost		36,100		36,100
Westpark Portfolio [Member] | Buildings and Improvements [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total real estate, cost		81,200		81,200
Westpark Portfolio [Member] | Tenant Origination and Absorption Costs [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total real estate, cost		$ 9,000		$ 9,000
Westpark Portfolio [Member] | Office/Flex/Industrial Buildings [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties acquired | property	21

TENANT ORIGINATION AND ABSORP41

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination And Absorption Costs, Cost	$ 48,602		$ 48,602		$ 43,894
Tenant Origination and Absorption Costs, Accumulated Amortization	(23,191)		(23,191)		(22,749)
Tenant Origination and Absorption Costs, Net Amount	25,411		25,411		21,145
Tenant Origination and Absorption Costs, Amortization expense	(2,486)	$ (2,716)	(4,697)	$ (5,639)
Above-Market Lease Assets, Cost	2,315		2,315		2,399
Above-Market Lease Assets, Accumulated Amortization	(1,463)		(1,463)		(1,361)
Above-Market Lease Assets, Net Amount	852		852		1,038
Above-Market Lease Assets, Amortization expense	(120)	(258)	(240)	(531)
Below-Market Lease Liabilities, Cost	(5,839)		(5,839)		(5,826)
Below-Market Lease Liabilities, Accumulated Amortization	3,237		3,237		3,091
Below-Market Lease Liabilities, Net Amount	(2,602)		(2,602)		$ (2,735)
Below-Market Lease Liabilities, Amortization expense	$ 381	$ 445	$ 689	$ 939

TENANT ORIGINATION AND ABSORP42

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items]
Tax abatement asset	$ 6,800		$ 6,800		$ 7,200
Depreciation and amortization	12,091	$ 11,159	23,099	$ 22,387
Property Tax Abatement Intangible Asset [Member]
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items]
Depreciation and amortization	$ 200	$ 200	$ 500	$ 500

REAL ESTATE LOAN RECEIVABLE (Lo

REAL ESTATE LOAN RECEIVABLE (Loans Receivables) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)LoansReceivables
Real Estate Properties [Line Items]
Number of real estate loans receivable | LoansReceivables		1
Book Value	$ 0	$ 27,850
Mortgages [Member] | University House First Mortgage [Member]
Real Estate Properties [Line Items]
Date Originated	Mar. 20, 2013
Outstanding Principal Balance	$ 0
Book Value	$ 0	$ 27,850

REAL ESTATE LOAN RECEIVABLE (Sc

REAL ESTATE LOAN RECEIVABLE (Schedule of Interest Income from Real Estate Loans Receivable) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Receivables [Abstract]
Contractual interest income	$ 3,655	$ 774	$ 3,655	$ 1,540
Accretion of closing costs, origination fees and extension fees, net	0	219	0	428
Interest income from real estate loan receivable	$ 3,655	$ 993	$ 3,655	$ 1,968

REAL ESTATE LOAN RECEIVABLE (Na

REAL ESTATE LOAN RECEIVABLE (Narrative) (Details) - University House First Mortgage [Member] - USD ($) $ in Millions	Apr. 22, 2016	Jun. 30, 2016
Mortgage Loans on Real Estate [Line Items]
Proceeds from notes receivable	$ 31.6
Mortgages [Member]
Mortgage Loans on Real Estate [Line Items]
Outstanding principal balance to be recovered		$ 27.9

REAL ESTATE SALES (Narrative) (

REAL ESTATE SALES (Narrative) (Details) - property	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties classified as held for sale	0
Office Building [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties disposed		2

REAL ESTATE SALES (Revenue and

REAL ESTATE SALES (Revenue and Expenses for Real Estate Held-for-Sale) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Total revenues	$ 0	$ 6	$ 0	$ 216
Total expenses	$ 15	$ 130	$ 17	$ 565

NOTES AND BONDS PAYABLE (Narrat

NOTES AND BONDS PAYABLE (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Interest expense	$ 7,185	$ 3,857	$ 12,362	$ 7,769
Amortization of deferred financing costs	1,000	800	1,772	1,532
Interest capitalized	500	$ 500	952	$ 992
Deferred finance costs	11,700		11,700		$ 4,700
Interest payable	$ 4,700		$ 4,700		1,200
Notes and Bonds Payable [Member]
Debt Instrument [Line Items]
Deferred finance costs					3,500
Prepaid Expenses and Other Current Assets [Member]
Debt Instrument [Line Items]
Deferred finance costs					$ 1,200

NOTES AND BONDS PAYABLE (Schedu

NOTES AND BONDS PAYABLE (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total Notes and Bonds Payable principal outstanding	$ 833,406	$ 550,796
Net Premium/Discount on Notes and Bond Payable	68	50
Deferred financing costs, net	(11,702)	(3,523)
Total Notes and Bonds Payable, net	$ 821,772	547,323
One-month LIBOR [Member] | Mortgages [Member] | Richardson Joint Venture [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	4.00%
Richardson Portfolio [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Notes payable	$ 40,889	41,177
Interest rate, effective percentage	2.56%
Maturity Date	May 1, 2017
Richardson Portfolio [Member] | One-month LIBOR [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	2.10%
Bellevue Technology Center [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Notes payable	$ 59,720	52,960
Interest rate, effective percentage	2.71%
Maturity Date	Mar. 1, 2017
Bellevue Technology Center [Member] | One-month LIBOR [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%
Portfolio Revolving Loan Facility [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Notes payable	$ 58,954	47,087
Interest rate, effective percentage	2.71%
Maturity Date	May 1, 2017
Portfolio Revolving Loan Facility [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 63,500
Portfolio Revolving Loan Facility [Member] | Revolving Credit Facility [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Amount outstanding	47,200
Unused borrowing capacity, amount	16,300
Portfolio Revolving Loan Facility [Member] | Non-Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	13,000
Portfolio Revolving Loan Facility [Member] | Non-Revolving Credit Facility [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Amount outstanding	11,800
Unused borrowing capacity, amount	$ 1,200
Portfolio Revolving Loan Facility [Member] | One-month LIBOR [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%
Portfolio Mortgage Loan [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Notes payable	$ 103,932	100,032
Interest rate, effective percentage	2.71%
Maturity Date	Jul. 1, 2017
Portfolio Mortgage Loan [Member] | One-month LIBOR [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%
Burbank Collection Mortgage Loan [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Notes payable	$ 9,098	9,098
Interest rate, effective percentage	2.85%
Maturity Date	Sep. 30, 2016
Burbank Collection Mortgage Loan [Member] | One-month LIBOR [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	2.35%
50 Congress Mortgage Loan [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Notes payable	$ 28,766	28,075
Interest rate, effective percentage	2.36%
Maturity Date	Oct. 1, 2017
50 Congress Mortgage Loan [Member] | One-month LIBOR [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.90%
1180 Raymond Bond [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Bonds payable	$ 6,715	6,795
Contractual interest rate, percentage	6.50%
Interest rate, effective percentage	6.50%
Maturity Date	Sep. 1, 2036
Central Building Mortgage Loan [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Notes payable	$ 25,969	24,896
Interest rate, effective percentage	2.21%
Maturity Date	Nov. 13, 2018
Central Building Mortgage Loan [Member] | One-month LIBOR [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Maitland Promenade II Mortgage Loan [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Notes payable	$ 20,019	20,182
Interest rate, effective percentage	3.36%
Maturity Date	Jan. 1, 2017
Maitland Promenade II Mortgage Loan [Member] | Secured Debt [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Interest rate, effective percentage	3.25%
Maitland Promenade II Mortgage Loan [Member] | One-month LIBOR [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	2.90%
Westmoor Center Mortgage Loan [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Notes payable	$ 61,373	56,036
Interest rate, effective percentage	2.71%
Maturity Date	Feb. 1, 2018
Westmoor Center Mortgage Loan [Member] | One-month LIBOR [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%
Plaza Buildings Senior Loan [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Notes payable	$ 110,493	111,000
Interest rate, effective percentage	2.36%
Maturity Date	Jan. 14, 2017
Plaza Buildings Senior Loan [Member] | One-month LIBOR [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.90%
424 Bedford Mortgage Loan [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Notes payable	$ 25,098	25,358
Contractual interest rate, percentage	3.91%
Interest rate, effective percentage	3.91%
Maturity Date	Oct. 1, 2022
1180 Raymond Mortgage Loan [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Notes payable	$ 31,000	28,100
Basis spread on variable rate	2.25%
Interest rate, effective percentage	2.71%
Maturity Date	Dec. 1, 2017
KBS SOR (BVI) Holdings, Ltd. Series A Debentures [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Bonds payable	$ 251,380	$ 0
Contractual interest rate, percentage	4.25%
Interest rate, effective percentage	4.25%
Maturity Date	Mar. 1, 2023

NOTES AND BONDS PAYABLE (Sche50

NOTES AND BONDS PAYABLE (Schedule of Maturities of Long-term Debt) (Details) $ in Thousands	Jun. 30, 2016USD ($)
Notes and Bonds Payable [Abstract]
July 1, 2016 through December 31, 2016	$ 12,073
2,017	452,461
2,018	87,542
2,019	51,088
2,020	51,122
Thereafter	179,120
Notes and bond payable outstanding	$ 833,406

NOTES AND BONDS PAYABLE (Recent

NOTES AND BONDS PAYABLE (Recent Bond Financing) (Details) - Bonds Payable [Member] - Series A Debentures [Member] $ in Millions	Mar. 07, 2016ILS (₪)	Mar. 02, 2016ILS (₪)	Mar. 01, 2016ILS (₪)	Mar. 31, 2016USD ($)	Mar. 31, 2016ILS (₪)	Jun. 30, 2016USD ($)	Jun. 30, 2016ILS (₪)
Debt Instrument [Line Items]
Maximum borrowing capacity | ₪		₪ 1,000,000,000
Interest rate during period				4.25%	4.25%
Proceeds from issuance of debt	₪ 127,700,000		₪ 842,500,000	$ 251.4	₪ 970,200,000
Principal installment payments required as percent of total debt		20.00%
Payments of debt issuance costs | $				$ 9.8
Funded amount						$ 5.2	₪ 20,000,000
Required expense reserve						$ 0.3	₪ 1,000,000
Maximum [Member]
Debt Instrument [Line Items]
Interest rate during period		4.25%

FAIR VALUE DISCLOSURES (Schedul

FAIR VALUE DISCLOSURES (Schedule of Face Value, Carrying Amounts and Fair Value) (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real estate loans receivable, Face Value	$ 0	$ 27,850,000
Notes and bond payable, Face Value	582,026,000	550,796,000
Series A Debentures [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes and bond payable, Face Value	251,380,000	0
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real estate loans receivable, Value	0	27,850,000
Notes and bond payable, Value	579,655,000	547,323,000
Carrying Amount [Member] | Series A Debentures [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes and bond payable, Value	242,117,000	0
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real estate loans receivable, Value	0	27,850,000
Notes and bond payable, Value	584,342,000	554,007,000
Fair Value [Member] | Series A Debentures [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes and bond payable, Value	$ 247,107,000	$ 0

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Payment for administrative fees	$ 41	$ 85	$ 29	$ 62
Advisor and Dealer Manager [Member]
Related Party Transaction [Line Items]
Incurred	3,827	2,109	5,959	4,309
Payable as of	59		59		$ 59
Advisor and Dealer Manager [Member] | Expensed [Member] | Asset Management Fees [Member]
Related Party Transaction [Line Items]
Expenses	2,205	2,077	4,293	4,130
Payable as of	0		0		0
Advisor and Dealer Manager [Member] | Expensed [Member] | Real Estate Acquisition Fee [Member]
Related Party Transaction [Line Items]
Expenses	1,274	0	1,274	0
Payable as of	0		0		0
Advisor and Dealer Manager [Member] | Expensed [Member] | Reimbursement of Operating Expenses [Member]
Related Party Transaction [Line Items]
Expenses	69	32	113	77
Payable as of	59		59		59
Advisor and Dealer Manager [Member] | Expensed [Member] | Dispositon Fees [Member]
Related Party Transaction [Line Items]
Expenses	279	$ 0	279	$ 102
Payable as of	0		0		$ 0
KBS Capital Advisors LLC [Member] | Legal and Professional Fees Reimbursement [Member]
Related Party Transaction [Line Items]
Due from affiliate	69		69
KBS Capital Advisors LLC [Member] | Property Insurance Rebate [Member]
Related Party Transaction [Line Items]
Due from affiliate	$ 66		$ 66

INVESTMENT IN UNCONSOLIDATED 54

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Narrative) (Details) $ in Thousands	May 18, 2012USD ($)ft²property	Jun. 30, 2016USD ($)ft²property	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)ft²property	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)	May 02, 2014ft²
Schedule of Equity Method Investments [Line Items]
Rentable square feet | ft²		5,200,000		5,200,000
Initial capital contribution				$ 1,800	$ 1,680
Investments in unconsolidated joint ventures		$ 75,889		75,889		$ 74,437
Acquisition related costs		$ 268	$ 0	$ 268	$ 0
NIP Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Number of real estate properties | property		21		21
Rentable square feet | ft²	10,800,000
Initial capital contribution	$ 8,000
Investments in unconsolidated joint ventures		$ 5,305		$ 5,305		5,305
NIP Joint Venture [Member] | Maximum [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest	5.00%	5.00%		5.00%
NIP Joint Venture [Member] | Industrial [Member]
Schedule of Equity Method Investments [Line Items]
Number of real estate properties | property	21
110 William Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Number of real estate properties | property		1		1
Rentable square feet | ft²							928,157
Ownership interest		60.00%		60.00%
Investments in unconsolidated joint ventures		$ 70,584		$ 70,584		$ 69,132
Area of land | ft²							0.8
Acquisition related costs				$ 1,500
110 William Joint Venture [Member] | 110 William JV Partner [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest							60.00%
Noncontrolling interest							40.00%

INVESTMENT IN UNCONSOLIDATED 55

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Investments in Unconsolidated Joint Ventures) (Details) $ in Thousands	Jun. 30, 2016USD ($)property	Dec. 31, 2015USD ($)	May 18, 2012
Schedule of Equity Method Investments [Line Items]
Investment Balance	$ 75,889	$ 74,437
OCM NIP JV Holdings, L.P. and HC KBS NIP JV, LLC (“HC-KBS”) [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | property	21
Investment Balance	$ 5,305	5,305
OCM NIP JV Holdings, L.P. and HC KBS NIP JV, LLC (“HC-KBS”) [Member] | Maximum [Member]
Schedule of Equity Method Investments [Line Items]
Ownership %	5.00%		5.00%
110 William Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | property	1
Ownership %	60.00%
Investment Balance	$ 70,584	$ 69,132

INVESTMENT IN UNCONSOLIDATED 56

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Summarized Financial Information - 110 William Joint Venture) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Balance Sheet Related Disclosures [Abstract]
Real estate assets, net of accumulated depreciation and amortization	$ 940,244		$ 940,244		$ 822,514
Total assets	1,224,271		1,224,271		1,004,214
Other liabilities	24,392		24,392		17,905
Total Liabilities and Equity	1,224,271		1,224,271		1,004,214
Balance outstanding	833,406		833,406
Deferred financing costs, net	11,702		11,702		3,523
Income Statement [Abstract]
Revenues	33,866	$ 28,667	62,232	$ 56,610
Operating, maintenance, and management	9,303	8,980	18,823	17,924
Real estate taxes and insurance	4,029	3,839	7,903	7,498
Depreciation and amortization	12,091	11,159	23,099	22,387
Interest expense	7,185	3,857	12,362	7,769
Total expenses	35,714	30,781	68,820	61,440
Other income	0	4,889	0	4,889
Net (loss) income attributable to common stockholders	(1,959)	1,526	(6,853)	3,761
Company’s equity in loss of unconsolidated joint venture	(152)	(118)	(348)	(336)
Mortgages [Member] | Mezzanine Loan [Member]
Balance Sheet Related Disclosures [Abstract]
Balance outstanding					20,000
110 William Joint Venture [Member]
Balance Sheet Related Disclosures [Abstract]
Real estate assets, net of accumulated depreciation and amortization	267,708		267,708		269,664
Other assets	20,276		20,276		18,973
Total assets	287,984		287,984		288,637
Notes payable, net	160,035		160,035		162,395
Other liabilities	12,870		12,870		13,617
Partners’ capital	115,079		115,079		112,625
Total Liabilities and Equity	287,984		287,984		288,637
Income Statement [Abstract]
Revenues	8,388	8,413	16,639	16,698
Operating, maintenance, and management	2,453	2,784	4,958	5,487
Real estate taxes and insurance	1,533	1,352	2,967	2,687
Depreciation and amortization	3,147	3,222	6,268	6,282
Interest expense	1,508	1,542	3,024	3,075
Total expenses	8,641	8,900	17,217	17,531
Other income	16	307	32	308
Net (loss) income attributable to common stockholders	(237)	(180)	(546)	(525)
Company’s equity in loss of unconsolidated joint venture	(152)	$ (118)	(348)	$ (336)
110 William Joint Venture [Member] | Mortgages [Member] | First Mortgage Loan [Member]
Balance Sheet Related Disclosures [Abstract]
Balance outstanding	137,500		$ 137,500		138,600
Basis spread on variable rate			4.80%
110 William Joint Venture [Member] | Mortgages [Member] | Mezzanine Loan [Member]
Balance Sheet Related Disclosures [Abstract]
Balance outstanding	20,000		$ 20,000
Basis spread on variable rate			9.50%
110 William Joint Venture [Member] | Notes Payable [Member]
Balance Sheet Related Disclosures [Abstract]
Unamortized premium	3,000		$ 3,000		4,500
Deferred financing costs, net	$ 500		$ 500		$ 700

UNAUDITED PRO FORMA FINANCIAL57

UNAUDITED PRO FORMA FINANCIAL INFORMATION (Narrative) (Details) - Westpark Portfolio [Member] $ in Millions	6 Months Ended
	Jun. 30, 2016USD ($)property
Business Acquisition [Line Items]
Acquisition related costs | $	$ 1.5
Office Portfolio [Member]
Business Acquisition [Line Items]
Number of real estate properties acquired | property	1

UNAUDITED PRO FORMA FINANCIAL58

UNAUDITED PRO FORMA FINANCIAL INFORMATION (Unaudited Pro Forma Basis) (Details) - Westpark Portfolio [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Acquisition [Line Items]
Revenues	$ 35,037	$ 31,137	$ 66,068	$ 61,549
Depreciation and amortization	12,694	12,224	25,074	24,516
Net (loss) income	$ (360)	$ 3,015	$ (5,093)	$ 8,776

SUBSEQUENT EVENTS (Acquisitions

SUBSEQUENT EVENTS (Acquisitions) (Details) $ in Millions	Jul. 11, 2016USD ($)aft²Tenantsproperty	Jun. 30, 2016Tenants
Subsequent Event [Line Items]
Number of tenants		600
Subsequent Event [Member] | 353 Sacramento [Member]
Subsequent Event [Line Items]
Net rentable area | ft²	284,751
Area of land | a	0.35
Purchase price | $	$ 169.5
Percent of property leased	85.00%
Number of tenants	25
Subsequent Event [Member] | 353 Sacramento [Member] | Office Building [Member]
Subsequent Event [Line Items]
Number of real estate properties acquired | property	1

SUBSEQUENT EVENTS (Financing) (

SUBSEQUENT EVENTS (Financing) (Details) - Subsequent Event [Member] - Mortgages [Member] - Westpark Portfolio Mortgage Loan [Member] $ in Millions	Jul. 08, 2016USD ($)
Subsequent Event [Line Items]
Term of credit facility	4 years
Current capacity	$ 85.2
Amount outstanding	83.2
Remaining borrowing capacity	$ 2
Extension period	1 year
One-month LIBOR [Member]
Subsequent Event [Line Items]
Basis spread on variable rate	2.50%

SUBSEQUENT EVENTS (Foreign Curr

SUBSEQUENT EVENTS (Foreign Currency Collar) (Details) - Subsequent Event [Member] - Foreign Currency Collar [Member]	Aug. 08, 2016USD ($)	Aug. 08, 2016ILS (₪)
Subsequent Event [Line Items]
Notional amount | $	$ 100,000,000
Minimum [Member]
Subsequent Event [Line Items]
Notional amount		₪ 372,500,000
Exchange rate	3.7245	3.7245
Maximum [Member]
Subsequent Event [Line Items]
Notional amount		₪ 382,600,000
Exchange rate	3.826	3.826