Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 24, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-54382 | ||
Entity Registrant Name | PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 26-3842535 | ||
Entity Address, Address Line One | 11766 Wilshire Blvd. | ||
Entity Address, Address Line Two | Suite 1670 | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90025 | ||
City Area Code | 424 | ||
Local Phone Number | 208-8100 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 98,027,369 | ||
Entity Central Index Key | 0001452936 | ||
Documents Incorporated by Reference | Registrant incorporates by reference in Part III (Items 10, 11, 12, 13 and 14) of this Form 10-K portions of its Definitive Proxy Statement for its 2021 Annual Meeting of Stockholders. | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Real estate held for investment, net | $ 1,413,023 | $ 759,479 |
Real estate equity securities | 97,903 | 81,439 |
Total real estate and real estate-related investments, net | 1,510,926 | 840,918 |
Cash and cash equivalents | 60,335 | 76,492 |
Restricted cash | 13,984 | 12,002 |
Investments in unconsolidated entities | 79,666 | 78,276 |
Rents and other receivables, net | 25,911 | 16,593 |
Above-market leases, net | 3,157 | 2,973 |
Prepaid expenses and other assets | 21,344 | 13,988 |
Goodwill | 16,342 | 0 |
Total assets | 1,731,665 | 1,041,242 |
Liabilities, mezzanine equity and equity | ||
Notes and bonds payable, net | 1,099,068 | 673,663 |
Accounts payable and accrued liabilities | 24,169 | 21,329 |
Due to affiliate | 2,842 | 1,635 |
Below-market leases, net | 6,462 | 3,180 |
Other liabilities | 34,738 | 19,801 |
Redeemable common stock payable | 864 | 829 |
Restricted stock payable | 14,600 | 16,320 |
Total liabilities | 1,182,743 | 736,757 |
Commitments and contingencies (Note 16) | ||
Mezzanine equity | ||
Restricted stock | 11,009 | 12,089 |
Noncontrolling cumulative convertible redeemable preferred stock | 15,233 | 15,008 |
Redeemable noncontrolling interest | 2,968 | 0 |
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, 98,054,582 and 65,866,765 shares issued and outstanding as of December 31, 2020 and 2019, respectively | 979 | 659 |
Additional paid-in capital | 831,295 | 553,170 |
Cumulative distributions and net income | (325,720) | (277,196) |
Total Pacific Oak Strategic Opportunity REIT, Inc. stockholders’ equity | 506,554 | 276,633 |
Noncontrolling interests | 13,158 | 755 |
Total equity | 519,712 | 277,388 |
Total liabilities, mezzanine equity and equity | $ 1,731,665 | $ 1,041,242 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 98,054,582 | 65,866,765 |
Common stock, shares outstanding (in shares) | 98,054,582 | 65,866,765 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Rental income | $ 100,199 | $ 81,363 | $ 82,746 |
Interest income from real estate debt securities | 0 | 369 | 2,018 |
Dividend income from real estate equity securities | 6,273 | 6,099 | 6,002 |
Total revenues | 114,025 | 93,158 | 95,787 |
Expenses: | |||
Operating, maintenance, and management | 33,882 | 29,294 | 29,110 |
Real estate taxes and insurance | 15,702 | 12,631 | 11,762 |
Hotel expenses | 3,836 | 0 | 0 |
Asset management fees to affiliate | 9,982 | 8,158 | 8,525 |
General and administrative expenses | 7,664 | 7,388 | 8,220 |
Foreign currency transaction loss (gain), net | 2,912 | 12,498 | (10,141) |
Depreciation and amortization | 45,041 | 34,004 | 35,006 |
Interest expense | 29,138 | 28,849 | 31,054 |
Other-than-temporary impairment of debt securities | 0 | 0 | 2,500 |
Total expenses | 148,157 | 132,822 | 116,036 |
Other income (loss): | |||
Gain from remeasurement of prior equity interest | 2,009 | 0 | 0 |
Income from NIP | 97 | 0 | 428 |
Equity in income (loss) of unconsolidated entities | 1,621 | 6,621 | (9,830) |
Casualty-related gain (loss) | 51 | (506) | 0 |
Other interest income | 348 | 2,120 | 1,884 |
Loss (gain) on real estate equity securities | (14,814) | 20,379 | (19,010) |
(Loss) gain on sale of real estate | (110) | 34,077 | 80,594 |
Gain (loss) on extinguishment of debt | 415 | (1,106) | (493) |
Transaction and related costs | (6,018) | (4,462) | 0 |
Subordinated performance fee due upon termination to affiliate | 1,720 | (32,640) | 0 |
Total other (loss) income, net | (14,681) | 24,483 | 53,573 |
Net (loss) income | (48,813) | (15,181) | 33,324 |
Net loss (income) attributable to noncontrolling interests | 738 | (2,101) | 222 |
Net loss attributable to redeemable noncontrolling interest | 56 | 0 | 0 |
Preferred stock dividends | (989) | 0 | 0 |
Net (loss) income attributable to common stockholders | $ (49,008) | $ (17,282) | $ 33,546 |
Net (loss) income per common share, basic and diluted (in dollars per share) | $ (0.65) | $ (0.26) | $ 0.57 |
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 75,407,976 | 66,443,585 | 58,738,732 |
Hotel revenues | |||
Revenues: | |||
Revenue from contract with customer | $ 3,718 | $ 0 | $ 0 |
Other operating income | |||
Revenues: | |||
Revenue from contract with customer | $ 3,835 | $ 5,327 | $ 5,021 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Total Stockholders’ Equity | Total Stockholders’ EquityCumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Cumulative Distributions and Net Income | Cumulative Distributions and Net IncomeCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomeCumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interests |
Balance (in shares) at Dec. 31, 2017 | 52,053,817 | ||||||||||
Balance at Dec. 31, 2017 | $ 260,983 | $ 2,472 | $ 259,013 | $ 2,472 | $ 521 | $ 388,800 | $ (155,454) | $ 27,618 | $ 25,146 | $ (25,146) | $ 1,970 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 33,324 | 33,546 | 33,546 | (222) | |||||||
Issuance of common stock (in shares) | 123,264 | ||||||||||
Issuance of common stock | 1,418 | 1,418 | $ 1 | 1,417 | |||||||
Stock distribution issued (in shares) | 25,976,746 | ||||||||||
Stock distribution issued | 278,210 | 278,210 | $ 259 | 277,951 | |||||||
Transfers from redeemable common stock | 3,113 | 3,113 | 3,113 | ||||||||
Redemptions of common stock (in shares) | (11,330,966) | ||||||||||
Redemptions of common stock | (123,613) | (123,613) | $ (113) | (123,500) | |||||||
Distributions declared | (162,694) | (162,694) | (162,694) | ||||||||
Other offering costs | (11) | (11) | (11) | ||||||||
Noncontrolling interest contribution | 762 | 0 | 762 | ||||||||
Balance (in shares) at Dec. 31, 2018 | 66,822,861 | ||||||||||
Balance at Dec. 31, 2018 | 293,964 | 291,454 | $ 668 | 547,770 | (256,984) | 0 | 2,510 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | (15,181) | (17,282) | (17,282) | 2,101 | |||||||
Issuance of common stock (in shares) | 84,248 | ||||||||||
Issuance of common stock | 835 | 835 | $ 1 | 834 | |||||||
Transfers from redeemable common stock | 9,171 | 9,171 | 9,171 | ||||||||
Redemptions of common stock (in shares) | (1,040,344) | ||||||||||
Redemptions of common stock | (10,028) | (10,028) | $ (10) | (10,018) | |||||||
Distributions declared | (1,721) | (1,721) | (1,721) | ||||||||
Other offering costs | (27) | (27) | (27) | ||||||||
Restricted Stock | 5,440 | 5,440 | 5,440 | ||||||||
Adjustments to redemption value of mezzanine equity restricted stock | (1,209) | (1,209) | (1,209) | ||||||||
Noncontrolling interest contribution | 13 | 0 | 13 | ||||||||
Distributions to noncontrolling interests | $ (3,869) | 0 | (3,869) | ||||||||
Balance (in shares) at Dec. 31, 2019 | 65,866,765 | 65,866,765 | |||||||||
Balance at Dec. 31, 2019 | $ 277,388 | 276,633 | $ 659 | 553,170 | (277,196) | 0 | 755 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | (49,746) | (49,008) | (49,008) | (738) | |||||||
Issuance of common stock (in shares) | 24,645 | ||||||||||
Issuance of common stock | 262 | 262 | 262 | ||||||||
Transfers to redeemable common stock | (35) | (35) | (35) | ||||||||
Redemptions of common stock (in shares) | (222,470) | ||||||||||
Redemptions of common stock | (2,230) | (2,230) | $ (3) | (2,227) | |||||||
Distributions declared | (596) | (596) | (596) | ||||||||
Other offering costs | (19) | (19) | (19) | ||||||||
Issuance of restricted stock (in shares) | 3,411,737 | ||||||||||
Issuance of restricted stock | 0 | 0 | $ 34 | (34) | |||||||
Adjustments to redemption value of mezzanine equity restricted stock | 1,080 | 1,080 | 1,080 | ||||||||
Issuance of common stock in connection with merger, inclusive of acquisition of noncontrolling interests (in shares) | 28,973,905 | ||||||||||
Issuance of common stock in connection with merger, inclusive of acquisition of noncontrolling interests | 292,792 | 280,467 | $ 289 | 280,178 | 12,325 | ||||||
Noncontrolling interest contribution | 844 | 0 | 844 | ||||||||
Distributions to noncontrolling interests | $ (28) | 0 | (28) | ||||||||
Balance (in shares) at Dec. 31, 2020 | 98,054,582 | 98,054,582 | |||||||||
Balance at Dec. 31, 2020 | $ 519,712 | $ 506,554 | $ 979 | $ 831,295 | $ (325,720) | $ 0 | $ 13,158 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities: | |||
Net (loss) income | $ (48,813) | $ (15,181) | $ 33,324 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Change in subordinated performance fee due upon termination to affiliate | (1,720) | 0 | 0 |
Gain from remeasurement of prior equity interest | (2,009) | 0 | 0 |
Loss due to property damages | 0 | 0 | 964 |
Casualty-related loss | 0 | 506 | 0 |
Equity in (income) loss of unconsolidated entities | (1,260) | (6,621) | 9,830 |
Depreciation and amortization | 45,041 | 34,004 | 35,006 |
Other-than-temporary impairment of debt securities | 0 | 0 | 2,500 |
Loss (gain) on real estate equity securities | 14,814 | (20,379) | 19,010 |
Loss (gain) on real estate sale | 110 | (34,077) | (80,594) |
(Gain) loss on extinguishment of debt | (415) | 1,106 | 493 |
Subordinated performance fee due upon termination | 0 | 32,640 | 0 |
Unrealized loss on interest rate caps | 27 | 50 | 142 |
Deferred rent | (3,447) | (4,078) | (4,736) |
Bad debt expense | 0 | 0 | 161 |
Amortization of above- and below-market leases, net | (852) | (1,091) | (1,152) |
Amortization of deferred financing costs | 3,311 | 3,606 | 3,640 |
Interest accretion on real estate debt securities | 0 | (13) | (108) |
Net amortization of discount (premium) on bond and notes payable | 602 | (99) | 61 |
Foreign currency transaction loss (gain), net | 2,912 | 12,498 | (10,141) |
Changes in assets and liabilities: | |||
Rents and other receivables | (3,456) | (1,548) | (1,801) |
Prepaid expenses and other assets | (2,465) | (5,137) | (7,375) |
Accounts payable and accrued liabilities | (3,161) | (2,334) | 3,387 |
Due to affiliates | (1,637) | 1,606 | 10 |
Other liabilities | 641 | 386 | (478) |
Net cash (used in) provided by operating activities | (1,777) | (4,156) | 2,143 |
Cash Flows from Investing Activities: | |||
Acquisitions of real estate, net of cash acquired | (18,909) | (90,266) | (312,348) |
Cash acquired in connection with the POSOR II Merger | 12,978 | 0 | 0 |
Cash paid to acquire PORT, net of cash acquired | 0 | (46,864) | 0 |
Improvements to real estate | (21,807) | (32,472) | (32,172) |
Proceeds from sales of real estate, net | 332 | 141,548 | 250,576 |
Reimbursement of construction costs | 0 | 0 | 1,636 |
Insurance proceeds received for property damages | 0 | 438 | 0 |
Purchase of interest rate caps | (16) | (28) | (163) |
Proceeds from disposition of foreign currency collars | 14,125 | 0 | 0 |
Contributions to unconsolidated entities | (12,620) | (31,845) | (1,320) |
Distribution of capital from unconsolidated entities | 1,370 | 8,051 | 2,198 |
Investment in real estate equity securities | (35,971) | (15,224) | (30,609) |
Proceeds from the sale of real estate equity securities | 10,964 | 28,033 | 27,786 |
Proceeds from principal repayment on real estate debt securities | 0 | 7,750 | 4,500 |
Proceeds for future development obligations | 0 | 0 | 2,113 |
Funding of development obligations | 0 | (134) | (1,258) |
Net cash used in investing activities | (49,554) | (31,013) | (89,061) |
Cash Flows from Financing Activities: | |||
Proceeds from notes and bonds payable | 112,480 | 84,268 | 223,425 |
Principal payments on notes and bonds payable | (70,649) | (126,603) | (152,516) |
Payments of deferred financing costs | (2,556) | (1,123) | (3,391) |
Payments to redeem common stock | (2,230) | (10,028) | (123,613) |
Payment of prepaid other offering costs | (811) | (157) | (562) |
Distributions paid | (334) | (886) | (70,980) |
Preferred dividends paid | (764) | 0 | 0 |
Noncontrolling interests contributions | 844 | 13 | 762 |
Distributions to noncontrolling interests | (28) | (3,869) | 0 |
Proceeds for noncontrolling preferred stock, net | 0 | 15,008 | 0 |
Other financing proceeds, net | 0 | 1,822 | 0 |
Net cash provided by (used in) financing activities | 35,952 | (41,555) | (126,875) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,204 | 2,491 | (662) |
Net decrease in cash, cash equivalents and restricted cash | (14,175) | (74,233) | (214,455) |
Cash, cash equivalents and restricted cash, beginning of period | 88,494 | 162,727 | 377,182 |
Cash, cash equivalents and restricted cash, end of period | $ 74,319 | $ 88,494 | $ 162,727 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Pacific Oak 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 Pacific Oak Strategic Opportunity (BVI) Holdings, Ltd. (“Pacific Oak 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, Pacific Oak Strategic Opportunity BVI issued one certificate containing 10,000 common shares with no par value to Pacific Oak 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. Pacific Oak 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 was externally managed by KBS Capital Advisors LLC (“KBS Capital Advisors”), an affiliate of the Company, pursuant to an advisory agreement the Company renewed with KBS Capital Advisors on October 7, 2019. KBS Capital Advisors conducted the Company’s operations and managed its portfolio of real estate and other real estate-related investments. On October 31, 2019, KBS Capital Advisors ceased to serve as the Company’s advisor or have any advisory responsibility to the Company immediately following the filing of the Company’s Quarterly Report on Form 10-Q for the period ending September 30, 2019 (filed November 8, 2019) with the Securities and Exchange Commission (the “SEC”). On November 1, 2019, the Company entered into an advisory agreement with Pacific Oak Capital Advisors, LLC (the “Advisor”), which was renewed on November 1, 2020. The advisory agreement is currently effective through November 1, 2021; however the Company or the Advisor may terminate the advisory agreement without cause or penalty upon providing 60 days’ written notice. The terms of the advisory agreement are consistent with those of the advisory agreement that was previously in effect with KBS Capital Advisors, except as discussed in Note 10. 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 December 31, 2020, the Company had sold 6,851,969 shares of common stock under its dividend reinvestment plan for gross offering proceeds of $76.5 million. Also, as of December 31, 2020, the Company had redeemed 24,041,545 shares for $287.6 million. As of December 31, 2020, the Company had issued 25,976,746 shares of common stock in connection with special dividends. 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 27, 2020, the Company issued 3,411,737 restricted shares of its common stock (the “Restricted Stock”) to KBS Capital Advisors pursuant to a Restricted Stock Agreement, dated as of March 27, 2020 (the “Restricted Stock Agreement”). On March 2, 2016, Pacific Oak 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 “Series A Debentures”) at an annual interest rate not to exceed 4.25%. On March 1, 2016, Pacific Oak Strategic Opportunity BVI commenced the institutional tender of the Series A Debentures and accepted application for 842.5 million Israeli new Shekels. On March 7, 2016, Pacific Oak Strategic Opportunity BVI commenced the public tender of the Series A Debentures and accepted 127.7 million Israeli new Shekels. In the aggregate, Pacific Oak Strategic Opportunity BVI accepted 970.2 million Israeli new Shekels (approximately $249.2 million as of March 8, 2016) in both the institutional and public tenders at an annual interest rate of 4.25%. Pacific Oak Strategic Opportunity BVI issued the Series A Debentures on March 8, 2016. In connection with the above-referenced offering, on March 8, 2016, the Operating Partnership assigned to Pacific Oak 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 Pacific Oak 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 Pacific Oak Strategic Opportunity BVI. On February 16, 2020, Pacific Oak Strategic Opportunity BVI issued 254.1 million Israeli new Shekels (approximately $74.1 million as of February 16, 2020) of Series B debentures (the “Series B Debentures”) to Israeli investors pursuant to a public offering registered with the Israel Securities Authority. The Series B Debentures will bear interest at the rate of 3.93% per year. The Series B Debentures have principal installment payments equal to 33.33% of the face amount of the Series B Debentures on January 31st of each year from 2024 to 2026. On January 22, 2020, the Company filed a registration statement on Form S-11 with the SEC to offer up to $1 billion in additional shares of its common stock. This new registration statement contemplates a proposed conversion of the Company to a perpetual-life net asset value or “NAV” REIT that offers and sells shares of its common stock continuously through a number of distribution channels in ongoing public offerings, and seeks to provide increased liquidity to current and future stockholders through an expansion of the Company’s current share redemption program. On December 18, 2020, the Company filed Amendment No. 1 to the registration statement on Form S-11 with the SEC. On February 19, 2020, the Company, Pacific Oak SOR II, LLC, an indirect subsidiary of the Company’s (“Merger Sub”), and Pacific Oak Strategic Opportunity REIT II, Inc. (“POSOR II”) entered into an Agreement and Plan of Merger (the “Merger Agreement”). On October 5, 2020, pursuant to the Merger Agreement, POSOR II merged with and into Merger Sub, with Merger Sub surviving as an indirect subsidiary of the Company’s (the “Merger”). At such time, in accordance with the applicable provisions of the Maryland General Corporation Law and the Maryland Limited Liability Company Act, the separate existence of POSOR II ceased. At the effective time of the Merger, each issued and outstanding share of POSOR II’s common stock (or a fraction thereof), $0.01 par value per share, converted into 0.9643 shares of the Company’s common stock, $0.01 par value per share, or 28,973,905 shares of the Company’s common stock. The combined company after the Merger retained the name “Pacific Oak Strategic Opportunity REIT, Inc.” The Merger was intended to qualify as a “reorganization” under, and within the meaning of, Section 368(a) of the Internal Revenue Code of 1986, as amended. As a result of the Merger, the Company acquired two hotel properties, three office properties, one apartment building, one consolidated joint venture to develop one office/retail property, two real estate equity securities and two investments in unconsolidated entities. Additionally, the Company assumed $331.8 million of loans related to the acquired properties. As of December 31, 2020, the Company consolidated nine office properties, one office portfolio consisting of four office buildings and 14 acres of undeveloped land, two apartment properties, two hotel properties, one residential home portfolio consisting of 1,766 single-family homes, three investments in undeveloped land with approximately 1,000 developable acres and owned four investments in unconsolidated joint ventures and three investments in real estate equity securities. Additionally, as of December 31, 2020, the Company had entered into a consolidated joint venture to develop one office/retail property. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership, Pacific Oak Strategic Opportunity BVI and their direct and indirect wholly owned subsidiaries, and joint ventures in which the Company has a controlling interest and VIEs in which the Company is the primary beneficiary. All significant intercompany balances and transactions are eliminated in consolidation. The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC. Liquidity The Company generally finances its real estate investments using notes payable that are typically structured as non-course secured mortgages with maturities of approximately three to five years, with short term extension options available upon the Company meeting certain debt covenants. Each reporting period management evaluates the Company’s ability to continue as a going concern by evaluating conditions and events, including assessing the liquidity needs to satisfy upcoming debt obligations and the ability to satisfy debt covenant requirements. Through the normal course of operations and as further discussed in Note 7, the Company has $614.2 million of debt obligations coming due over the next 12-month period. In order to satisfy obligations as they mature, management will evaluate its options and may seek to utilize extension options available in the respective loan agreements, may make partial loan paydowns to meet debt covenant requirements, may seek to refinance certain debt instruments, may sell real estate equity securities to convert to cash to make principal payments, may market one or more properties for sale or may negotiate a turnover of one or more secured properties back to the related mortgage lender and remit payment for any associated loan guarantee. Historically, the Company has successfully refinanced debt instruments or utilized extension options in order to satisfy debt obligations as they come due and has not negotiated a turnover of a secured property back to a lender, though the Company may utilize such option if necessary. Based upon these plans, management believes it will have sufficient liquidity to satisfy its obligations as they come due and to continue as a going concern. There can be no assurance as to the certainty or timing of any of management’s plans. Refer to Note 7 for further discussion. 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. 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. Revenue Recognition Real Estate On January 1, 2019, the Company adopted the lease accounting standards under Topic 842 including the package of practical expedients for all leases that commenced before the effective date of January 1, 2019. Accordingly, the Company (i) did not reassess whether any expired or existing contracts are or contain leases, (ii) did not reassess the lease classification for any expired or existing lease, and (iii) did not reassess initial direct costs for any existing leases. The Company did not elect the practical expedient related to using hindsight to reevaluate the lease term. In addition, the Company adopted the practical expedient for land easements and did not assess whether existing or expired land easements that were not previously accounted for as leases under the lease accounting standards of Topic 840 are or contain a lease under Topic 842. In addition, Topic 842 provides an optional transition method to allow entities to apply the new lease accounting standards at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The Company adopted this transition method upon its adoption of the lease accounting standards of Topic 842, which did not result in a cumulative effect adjustment to the opening balance of retained earnings on January 1, 2019. The Company’s comparative periods presented in the financial statements will continue to be reported under the lease accounting standards of Topic 840. In accordance with Topic 842, tenant reimbursements for property taxes and insurance are included in the single lease component of the lease contract (the right of the lessee to use the leased space) and therefore are accounted for as variable lease payments and are recorded as rental income on the Company’s statement of operations beginning January 1, 2019. In addition, the Company adopted the practical expedient available under Topic 842 to not separate nonlease components from the associated lease component and instead to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue recognition standard (Topic 606) and if certain conditions are met, specifically related to tenant reimbursements for common area maintenance which would otherwise be accounted for under the revenue recognition standard. The Company believes the two conditions have been met for tenant reimbursements for common area maintenance as (i) the timing and pattern of transfer of the nonlease components and associated lease components are the same and (ii) the lease component would be classified as an operating lease. Accordingly, tenant reimbursements for common area maintenance are also accounted for as variable lease payments and recorded as rental income on the Company’s statement of operations beginning January 1, 2019. The Company recognizes minimum rent, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when collectibility is determined to be probable and records amounts expected to be received in later years as deferred rent receivable. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that can be taken in the form of cash or a credit against the tenant’s rent) that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how a tenant improvement allowance may be spent; • whether the amount of a tenant improvement allowance is in excess of market rates; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. The Company leases apartment units and single-family homes under operating leases with terms generally of one year or less. Generally, credit investigations will be performed for prospective residents and security deposits will be obtained. The Company recognizes rental revenue, net of concessions, on a straight-line basis over the term of the lease, when collectibility is determined to be probable. In accordance with Topic 842, the Company makes a determination of whether the collectibility of the lease payments in an operating lease is probable. If the Company determines the lease payments are not probable of collection, the Company would fully reserve for any contractual lease payments, deferred rent receivable, and variable lease payments and would recognize rental income at the lesser of (1) on a straight-line basis or (2) cash received. Beginning January 1, 2019, these changes to the Company’s collectibility assessment are reflected as an adjustment to rental income. Prior to January 1, 2019, bad debt expense related to uncollectible accounts receivable and deferred rent receivable was included in operating, maintenance, and management expense in the statement of operations. Any subsequent changes to the collectibility of the allowance for doubtful accounts as of December 31, 2018, which was recorded prior to the adoption of Topic 842, are recorded in operating, maintenance, and management expense in the statement of operations. Beginning January 1, 2019, the Company, as a lessor, records costs to negotiate or arrange a lease that would have been incurred regardless of whether the lease was obtained, such as legal costs incurred to negotiate an operating lease, as an expense and classify such costs as operating, maintenance, and management expense on the Company’s consolidated statement of operations, as these costs are no longer capitalizable under the definition of initial direct costs under Topic 842. Hotel Revenue The Company recognizes revenue for hotels as hotel revenue when earned. Revenues are recorded net of any sales or occupancy tax collected from the Company’s guests. Additionally, some of the Company’s hotel rooms are booked through independent internet travel intermediaries. If the guest pays the independent internet travel intermediary directly, revenue for the room is booked by the Company at the price the Company sold the room to the independent internet travel intermediary, less any discount or commission paid. If the guest pays the Company directly, revenue for the room is booked by the Company on a gross basis. The Company participates in frequent guest programs sponsored by the brand owners of the Company’s hotels and the Company expenses the charges associated with those programs, as incurred. Hotel operating revenues are disaggregated in the real estate footnote into the categories of rooms revenue, food, beverage and convention services revenue, campground revenue and other revenue to demonstrate how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. Room revenue is generated through contracts with customers whereby the customer agrees to pay a daily rate for the right to use a hotel room. The Company’s contract performance obligations are fulfilled at the end of the day that the customer is provided the room and revenue is recognized daily at the contract rate. The Company records contract liabilities in the form of advanced deposits when a customer or group of customers provides a deposit for a future stay at the Company’s hotels. Advanced deposits for room revenue are included in the balance of other liabilities on the consolidated balance sheet. Advanced deposits are recognized as revenue at the time of the guest’s stay. Food, beverage and convention revenue is generated through contracts with customers whereby the customer agrees to pay a contract rate for restaurant dining services or convention services. The Company’s contract performance obligations are fulfilled at the time that the meal is provided to the customer or when the convention facilities and related dining amenities are provided to the customer. The Company recognizes food and beverage revenue upon the fulfillment of the contract with the customer. The Company records contract liabilities in the form of advanced deposits when a customer or group of customers provides a deposit for a future banquet event at the Company’s hotels. Advanced deposits for food and beverage revenue are included in the balance of other liabilities on the consolidated balance sheet. Advanced deposits for banquet services are recognized as revenue following the completion of the banquet services. Campground revenue is recognized on a straight-line basis over the term of the lease when collectability of the lease payments is probable. Sale of Real Estate Effective January 1, 2018, the Company adopted the guidance of ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (“ASC 610-20”), which applies to sales or transfers to noncustomers of nonfinancial assets or in substance nonfinancial assets that do not meet the definition of a business. Generally, the Company’s sales of real estate would be considered a sale of a nonfinancial asset as defined by ASC 610-20. ASC 610-20 refers to the revenue recognition standard (Topic 606). Under ASC 610-20, if the Company determines it does not have a controlling financial interest in the entity that holds the asset and the arrangement meets the criteria to be accounted for as a contract, the Company would derecognize the asset and recognize a gain or loss on the sale of the real estate when control of the underlying asset transfers to the buyer. As a result of the adoption of ASC 610-20 on January 1, 2018, the Company recorded a cumulative effect adjustment to increase retained earnings by $2.5 million to recognize the deferred gain from the sale of 102 developable acres at Park Highlands that closed on May 1, 2017, as control of the sold acres had transferred to the buyers at closing. Real Estate Equity Securities Dividend income from real estate equity securities is recognized on an accrual basis based on eligible shares as of the ex-dividend date. Cash and Cash Equivalents The Company recognizes interest income on its cash and cash equivalents as it is earned and records such amounts as other interest income. Real Estate Depreciation and Amortization Real estate costs related to the acquisition and improvement of properties are capitalized and depreciated over the expected useful life of the asset on a straight-line basis. Repair and maintenance costs are charged to expense as incurred and significant replacements and betterments are capitalized. Repair and maintenance costs include all costs that do not extend the useful life of the real estate asset. The Company considers the period of future benefit of an asset to determine its appropriate useful life. Expenditures for tenant improvements are capitalized and amortized over the shorter of the tenant’s lease term or expected useful life. The Company anticipates the estimated useful lives of its assets by class to be generally as follows: Land N/A Buildings 25-40 years Building improvements 10-40 years Tenant improvements Shorter of lease term or expected useful life Tenant origination and absorption costs Remaining term of related leases, including below-market renewal periods Real estate subsidies & tax abatements Remaining term of agreement Furniture, fixtures & equipment 3-12 years Real Estate Acquisition Valuation The Company records the acquisition of income-producing real estate or real estate that will be used for the production of income as a business combination or an asset acquisition. If substantially all of the fair value of the gross assets acquired are concentrated in a single identifiable asset or group of similar identifiable assets, then the set is not a business. For purposes of this test, land and buildings can be combined along with the intangible assets for any in-place leases and accordingly, most acquisitions of investment properties would not meet the definition of a business and would be accounted for as an asset acquisition. To be considered a business, a set must include an input and a substantive process that together significantly contributes to the ability to create an output. All assets acquired and liabilities assumed in a business combination are measured at their acquisition-date fair values. For asset acquisitions, the cost of the acquisition is allocated to individual assets and liabilities on a relative fair value basis. Acquisition costs associated with business combinations are expensed as incurred. Acquisition costs associated with asset acquisitions are capitalized. Intangible assets include the value of in-place leases, which represents the estimated value of the net cash flows of the in-place leases to be realized, as compared to the net cash flows that would have occurred had the property been vacant at the time of acquisition and subject to lease-up. Acquired in-place lease value will be amortized to expense over the average remaining terms of the respective in-place leases, including any below-market renewal periods. The Company assesses the acquisition date fair values of all tangible assets, identifiable intangibles and assumed liabilities using methods similar to those used by independent appraisers, generally utilizing a discounted cash flow analysis that applies appropriate discount and/or capitalization rates and available market information and/or replacement cost data. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using a discount that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of above-market in-place leases and for the initial term plus any extended term for any leases with below-market renewal options. The Company amortizes any recorded above-market or below-market lease values as a reduction or increase, respectively, to rental income over the remaining non-cancelable terms of the respective lease, including any below-market renewal periods. The Company estimates the value of tenant origination and absorption costs by considering the estimated carrying costs during hypothetical expected lease up periods, considering current market conditions. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods. The Company records the fair value of debt assumed in an acquisition 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. The Company amortizes the value of tenant origination and absorption costs to depreciation and amortization expense over the remaining non-cancelable term of the leases. Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require the Company to make significant assumptions to estimate market lease rates or average daily rates, property-operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, revenue and expense growth rates, occupancy, and net operating margin. The Company records the fair value of noncontrolling interests based on the estimated noncontrolling interests’ share of fair values of the net assets of the underlying entities, adjusted for lack of marketability and control discount. Direct investments in undeveloped land or properties without leases in place at the time of acquisition are accounted for as an asset acquisition. Acquisition fees and expenses are capitalized into the cost basis of an asset acquisition. Additionally, during the time in which the Company is incurring costs necessary to bring these investments to their intended use, certain costs such as legal fees, real estate taxes and insurance and financing costs are also capitalized. Goodwill The Company recorded goodwill during the year ended December 31, 2020 in connection with the Merger (Refer to Note 3), of which $12.3 million were allocated to strategic opportunistic properties and $4.0 million to hotels. Goodwill represents the excess of consideration paid over the fair value of underlying identifiable net assets of business acquired. The Company's goodwill has an indeterminate life and is not amortized, but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company takes a qualitative approach to consider whether an impairment of goodwill exists prior to quantitatively determining the fair value of the reporting unit in step one of the impairment test. The Company performs its annual assessment on October 1st. Based on the assessment of qualitative factors, the Company concluded it was more likely than not that the Company's goodwill was not impaired and did not perform the quantitative test. The Company did not record any impairment of goodwill during the year ended December 31, 2020. Impairment of Real Estate and Related Intangible Assets and Liabilities The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate and related intangible assets and liabilities may not be recoverable or realized. Such indicators of potential impairment may include an assessment of management's intended hold period and disposition strategy, a significant decrease in market price, expected future undiscounted cash flows, and current industry and market trends and other factors including bona fide purchase offers received from third parties in making this assessment. When indicators of potential impairment suggest that the carrying value of real estate and related intangible assets and liabilities may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of the real estate and related intangible assets and liabilities through its undiscounted future cash flows and its eventual disposition. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of the real estate and related intangible assets and liabilities, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the real estate and related intangible assets and liabilities. The Company did not record any impairment losses on its real estate and related intangible assets and liabilities during the years ended December 31, 2020, 2019 and 2018. Projecting future cash flows involves estimating expected future operating income and expenses related to the real estate and its related intangible assets and liabilities as well as market and other trends. Using inappropriate assumptions to estimate cash flows could result in incorrect fair values of the real estate and its related intangible assets and liabilities and could result in the overstatement of the carrying values of the Company’s real estate and related intangible assets and liabilities and an overstatement of its net income. Insurance Proceeds for Property Damages The Company maintains an insurance policy that provides coverage for property damages and business interruption. Losses due to physical damages are recognized during the accounting period in which they occur, while the amount of monetary assets to be received from the insurance policy is recognized when receipt of insurance recoveries is probable. Losses, which are reduced by the related probable insurance recoveries, are recorded as operating, maintenance and management expenses on the accompanying consolidated statements of operations. Anticipated proceeds in excess of recognized losses would be considered a gain contingency and recognized when the contingency related to the insurance claim has been resolved. Anticipated recoveries for lost rental revenue due to property damages are also considered to be a gain contingency and recognized when the contingency related to the insurance claim has been resolved. Real Estate Held for Sale and Discontinued Operations The Company generally considers real estate to be “held for sale” when the following criteria are met: (i) management commits to a plan to sell the property, (ii) the property is available for sale immediately, (iii) the property is actively being marketed for sale at a price that is reasonable in relation to its current fair value, (iv) the sale of the property within one year is considered probable and (v) significant changes to the plan to sell are not expected. Real estate that is held for sale and its related assets are classified as “real estate held for sale” and “assets related to real estate held for sale,” respectively, for all periods presented in the accompanying consolidated financial statements. Notes payable and other liabilities related to real estate held for sale are classified as “notes payable related to real estate held for sale” and “liabilities related to real estate held for sale,” respectively, for all periods presented in the accompanying consolidated financial statements. Real estate classified as held for sale is no longer depreciated and is reported at the lower of its carrying value or its estimated fair value less estimated costs to sell. Operating results and related gains on sale of properties that were disposed of or classified as held for sale in the ordinary course of business are included in continuing operations on the Company’s consolidated statements of operations. Real Estate Equity Securities The Company determines the appropriate classification for real estate equity securities at acquisition (on the trade date) and reevaluates such designation as of each balance sheet date. As of December 31, 2020 and 2019, the Company classified its investments in real estate equity securities as available-for-sale as the Company intends to hold the securities for the purpose of collecting dividend income and for longer term price appreciation. These investments are carried at their estimated fair value based on quoted market prices for the security, net of any discounts for restrictions on the sale of the security. Any discount for lack of marketability is estimated using an option pricing model. Transaction costs that are directly attributable to the acquisition of real estate equity securities are capitalized to its cost basis. The Company adopted ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU No. 2016-01”) on January 1, 2018 and the Company records unrealized gains and losses on real estate equity securities are recognized in earnings. Upon adoption of ASU No. 2016-01 on January 1, 2018, the Company recorded a $25.1 million cumulative effect adjustment to retained earnings related to the unrealized gain on real estate equity securities previously reported in accumulated other comprehensive income prior to January 1, 2018. Investments in Unconsolidated Entities Equity Method The Company accounts for investments in unconsolidated entities in which the Company may exercise significant influence over, but does not control, using the equity method of accounting. Under the equity method, the investment is initially recorded at cost and subsequently adjusted to reflect additional contributions or distributions and the Company’s proportionate share of equity in the joint venture’s income (loss). The Company recognizes its proportionate share of the ongoing income or loss of the unconsolidated joint venture as equity in income (loss) of unconsolidated joint venture on the consolidated statements of operations. On a quarterly basis, the Company evaluates its investment in an unconsolidated joint venture for other-than-temporary impairments. The Company did not record any impairment losses related to its unconsolidated real estate joint ventures accounted for under the equity method during the years ended December 31, 2020, 2019 and 2018. Equity Investment Without Readily Determinable Value The Company accounts for investments in unconsolidated entities in which the Company does not have the ability to exercise significant influence and has virtually no influence over partnership operating and financial policies at its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company elected to measure its investment in the NIP Joint Venture (as defined herein) and shares of Battery Point (as defined herein) Series A-3 Preferred Stock in accordance with the above guidance. As of December 31, 2019, the Company recorded its investment in the NIP Joint Venture and shares of Battery Point Series A-3 Preferred Stock at cost basis of $1.2 million and $14.0 million, respectively. Distributions of income from the NIP Joint Venture are recognized in other income. Distributions that exceed the Company’s share of earnings are applied to reduce the carrying value of the Company’s investment and any capital contributions would increase the carrying value of the Company’s investment. See Note 11, “Investment in Unconsolidated Entities” for a further discussion on the Company’s investments in unconsolidated entities. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Cash and cash equivalents are stated at cost, which approximates fair value. There were no restrictions on the use of the Company’s cash and cash equivalents as of December 31, 2020 and 2019. The Company’s cash and cash equivalents balance exceeded federally insurable limits as of December 31, 2020. The Company monitors the cash balances in its operating accounts and adjusts the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts. Restricted Cash Restricted cash is comprised of lender impound reserve accounts on the Company’s borrowings for security deposits, property taxes, insurance, debt service obligations and capital improvements and replacements. Deferred Financing Costs Deferred financing costs represent commitment fees, loan fees, legal fees and other third-party costs associated with obtaining financing and are presented on the balance sheet as a direct deduction from the carrying value of the associated debt liability. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Deferred financing costs incurred before an associated debt liability is recognized are included in prepaid and other assets on the balance sheet. Costs incurred in seeking financing transactions that do not close are expensed in the period in which it is determined that the financing will not close. Fair Value Measurements 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 activ |
REAL ESTATE
REAL ESTATE | 12 Months Ended |
Dec. 31, 2020 | |
Real Estate [Abstract] | |
REAL ESTATE | REAL ESTATE As of December 31, 2020, the Company owned nine office properties, one office portfolio consisting of four office buildings and 14 acres of undeveloped land encompassing, in the aggregate, approximately 3.8 million rentable square feet. As of December 31, 2020, these properties were 76% occupied. In addition, the Company owned one residential home portfolio consisting of 1,766 single-family homes and encompassing approximately 2.4 million rental square feet and two apartment properties containing 609 units and encompassing approximately 0.5 million rentable square feet, which was 94% and 90% occupied, respectively as of December 31, 2020. The Company also owned two hotel properties with an aggregate of 649 rooms and three investments in undeveloped land with approximately 1,000 developable acres. Additionally, as of December 31, 2020, the Company had entered into a consolidated joint venture to develop one office/retail property. The following table summarizes the Company’s real estate held for investment as of December 31, 2020 and 2019, respectively (in thousands): December 31, 2020 December 31, 2019 Land $ 302,444 $ 175,317 Buildings and improvements 1,157,397 618,974 Tenant origination and absorption costs 57,594 30,569 Total real estate, cost 1,517,435 824,860 Accumulated depreciation and amortization (104,412) (65,381) Total real estate, net $ 1,413,023 $ 759,479 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 December 31, 2020, the leases, excluding options to extend apartment leases and single-family home leases, which have terms that are generally one year or less, had remaining terms of up to 14.6 years with a weighted-average remaining term of 4.3 years. Some of the leases have provisions to extend the lease agreements, options for early termination after paying a specified penalty 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 related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled $5.7 million and $4.3 million as of December 31, 2020 and 2019, respectively. During the years ended December 31, 2020, 2019 and 2018, the Company recognized deferred rent from tenants of $3.4 million, $4.1 million and $4.7 million, respectively, net of lease incentive amortization. As of December 31, 2020 and 2019, the cumulative deferred rent receivable balance, including unamortized lease incentive receivables, was $19.2 million and $13.6 million, respectively, and is included in rents and other receivables on the accompanying balance sheets. The cumulative deferred rent balance included $4.7 million and $3.1 million of unamortized lease incentives as of December 31, 2020 and 2019, respectively. As of December 31, 2020, the future minimum rental income from the Company’s properties, excluding apartment and single-family home leases, under non-cancelable operating leases was as follows (in thousands): 2021 $ 79,472 2022 69,670 2023 58,033 2024 49,623 2025 39,223 Thereafter 90,255 $ 386,276 As of December 31, 2020, the Company’s commercial real estate properties were leased to approximately 309 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 Insurance 28 $ 8,421 10.5 % Computer Systems 33 8,260 10.3 % $ 16,681 20.8 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of December 31, 2020, 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. During the years ended December 31, 2020 and 2019, the Company recorded adjustments to rental income of $2.2 million and $0.6 million, respectively, for lease payments that were deemed not probable of collection. Hotel Properties The following table provides detailed information regarding the Company’s hotel revenues and expenses for its two hotel properties, which were acquired in the Merger, from the Merger closing on October 5, 2020 through December 31, 2020 (in thousands): October 5, 2020 through December 31, 2020 Hotel revenues: Room $ 2,545 Food, beverage and convention services 420 Campground 270 Other 483 Hotel revenues $ 3,718 Hotel expenses: Room $ 801 Food, beverage and convention services 376 General and administrative 563 Sales and marketing 435 Repairs and maintenance 537 Utilities 242 Property taxes and insurance 608 Other 274 Hotel expenses $ 3,836 Contract liabilities The following table summarizes the Company’s contract liabilities, which are comprised of advanced deposits and deferred proceeds received from the buyers of the Park Highlands land sales and another developer for the value of land that was contributed to a master association that is consolidated by the Company, which are included in other liabilities in the accompanying consolidated balance sheets, as of December 31, 2020 and December 31, 2019 (in thousands): December 31, 2020 December 31, 2019 Contract liability $ 3,369 $ 3,100 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ — $ — Geographic Concentration Risk As of December 31, 2020, the Company’s real estate investments in California represented 29.6% of the Company’s total assets. As a result, the geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the California 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. Recent Real Estate Asset Acquisition Battery Point Trust Inc. Acquisition On July 1, 2020, the Company acquired, through its subsidiaries, Battery Point Trust Inc., a Maryland corporation (“Battery Point”). Battery Point is a real estate investment trust that owned at the time of acquisition 559 single-family rental homes throughout the Midwestern and Southeastern United States. The Company recorded this acquisition as an asset acquisition and the relative fair value of Battery Point's real estate assets were recorded as: $11.1 million to land, $44.6 million to building and improvements and $0.5 million to tenant origination and absorption costs. The Company also assumed a $36.6 million mortgage loan and $16.0 million of shares of its previously owned Battery Point Series A-3 Preferred Stock, which were eliminated in consolidation. All of these assets are held by the Company through its subsidiary, PORT OP, L.P. (“PORT”) (formerly known as Reven Housing REIT OP, L.P.). The Company acquired Battery Point by acquiring all the 1,000,000 outstanding shares of Battery Point common stock from BPT Holdings, LLC (“BPT Holdings”), a partially owned subsidiary of the Advisor. The Advisor is the Company’s external advisor and is owned and controlled by Keith D. Hall, the Company’s Chief Executive Officer and a director, and Peter M. McMillan, the Company’s President and Chairman of the Board. In exchange, BPT Holdings received 510,816 common equity units in PORT OP, approximately 4.5% of the outstanding common equity units, as of July 1, 2020. The value of the interests exchanged was estimated by the participants at approximately $3.0 million. The common equity units issued to BPT Holdings are redeemable after one year at the request of BPT Holdings for all or a portion of the common equity units at a redemption price equal to and in the form of cash based on the unit price of PORT OP. The following table summarizes the redeemable non-controlling interest activity related to the BPT Holdings for the year ended December 31, 2020 (in thousands): Issuance of PORT OP Units $ 3,024 Net loss attributable to redeemable noncontrolling interest (56) December 31, 2020 $ 2,968 Prior to the acquisition date, the Company accounted for its investment in the Battery Point A-3 Preferred Stock as an equity investment without a readily determinable fair value. The acquisition-date carrying value of the previous equity interest was $14.0 million and is included in the measurement of the consideration transferred. The Company recognized a gain of $2.0 million as a result of remeasuring its prior equity interest in the Battery Point A-3 Preferred Stock held before the acquisition. The gain is included in the line item “Gain from remeasurement of prior equity interest” in the consolidated statement of operations. As a result of the Battery Point acquisition, the Company’s 640,000 shares of Battery Point Series A-3 Preferred Stock were eliminated in consolidation. Single-Family Home Acquisitions During the year ended December 31, 2020, the Company, through a wholly owned subsidiary of PORT OP, acquired a single-family home portfolio consisting of 196 homes in Chicago, Illinois, a single-family home portfolio consisting of 12 homes in Alabama, Arkansas, and Illinois and a single-family home portfolio consisting of 11 homes in Memphis, Tennessee for purchase prices of $17.3 million, $1.0 million and $1.0 million, respectively. The portfolio consisting of 12 homes was purchased from DayMark Financial Acceptance LLC, an entity affiliated with the Advisor. Recent Business Combination POSOR II Merger On October 5, 2020, pursuant to the Merger Agreement, POSOR II merged with and into Merger Sub, with Merger Sub surviving as an indirect subsidiary of the Company (the “Merger”). At such time, in accordance with the applicable provisions of the Maryland General Corporation Law and the Maryland Limited Liability Company Act, the separate existence of POSOR II ceased. At the effective time of the Merger, each issued and outstanding share of POSOR II’s common stock (or a fraction thereof), $0.01 par value per share, converted into 0.9643 shares of the Company’s common stock, $0.01 par value per share, or 28,973,905 shares of the Company’s common stock. The combined company after the Merger retained the name “Pacific Oak Strategic Opportunity REIT, Inc.” The Merger is intended to qualify as a “reorganization” under, and within the meaning of, Section 368(a) of the Internal Revenue Code of 1986, as amended. The following table summarizes the components of the consideration (in thousands except per share information): POSOR II shares outstanding 30,046,568 Exchange ratio 0.9643 Total Company shares issued 28,973,905 Company price per share estimated NAV as of October 5, 2020 $ 9.68 Consideration paid $ 280,467 The total consideration was allocated to POSOR II's assets and liabilities based upon fair values as determined by the Company, as follows: Assets: Land $ 108,065 Building and improvements 465,648 Tenant origination and absorption costs 29,869 Cash and cash equivalents 9,735 Real estate equity securities 6,271 Restricted cash 3,243 Investment in unconsolidated entities 3,150 Rents and other receivables 2,567 Prepaid expenses and other assets 6,617 Above-market leases 660 Total Assets 635,825 Liabilities: Notes payable (328,203) Other liabilities (14,513) Accounts payable and accrued liabilities (9,926) Below-market leases (4,610) Due to affiliates (2,123) Total Liabilities (359,375) Noncontrolling interests (12,325) Goodwill 16,342 Total consideration $ 280,467 For the period October 5, 2020 through December 31, 2020, POSOR II recorded revenues of $12.3 million and a net loss of $10.1 million, which are included in the Company's consolidated statement of operations for the year ended December 31, 2020. The Company recorded $16.3 million of goodwill which represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed, and it is not deductible for income tax purposes. As of the Merger date, goodwill primarily represents the estimated future benefits arising from other assets acquired that could not be individually identified and separately recognized and of the synergies and economies of scale expected from combining the operations of the Company and POSOR II. Goodwill has been allocated to the Company's reporting units, which are included in each applicable reportable business segment. The allocation was based on the relative fair value of each acquired reporting unit in accordance with ASC 350. The following unaudited pro forma results of operations reflect the Company’s results as if the Merger with POSOR II had occurred on January 1, 2019. The information is not necessarily indicative of the results that actually would have occurred, nor does it indicate future operating results. All significant adjustments necessary to reflect the effects have been made. The unaudited pro forma information for the year ended December 31, 2020 was adjusted to exclude $6.0 million of transaction and related costs incurred in 2020 in connection with the Merger. For the year ended December 31, 2020 2019 Revenues $ 153,198 $ 147,769 Expenses (207,501) (208,603) Other (loss) income (16,434) 14,587 Net loss $ (70,737) $ (46,247) Net loss per common share, basic and diluted $ (0.94) $ (0.49) |
TENANT ORIGINATION AND ABSORPTI
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and 2019, the Company’s tenant origination and absorption costs (included in real estate held for investment, net), above-market lease assets and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands): Tenant Origination and Above-Market Below-Market December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Cost $ 57,594 $ 30,569 $ 4,159 $ 3,714 $ (8,732) $ (4,958) Accumulated Amortization (17,088) (10,223) (1,002) (741) 2,270 1,778 Net Amount $ 40,506 $ 20,346 $ 3,157 $ 2,973 $ (6,462) $ (3,180) 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 years ended December 31, 2020, 2019 and 2018 were as follows (in thousands): Tenant Origination and Above-Market Below-Market For the Years Ended December 31, For the Years Ended December 31, For the Years Ended December 31, 2020 2019 2018 2020 2019 2018 2020 2019 2018 Amortization $ (10,453) $ (7,036) $ (7,895) $ (476) $ (404) $ (361) $ 1,328 $ 1,495 $ 1,513 The remaining unamortized balance for these outstanding intangible assets and liabilities as of December 31, 2020 will be amortized for the years ending December 31 as follows (in thousands): Tenant Origination and Above-Market Below-Market Housing Subsidy Tax Abatements 2021 $ (15,351) $ (515) $ 1,856 $ (71) $ (866) 2022 (8,529) (368) 1,520 (71) (466) 2023 (5,486) (356) 1,241 (71) (233) 2024 (4,228) (355) 974 (71) (14) 2025 (2,827) (339) 662 (71) — Thereafter (4,085) (1,224) 209 (1,625) — $ (40,506) $ (3,157) $ 6,462 $ (1,980) $ (1,579) Weighted-Average Remaining Amortization Period 4.8 years 9.1 years 4.1 years 27.9 years 2.1 years As of December 31, 2020, the Company had recorded a housing subsidy intangible asset, net of amortization, which is included in prepaid expenses and other assets in the accompanying balance sheets, of $2.0 million. As of December 31, 2020, the housing subsidy intangible asset has a remaining amortization period of 27.9 years. During the year ended December 31, 2020, the Company recorded amortization expense of $18,000 related to the housing subsidy intangible asset. |
REAL ESTATE EQUITY SECURITIES
REAL ESTATE EQUITY SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE EQUITY SECURITIES | REAL ESTATE EQUITY SECURITIES As of December 31, 2020, the Company owned three investments in real estate equity securities. The following table sets forth the number of shares owned by the Company and the related carrying value of the shares as of December 31, 2020 and December 31, 2019 (dollars in thousands): December 31, 2020 December 31, 2019 Real Estate Equity Security Number of Shares Owned Total Carrying Value Number of Shares Owned Total Carrying Value Keppel Pacific Oak US REIT 64,165,352 $ 44,274 64,165,352 $ 50,049 Franklin Street Properties Corp. 6,915,089 30,219 2,773,729 23,743 Plymouth Industrial REIT, Inc. 1,560,660 23,410 415,841 7,647 72,641,101 $ 97,903 67,354,922 $ 81,439 The following summarizes the portion of gain and loss for the period related to real estate equity securities held during the years ended December 31, 2020 and 2019 (in thousands): For the Years Ended December 31, 2020 2019 Net (loss) gain recognized during the period on real estate equity securities $ (14,814) $ 20,379 Less: Net gain recognized during the period on real estate equity securities sold during the period 711 4,158 Unrealized (loss) gain recognized during the reporting period on real estate equity securities still held at period end $ (15,525) $ 16,221 During the years ended December 31, 2020, 2019 and 2018, the Company recognized $5.3 million, $5.8 million and $6.0 million, respectively, of dividend income from real estate equity securities. |
REAL ESTATE DISPOSITIONS
REAL ESTATE DISPOSITIONS | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
REAL ESTATE DISPOSITIONS | REAL ESTATE DISPOSITIONS During the year ended December 31, 2020, the Company did not have any material dispositions. During the year ended December 31, 2019, the Company disposed of one office building, one retail property and one apartment property. During the year ended December 31, 2018, the Company disposed of one office building and one office/flex/industrial portfolio consisting of 21 buildings. On November 1, 2019, the Company, through an indirect wholly owned subsidiary, sold 125 John Carpenter to KORE 125 John Carpenter, LLC, a wholly owned subsidiary of the Keppel Pacific Oak US REIT, previously known as Keppel-KBS US REIT, a newly formed Singapore real estate investment trust (the “SREIT”). The sale price, net of closing credits, of 125 John Carpenter was $99.8 million, before third-party closing costs of approximately $0.2 million and excluding any disposition fees payable to the Company’s then-current external advisor. Prior to the sale of 125 John Carpenter, the Company owned 56,979,352 common units of the SREIT, representing a 6.89% ownership interest. On October 29, 2019, the Company purchased 7,186,000 common units of the SREIT for $5.2 million in connection with a private placement to institutional and other investors, maintaining its 6.89% ownership interest. The Company recognized a gain on sale of $16.0 million related to the disposition of 125 John Carpenter. On July 19, 2019, the Burbank Collection Joint Venture sold the Burbank Collection to a purchaser unaffiliated with the Company, KBS Capital Advisors or the Advisor for $25.9 million before closing costs. The carrying value of the Burbank Collection as of the disposition date was $14.7 million, which was net of $2.6 million of accumulated depreciation and amortization. The Company recognized a gain on sale of $10.5 million related to the disposition of the Burbank Collection. On January 11, 2019, the 424 Bedford Joint Venture sold 424 Bedford to a purchaser unaffiliated with the Company, KBS Capital Advisors or the Advisor, for $43.8 million before closing costs and credits. The carrying value of 424 Bedford as of the disposition date was $34.0 million, which was net of $5.3 million of accumulated depreciation and amortization. The Company recognized a gain on sale of $7.6 million related to the disposition of 424 Bedford. On November 30, 2018, the Company, through an indirect wholly owned subsidiary, sold the Westpark Portfolio to KORE Westpark, LLC, a wholly owned subsidiary of the SREIT. The sale price, net of closing credits, of the Westpark Portfolio was $166.4 million, before third-party closing costs of approximately $3.2 million and excluding any disposition fees payable to the Company’s then-current external advisor. On November 26, 2018, the SREIT issued an aggregate of 186,236,224 common units of the SREIT as a result of their renounceable and underwritten rights issue. The Company purchased 12,979,852 common units of the SREIT for $6.5 million in connection with this offering, maintaining its 7% ownership interest. The Company recognized a gain on sale of $32.5 million related to the disposition of the Westpark Portfolio. On July 17, 2018, the Company sold the Central Building to a purchaser unaffiliated with the Company, KBS Capital Advisors or the Advisor for $67.5 million before closing costs and credits. The carrying value of the Central Building as of the disposition date was $32.6 million, which was net of $5.6 million of accumulated depreciation and amortization. The Company recognized a gain on sale of $32.1 million related to the disposition of the Central Building. There were no real estate held for sale as of December 31, 2020 and December 31, 2019. The operations of real estate properties classified as held for sale and gain on sales are included in continuing operations on the accompanying statements of operations. The following table summarizes certain revenue and expenses related to these properties for the years ended December 31, 2020, 2019 and 2018 (in thousands): Years Ended December 31, 2020 2019 2018 Revenues Rental income $ — $ 30,744 $ 94,073 Other operating income — 1,171 5,668 Total revenues $ — $ 31,915 $ 99,741 Expenses Operating, maintenance, and management $ — $ 9,117 $ 28,931 Real estate taxes and insurance — 4,035 12,188 Asset management fees to affiliate — 2,435 6,458 Depreciation and amortization — 13,066 39,038 Interest expense — 8,083 17,974 Total expenses $ — $ 36,736 $ 104,589 |
NOTES AND BONDS PAYABLE
NOTES AND BONDS PAYABLE | 12 Months Ended |
Dec. 31, 2020 | |
Notes and Bonds Payable [Abstract] | |
NOTES AND BONDS PAYABLE | NOTES AND BONDS PAYABLE As of December 31, 2020 and December 31, 2019, the Company’s notes and bonds payable, consisted of the following (dollars in thousands): Book Value as of Book Value as of Contractual Interest Rate as of December 31, 2020 (1) Interest Rate at December 31, 2020 (1) Payment Type (3) Maturity Date (2) Richardson Portfolio Mortgage Loan $ 35,832 $ 36,000 One-Month LIBOR + 2.50% 2.64% Interest Only 11/01/2021 Park Centre Mortgage Loan 26,185 21,970 One-Month LIBOR + 1.75% 1.89% Interest Only 06/27/2022 1180 Raymond Mortgage Loan (4) 29,848 30,250 One-Month LIBOR + 2.50% (5) 3.50% Principal & Interest 12/01/2021 1180 Raymond Bond Payable 5,870 6,080 6.50% 6.50% Principal & Interest 09/01/2036 Pacific Oak SOR (BVI) Holdings, Ltd. Series A Debentures (6) 181,198 224,746 4.25% 4.25% (6) 03/01/2023 Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures (6) 79,078 — 3.93% 3.93% (6) 01/31/2026 Crown Pointe Mortgage Loan (4)(7) 53,072 51,171 One-Month LIBOR + 2.60% 2.74% Interest Only 02/13/2021 (7) City Tower Mortgage Loan (4) 94,167 89,000 One-Month LIBOR + 1.55% 1.69% Interest Only 03/05/2021 (8) The Marq Mortgage Loan 62,257 53,408 One-Month LIBOR + 1.55% 1.69% Interest Only 06/06/2021 Eight & Nine Corporate Centre Mortgage Loan 47,066 43,880 One-Month LIBOR + 1.60% 1.74% Interest Only 06/08/2021 Georgia 400 Center Mortgage Loan 59,690 59,690 One-Month LIBOR + 1.55% 1.69% Interest Only 05/22/2023 PORT Mortgage Loan 1 51,362 51,362 4.74% 4.74% Interest Only 10/01/2025 PORT Mortgage Loan 2 10,523 10,523 4.72% 4.72% Interest Only 03/01/2026 PORT Mortgage Loan 3 12,000 — 6.50% 6.50% Interest Only 03/31/2021 Battery Point Trust Mortgage Loan 38,608 — One-Month LIBOR + 2.50% (5) 3.50% Interest Only 03/20/2022 Springmaid Beach Resort Mortgage Loan (9) 57,015 — One-month LIBOR + 2.25% (9) 5.75% Principal & Interest 08/10/2022 Q&C Hotel Mortgage Loan 25,000 — One-month LIBOR + 2.50% (10) 4.50% Principal & Interest (9) 12/23/2022 Lincoln Court Mortgage Loan (4) 34,416 — One-month LIBOR + 1.75% 1.89% Principal & Interest 06/01/2021 Lofts at NoHo Commons Mortgage Loan (11) 74,536 — One-month LIBOR + 2.18% (11) 3.93% Interest Only 09/09/2021 210 West 31st Street Mortgage Loan (4) 15,050 — One-month LIBOR + 3.00% 3.14% Interest Only 06/16/2021 Oakland City Center Mortgage Loan (12) 96,782 — One-month LIBOR + 1.75% 1.89% Principal & Interest 09/01/2022 Madison Square Mortgage Loan (13) 16,822 — One-month LIBOR + 4.05% (13) 5.05% Interest Only 10/09/2021 Total Notes and Bonds Payable principal outstanding 1,106,377 678,080 Net (Discount) / Premium on Notes and Bonds Payable (14) (2,851) 783 Deferred financing costs, net (4,458) (5,200) Total Notes and Bonds Payable, net $ 1,099,068 $ 673,663 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of December 31, 2020. The interest rate is calculated as the actual interest rate in effect as of December 31, 2020 (consisting of the contractual interest rate and contractual floor rates), using interest rate indices at December 31, 2020, where applicable. (2) Represents the initial maturity date or the maturity date as extended as of December 31, 2020; subject to certain conditions, the maturity dates of certain loans may be extended beyond the date shown. (3) Represents the payment type required under the loan as of December 31, 2020. 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. (4) The Company’s notes and bond’s payable are generally non-recourse. These mortgage loans have guarantees over certain balances whereby the Company would be required to make guaranteed payments in the event that the Company turned the property over to the lender. The guarantees are typically 25% of the outstanding loan balance. As of December 31, 2020, the guaranteed amount in the aggregate was $67.9 million. (5) These mortgage loans have a LIBOR floor of 1%. (6) See “Israeli Bond Financing” below. (7) Subsequent to December 31, 2020, the Company extended the maturity of the Crown Pointe Mortgage Loan to February 13, 2022. (8) Subsequent to December 31, 2020, the Company initiated but has not completed the extension of City Tower Mortgage Loan to March 5, 2022. (9) As of December 31, 2020, $57.8 million had been disbursed to the Company and up to $9.6 million was available for future disbursements, subject to certain terms and conditions contained in the loan documents. The interest rate is variable at the higher of one-month LIBOR + 2.25% or 5.75%. (10) The interest rate is variable at the higher of one-month LIBOR + 2.5% or 4.5%. Principal payments will commence on January 1, 2022. (11) As of December 31, 2020 $74.5 million had been disbursed to the Company and up to $1.4 million is available for future disbursements to be used for tenant improvements and leasing commissions, subject to certain terms and conditions contained in the loan documents. The LIBOR rate is variable at the higher of one-month LIBOR or 1.75%. (12) As of December 31, 2020, $97.1 million had been disbursed to the Company and up to $6.3 million is available for future disbursements to be used for tenant improvements and leasing commissions, subject to certain terms and conditions contained in the loan documents. Beginning October 1, 2020, monthly payments included principal and interest with principal payments of $110,000 or, in the event the Company repays any principal of the loan amount, with principal payments calculated using an amortization schedule of 30 years and an annual interest rate of 6.0%, subject to certain terms and conditions contained in the loan documents. (13) As of December 31, 2020, $23.8 million had been disbursed to the Company and up to $8.8 million is available for future disbursements to be used for tenant improvements and leasing expenses, subject to certain terms and conditions contained in the loan documents. The Madison Square Mortgage Loan bears interest at a floating rate of 405 basis points over one-month LIBOR, but at no point shall the interest rate be less than 5.05%. (14) 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 years ended December 31, 2020, 2019 and 2018, the Company incurred $29.1 million, $28.8 million and $31.1 million of interest expense, respectively. Included in interest expense for the years ended December 31, 2020, 2019 and 2018, was $3.3 million, $3.6 million and $3.6 million of amortization of deferred financing costs, respectively and $0.6 million, $0.1 million and $0.1 million of amortization of the debt discount / premium for the years ended December 31, 2020, 2019 and 2018, respectively. Additionally, during the years ended December 31, 2020, 2019 and 2018, the Company capitalized $2.9 million, $2.7 million and $2.6 million of interest, respectively, to its investments in undeveloped land. As of December 31, 2020 and 2019, the Company’s interest payable was $6.2 million and $4.8 million, respectively. The following is a schedule of maturities, including principal amortization payments, for all notes and bonds payable outstanding as of December 31, 2020 (in thousands): 2021 $ 538,050 2022 301,864 2023 120,344 2024 26,629 2025 78,011 Thereafter 41,479 $ 1,106,377 As of March 26, 2020, the Company had a total of $614.2 million of debt obligations scheduled to mature over the next 12 months. The Company have extension options with respect to $383.3 million of the debt obligations outstanding that are scheduled to mature over the next 12 months; however, the Company cannot exercise these options if not then in compliance with certain financial covenants in the loans without making a cash payment and there is no assurance that we will be able to meet these requirements. All of the Company’s debt obligations are generally non-recourse, subject to certain limited guaranty payments, as outlined in the table above, except for the Company’s Series A Debentures and Series B Debentures. The Company plans to utilize available extension options or refinance the notes payable. The Company may also choose to market the properties for sale or may negotiate a turnover of the secured properties back to the related mortgage lender. The Company’s notes and bonds payable contain various financial debt covenants, including minimum equity requirements and liquidity ratios. As of December 31, 2020, the Company was in compliance with all of these debt covenants. Israeli Bond Financings On March 2, 2016, Pacific Oak 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 at an annual interest rate not to exceed 4.25%. On March 1, 2016, Pacific Oak Strategic Opportunity BVI commenced the institutional tender of the Series A Debentures and accepted application for 842.5 million Israeli new Shekels. On March 7, 2016, Pacific Oak Strategic Opportunity BVI commenced the public tender of the Series A Debentures and accepted 127.7 million Israeli new Shekels. In the aggregate, Pacific Oak Strategic Opportunity BVI accepted 970.2 million Israeli new Shekels (approximately $249.2 million as of March 8, 2016) in both the institutional and public tenders at an annual interest rate of 4.25%. Pacific Oak Strategic Opportunity BVI issued the Series A Debentures on March 8, 2016. The terms of the Series A Debentures require five equal annual installment principal payments on March 1st of each year from 2019 to 2023. On March 1, 2019, the Company paid the first principal installment payment of 194.0 million Israeli new Shekels (approximately $53.6 million as of March 1, 2019). On February 16, 2020, Pacific Oak Strategic Opportunity BVI issued 254.1 million Israeli new Shekels (approximately $74.1 million as of February 16, 2020) of Series B Debentures to Israeli investors pursuant to a public offering registered with the Israel Securities Authority. The Series B Debentures will bear interest at the rate of 3.93% per year. The Series B Debentures have principal installment payments equal to 33.33% of the face amount of the Series B Debentures on January 31st of each year from 2024 to 2026. The deeds of trust that govern the terms of the Series A Debentures and Series B Debentures contain various financial covenants. As of December 31, 2020, the Company was in compliance with all of these financial debt covenants. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company enters into derivative instruments for risk management purposes to hedge its exposure to cash flow variability caused by changing interest rates and foreign currency exchange rate movements. The primary goal of the Company’s risk management practices related to interest rate risk is to prevent changes in interest rates from adversely impacting the Company’s ability to achieve its investment return objectives. The Company does not enter into derivatives for speculative purposes. The Company enters into foreign currency options and foreign currency collars to mitigate its exposure to foreign currency exchange rate movements on its bonds payable outstanding denominated in Israeli new Shekels. A foreign currency collar consists of a purchased call option to buy and a sold put option to sell Israeli new Shekels. A foreign currency collar guarantees that the exchange rate of the currency will not fluctuate beyond the range of the options’ strike prices. A foreign currency option consists of a call option to buy Israeli new Shekels. The following table summarizes the notional amount and other information related to the Company’s foreign currency collar and foreign currency option as of December 31, 2019. On July 29, 2020, the Company terminated the foreign currency collars and as a result received $14.1 million and no collar was outstanding as of December 31, 2020. The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks (currency in thousands): December 31, 2020 December 31, 2019 Strike Price Trade Date Maturity Date Derivative Instruments Number of Instruments Notional Amount Number of Instruments Notional Amount Derivative instruments not designated as hedging instruments Foreign currency collar — — 1 776,182 ILS 3.38 - 3.4991 ILS - USD 08/20/2018 02/28/2019 The Company enters into interest rate caps to mitigate its exposure to rising interest rates on its variable rate notes payable. The values of interest rate caps are primarily impacted by interest rates, market expectations about interest rates, and the remaining life of the instrument. In general, increases in interest rates, or anticipated increases in interest rates, will increase the value of interest rate caps. As the remaining life of an interest rate cap decreases, the value of the instrument will generally decrease towards zero. As of December 31, 2020, the Company had entered into seven interest rate caps, which were not designated as hedging instruments. The following table summarizes the notional amounts and other information related to the Company’s derivative instruments as of December 31, 2020. The notional amount is an indication of the extent of the Company’s involvement in the instrument at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands): Derivative Instrument Effective Date Maturity Date Notional Value Reference Rate Interest rate cap 02/21/2017 02/16/2021 $ 46,875 One-month LIBOR at 3.00% Interest rate cap 04/02/2018 03/05/2021 $ 77,513 One-month LIBOR at 3.50% Interest rate cap 07/25/2019 08/10/2021 $ 65,325 One-month LIBOR at 4.00% Interest rate cap 07/25/2019 08/10/2021 $ 1,675 One-month LIBOR at 4.00% Interest rate cap 08/30/2019 09/15/2021 $ 75,950 One-month LIBOR at 3.50% Interest rate cap 10/15/2020 10/15/2021 $ 26,200 One-month LIBOR at 3.00% Interest rate cap 06/21/2019 05/22/2023 $ 51,252 One-month LIBOR at 4.00% The following table sets forth the fair value of the Company’s derivative instruments as well as their classification on the consolidated balance sheets as of December 31, 2020 and 2019 (dollars in thousands): December 31, 2020 December 31, 2019 Derivative Instruments Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Derivative instruments not designated as hedging instruments Interest rate caps Prepaid expenses and other assets 7 $ 1 3 $ 12 Foreign currency collar Other liabilities — $ — 1 $ (179) The change in fair value of foreign currency options and collars that are not designated as cash flow hedges are recorded as foreign currency transaction gains or losses in the accompanying consolidated statements of operations. During the year ended December 31, 2020, the Company recognized a $14.3 million gain related to the foreign currency option and collars, which is shown net against $17.2 million of foreign currency transaction loss in the accompanying consolidated statements of operations as foreign currency transaction loss, net. During the year ended December 31, 2019, the Company recognized a $4.2 million gain related to the foreign currency option and collars, which is shown net against $16.7 million of foreign currency transaction loss in the accompanying consolidated statements of operations as foreign currency transaction loss, net. During the year ended December 31, 2018, the Company recognized a $8.7 million gain related to the foreign currency option and collars, which is shown net against $18.8 million of foreign currency transaction loss in the accompanying consolidated statements of operations as foreign currency transaction loss, net. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES The following were the face values, carrying amounts and fair values of the Company’s financial instruments as of December 31, 2020 and 2019, which carrying amounts do not approximate the fair values (in thousands): December 31, 2020 December 31, 2019 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities (Level 3): Notes and bond payable $ 846,101 $ 842,112 $ 846,608 $ 453,334 $ 451,743 $ 455,849 Financial liabilities (Level 1): Pacific Oak Strategic Opportunity (BVI) Holdings, Ltd. Series A Debentures $ 181,198 $ 179,786 $ 178,450 $ 224,746 $ 221,920 $ 229,877 Pacific Oak Strategic Opportunity (BVI) Holdings, Ltd. Series B Debentures $ 79,078 $ 77,170 $ 69,433 $ — $ — $ — 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. As of December 31, 2020, the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Recurring Basis: Real estate equity securities $ 97,903 $ 97,903 $ — $ — Asset derivative - interest rate caps $ 1 $ — $ 1 $ — As of December 31, 2019, the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Recurring Basis: Real estate equity securities $ 81,439 $ 81,439 $ — $ — Asset derivative - interest rate caps $ 12 $ — $ 12 $ — Liability derivative - foreign currency collar $ (179) $ — $ (179) $ — |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS As described further below, the Company has entered into agreements with certain affiliates pursuant to which they provide services to the Company. Keith D. Hall and Peter McMillan III control and indirectly own Pacific Oak Holding Group, LLC (“Pacific Oak Holding”), the Company’s sponsor since November 1, 2019. Pacific Oak Holding is the sole owner of Pacific Oak Capital Advisors, LLC, the Company’s advisor since November 1, 2019. Messrs. Hall and McMillan are also two of the Company’s executive officers and directors. In addition, along with Charles J. Schreiber, Jr., Keith D. Hall and Peter McMillan III control and indirectly own KBS Holdings LLC (“KBS Holdings”), the Company’s sponsor prior to November 1, 2019. KBS Holdings is the sole owner of KBS Capital Advisors, LLC (“KBS Capital Advisors”), the Company’s advisor prior to November 1, 2019, and KBS Capital Markets Group LLC, the entity that acted as the dealer manager of the Company’s now-terminated primary initial public offering. From the Company’s inception through October 31, 2019, KBS Capital Advisors provided day-to-day management of the Company’s business. The advisory agreement with KBS Capital Advisors terminated on October 31, 2019, and the Company hired the Advisor under substantially the same terms on November 1, 2019. The advisory agreement with the Advisor has a one one Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the years ended December 31, 2020, 2019 and 2018, respectively, and any related amounts payable as of December 31, 2020 and December 31, 2019 (in thousands): Incurred Payable as of 2020 2019 2018 2020 2019 Expensed Asset management fees $ 9,982 $ 8,158 $ 8,525 $ 2,837 $ 1,498 Property management fees (1) 229 — — — — Acquisition fees on business combination (2) — 1,185 — — — Reimbursable operating expenses (3) 148 236 410 — — Disposition fees (4) — 1,570 2,494 — — KBS Capital Advisors Termination Fee (5) — 32,640 — (4) (4) Change in subordinated performance fee due upon termination to affiliate (6) (1,720) — — (5) (5) Capitalized Acquisition fees on real estate (2) 171 897 3,094 — — Acquisition fees on real estate equity securities 143 — 239 5 — Acquisition fee on investment in unconsolidated entities — 207 — — 137 $ 8,953 $ 44,893 $ 14,762 $ 2,842 $ 1,635 _____________________ (1) Property management fees are for single-family homes under Battery Point and paid to DayMark. These fees are included in the line item “Operating, maintenance, and management cost” in the consolidated statement of operations. (2) Acquisition fees associated with asset acquisitions are capitalized, while costs associated with business combinations expensed as incurred. (3) The relevant advisor may seek reimbursement for certain employee costs under the relevant advisory agreement. The Company has reimbursed the relevant 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 $220,000 and $305,000 for the years ended December 31, 2019 and 2018, respectively, and were the only employee costs reimbursed under the relevant advisory agreement during these periods. There were no employee cost reimbursements during the year ended December 31, 2020. 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 relevant advisor for certain of the Company’s direct costs incurred from third parties that were initially paid by the relevant advisor on behalf of the Company. (4) 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. (5) Fee payable to KBS Capital Advisors due to the termination of the former advisory agreement with KBS Capital Advisors. See “Subordinated Performance Fee Due Upon Termination”, below, for more details. (6) Change in estimate of fees payable to KBS Capital Advisors due to the termination of the former advisory agreement with KBS Capital Advisors. See “Subordinated Performance Fee Due Upon Termination to KBS Capital Advisors”, below, for more details. Subordinated Performance Fee Due Upon Termination The Company and KBS Capital Advisors agreed to terminate their advisory agreement effective October 31, 2019. In connection with that agreement, the Company agreed to pay KBS Capital Advisors a subordinated performance fee due upon termination in the form of restricted shares of the Company’s common stock (“Restricted Shares”), to be paid to KBS Capital Advisors upon the filing of its Annual Report on Form 10-K for the year ended December 31, 2019. The number of restricted shares awarded was 3,411,737 shares. This termination payout value to KBS Capital Advisors (the “KBS Termination Fee Value”) was determined based on the Company’s performance from inception through September 30, 2018. In other words, it was based on the Company’s participation fee potential liability to KBS Capital Advisors calculated with respect to the November 12, 2018 estimated value per share. As a result, when the Company hired the Advisor as the Company’s new advisor on November 1, 2019, the Company agreed to a participation fee that was based on the Company’s performance from September 30, 2018. The Restricted Shares vest on November 1, 2021. Within 60 days from vesting of the Restricted Shares, the Company will redeem 50% of the Restricted Shares, with the amount of the cash payment per share determined based on the then most recent net asset value of the shares (which shall not be more than six months old). The remaining vested Restricted Shares (the “Remaining Shares”) shall not be eligible for redemption under the Company’s share redemption program unless the Company has satisfied all outstanding redemption requests from other stockholders, provided that (a) this restriction may be waived in certain situations, such as upon a change of control of the Company and (b) notwithstanding the foregoing, within 60 days after November 1, 2024, the Company shall be required to redeem any Remaining Shares, separate and outside of any general stockholder share redemption program, at the then most recent net asset value per share (which shall not be more than six months old), provided that such outstanding shares are owned or controlled by Charles J. Schreiber, Jr. or the estate of Peter M. Bren, and provided further that pursuant to this clause (b) the Company will only be required to redeem that number Remaining Shares which, when added to any previously redeemed Remaining Shares owned or controlled by Charles J. Schreiber, Jr. or the estate of Peter M. Bren, does not exceed two-thirds of the total number of Remaining Shares. The Company also agreed with KBS Capital Advisors and Pacific Oak Capital Advisors that with respect to any fiscal quarter that any matter related to the award of Restricted Shares results in a company expense that falls within the definition of Total Operating Expenses (as defined in the Company’s charter), if Total Operating Expenses for the four consecutive fiscal quarters then ended exceed the 2%/25% Guidelines (as defined in the Company’s charter), then the Company’s conflicts committee will determine an Excess Amount (as defined in the Company’s charter) is justified, based on unusual and non-recurring factors that it deems sufficient, in an amount sufficient (a) to allow the portion of Total Operating Expenses for the four consecutive fiscal quarters then ended comprised of the Restricted Shares expenses to be paid or incurred by the Company without reimbursement by the Advisor (as defined in the Company’s charter) and (b) to allow any other portion of Total Operating Expenses for the four consecutive fiscal quarters then ended to be paid or incurred by the company without reimbursement by the Advisor, to the extent such portion alone (i.e., that portion of Total Operating Expenses exclusive of the Restricted Shares expenses) would not have exceeded the 2%/25% Guidelines. Subordinated Participation in Net Cash Flows (payable only if the Company is not listed on a national exchange) After investors in the Company’s offerings have received, together as a collective group, aggregate distributions (including distributions that may constitute a return of capital for federal income tax purposes) sufficient to provide (i) a return of their net invested capital, or the amount calculated by multiplying the total number of shares purchased by stockholders by the issue price, reduced by any amounts to repurchase shares pursuant to the Company’s share redemption program, (ii) a 7.0% per year cumulative, noncompounded return on such net invested capital, and (iii) the value of the KBS Termination Fee Payout, the Advisor is entitled to receive 15.0% of the Company’s net cash flows, whether from continuing operations, net sale proceeds or otherwise. Net sales proceeds means the net cash proceeds realized by the Company after deduction of all expenses incurred in connection with a sale, including disposition fees paid to the Advisor. The 7.0% per year cumulative, noncompounded return on net invested capital is calculated on a daily basis. In making this calculation, the net invested capital is reduced to the extent distributions in excess of a cumulative, noncompounded, annual return of 7.0% are paid (from whatever source), except to the extent such distributions would be required to supplement prior distributions paid in order to achieve a cumulative, noncompounded, annual return of 7.0% (invested capital is only reduced as described in this sentence; it is not reduced simply because a distribution constitutes a return of capital for federal income tax purposes). The 7.0% per year cumulative, noncompounded return is not based on the return provided to any individual stockholder. Accordingly, it is not necessary for each of the Company’s stockholders to have received any minimum return in order for the Advisor to participate in the Company’s net cash flows. In fact, if the Advisor is entitled to participate in the Company’s net cash flows, the returns of the Company’s stockholders will differ, and some may be less than a 7.0% per year cumulative, noncompounded return. This fee is payable only if the Company is not listed on an exchange. Subordinated Incentive Listing Fee (payable only if the Company is listed on a national exchange) Upon listing the Company’s common stock on a national securities exchange, the Advisor is entitled to a fee equal to 15.0% of the amount by which the market value of the Company’s outstanding stock plus distributions paid by the Company (including distributions that may constitute a return of capital for federal income tax purposes) prior to listing exceeds the aggregate of (i) the sum of the Company’s stockholders’ net invested capital, or the amount calculated by multiplying the total number of shares purchased by stockholders by the issue price, reduced by any amounts to repurchase shares pursuant to the Company’s share redemption program, and the amount of cash flow necessary to generate a 7.0% per year cumulative, noncompounded return on such amount and (ii) the KBS Termination Fee Payout. The 7.0% per year cumulative, noncompounded return on net invested capital is calculated on a daily basis. In making this calculation, the net invested capital is reduced to the extent distributions in excess of a cumulative, noncompounded, annual return of 7.0% are paid (from whatever source), except to the extent such distributions would be required to supplement prior distributions paid in order to achieve a cumulative, noncompounded, annual return of 7.0% (invested capital is only reduced as described in this sentence; it is not reduced simply because a distribution constitutes a return of capital for federal income tax purposes). The 7.0% per year cumulative, noncompounded return is not based on the return provided to any individual stockholder. Accordingly, it is not necessary for each of the Company’s stockholders to have received any minimum return in order for the Advisor to receive the listing fee. In fact, if the Advisor is entitled to the listing fee, the returns of the Company’s stockholders will differ, and some may be less than a 7.0% per year cumulative, noncompounded return. Subordinated Performance Fee Due Upon Terminatio n In accordance with the new advisory agreement with the Advisor, if the advisory agreement is terminated or not renewed, other than for cause, the Company’s advisor is entitled to receive a participation fee equal to (A) 15.0% of the Company’s net cash flows, whether from continuing operations, net sale proceeds or otherwise, after the Company’s stockholders have received, together as a collective group, aggregate distributions (including distributions that may constitute a return of capital for federal income tax purposes) sufficient to provide (i) a return of their net invested capital, or the amount calculated by multiplying the total number of shares purchased by stockholders by the issue price, reduced by any amounts to repurchase shares pursuant to the Company’s share redemption program, and (ii) a 7.0% per year cumulative, noncompounded return on such net invested capital from the Company’s inception, less (B) the KBS Termination Fee Payout. Net sales proceeds means the net cash proceeds realized by the Company after deduction of all expenses incurred in connection with a sale, including disposition fees paid to the Company’s advisor. The 7.0% per year cumulative, noncompounded return on net invested capital from the Company’s inception is calculated on a daily basis. In making this calculation, the net invested capital is reduced to the extent distributions in excess of a cumulative, noncompounded, annual return of 7.0% are paid (from whatever source), except to the extent such distributions would be required to supplement prior distributions paid in order to achieve a cumulative, noncompounded, annual return of 7.0% (invested capital is only reduced as described in this sentence; it is not reduced simply because a distribution constitutes a return of capital for federal income tax purposes). The 7.0% per year cumulative, noncompounded return is not based on the return provided to any individual stockholder. Accordingly, it is not necessary for each of the Company’s stockholders to have received any minimum return in order for the Company’s advisor to participate in the Company’s net cash flows. In fact, if the Company’s advisor is entitled to participate in the Company’s net cash flows, the returns of the Company’s stockholders will differ, and some may be less than a 7.0% per year cumulative, noncompounded return. This fee is payable only if the Company is not listed on an exchange. Singapore Transactions On November 30, 2018, the Company sold 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”) to the SREIT. The sale price, net of closing credits, of the Westpark Portfolio was $166.4 million, before third-party closing costs of approximately $3.2 million and excluding any disposition fees payable to KBS Capital Advisors. On November 26, 2018, the SREIT issued an aggregate of 186,236,224 common units of the SREIT as a result of their renounceable and underwritten rights issue. The Company purchased 12,979,852 common units of the SREIT for $6.5 million in connection with this offering, maintaining its 7% ownership interest. On November 1, 2019, the Company sold an office property consisting of two buildings containing a total of 445,317 rentable square feet in Irving, Texas (“125 John Carpenter”) to the SREIT. The sale price, net of closing credits, of 125 John Carpenter was $99.8 million, before third-party closing costs of approximately $0.2 million and excluding any disposition fees payable to the Advisor. Prior to the sale of 125 John Carpenter, the Company owned 56,979,352 common units of the SREIT, representing a 6.89% ownership interest. On October 29, 2019, the Company purchased 7,186,000 common units of the SREIT for $5.2 million in connection with a private placement to institutional and other investors, maintaining its 6.89% ownership interest. The interests of Messrs. Hall and McMillan in the SREIT are described below. Messrs. Hall and McMillan collectively own two-thirds of KBS Pacific Advisors, LLC, which owns 50% of the Manager. The other 50% ownership stake in the Manager was acquired by Keppel Capital Holding Pte. Ltd. for $27.5 million, which amount was distributed in its entirety to KBS Pacific Advisors, LLC. The Manager will receive the following fees from the SREIT: • Management Fee – The Manager’s management fee comprises a base fee and a performance fee, which make up a substantial portion of the Manager’s total remuneration for the provision of on-going management services to the SREIT. The base fee equals 10% per year of the SREIT “annual distributable income,” which is calculated before accounting for the base fee and the performance fee. The performance fee is generally equal to 25% of the growth in the SREIT’s distributions per unit of common equity from one year to the next (calculated after accounting for the base fee but before accounting for the performance fee). For the year ended December 31, 2020, the SREIT incurred $5.9 million related to the management fee. • Acquisition Fee and Divestment Fee – The Manager will also receive an acquisition fee and a divestment fee from the SREIT. The acquisition fee will generally equal 1% of purchase price of the assets acquired by the SREIT and the divestment fee will generally equal 0.5% of the sale price of the assets disposed of by the SREIT. There were no acquisition or divestment fees for the year ended December 31, 2020. Battery Point Restructuring On October 28, 2016, the Company, through an indirect wholly owned subsidiary, agreed to invest up to $25,000,000 in Battery Point LLC through the purchase of Series B Preferred Units. On May 12, 2017, the Company and Battery Point LLC agreed to limit the Company’s investment to $17,500,000 worth of Series B Preferred Units. The Company invested the full $17,500,000 in stages. During 2018, $4,500,000 was repaid to the Company. On June 29, 2018, Battery Point LLC was converted into Battery Point and the Company’s Series B Preferred Units were converted into shares of Battery Point Series B Preferred Stock. The Battery Point Series B Preferred Stock was entitled to the same rights and protections as were the Series B Preferred Units. The Battery Point Series B Preferred Stock paid a quarterly dividend of 12% and had an outside maturity date of October 28, 2019. On March 20, 2019, the Company, through an indirect wholly owned subsidiary, entered into a redemption agreement for the Battery Point Series B Preferred Stock. The redemption agreement resulted in the redemption of 13,000 shares of Series B Preferred Stock with a per share price of $1,000. The Company received $8.6 million, of which $0.9 million relates to accrued interest and an exit fee. In addition, the Company received 210,000 shares of Battery Point Series A-3 Preferred Stock with a per share price of $25. On March 20, 2019, Pacific Oak BP, a wholly owned subsidiary of the Advisor, acquired all the common equity interests in Battery Point Holdings. Battery Point Holdings owns (a) the common stock in Battery Point, (b) all the service entities that provide advisory, servicing and property management services to Battery Point Holdings generally named “DayMark”, and (c) 40% of additional DayMark entities that purchase, renovate, lease and sell single-family residential homes to Battery Point. As owner of Battery Point Holdings, the Advisor is responsible for funding the ongoing operations of Battery Point Holdings and its subsidiaries. The affiliated DayMark service entities are paid annual asset management fees equal to 1.5% of the gross asset value of Battery Point, annual property management fees equal to 8% of tenants’ rents received by Battery Point, and acquisition fees of 1% of the gross purchase price of properties acquired. The affiliated DayMark service entities also receive fees from tenants upon execution of leases and a 1% commission from sellers of properties into the program, if it acts as the broker for the seller. During the year ended December 31, 2019, the Company purchased additional 430,000 shares of Battery Point Series A-3 Preferred Stock for an aggregate amount of $10.8 million. As of December 31, 2019, the Company had 640,000 shares of Battery Point Series A-3 Preferred Stock. On July 1, 2020, the Company acquired, through its subsidiaries, Battery Point. The Company acquired Battery Point by acquiring all the 1,000,000 outstanding shares of Battery Point common stock from Battery Point Holdings, a wholly owned subsidiary of the Advisor. In exchange, Battery Point Holdings received 510,816 common equity units in PORT OP, approximately 4.5% of the outstanding common equity units as of July 1, 2020. The value of the interests exchanged was estimated by the participants at approximately $3.0 million. As a result of the Battery Point acquisition, the Company’s 640,000 shares of Battery Point Series A-3 Preferred Stock were eliminated in consolidation. Prior to the acquisition date, the Company accounted for its investment in the Battery Point A-3 Preferred Stock as an equity investment without a readily determinable value. The acquisition-date carrying value of the previous equity interest was $14.0 million and is included in the measurement of the consideration transferred. The Company recognized a gain of $2.0 million as a result of remeasuring its prior equity interest in the Battery Point A-3 Preferred Stock held before the acquisition. The gain is included in the line item “Gain from remeasurement of prior equity interest” in the consolidated statement of operations. On July 29, 2020, the Company, through a wholly owned subsidiary of PORT OP, acquired a single-family home portfolio consisting of 12 homes in Alabama, Arkansas, and Illinois. The portfolio was purchased from DayMark and the purchase price was $1.0 million, which includes $10,000 of capitalized acquisition costs. The Company recorded this acquisition as an asset acquisition and recorded $0.2 million to land and $0.8 million to building and improvements. Pacific Oak Opportunity Zone Fund I During the year ended December 31, 2019, the Company acquired 91 Class A Units for $20.6 million in the Pacific Oak Opportunity Zone Fund I, LLC (“Pacific Oak Opportunity Zone Fund I”) and POSOR II (which was acquired by the Company pursuant to the Merger) acquired 13 Class A Units in Pacific Oak Opportunity Zone Fund I for $2.9 million, which are included in investments in unconsolidated entities on the consolidated balance sheets. When the Company acquired the additional 13 Class A Units through the Merger with POSOR II, it was recorded at its fair value of $3.0 million. Additionally, the Company acquired 7 Class A Units for $1.5 million during the year ended December 31, 2020. Pacific Oak Opportunity Zone Fund I is sponsored by Pacific Oak Holding. The Advisor is entitled to certain fees in connection with the fund. Pacific Oak Opportunity Zone Fund I will pay an acquisition fee equal to 1.5% of the purchase price of each asset (including any debt incurred or assumed and significant capital improvement costs budgeted as of the date of acquisition) with a purchase price less than or equal to $25.0 million plus 1.0% of the purchase price in excess of $25.0 million; a quarterly asset management fee equal to 0.25% of the total purchase price of all assets (including any debt incurred or assumed and significant capital improvement costs budgeted as of the date of acquisition) as of the end of the applicable quarter; and a financing fee equal to 0.5% of the original principal amount of any indebtedness they incur (reduced by any financing fee previously paid with respect to indebtedness being refinanced). In the case of investments made through joint ventures, the fees above will be determined based on the Company’s proportionate share of the investment. The Advisor is also entitled to certain distributions paid by the Pacific Oak Opportunity Zone Fund I after the Class A Members have received their preferred return. These fees and distributions have been waived for the Company’s $22.1 million investment and POSOR II’s $2.9 million investment. In addition, side letter agreements between the Advisor and Pacific Oak Opportunity Zone Fund I were executed on February 28, 2020 and stipulate that any asset management fees allocable to the Company or POSOR II and waived by Pacific Oak Capital Advisors for Pacific Oak Opportunity Zone Fund I will distributed to the Company and POSOR II, respectively. During the 12 months ended December 31, 2020, the Company recorded $0.6 million of waived asset management fees recorded as equity in income of unconsolidated entities, of which $0.1 million was a receivable as of December 31, 2020. PORT II During the year ended December 31, 2020, the Company has contributed $5.0 million in PORT II OP, LLC (“PORT II OP”) a wholly owned subsidiary of Pacific Oak Residential Trust II, Inc. ("PORT II"). On August 31, 2020, PORT II entered into an advisory agreement (as subsequently amended and restated on October 9, 2020, “PORT II Advisory Agreement”) with Pacific Oak Residential Advisors, LLC (“PORA”), an affiliate of the Advisor. Pursuant to the PORT II Advisory Agreement, PORT II has engaged PORA to act as its external advisor with respect to PORT II’s operations and assets. Because the Company has separately engaged the Advisor to manage its operations and assets, including its interests in PORT II, on November 12, 2020, the Company and the Advisor agreed to amend their advisory agreement to provide that PORT II’s operations and assets will be managed by PORA and not by the Advisor. In addition, the amendment provides that the Advisor will rebate or offset its fees under its advisory agreement with the Company to the extent of the Company’s indirect economic interest in fees paid by PORT II to PORA (which will be based on the Company’s indirect ownership of PORT II OP, which is the operating partnership of PORT II and the entity ultimately responsible for PORT II’s administrative expenses). On August 31, 2020, PORT II entered into a property management agreement with DMH Realty, LLC (“DMH”), an affiliate of the Advisor and PORA. Pursuant to the property management agreement, PORT II will pay to DMH a base fee equal to the following: (a) for all rent collections up to $50 million per year, 8%; (b) for all rent collections in excess of $50 million per year, but less than or equal to $75 million per year, 7%; and (c) for all rent collections in excess of $75 million per year, 6%. PORT II will also pay DMH market-based leasing fees that will depend on the type of tenant, shared fees equal to 100% of any application fees collected and 50% of any insufficient funds fees, late fees and certain other fees collected. DMH may also perform additional services at rates that would be payable to unrelated parties. |
INVESTMENT IN UNCONSOLIDATED JO
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | INVESTMENT IN UNCONSOLIDATED ENTITIES As of December 31, 2020 and 2019, the Company’s investments in unconsolidated entities were composed of the following (dollars in thousands): Number of Properties at December 31, 2020 Investment Balance at Joint Venture Location Ownership % December 31, 2020 December 31, 2019 NIP Joint Venture — N/A N/A $ — $ 1,225 110 William Joint Venture 1 New York, New York 60.0% — — 353 Sacramento Joint Venture 1 San Francisco, California 55.0% 49,665 42,214 Battery Point Series A-3 Preferred Stock N/A N/A N/A — 13,991 Pacific Oak Opportunity Zone Fund I 3 Various N/A 24,996 20,846 PORT II OP LP 7 Southaven, Mississippi N/A 5,005 — $ 79,666 $ 78,276 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 has invested in a portfolio of industrial properties. The Company made an initial capital contribution of $8.0 million which represented less than a 5.0% ownership interest in the NIP Joint Venture. Prior to January 17, 2018, KBS Real Estate Investment Trust, Inc. (“KBS REIT I”), an affiliate of KBS Capital Advisors, was a member of HC-KBS and had a participation interest in certain future potential profits generated by the NIP Joint Venture. However, KBS REIT I did not have any equity interest in the NIP Joint Venture. On January 17, 2018, KBS REIT I assigned its participation interest in the NIP Joint Venture to one of the other joint venture partners in the NIP Joint Venture. None of the other joint venture partners are affiliated with the Company, KBS Capital Advisors or the Advisor. During the year ended December 31, 2020, the Company received a $1.3 million distribution related to its investment in the NIP Joint Venture and the Company recognized $0.1 million as income distribution and $1.2 million as a return of capital from the NIP Joint Venture. During the year ended December 31, 2019, the Company received a distribution of $0.3 million related to its investment in the NIP Joint Venture, which is reflected as a return of capital from the NIP Joint Venture. During the year ended December 31, 2018, the Company received a distribution of $2.6 million related to its investment in the NIP Joint Venture. The Company recognized $0.4 million of income distributions and $2.2 million of return of capital from 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 December 31, 2020 and December 31, 2019, the book value of the Company’s investment in the 110 William Joint Venture was $0. During the year ended December 31, 2019, the 110 William Joint Venture made a $7.8 million distribution to the Company and a $5.2 million distribution to the 110 William JV Partner funded with proceeds from the 110 William refinancing (discussed below). The distribution exceeded the book value of the Company’s investment in the 110 William Joint Venture, and the Company recorded the $7.8 million distribution as a gain included in equity in income of unconsolidated joint ventures during the year ended December 31, 2019. This gain was recorded because the Company determined that the distribution is not refundable and it does not have an implicit or explicit commitment to fund the 110 William Joint Venture. The Company suspended the equity method of accounting and will not record the Company's share of losses and will not record the Company's share of any subsequent income for the 110 William Joint Venture until the Company’s share of net income exceeds the gain recorded and the Company’s share of the net losses not recognized during the period the equity method was suspended. During the year ended December 31, 2020 and December 31, 2018, the Company did not receive any distributions related to its investment in the 110 William Joint Venture. Summarized financial information for the 110 William Joint Venture follows (in thousands): December 31, 2020 December 31, 2019 Assets: Real estate assets, net of accumulated depreciation and amortization $ 246,166 $ 242,430 Other assets 44,004 35,747 Total assets $ 290,170 $ 278,177 Liabilities and equity: Notes payable, net $ 316,421 $ 292,221 Other liabilities 5,532 10,664 Partners’ deficit (31,783) (24,708) Total liabilities and equity $ 290,170 $ 278,177 For the Years Ended December 31, 2020 2019 2018 Revenues $ 36,570 $ 34,186 $ 38,539 Expenses: Operating, maintenance, and management 8,095 9,213 9,844 Real estate taxes and insurance 7,515 7,064 6,718 Depreciation and amortization 11,849 11,166 15,596 Interest expense 16,252 16,742 17,815 Total expenses 43,711 44,185 49,973 Total other income 66 137 112 Net loss $ (7,075) $ (9,862) $ (11,322) Company’s share of net loss (1) $ (4,245) $ 5,917 $ (6,835) _____________________ (1) During the year ended December 31, 2019, the Company recorded $0.3 million of net losses in equity in income of unconsolidated joint ventures and suspended the recording of the Company's remaining share of net losses. 110 William Street Refinancing On March 7, 2019, the 110 William Joint Venture closed on refinancing of the 110 William Street existing loans (the “Refinancing”). The 110 William Joint Venture repaid $268.0 million of principal related to the existing 110 William Street loans. The Refinancing is comprised of a mortgage loan with Invesco CMI Investments, L.P., an unaffiliated lender, for borrowings of up to $261.4 million, which is secured by 110 William Street (the “110 William Street Mortgage Loan”) and a mezzanine loan with Invesco CMI Investments, L.P., an unaffiliated lender, for borrowings of up to $87.1 million (the “110 William Street Mezzanine Loan”). The 110 William Street Mortgage Loan is comprised of a senior mortgage loan of $215.5 million (the “Senior Mortgage Loan”) and an amended and restated building loan of $45.9 million (the “Building Loan”) to be used for future tenant improvements, leasing commissions and capital expenditures. The 110 William Street Mortgage Loan and the 110 William Street Mezzanine Loan mature on April 9, 2021, with three one-year extension options. The 110 William Street Mortgage Loan bears interest at a rate of the greater of (a) 3.5% or (b) 150 basis points over one-month LIBOR. The 110 William Street Mezzanine Loan bears interest at a rate of the greater of (a) 6.9% or (b) 490 basis points over one-month LIBOR. The 110 William Joint Venture entered into an interest rate cap that effectively limits one-month LIBOR at 3.75% on $348.5 million, effective March 7, 2019 through March 15, 2021. The 110 William Street Mortgage Loan and the 110 William Street Mezzanine Loan have monthly payments that are interest-only with the entire unpaid principal balance and all outstanding interest and fees due at maturity. The 110 William Joint Venture has the right to prepay the loans at any time in whole, but not in part, subject to a prepayment fee if prepaid prior to May 9, 2020 and subject to certain other conditions contained in the loan documents. At closing, $210.8 million of the Senior Mortgage Loan and $70.3 million of the 110 William Street Mezzanine Loan was funded with $4.7 million of the Senior Mortgage Loan, $45.9 million of the Building Loan and $16.8 million of the 110 William Street Mezzanine Loan available for future funding, subject to certain terms and conditions contained in the loan documents. Investment in 353 Sacramento Joint Venture On July 6, 2017, the Company, through an indirect wholly owned subsidiary, entered into an agreement with the Migdal Members to form the 353 Sacramento Joint Venture. On July 6, 2017, the Company sold a 45% equity interest in an entity that owns 353 Sacramento to the Migdal Members. The sale resulted in 353 Sacramento being owned by the 353 Sacramento Joint Venture, in which the Company indirectly owns 55% of the equity interests and the Migdal Members indirectly own 45% in the aggregate of the equity interests. The Company exercises significant influence over the operations, financial policies and decision making with respect to the 353 Sacramento Joint Venture but significant decisions require approval from both members. Accordingly, the Company has accounted for its investment in the 353 Sacramento Joint Venture under the equity method of accounting. Income, losses, contributions and distributions are generally allocated based on the members’ respective equity interests. During the year ended December 31, 2019, the Company did not receive any distributions related to its investment in the 353 Sacramento Joint venture. During the years ended December 31, 2020 and 2018, the Company made contributions of $5.5 million and $1.3 million, respectively, to the 353 Sacramento Joint Venture. Summarized financial information for the 353 Sacramento Joint Venture follows (in thousands): December 31, 2020 December 31, 2019 Assets: Real estate assets, net of accumulated depreciation and amortization $ 182,318 $ 180,592 Other assets 19,810 21,822 Total assets $ 202,128 $ 202,414 Liabilities and equity: Notes payable, net $ 109,783 $ 115,280 Other liabilities 7,639 11,193 Partners’ capital 84,706 75,941 Total liabilities and equity $ 202,128 $ 202,414 For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 Revenues $ 20,939 $ 17,015 $ 11,397 Expenses: Operating, maintenance, and management 3,388 3,785 3,654 Real estate taxes and insurance 2,986 2,822 2,372 Depreciation and amortization 7,007 6,485 5,680 Interest expense 4,293 5,734 5,374 Total expenses 17,674 18,826 17,080 Net income (loss) $ 3,265 $ (1,811) $ (5,683) Company’s equity in income (loss) of unconsolidated joint venture $ 1,946 $ (854) $ (2,995) Battery Point Restructuring On October 28, 2016, the Company, through an indirect wholly owned subsidiary, agreed to invest up to $25,000,000 in Battery Point LLC through the purchase of Series B Preferred Units. On May 12, 2017, the Company and Battery Point LLC agreed to limit the Company’s investment to $17,500,000 worth of Series B Preferred Units. The Company invested the full $17,500,000 in stages. During 2018, $4,500,000 was repaid to the Company. On June 29, 2018, Battery Point LLC was converted into Battery Point and the Company’s Series B Preferred Units were converted into Series B Preferred Stock. The Series B Preferred Stock was entitled to the same rights and protections as were the Series B Preferred Units. The Series B Preferred Stock paid a quarterly dividend of 12% and had an outside maturity date of October 28, 2019. On March 20, 2019, the Company, through an indirect wholly owned subsidiary, entered into a redemption agreement for the Battery Point Series B Preferred Stock. The redemption agreement resulted in the redemption of 13,000 shares of Series B Preferred Stock with a per share price of $1,000. The Company received $8.6 million, of which $0.9 million relates to accrued interest and an exit fee. In addition, the Company received 210,000 shares of Battery Point Series A-3 Preferred Stock with a per share price of $25. On March 20, 2019, Pacific Oak BP, a wholly owned subsidiary of the Advisor, a real estate asset management company formed in 2019, and its family of companies (collectively, “Pacific Oak”), acquired all the common equity interests in Battery Point Holdings. Battery Point Holdings owns (a) the common stock in Battery Point, (b) all the service entities that provide advisory, servicing and property management services to Battery Point Holdings generally named “DayMark”, and (c) 40% of additional DayMark entities that purchase, renovate, lease and sell single-family residential homes to Battery Point. As owner of Battery Point Holdings, the Advisor is responsible for funding the ongoing operations of Battery Point Holdings and its subsidiaries. The affiliated DayMark service entities are paid annual asset management fees equal to 1.5% of the gross asset value of Battery Point, annual property management fees equal to 8% of tenants’ rents received by Battery Point, and acquisition fees of 1% of the gross purchase price of properties acquired. The affiliated DayMark service entities also receive fees from tenants upon execution of leases and a 1% commission from sellers of properties into the program, if it acts as the broker for the seller. During the year ended December 31, 2019, the Company purchased additional 430,000 shares of Battery Point Series A-3 Preferred Stock for an aggregate amount of $10.8 million. On July 1, 2020, the Company acquired, through its subsidiaries, Battery Point. The Company acquired Battery Point by acquiring all the 1,000,000 outstanding shares of Battery Point common stock from Battery Point Holdings. In exchange, Battery Point Holdings received 510,816 common equity units in PORT OP, approximately 4.5% of the outstanding common equity units as of July 1, 2020. The value of the interests exchanged was estimated by the participants at approximately $3.0 million. As a result of the Battery Point acquisition, the Company’s 640,000 shares of Battery Point Series A-3 Preferred Stock were eliminated in consolidation. Prior to the acquisition date, the Company accounted for its investment in the Battery Point A-3 Preferred Stock as an equity investment without a readily determinable value. The acquisition-date carrying value of the previous equity interest was $14.0 million and is included in the measurement of the consideration transferred. The Company recognized a gain of $2.0 million as a result of remeasuring its prior equity interest in the Battery Point A-3 Preferred Stock held before the acquisition. The gain is included in the line item “Gain from remeasurement of prior equity interest” in the consolidated statement of operations. Investment in Pacific Oak Opportunity Zone Fund I During the year ended December 31, 2019, the Company acquired 91 Class A Units for $20.6 million in Pacific Oak Opportunity Zone Fund I. Additionally, with the POSOR II Merger, the Company acquired an additional 13 Class A Units with a fair value of $3.0 million and also acquired 7 Class A Units for $1.5 million during the year ended December 31, 2020. Pacific Oak Opportunity Zone Fund I is sponsored by Pacific Oak Holding. As of December 31, 2020, the book value of the Company’s investment in Pacific Oak Opportunity Zone Fund I was $25.0 million, which includes $0.2 million of acquisition fees. As of December 31, 2020, Pacific Oak Opportunity Zone Fund I consolidated three joint venture with real estate under development. As of December 31, 2020, the Company has concluded that Pacific Oak Opportunity Zone Fund I qualifies as a Variable Interest Entity (“VIE”) because there is insufficient equity at risk to finance the entity’s activities and the entity is structured with non-substantive voting rights. The Company concluded it is not the primary beneficiary of this VIE since it does not have the power to direct the activities that most significantly impact the entity’s economic performance and will account for its investment under the equity method of accounting. The Company’s maximum exposure to loss as a result of its involvement with this VIE is limited to the carrying value of the investment in Pacific Oak Opportunity Zone Fund I which totaled $25.0 million as of December 31, 2020. PORT II During the year ended December 31, 2020, the Company has contributed $5.0 million in PORT II OP, LLC (“PORT II OP), a wholly owned subsidiary of Pacific Oak Residential Trust II, Inc. ("PORT II"). On August 31, 2020, PORT II entered into an advisory agreement (as subsequently amended and restated on October 9, 2020, “PORT II Advisory Agreement”) with Pacific Oak Residential Advisors, LLC (“PORA”), an affiliate of the Advisor. Pursuant to the PORT II Advisory Agreement, PORT II has engaged PORA to act as its external advisor with respect to PORT II’s operations and assets. Because the Company has separately engaged the Advisor to manage its operations and assets, including its interests in PORT II, on November 12, 2020, the Company and the Advisor agreed to amend their advisory agreement to provide that PORT II’s operations and assets will be managed by PORA and not by the Advisor. In addition, the amendment provides that the Advisor will rebate or offset its fees under its advisory agreement with the Company to the extent of the Company’s indirect economic interest in fees paid by PORT II to PORA (which will be based on the Company’s indirect ownership of PORT II OP, which is the operating partnership of PORT II and the entity ultimately responsible for PORT II’s administrative expenses). On August 31, 2020, PORT II entered into a property management agreement with DMH Realty, LLC (“DMH”), an affiliate of the Advisor and PORA. Pursuant to the property management agreement, PORT II will pay to DMH a base fee equal to the following: (a) for all rent collections up to $50 million per year, 8%; (b) for all rent collections in excess of $50 million per year, but less than or equal to $75 million per year, 7%; and (c) for all rent collections in excess of $75 million per year, 6%. PORT II will also pay DMH market-based leasing fees that will depend on the type of tenant, shared fees equal to 100% of any application fees collected and 50% of any insufficient funds fees, late fees and certain other fees collected. DMH may also perform additional services at rates that would be payable to unrelated parties. PORT II is a newly-organized Maryland corporation formed and sponsored by the Advisor to acquire, own and operate single family homes as rental properties as well as to acquire and own other interests, including mortgages on or securities related to single family homes. The Company has contributed $5.0 million in capital to PORT II OP. The Company made its investment through PORT OP, of which the Company owns 96.1% of PORT II OP as of December 31, 2020. |
SUPPLEMENTAL CASH FLOW AND SIGN
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow and Significant Noncash Transaction Disclosures [Abstract] | |
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES | SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES Supplemental cash flow and significant noncash transaction disclosures were as follows (in thousands): Years Ended December 31, 2020 2019 2018 Supplemental Disclosure of Cash Flow Information: Interest paid, net of capitalized interest of $2,923, $2,565 and $2,339 for the years ended December 31, 2020, 2019 and 2018, respectively $ 23,765 $ 25,703 $ 27,029 Supplemental Disclosure of Significant Noncash Transactions: Assets acquired in the POSOR II merger 635,825 — — Liabilities assumed in the POSOR II merger 359,375 — — Assets acquired in the Battery Point acquisition 56,572 — — Liabilities assumed in the Battery Point acquisition 37,548 — — Assets acquired in the PORT acquisition — 121,316 — Liabilities assumed in the PORT acquisition — 64,682 — Acquisition fees due to affiliates on investment in unconsolidated entities — 137 — Accrued improvements to real estate 2,733 5,302 3,363 Redeemable common stock payable 864 829 10,000 Restricted stock payable 15,506 16,320 — Mezzanine equity in connection with subordinated performance fee due upon termination — 10,880 — Restricted stock (additional paid in capital) in connection with subordinated performance fee due upon termination — 5,440 — Mortgage loan assumed by buyer in connection with sale of real estate — 23,663 — Redemptions of Series B Preferred Stock in exchange for Series A-3 Preferred Units — 2,992 — Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan — 829 1,418 Distributions paid to common stockholders through common stock issuances pursuant to the December 2017 special dividend — — 150,299 Distributions paid to common stockholders through common stock issuances pursuant to the November 2018 special dividend — — 127,911 |
REPORTING SEGMENTS
REPORTING SEGMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
REPORTING SEGMENTS | REPORTING SEGMENTS The Company recognizes three reporting segments for the year ended December 31, 2020 and consists of strategic opportunistic properties, single-family homes and hotels. All corporate related costs are included in the strategic opportunistic properties segment to align with how financial information is presented to the chief operating decision maker. The Company recognized two reporting segments for the year ended December 31, 2019. The Company only recognized one reporting segment for the year ended December 31, 2018. The selected financial information for the reporting segments for the years ended December 31, 2020 and 2019 is as follows: Year Ended December 31, 2020 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 93,252 $ 17,055 $ 3,718 $ 114,025 Total expenses (122,621) (19,332) (6,204) (148,157) Total other (loss) income (15,045) (51) 415 (14,681) Net loss $ (44,414) $ (2,328) $ (2,071) $ (48,813) Year Ended December 31, 2019 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 91,351 $ 1,807 $ — $ 93,158 Total expenses (130,448) (2,374) — (132,822) Total other income (loss) 28,944 (4,461) — 24,483 Net loss $ (10,153) $ (5,028) $ — $ (15,181) Total assets related to the three reporting segments as of December 31, 2020 and 2019 are as follows: December 31, 2020 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total assets $ 1,404,509 $ 182,486 $ 144,670 $ 1,731,665 Goodwill 12,297 — 4,045 16,342 December 31, 2019 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total assets $ 921,917 $ 119,325 $ — $ 1,041,242 |
PORT PREFERRED STOCK
PORT PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
PORT PREFERRED STOCK | PORT PREFERRED STOCK The Company has authorized and issued preferred stock from a wholly owned subsidiary. The Company has elected to use the measurement method described under ASC 480-10-S99-3A, paragraph 15(b), resulting in the preferred stock being classified in mezzanine equity and measured based on the estimated future redemption value as of December 31, 2020 and 2019. On November 6, 2019, PORT issued 15,000 shares out of its available 25,000,000 shares of Series A Cumulative Convertible Redeemable Preferred Stock for gross proceeds of $1,000 per share resulting in net proceeds of $15.0 million before issuance costs. The shares provide for an annual dividend of 6% payable quarterly, which increases to 12% if all shares are not redeemed by the Company immediately following the redemption date. However, the 12% dividend rate does not apply until the aggregate number of shares selected for redemption do not constitute 10% or more of all outstanding shares. The shares may be redeemed by the holders beginning on November 4, 2021 for $1,000 per share plus all accrued but unpaid dividends through the redemption date, or after November 4, 2022 for $1,120 per share plus all accrued but unpaid dividends through the redemption date. In addition, after November 4, 2020, the shares are redeemable at the Company’s option, at any time or from time to time, at a redemption price of $1,120 per share plus unpaid accrued dividends. Additionally, if the common shares of PORT are publicly traded, the holder may elect to convert its preferred shares into PORT common shares based on a value of the preferred shares of $1,120 per share plus unpaid accrued dividends, and a conversion price of the common shares as stated in the agreement. On November 22, 2019, PORT issued 125 shares of its Series B Cumulative Redeemable Preferred Stock for gross proceeds of $1,000 per share resulting in net proceeds of $0.1 million after issuance costs. The shares provide for an annual dividend of 12.5% payable semiannually. The shares may be redeemed by the holders for $1,050 per share until December 31, 2021 and for $1,000 per share thereafter. The following is a reconciliation of the Company’s noncontrolling cumulative convertible redeemable preferred stock for the years ended December 31, 2019 and 2020: Series A Preferred Stock Series B Preferred Stock Shares Amounts Shares Amounts Issuance of preferred stock 15,000 $ 15,000 125 $ 125 Other offering costs — (91) — (26) Balance, December 31, 2019 15,000 14,909 125 99 Dividends Available Upon Redemption — 973 — 16 Dividends Paid — (748) — (16) Balance, December 31, 2020 15,000 $ 15,134 125 $ 99 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Restricted Stock On March 27, 2020, the Company issued 3,411,737 restricted shares to KBS Capital Advisors in connection with the subordinated performance fee due upon termination (the “Restricted Stock”). The Restricted Stock vests on November 1, 2021. These shares are subject to non-compete provisions, which are treated as clawback contingent features and will be accounted for if and when the Restricted Stock is required to be returned. Within 60 days from the vesting of the Restricted Stock, the Company is required to redeem 50% of the Restricted Stock in cash, with the amount of the cash payment per share determined based on the then most recent net asset value of the shares. These shares are classified as a liability instrument, accounted for as restricted stock payable on the accompanying consolidated balance sheets, and are recorded at the fair value of the shares at each reporting period until settled. Within 60 days after November 1, 2024, the Company may be required to redeem up to 2/3rd of the remaining Restricted Stock at the most recent net asset value per share. These shares are classified as an equity instrument and accounted for as mezzanine equity on the accompanying consolidated balance sheets. These shares are recorded at the redemption value as if the settlement occurred at the reporting date. The remaining shares are classified as an equity instrument and recorded in additional paid-in-capital on the accompanying balance sheets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES In connection with the POSOR II Merger, the Company acquired two hotels, Springmaid Beach Resort and Q&C Hotel. The operation for both hotels are externally managed by third-party hotel operators, in which the Company have contractual obligations under the management agreements. Management Agreement Springmaid Beach Resort The consolidated joint venture entity through which the Company leases the operations for Springmaid Beach Resort has entered into a management agreement with Doubletree Management LLC, an independent third-party hotel operator (the “Operator”) pursuant to which the Operator will manage and operate the Springmaid Beach Resort. The hotel was branded a DoubleTree by Hilton in September 2016 (the “Brand Commencement Date”). The management agreement expires on December 31 of the 20th full year following the Brand Commencement Date. Upon mutual agreement, the parties may extend the term of the agreement for two successive periods of five years each. If an event of default occurs and continues beyond any applicable notice and cure periods set forth in the management agreement, the non-defaulting party generally has, among other remedies, the option of terminating the management agreement upon written notice to the defaulting party with no termination fee payable to Doubletree. In addition, the Company has the right to terminate the management agreement without the payment of a termination fee if Doubletree fails to achieve certain criteria relating to the performance of the hotel for any two consecutive years following the Brand Commencement Date. Under certain circumstances following a casualty or condemnation event, either party may terminate the management agreement provided Doubletree receives a termination fee an amount equal to two years of the base fee. The Company is permitted to terminate the management agreement upon a sale, lease or other transfer of the Springmaid Beach Resort any time so long as the buyer is approved for, and enters into a DoubleTree by Hilton franchise agreement for the balance of the agreement’s term. Finally, the Company is restricted in its ability to assign the management agreement upon a sale, lease or other transfer the Springmaid Beach Resort unless the transferee is approved by Doubletree to assume the management agreement. Pursuant to the management agreement the Operator receives the following fees: • a base fee, which is a percentage of total operating revenue that starts at 2.5% and increases to 2.75% in the second year following the Brand Commencement Date and further increases in the third year following the Brand Commencement Date and thereafter to 3.0%; • a campground area management fee, which is 2% of any campground revenue; • an incentive fee, which is 15% of operating cash flow (after deduction for capital renewals reserve and the joint venture owner’s priority, which is 12% of the joint venture owner’s total investment); • an additional services fee in the amount reasonably determined by the Operator from time to time; and • a brand services fee in the amount of 4% of total rooms revenue, and an other brand services fee in an amount determined by the Operator from time to time. The management agreement contains specific standards for the operation and maintenance of the hotel, which allows the Operator to maintain uniformity in the system created by the Operator’s franchise. Such standards generally regulate the appearance of the hotel, quality and type of goods and services offered, signage and protection of trademarks. Compliance with the management agreement will require the Company to make significant expenditures for capital improvements. During the year ended December 31, 2020, the Company incurred $0.1 million of fees related to the management agreement, which are included in hotel expenses on the accompanying consolidated statements of operations. Q&C Hotel A wholly owned subsidiary of the joint venture through which the Company leases the operations of the Q&C Hotel (“Q&C Hotel Operations”) has entered into a management agreement with Encore Hospitality, LLC (“Encore Hospitality”), an affiliate of the joint venture partner, pursuant to which Encore Hospitality will manage and operate the Q&C Hotel. The management agreement expires on December 17, 2035. Subject to certain conditions, Encore Hospitality may extend the term of the agreement for a period of five years. Pursuant to the management agreement Encore Hospitality will receive a base fee, which is 4.0% of gross revenue (as defined in the management agreement). During the year ended December 31, 2020 the Company incurred $47,000 of fees related to the management agreement, which are included in hotel expenses on the accompanying consolidated statements of operations. Q&C Hotel Operations has also entered into a franchise agreement with Marriott International (“Marriott”) pursuant to which Marriott has granted Q&C Hotel Operations a limited, non-exclusive license to establish and operate the Q&C Hotel using certain of Marriott’s proprietary marks and systems and the hotel was branded as a Marriott Autograph Collection hotel on May 25, 2016. The franchise agreement will expire on May 25, 2041. Pursuant to the franchise agreement, Q&C Hotel Operations pays Marriott a monthly franchise fee equal to a percent of gross room sales on a sliding scale that is initially 2% and increases to 5% on May 25, 2019 and a monthly marketing fund contribution fee equal to 1.5% of the Q&C Hotel’s gross room sales. In addition, the franchise agreement requires the maintenance of a reserve account to fund all renovations at the hotel based on a percentage of gross revenues which starts at 2% of gross revenues and increases to 5% of gross revenues on May 25, 2019. Q&C Hotel Operations is also responsible for the payment of certain other fees, charges and costs as set forth in the agreement. During the year ended December 31, 2020, the Company incurred $0.1 million of fees related to the Marriott franchise agreement, which are included in hotel expenses on the accompanying consolidated statement of operations. In addition, in connection with the execution of the franchise agreement, SOR US Properties II is providing an unconditional guarantee that all Q&C Hotel Operations’ obligations under the franchise agreement will be punctually paid and performed. Finally, certain transfers of the Q&C Hotel or an ownership interest therein are subject to a notice and consent requirement, and the franchise agreement further provides Marriott with a right of first refusal with respect to a sale of the hotel to a competitor of Marriott. Lease Obligations In connection with the POSOR II Merger, the Company acquired the rights to a leasehold interest with respect to 210 West 31st Street, which was accounted for as a finance lease. As of December 31, 2020, the Company's lease included in the consolidated balance sheet as follows: Right-of-use asset (included in real estate held for investment, net) $ 9,258 Lease obligation (included in other liabilities) 9,274 Remaining lease term 93.0 years Discount rate 4.8 % The components of lease expense were as follows: Interest on lease obligation 107 As of December 31, 2020, the Company had a leasehold interest expiring on 2114. Future minimum lease payments owed by the Company under the finance lease as of December 31, 2020 are as follows (in thousands): 2021 $ 360 2022 360 2023 360 2024 360 2025 393 Thereafter 52,563 Total expected minimum lease obligations 54,396 Less: Amount representing interest (1) (45,122) Present value of net minimum lease payments (2) $ 9,274 _____________________ (1) Interest includes the amount necessary to reduce the total expected minimum lease obligations to present value calculated at the Company’s incremental borrowing rate at acquisition. (2) The present value of net minimum lease payments are presented in other liabilities in the accompanying consolidated balance sheets. 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 December 31, 2020. 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. COVID-19 During the year ended December 31, 2020 and subsequent periods, efforts to slow the spread of the COVID-19 virus have had a significant impact on the U.S. economy. The Company continues to follow the policies described in Note 2, including those related to impairments of real estate assets and investments in unconsolidated affiliates and collectability assessments on operating lease receivables. While the Company’s current analyses did not result in any material adjustments to amounts as of and during the year ended December 31, 2020, circumstances related to the COVID-19 pandemic may result in recording impairments, lease modifications and changes to collectability assessments in future periods. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSThe Company evaluates subsequent events up until the date the consolidated financial statements are issued. Series A Debenture Expansion Offering On March 4, 2021 the Company issued debentures (series A) in the amount of 250.0 million Israeli new Shekels par value through a private placement. The debentures were issued at a 1.9% discount resulting in total consideration of 245.3 million Israeli new Shekels ($74.0 million as of March 4, 2021). The additional debentures shall have an equal level of security, pari passu, amongst themselves and between them and the Series A Debentures, which were initially issued, without any right of precedence or preference between any of them. |
SCHEDULE III REAL ESTATE ASSETS
SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION | SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION December 31, 2020 (dollar amounts in thousands) Initial Cost to Company Gross Amount at which Carried at Close of Period Description Location Ownership Percent Encumbrances Land Building and Improvements (1) Total Cost Capitalized Subsequent to Acquisition (2) Land Building and Improvements (1) Total (3) Accumulated Depreciation and Amortization Original Date of Construction Date Properties Held for Investment Richardson Portfolio: Palisades Central I Richardson, TX 90.0% (4) $ 1,037 $ 8,628 $ 9,665 $ 4,715 $ 1,037 $ 13,343 $ 14,380 $ (4,404) 1980 11/23/2011 Palisades Central II Richardson, TX 90.0% (4) 810 17,117 17,927 5,149 810 22,266 23,076 (6,801) 1985 11/23/2011 Greenway I Richardson, TX 90.0% (4) 561 1,170 1,731 1,286 561 2,456 3,017 (1,197) 1983 11/23/2011 Greenway III Richardson, TX 90.0% (4) 702 4,083 4,785 (123) 702 3,960 4,662 (1,624) 1983 11/23/2011 Undeveloped Land Richardson, TX 90.0% — 1,997 — 1,997 1,137 3,134 — 3,134 — N/A 11/23/2011 Total Richardson Portfolio 35,832 5,107 30,998 36,105 12,164 6,244 42,025 48,269 (14,026) Park Highlands (5) North Las Vegas, NV (5) — 17,066 — 17,066 20,339 37,405 — 37,405 — N/A 12/30/2011 Park Centre Austin, TX 100.0% 26,185 3,251 27,941 31,192 6,893 3,251 34,834 38,085 (8,546) 2000 03/28/2013 1180 Raymond Newark, NJ 100.0% 29,848 8,292 37,651 45,943 1,672 8,292 39,323 47,615 (9,170) 1929 08/20/2013 Park Highlands II (5) North Las Vegas, NV (5) — 20,118 — 20,118 7,977 28,095 — 28,095 — N/A 12/10/2013 Richardson Land II Richardson, TX 90.0% — 3,096 — 3,096 322 3,418 — 3,418 — N/A 09/04/2014 Crown Pointe Dunwoody, GA 100.0% 53,072 22,590 62,610 85,200 10,581 22,590 73,191 95,781 (14,926) 1985/1989 02/14/2017 The Marq Minneapolis, MN 100.0% 62,257 10,387 75,878 86,265 9,314 10,387 85,192 95,579 (10,253) 1972 03/01/2018 City Tower Orange, CA 100.0% 94,167 13,930 136,068 149,998 8,713 13,930 144,781 158,711 (18,472) 1988 03/06/2018 Eight & Nine Corporate Centre Franklin, TN 100.0% 47,066 17,401 58,794 76,195 4,016 17,401 62,810 80,211 (7,420) 2007 06/08/2018 Georgia 400 Center Alpharetta, GA 100.0% 59,690 11,400 72,000 83,400 9,475 11,430 81,445 92,875 (7,607) 2001 05/23/2019 Springmaid Beach Resort Myrtle Beach, Sc 90.0% 57,015 30,483 62,417 92,900 — 30,483 62,417 92,900 (530) 1948/1980/1992/1995/2001 10/05/2020 Q&C Hotel New Orleans, LA 90.0% 25,000 2,669 41,431 44,100 94 2,669 41,525 44,194 (302) 1913 10/05/2020 Lincoln Court Campbell, CA 100.0% 34,416 16,610 43,083 59,693 194 16,610 43,277 59,887 (913) 1985 10/05/2020 Lofts at NoHo Commons North Hollywood, CA 90.0% 74,536 22,670 93,676 116,346 81 22,670 93,757 116,427 (1,461) 2007 10/05/2020 210 West 31st Street (6) New York, NY 80.0% 15,050 — 51,358 51,358 109 — 51,467 51,467 — (7) 10/05/2020 Oakland City Center Oakland, CA 100.0% 96,782 24,063 180,973 205,036 60 24,063 181,033 205,096 (3,730) 1985/1990 10/05/2020 Madison Square Phoenix, AZ 90.0% 16,822 11,570 22,544 34,114 56 11,570 22,600 34,170 (861) 1911/2003/2007/2008 10/05/2020 PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC. SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION (CONTINUED) December 31, 2020 (dollar amounts in thousands) Initial Cost to Company Gross Amount at which Carried at Close of Period Description Location Ownership Percent Encumbrances Land Building and Improvements (1) Total Cost Capitalized Subsequent to Acquisition (2) Land Building and Improvements (1) Total (3) Accumulated Depreciation and Amortization Original Date of Construction Date Single-Family Homes Portfolio: Alabama Homes (8) 96.1% (9) 3,008 11,650 14,658 1,076 3,011 12,723 15,734 (613) Various Various Arkansas Homes (8) 96.1% (9) 521 2,083 2,604 74 521 2,157 2,678 (71) Various Various Delaware Homes (8) 96.1% (9) 134 537 671 8 134 545 679 (22) Various Various Florida Homes (8) 96.1% (9) 5,522 34,930 40,452 2,663 5,522 37,593 43,115 (1,020) Various Various Georgia Homes (8) 96.1% (9) 822 4,653 5,475 554 822 5,207 6,029 (264) Various Various Iowa Homes (8) 96.1% (9) 155 619 774 13 155 632 787 (26) Various Various Illinois Homes (8) 96.1% (9) 4,578 18,310 22,888 151 4,578 18,461 23,039 (492) Various Various Indiana Homes (8) 96.1% (9) 1,848 7,392 9,240 246 1,848 7,638 9,486 (314) Various Various Michigan Homes (8) 96.1% (9) 884 3,538 4,422 70 884 3,608 4,492 (148) Various Various Missouri Homes (8) 96.1% (9) 390 1,560 1,950 24 390 1,584 1,974 (65) Various Various Mississippi Homes (8) 96.1% (9) 200 802 1,002 — 200 802 1,002 (10) Various Various North Carolina Homes (8) 96.1% (9) 1,419 5,678 7,097 145 1,419 5,823 7,242 (239) Various Various Ohio Homes (8) 96.1% (9) 2,298 9,191 11,489 290 2,298 9,481 11,779 (390) Various Various Oklahoma Homes (8) 96.1% (9) 2,360 13,184 15,544 689 2,360 13,873 16,233 (664) Various Various South Carolina Homes (8) 96.1% (9) 572 2,289 2,861 44 572 2,333 2,905 (96) Various Various Tennessee Homes (8) 96.1% (9) 2,387 10,743 13,130 1,319 2,387 12,062 14,449 (658) Various Various Texas Homes (8) 96.1% (9) 4,497 17,464 21,961 1,970 4,497 19,434 23,931 (1,046) Various Various Wisconsin Homes (8) 96.1% (9) 338 1,333 1,671 25 338 1,358 1,696 (57) Various Various Total Single-Family Homes Portfolio 112,493 31,933 145,956 177,889 9,361 31,936 155,314 187,250 (6,195) Total Properties $ 272,636 $ 1,141,408 $ 1,414,044 $ (103,391) $ 302,444 $ 1,214,991 $ 1,517,435 $ (104,412) ____________________ (1) Building and improvements includes tenant origination and absorption costs. (2) Costs capitalized subsequent to acquisition is net of write-offs of fully depreciated/amortized assets. (3) The aggregate cost of real estate for federal income tax purposes was $1.6 billion (unaudited) as of December 31, 2020. (4) As of December 31, 2020, $35.8 million of debt was outstanding secured by the Richardson Portfolio. (5) The Company owns 100% of the common members’ equity of Park Highlands and Park Highlands II. On September 7, 2016 and January 8, 2019, a subsidiary of the Company that owns a portion of Park Highlands and Park Highlands II, sold 820 units of 10% Class A non-voting preferred membership units for $0.8 million and 1,927 units of 10% Class A2 non-voting preferred membership units for $1.9 million, respectively, to accredited investors. The amount of the Class A and A2 non-voting preferred membership units raised, net of offering costs, is included in other liabilities on the accompanying consolidated balance sheets. (6) The Company acquired the rights to a leasehold interest with respect to this property. The leasehold interest expires January 31, 2114. (7) 210 West 31st Street is a development property. (8) The single-family homes portfolio have homes in multiple cities in each respective state. (9) The single-family homes portfolio, in aggregate are under encumbrance of $112.5 million. SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION (CONTINUED) December 31, 2020 (dollar amounts in thousands) 2020 2019 2018 Real Estate (1) : Balance at the beginning of the year $ 824,860 $ 730,962 $ 574,684 Acquisitions 679,042 200,918 312,457 Improvements 17,103 34,435 31,818 Write-off of fully depreciated and fully amortized assets (3,114) (1,060) (7,329) Loss due to property damages — — (964) Sales (456) (140,395) (178,068) Reimbursement of construction costs — — (1,636) Balance at the end of the year $ 1,517,435 $ 824,860 $ 730,962 Accumulated depreciation and amortization (1) : Balance at the beginning of the year $ 65,381 $ 49,842 $ 41,817 Depreciation and amortization expense 42,159 31,961 32,661 Write-off of fully depreciated and fully amortized assets (3,114) (1,060) (7,329) Sales (14) (15,362) (17,307) Balance at the end of the year $ 104,412 $ 65,381 $ 49,842 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership, Pacific Oak Strategic Opportunity BVI and their direct and indirect wholly owned subsidiaries, and joint ventures in which the Company has a controlling interest and VIEs in which the Company is the primary beneficiary. All significant intercompany balances and transactions are eliminated in consolidation. The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC. |
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. |
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. |
Revenue Recognition | Real Estate On January 1, 2019, the Company adopted the lease accounting standards under Topic 842 including the package of practical expedients for all leases that commenced before the effective date of January 1, 2019. Accordingly, the Company (i) did not reassess whether any expired or existing contracts are or contain leases, (ii) did not reassess the lease classification for any expired or existing lease, and (iii) did not reassess initial direct costs for any existing leases. The Company did not elect the practical expedient related to using hindsight to reevaluate the lease term. In addition, the Company adopted the practical expedient for land easements and did not assess whether existing or expired land easements that were not previously accounted for as leases under the lease accounting standards of Topic 840 are or contain a lease under Topic 842. In addition, Topic 842 provides an optional transition method to allow entities to apply the new lease accounting standards at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The Company adopted this transition method upon its adoption of the lease accounting standards of Topic 842, which did not result in a cumulative effect adjustment to the opening balance of retained earnings on January 1, 2019. The Company’s comparative periods presented in the financial statements will continue to be reported under the lease accounting standards of Topic 840. In accordance with Topic 842, tenant reimbursements for property taxes and insurance are included in the single lease component of the lease contract (the right of the lessee to use the leased space) and therefore are accounted for as variable lease payments and are recorded as rental income on the Company’s statement of operations beginning January 1, 2019. In addition, the Company adopted the practical expedient available under Topic 842 to not separate nonlease components from the associated lease component and instead to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue recognition standard (Topic 606) and if certain conditions are met, specifically related to tenant reimbursements for common area maintenance which would otherwise be accounted for under the revenue recognition standard. The Company believes the two conditions have been met for tenant reimbursements for common area maintenance as (i) the timing and pattern of transfer of the nonlease components and associated lease components are the same and (ii) the lease component would be classified as an operating lease. Accordingly, tenant reimbursements for common area maintenance are also accounted for as variable lease payments and recorded as rental income on the Company’s statement of operations beginning January 1, 2019. The Company recognizes minimum rent, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when collectibility is determined to be probable and records amounts expected to be received in later years as deferred rent receivable. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that can be taken in the form of cash or a credit against the tenant’s rent) that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how a tenant improvement allowance may be spent; • whether the amount of a tenant improvement allowance is in excess of market rates; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. The Company leases apartment units and single-family homes under operating leases with terms generally of one year or less. Generally, credit investigations will be performed for prospective residents and security deposits will be obtained. The Company recognizes rental revenue, net of concessions, on a straight-line basis over the term of the lease, when collectibility is determined to be probable. In accordance with Topic 842, the Company makes a determination of whether the collectibility of the lease payments in an operating lease is probable. If the Company determines the lease payments are not probable of collection, the Company would fully reserve for any contractual lease payments, deferred rent receivable, and variable lease payments and would recognize rental income at the lesser of (1) on a straight-line basis or (2) cash received. Beginning January 1, 2019, these changes to the Company’s collectibility assessment are reflected as an adjustment to rental income. Prior to January 1, 2019, bad debt expense related to uncollectible accounts receivable and deferred rent receivable was included in operating, maintenance, and management expense in the statement of operations. Any subsequent changes to the collectibility of the allowance for doubtful accounts as of December 31, 2018, which was recorded prior to the adoption of Topic 842, are recorded in operating, maintenance, and management expense in the statement of operations. Beginning January 1, 2019, the Company, as a lessor, records costs to negotiate or arrange a lease that would have been incurred regardless of whether the lease was obtained, such as legal costs incurred to negotiate an operating lease, as an expense and classify such costs as operating, maintenance, and management expense on the Company’s consolidated statement of operations, as these costs are no longer capitalizable under the definition of initial direct costs under Topic 842. Hotel Revenue The Company recognizes revenue for hotels as hotel revenue when earned. Revenues are recorded net of any sales or occupancy tax collected from the Company’s guests. Additionally, some of the Company’s hotel rooms are booked through independent internet travel intermediaries. If the guest pays the independent internet travel intermediary directly, revenue for the room is booked by the Company at the price the Company sold the room to the independent internet travel intermediary, less any discount or commission paid. If the guest pays the Company directly, revenue for the room is booked by the Company on a gross basis. The Company participates in frequent guest programs sponsored by the brand owners of the Company’s hotels and the Company expenses the charges associated with those programs, as incurred. Hotel operating revenues are disaggregated in the real estate footnote into the categories of rooms revenue, food, beverage and convention services revenue, campground revenue and other revenue to demonstrate how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. Room revenue is generated through contracts with customers whereby the customer agrees to pay a daily rate for the right to use a hotel room. The Company’s contract performance obligations are fulfilled at the end of the day that the customer is provided the room and revenue is recognized daily at the contract rate. The Company records contract liabilities in the form of advanced deposits when a customer or group of customers provides a deposit for a future stay at the Company’s hotels. Advanced deposits for room revenue are included in the balance of other liabilities on the consolidated balance sheet. Advanced deposits are recognized as revenue at the time of the guest’s stay. Food, beverage and convention revenue is generated through contracts with customers whereby the customer agrees to pay a contract rate for restaurant dining services or convention services. The Company’s contract performance obligations are fulfilled at the time that the meal is provided to the customer or when the convention facilities and related dining amenities are provided to the customer. The Company recognizes food and beverage revenue upon the fulfillment of the contract with the customer. The Company records contract liabilities in the form of advanced deposits when a customer or group of customers provides a deposit for a future banquet event at the Company’s hotels. Advanced deposits for food and beverage revenue are included in the balance of other liabilities on the consolidated balance sheet. Advanced deposits for banquet services are recognized as revenue following the completion of the banquet services. Campground revenue is recognized on a straight-line basis over the term of the lease when collectability of the lease payments is probable. Sale of Real Estate Effective January 1, 2018, the Company adopted the guidance of ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (“ASC 610-20”), which applies to sales or transfers to noncustomers of nonfinancial assets or in substance nonfinancial assets that do not meet the definition of a business. Generally, the Company’s sales of real estate would be considered a sale of a nonfinancial asset as defined by ASC 610-20. |
Real Estate Equity Securities | Dividend income from real estate equity securities is recognized on an accrual basis based on eligible shares as of the ex-dividend date. |
Cash and Cash Equivalents | The Company recognizes interest income on its cash and cash equivalents as it is earned and records such amounts as other interest income.The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Cash and cash equivalents are stated at cost, which approximates fair value. There were no restrictions on the use of the Company’s cash and cash equivalents as of December 31, 2020 and 2019. The Company’s cash and cash equivalents balance exceeded federally insurable limits as of December 31, 2020. The Company monitors the cash balances in its operating accounts and adjusts the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts. |
Depreciation and Amortization | Real estate costs related to the acquisition and improvement of properties are capitalized and depreciated over the expected useful life of the asset on a straight-line basis. Repair and maintenance costs are charged to expense as incurred and significant replacements and betterments are capitalized. Repair and maintenance costs include all costs that do not extend the useful life of the real estate asset. The Company considers the period of future benefit of an asset to determine its appropriate useful life. Expenditures for tenant improvements are capitalized and amortized over the shorter of the tenant’s lease term or expected useful life. The Company anticipates the estimated useful lives of its assets by class to be generally as follows: Land N/A Buildings 25-40 years Building improvements 10-40 years Tenant improvements Shorter of lease term or expected useful life Tenant origination and absorption costs Remaining term of related leases, including below-market renewal periods Real estate subsidies & tax abatements Remaining term of agreement Furniture, fixtures & equipment 3-12 years |
Real Estate Acquisition Valuation | The Company records the acquisition of income-producing real estate or real estate that will be used for the production of income as a business combination or an asset acquisition. If substantially all of the fair value of the gross assets acquired are concentrated in a single identifiable asset or group of similar identifiable assets, then the set is not a business. For purposes of this test, land and buildings can be combined along with the intangible assets for any in-place leases and accordingly, most acquisitions of investment properties would not meet the definition of a business and would be accounted for as an asset acquisition. To be considered a business, a set must include an input and a substantive process that together significantly contributes to the ability to create an output. All assets acquired and liabilities assumed in a business combination are measured at their acquisition-date fair values. For asset acquisitions, the cost of the acquisition is allocated to individual assets and liabilities on a relative fair value basis. Acquisition costs associated with business combinations are expensed as incurred. Acquisition costs associated with asset acquisitions are capitalized. Intangible assets include the value of in-place leases, which represents the estimated value of the net cash flows of the in-place leases to be realized, as compared to the net cash flows that would have occurred had the property been vacant at the time of acquisition and subject to lease-up. Acquired in-place lease value will be amortized to expense over the average remaining terms of the respective in-place leases, including any below-market renewal periods. The Company assesses the acquisition date fair values of all tangible assets, identifiable intangibles and assumed liabilities using methods similar to those used by independent appraisers, generally utilizing a discounted cash flow analysis that applies appropriate discount and/or capitalization rates and available market information and/or replacement cost data. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using a discount that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of above-market in-place leases and for the initial term plus any extended term for any leases with below-market renewal options. The Company amortizes any recorded above-market or below-market lease values as a reduction or increase, respectively, to rental income over the remaining non-cancelable terms of the respective lease, including any below-market renewal periods. The Company estimates the value of tenant origination and absorption costs by considering the estimated carrying costs during hypothetical expected lease up periods, considering current market conditions. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods. The Company records the fair value of debt assumed in an acquisition 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. The Company amortizes the value of tenant origination and absorption costs to depreciation and amortization expense over the remaining non-cancelable term of the leases. Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require the Company to make significant assumptions to estimate market lease rates or average daily rates, property-operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, revenue and expense growth rates, occupancy, and net operating margin. The Company records the fair value of noncontrolling interests based on the estimated noncontrolling interests’ share of fair values of the net assets of the underlying entities, adjusted for lack of marketability and control discount. |
Goodwill | The Company recorded goodwill during the year ended December 31, 2020 in connection with the Merger (Refer to Note 3), of which $12.3 million were allocated to strategic opportunistic properties and $4.0 million to hotels. Goodwill represents the excess of consideration paid over the fair value of underlying identifiable net assets of business acquired. The Company's goodwill has an indeterminate life and is not amortized, but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company takes a qualitative approach to consider whether an impairment of goodwill exists prior to quantitatively determining the fair value of the reporting unit in step one of the impairment test. The Company performs its annual assessment on October 1st. Based on the assessment of qualitative factors, the Company concluded it was more likely than not that the Company's goodwill was not impaired and did not perform the quantitative test. |
Impairment of Real Estate and Related Intangible Assets and Liabilities | The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate and related intangible assets and liabilities may not be recoverable or realized. Such indicators of potential impairment may include an assessment of management's intended hold period and disposition strategy, a significant decrease in market price, expected future undiscounted cash flows, and current industry and market trends and other factors including bona fide purchase offers received from third parties in making this assessment. When indicators of potential impairment suggest that the carrying value of real estate and related intangible assets and liabilities may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of the real estate and related intangible assets and liabilities through its undiscounted future cash flows and its eventual disposition. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of the real estate and related intangible assets and liabilities, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the real estate and related intangible assets and liabilities. The Company did not record any impairment losses on its real estate and related intangible assets and liabilities during the years ended December 31, 2020, 2019 and 2018.Projecting future cash flows involves estimating expected future operating income and expenses related to the real estate and its related intangible assets and liabilities as well as market and other trends. Using inappropriate assumptions to estimate cash flows could result in incorrect fair values of the real estate and its related intangible assets and liabilities and could result in the overstatement of the carrying values of the Company’s real estate and related intangible assets and liabilities and an overstatement of its net income. |
Insurance Proceeds for Property Damages | The Company maintains an insurance policy that provides coverage for property damages and business interruption. Losses due to physical damages are recognized during the accounting period in which they occur, while the amount of monetary assets to be received from the insurance policy is recognized when receipt of insurance recoveries is probable. Losses, which are reduced by the related probable insurance recoveries, are recorded as operating, maintenance and management expenses on the accompanying consolidated statements of operations. Anticipated proceeds in excess of recognized losses would be considered a gain contingency and recognized when the contingency related to the insurance claim has been resolved. Anticipated recoveries for lost rental revenue due to property damages are also considered to be a gain contingency and recognized when the contingency related to the insurance claim has been resolved. |
Real Estate Held for Sale and Discontinued Operations | The Company generally considers real estate to be “held for sale” when the following criteria are met: (i) management commits to a plan to sell the property, (ii) the property is available for sale immediately, (iii) the property is actively being marketed for sale at a price that is reasonable in relation to its current fair value, (iv) the sale of the property within one year is considered probable and (v) significant changes to the plan to sell are not expected. Real estate that is held for sale and its related assets are classified as “real estate held for sale” and “assets related to real estate held for sale,” respectively, for all periods presented in the accompanying consolidated financial statements. Notes payable and other liabilities related to real estate held for sale are classified as “notes payable related to real estate held for sale” and “liabilities related to real estate held for sale,” respectively, for all periods presented in the accompanying consolidated financial statements. Real estate classified as held for sale is no longer depreciated and is reported at the lower of its carrying value or its estimated fair value less estimated costs to sell. Operating results and related gains on sale of properties that were disposed of or classified as held for sale in the ordinary course of business are included in continuing operations on the Company’s consolidated statements of operations. |
Real Estate Equity Securities | The Company determines the appropriate classification for real estate equity securities at acquisition (on the trade date) and reevaluates such designation as of each balance sheet date. As of December 31, 2020 and 2019, the Company classified its investments in real estate equity securities as available-for-sale as the Company intends to hold the securities for the purpose of collecting dividend income and for longer term price appreciation. These investments are carried at their estimated fair value based on quoted market prices for the security, net of any discounts for restrictions on the sale of the security. Any discount for lack of marketability is estimated using an option pricing model. Transaction costs that are directly attributable to the acquisition of real estate equity securities are capitalized to its cost basis. The Company adopted ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities |
Investment in Unconsolidated Entities, Equity Method | The Company accounts for investments in unconsolidated entities in which the Company may exercise significant influence over, but does not control, using the equity method of accounting. Under the equity method, the investment is initially recorded at cost and subsequently adjusted to reflect additional contributions or distributions and the Company’s proportionate share of equity in the joint venture’s income (loss). The Company recognizes its proportionate share of the ongoing income or loss of the unconsolidated joint venture as equity in income (loss) of unconsolidated joint venture on the consolidated statements of operations. On a quarterly basis, the Company evaluates its investment in an unconsolidated joint venture for other-than-temporary impairments. |
Investment in Unconsolidated Entities, Equity Investment Without Readily Determinable Value | The Company accounts for investments in unconsolidated entities in which the Company does not have the ability to exercise significant influence and has virtually no influence over partnership operating and financial policies at its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company elected to measure its investment in the NIP Joint Venture (as defined herein) and shares of Battery Point (as defined herein) Series A-3 Preferred Stock in accordance with the above guidance. As of December 31, 2019, the Company recorded its investment in the NIP Joint Venture and shares of Battery Point Series A-3 Preferred Stock at cost basis of $1.2 million and $14.0 million, respectively. Distributions of income from the NIP Joint Venture are recognized in other income. Distributions that exceed the Company’s share of earnings are applied to reduce the carrying value of the Company’s investment and any capital contributions would increase the carrying value of the Company’s investment. See Note 11, “Investment in Unconsolidated Entities” for a further discussion on the Company’s investments in unconsolidated entities. |
Restricted Cash | Restricted cash is comprised of lender impound reserve accounts on the Company’s borrowings for security deposits, property taxes, insurance, debt service obligations and capital improvements and replacements. |
Deferred Financing Costs | Deferred financing costs represent commitment fees, loan fees, legal fees and other third-party costs associated with obtaining financing and are presented on the balance sheet as a direct deduction from the carrying value of the associated debt liability. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Deferred financing costs incurred before an associated debt liability is recognized are included in prepaid and other assets on the balance sheet. Costs incurred in seeking financing transactions that do not close are expensed in the period in which it is determined that the financing will not close. |
Fair Value Measurements | 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. When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and classifies such items in Level 1 or Level 2. The Company would classify items as Level 3 in instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines that the market for a financial instrument owned by the Company is illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establishes a fair value by assigning weights to the various valuation sources. Additionally, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. The Company considers the following factors to be indicators of an inactive market: (i) there are few recent transactions, (ii) price quotations are not based on current information, (iii) price quotations vary substantially either over time or among market makers (for example, some brokered markets), (iv) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability, (v) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the Company’s estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability, (vi) there is a wide bid-ask spread or significant increase in the bid-ask spread, (vii) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities, and (viii) little information is released publicly (for example, a principal-to-principal market). The Company considers the following factors to be indicators of non-orderly transactions: (i) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions, (ii) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant, (iii) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced), and (iv) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities. |
Dividend Reinvestment Plan | The Company has adopted a dividend reinvestment plan (the “DRP”) through which common stockholders may elect to reinvest an amount equal to the distributions declared on their shares in additional shares of the Company’s common stock in lieu of receiving cash distributions. On December 7, 2017, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $11.50 (unaudited) based on the estimated value of the Company’s assets less the estimated value of the Company’s liabilities, or net asset value, divided by the number of shares outstanding as of September 30, 2017, after giving effect to the December 7, 2017 declaration of a special dividend of $3.61 per share on the outstanding shares of the Company’s common stock to the stockholders of record as of the close of business on December 7, 2017 and the results of a self-tender. Commencing December 23, 2017, the purchase price per share under the DRP was $11.50. The Company’s board of directors has determined that any portion of the special dividend that was paid in cash in January 2018 would not be used to purchase additional shares under the dividend reinvestment plan. No selling commissions or dealer manager fees will be paid on shares sold under the DRP. On November 12, 2018, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $9.91 (unaudited) based on the estimated value of the Company’s assets less the estimated value of the Company’s liabilities, or net asset value, divided by the number of shares outstanding as of September 30, 2018, after giving effect to the November 12, 2018 declaration of a special dividend of $2.95 per share on the outstanding shares of the Company’s common stock to the stockholders of record as of the close of business on November 12, 2018. Commencing November 25, 2018, the purchase price per share under the DRP was $9.91. The Company’s board of directors has determined that any portion of the special dividend that was paid in cash in December 2018 would not be used to purchase additional shares under the dividend reinvestment plan. No selling commissions or dealer manager fees will be paid on shares sold under the DRP. On December 17, 2019, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $10.63 (unaudited) based on the estimated value of the Company’s assets less the estimated value of the Company’s liabilities, or net asset value, divided by the number of shares outstanding as of September 30, 2019. Commencing December 29, 2019, the purchase price per share under the DRP was $10.63. On December 4, 2020, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $9.68 (unaudited) based on the estimated value of the Company’s assets less the estimated value of the Company’s liabilities, or net asset value, divided by the number of shares outstanding as of September 30, 2020, adjusted for the assets acquired and the liabilities assumed in connection with the Merger, the expenses incurred in the Merger and the shares of the Company’s common stock issued as consideration for the Merger. Commencing December 23, 2020, the purchase price per share under the DRP was $9.68. |
Redeemable Common Stock | The Company has adopted a share redemption program that may enable stockholders to sell their shares to the Company in limited circumstances. Pursuant to the share redemption program there are several limitations on the Company’s ability to redeem shares: • Unless the shares are being redeemed in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence” (each as defined under the share redemption program), the Company may not redeem shares until the stockholder has held the shares for one year. • During any calendar year, the Company may redeem no more than 5% of the weighted-average number of shares outstanding during the prior calendar year. • The Company has no obligation to redeem shares if the redemption would violate the restrictions on distributions under Maryland law, which prohibits distributions that would cause a corporation to fail to meet statutory tests of solvency. • During any calendar year, the Company may redeem only the number of shares that the Company can purchase with the amount of net proceeds from the sale of shares under the its dividend reinvestment plan during the prior calendar year; provided, however, that this limit may be increased or decreased by us upon ten • The Company may not redeem more than $3.0 million of shares in a given quarter (excluding shares redeemed in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence”). To the extent that, in a given fiscal quarter, the Company redeems less than the sum of (a) $3.0 million of shares (excluding shares redeemed in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence”) and (b) any excess capacity carried over to such fiscal quarter from a prior fiscal quarter as described below, any remaining excess capacity to redeem shares in such fiscal quarter will be added to our capacity to otherwise redeem shares (excluding shares redeemed in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence”) during succeeding fiscal quarter. The Company may increase or decrease this limit upon ten • Separate from the funding described in the first bullet above, the Company’s board of directors has made available $2.0 million of redemptions in connection with a stockholder's death, “qualifying disability”, or “determination of incompetence” for the December 2020 redemption date and carry forward until depleted. Except for redemptions made upon a stockholder’s death, “qualifying disability” or “determination of incompetence”, the price at which the Company will redeem shares is 95% of the Company’s most recent estimated value per share as of the applicable redemption date. Upon the death, “qualifying disability” or “determination of incompetence” of a stockholder, the redemption price continued to be equal to the Company’s most recent estimated value per share. The proceeds from the Company’s dividend reinvestment plan in 2020 were $0.3 million and in addition, as of December 31, 2020, there were $0.6 million remaining from the $2.0 million of additional funding made available. Therefore, in 2021 the Company may redeem no more than $0.9 million of shares in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence.” To the extent extra capacity is available with respect to redemptions in the last month of 2021, such capacity will be made available for redemption of shares other than in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence.” The Company’s board of directors may amend, suspend or terminate the share redemption program with ten In anticipation of a self-tender offer in order to make liquidity available to stockholders in excess of that permitted under the share redemption program, on March 14, 2018, the Company’s board of directors approved a temporary suspension of the share redemption program starting with the March 2018 redemption period, including any unsatisfied requests from prior redemption periods. In connection with its approval of the Self-Tender (defined below), the Company’s board of directors approved the reopening of the share redemption program for the June 2018 redemption period, meaning no redemptions were made in March, April or May 2018 (including those requested following a stockholder’s death, qualifying disability or determination of incompetence). The Company cancelled all outstanding redemption requests under the share redemption program and did not accept any redemption requests under the share redemption program during the term of the Self-Tender. On April 23, 2018, the Company commenced a self-tender offer (the “Self-Tender”) for up to 8,234,217 shares of common stock at a price of $10.93 per share, or approximately $90.0 million of shares. The Company increased the number of shares accepted for payment in the Self-Tender by up to 1,294,910 shares at a price of $10.93 per share, or approximately $14.1 million of shares. On June 1, 2018, the Company accepted for purchase 9,527,724 shares at a purchase price of $10.93 per share, or approximately $104.1 million of shares, excluding fees and expenses related to the Self-Tender. Effective beginning with the month of February 2020, the Company suspended (a) redemptions requested under the share redemption program in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence”, until the Company and POSOR II filed with the SEC a registration statement on Form S-4 containing a Joint Proxy Statement/Prospectus for the proposed Merger, and (b) all other redemptions under the share redemption program until after the Merger closes. The Form S-4 was filed on June 15, 2020 with the SEC and the Merger closed on October 5, 2020. The Company records amounts that are redeemable under the share redemption program as redeemable common stock in its consolidated balance sheets because the shares will be mandatorily redeemable at the option of the holder and therefore their redemption will be outside the control of the Company. However, because the amounts that can be redeemed will be determinable and only contingent on an event that is likely to occur (e.g., the passage of time), the Company presents the net proceeds from the current year and prior year DRP, net of current year redemptions, as redeemable common stock in its consolidated balance sheets. The Company classifies as liabilities financial instruments that represent a mandatory obligation of the Company to redeem shares. The Company’s redeemable common shares are contingently redeemable at the option of the holder. When the Company determines it has a mandatory obligation to repurchase shares under the share redemption program, it will reclassify such obligations from temporary equity to a liability based upon their respective settlement values. The Company limits the dollar value of shares that may be redeemed under the program as described above. During the year ended December 31, 2020, the Company had redeemed $2.2 million of common stock under the share redemption program. The Company processed all redemption requests received in good order and eligible for redemption through the December 2020 redemption date, except for 8,042,484 shares totaling $74.0 million due to the limitations described above. The Company recorded $0.9 million and $0.8 million of redeemable common stock payable on the Company’s balance sheet as of December 31, 2020 and 2019, respectively, related to unfulfilled redemption requests received in good order under the share redemption program. Based on the twelfth amended and restated share redemption program, the Company has $0.9 million available for redemptions during 2021, including shares that are redeemed in connection with a stockholders’ death, “qualifying disability” or “determination of incompetence,” subject to the limitations described above. |
Related Party Transactions | Pursuant to its advisory agreement with the Advisor, the Company is obligated to pay the Advisor specified fees upon the provision of certain services related to the investment of funds in real estate and real estate-related investments, management of the Company’s investments and for other services (including, but not limited to, the disposition of investments). The Company is or was obligated to reimburse the Advisor for acquisition and origination expenses and certain operating expenses incurred on behalf of the Company or incurred in connection with providing services to the Company. In addition, the Advisor is entitled to certain other fees, including an incentive fee upon achieving certain performance goals, as detailed in the applicable advisory agreement. See Note 10, “Related Party Transactions.”The Company records all related party fees as incurred, subject to any limitations described in the advisory agreement. The Company had not incurred any subordinated participation in net cash flows or subordinated incentive listing fees payable to the Advisor through December 31, 2020. |
Acquisition and Origination Fees | The Company pays the Advisor an acquisition and origination fee equal to 1%Â of the cost of investments acquired, or the amount funded by the Company to acquire or originate mortgage, mezzanine, bridge or other loans, including any acquisition and origination expenses related to such investments and any debt attributable to such investments. |
Asset Management Fee | With respect to investments in loans and any investments other than real estate, the Company pays the Advisor a monthly fee calculated, each month, as one-twelfth of 0.75% of the lesser of (i) the amount paid or allocated to acquire or fund the loan or other investment, inclusive of acquisition and origination fees and expenses related thereto and the amount of any debt associated with or used to acquire or fund such investment and (ii) the outstanding principal amount of such loan or other investment, plus the acquisition and origination fees and expenses related to the acquisition or funding of such investment, as of the time of calculation. With respect to investments in real estate, the Company pays the Advisor a monthly asset management fee equal to one-twelfth of 0.75% of the amount paid or allocated to acquire the investment, including the cost of subsequent capital improvements, inclusive of acquisition fees and expenses related thereto and the amount of any debt associated with or used to acquire such investment. In the case of investments made through joint ventures, the asset management fee is determined based on the Company’s proportionate share of the underlying investment, inclusive of the Company’s proportionate share of any fees and expenses related thereto. |
Disposition Fee | For substantial assistance in connection with the sale of properties or other investments, the Company pays the Advisor or its affiliates 1.0% of the contract sales price of each property or other investment sold; provided, however, in no event may the disposition fees paid to the Advisor, its affiliates and unaffiliated third parties exceed 6.0% of the contract sales price. |
Incentive Fee | See Note 10, “Related Party Transactions,” for information about incentive and /or termination fees payable to the Advisor. |
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. |
Derivative Instruments | The Company enters into derivative instruments for risk management purposes to hedge its exposure to cash flow variability caused by changing interest rates on its variable rate notes payable and enters into derivative instruments such as cross currency swaps, forward contracts, puts or calls for risk management purposes to hedge its exposure to variability in foreign currency exchange rates of the Israeli new Shekel versus the U.S. Dollar. The Company records these derivative instruments at fair value on the accompanying consolidated balance sheets. Derivative instruments designated and qualifying as a hedge of the exposure to variability in expected future cash flows or other types of forecasted transactions are considered cash flow hedges. The change in fair value of the effective portion of a derivative instrument that is designated as a cash flow hedge is recorded as other comprehensive income (loss) on the accompanying consolidated statements of stockholders’ equity. The changes in fair value for derivative instruments that are not designated as a hedge or that do not meet the hedge accounting criteria are recorded as gain or loss on derivative instruments and included in earnings in the accompanying consolidated statements of operations. |
Income Taxes | The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company’s annual REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders. The Company conducts certain business activities through taxable REIT subsidiaries. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially and adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company intends to organize and operate in such a manner as to qualify for treatment as a REIT. The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. Neither the Company nor its subsidiaries have been assessed interest or penalties by any major tax jurisdictions. The Company’s evaluations were performed for all open tax years through December 31, 2020. As of December 31, 2020, returns for the calendar year 2016 through 2019 remain subject to examination by major tax jurisdictions. |
Segments | The Company operates in three reportable business segments: opportunistic real estate and real estate-related investments, single-family homes, and hotels, which is how the Company's management manages the business. In general, the Company intends to hold its investments in opportunistic real estate and other real estate-related assets for capital appreciation. Traditional performance metrics of 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 opportunistic real estate and other real estate-related assets as similar investments and aggregated into one reportable business segment. The Company owns single-family homes in 17 markets and are all aggregated into one reportable business segment due to the homes being stabilized, having high occupancy rates and have similar economic characteristics. Additionally, the Company owns two hotels and are aggregated into one reportable business segment due to the nature of the hotel business with short-term stays. |
Per Share Data | The Company applies the two-class method when computing its earnings per share. Net income per share for each class of stock is calculated by assuming all of the Company’s net income (loss) is distributed to each class of stock based on their contractual rights. Unvested restricted stock that contains non-forfeitable rights to distributions (whether paid or unpaid) are considered participating securities and are included in the computation of earnings per share. Basic earnings (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 earnings (loss) per share of common stock is computed based on the weighted-average number of shares of common stock outstanding during each period, plus potential common shares considered outstanding during the period, as long as the inclusion of such awards is not anti-dilutive. Potential common shares consist of unvested restricted stock, using the more dilutive of either the two-class method or the treasury stock method. The noncontrolling Series A convertible redeemable preferred shares of Pacific Oak Residential Trust, Inc. (“PORT”) are not included as the preferred shares are convertible contingent on the common stock of PORT being publicly traded. If PORT common stock becomes publicly traded, the per-share earnings of PORT will be included in the Company’s EPS computations based on the consolidated holdings of PORT. |
Square Footage, Occupancy and Other Measures | Square footage, occupancy, average revenue per available room, average daily rate, number of tenants and other measures including annualized base rents and annualized base rents per square foot used to describe real estate and real-estate related investments included in these Notes to Consolidated Financial Statements are presented on an unaudited basis. |
Recently Issued Accounting Standards Update | In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments (“ASU No. 2016-13”). ASU No. 2016-13 affects entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. The amendments in ASU No. 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU No. 2016-13 also amends the impairment model for available-for-sale debt 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 debt 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 adoption of ASU No. 2016-13 did not have a material effect on its financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU No. 2020-04”). ASU No. 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU No. 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the year ended December 31, 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. For the period from January 1, 2020 (the earliest date the Company may elect to apply ASU No. 2020-04) through December 31, 2020, the Company did not have any contract modifications that meet the criteria described above, specifically contract modifications that have been modified from LIBOR to an alternative reference rate. The Company’s loan agreements, derivative instruments, and certain lease agreements use LIBOR as the current reference rate. For eligible contract modifications, the Company expects to adopt the temporary optional expedients described in ASU No. 2020-04. The optional expedients for hedging relationships described in ASU No. 2020-04 did not have an impact to the Company, as the Company has elected to not designate its derivative instruments as a hedge. In April 2020, the FASB issued a FASB Staff Q&A related to Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic (the “Topic 842 Q&A”) which focused on the application of lease guidance for concessions related to the effects of the COVID-19 pandemic. In this Q&A document, the FASB staff will allow entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how those concessions would be accounted for under Topic 842, Leases ("Topic 842") as though enforceable rights and obligations for those qualifying concessions existed. The Company adopted this guidance and did not have any material lease concessions related to the effects of the COVID-19 pandemic that had a material impact to the Company’s consolidated balance sheet as of December 31, 2020 or consolidated statement of operations for the year ended December 31, 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life | The Company anticipates the estimated useful lives of its assets by class to be generally as follows: Land N/A Buildings 25-40 years Building improvements 10-40 years Tenant improvements Shorter of lease term or expected useful life Tenant origination and absorption costs Remaining term of related leases, including below-market renewal periods Real estate subsidies & tax abatements Remaining term of agreement Furniture, fixtures & equipment 3-12 years |
REAL ESTATE (Tables)
REAL ESTATE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Real Estate [Abstract] | |
Schedule of Real Estate Investments | The following table summarizes the Company’s real estate held for investment as of December 31, 2020 and 2019, respectively (in thousands): December 31, 2020 December 31, 2019 Land $ 302,444 $ 175,317 Buildings and improvements 1,157,397 618,974 Tenant origination and absorption costs 57,594 30,569 Total real estate, cost 1,517,435 824,860 Accumulated depreciation and amortization (104,412) (65,381) Total real estate, net $ 1,413,023 $ 759,479 |
Lessor, Operating Lease, Payments to be Received, Maturity | As of December 31, 2020, the future minimum rental income from the Company’s properties, excluding apartment and single-family home leases, under non-cancelable operating leases was as follows (in thousands): 2021 $ 79,472 2022 69,670 2023 58,033 2024 49,623 2025 39,223 Thereafter 90,255 $ 386,276 |
Schedules of Concentration of Risk, by Risk Factor | As of December 31, 2020, the Company’s commercial real estate properties were leased to approximately 309 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 Insurance 28 $ 8,421 10.5 % Computer Systems 33 8,260 10.3 % $ 16,681 20.8 % _____________________ |
Schedule of Hotel Revenue and Expense | The following table provides detailed information regarding the Company’s hotel revenues and expenses for its two hotel properties, which were acquired in the Merger, from the Merger closing on October 5, 2020 through December 31, 2020 (in thousands): October 5, 2020 through December 31, 2020 Hotel revenues: Room $ 2,545 Food, beverage and convention services 420 Campground 270 Other 483 Hotel revenues $ 3,718 Hotel expenses: Room $ 801 Food, beverage and convention services 376 General and administrative 563 Sales and marketing 435 Repairs and maintenance 537 Utilities 242 Property taxes and insurance 608 Other 274 Hotel expenses $ 3,836 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable | The following table summarizes the Company’s contract liabilities, which are comprised of advanced deposits and deferred proceeds received from the buyers of the Park Highlands land sales and another developer for the value of land that was contributed to a master association that is consolidated by the Company, which are included in other liabilities in the accompanying consolidated balance sheets, as of December 31, 2020 and December 31, 2019 (in thousands): December 31, 2020 December 31, 2019 Contract liability $ 3,369 $ 3,100 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ — $ — |
Schedule of Redeemable Non-controlling Interest Activities | The following table summarizes the redeemable non-controlling interest activity related to the BPT Holdings for the year ended December 31, 2020 (in thousands): Issuance of PORT OP Units $ 3,024 Net loss attributable to redeemable noncontrolling interest (56) December 31, 2020 $ 2,968 |
Schedule of Business Acquisitions, Properties Acquired | The following table summarizes the components of the consideration (in thousands except per share information): POSOR II shares outstanding 30,046,568 Exchange ratio 0.9643 Total Company shares issued 28,973,905 Company price per share estimated NAV as of October 5, 2020 $ 9.68 Consideration paid $ 280,467 The total consideration was allocated to POSOR II's assets and liabilities based upon fair values as determined by the Company, as follows: Assets: Land $ 108,065 Building and improvements 465,648 Tenant origination and absorption costs 29,869 Cash and cash equivalents 9,735 Real estate equity securities 6,271 Restricted cash 3,243 Investment in unconsolidated entities 3,150 Rents and other receivables 2,567 Prepaid expenses and other assets 6,617 Above-market leases 660 Total Assets 635,825 Liabilities: Notes payable (328,203) Other liabilities (14,513) Accounts payable and accrued liabilities (9,926) Below-market leases (4,610) Due to affiliates (2,123) Total Liabilities (359,375) Noncontrolling interests (12,325) Goodwill 16,342 Total consideration $ 280,467 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma results of operations reflect the Company’s results as if the Merger with POSOR II had occurred on January 1, 2019. The information is not necessarily indicative of the results that actually would have occurred, nor does it indicate future operating results. All significant adjustments necessary to reflect the effects have been made. The unaudited pro forma information for the year ended December 31, 2020 was adjusted to exclude $6.0 million of transaction and related costs incurred in 2020 in connection with the Merger. For the year ended December 31, 2020 2019 Revenues $ 153,198 $ 147,769 Expenses (207,501) (208,603) Other (loss) income (16,434) 14,587 Net loss $ (70,737) $ (46,247) Net loss per common share, basic and diluted $ (0.94) $ (0.49) |
TENANT ORIGINATION AND ABSORP_2
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and 2019, the Company’s tenant origination and absorption costs (included in real estate held for investment, net), above-market lease assets and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands): Tenant Origination and Above-Market Below-Market December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Cost $ 57,594 $ 30,569 $ 4,159 $ 3,714 $ (8,732) $ (4,958) Accumulated Amortization (17,088) (10,223) (1,002) (741) 2,270 1,778 Net Amount $ 40,506 $ 20,346 $ 3,157 $ 2,973 $ (6,462) $ (3,180) |
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 years ended December 31, 2020, 2019 and 2018 were as follows (in thousands): Tenant Origination and Above-Market Below-Market For the Years Ended December 31, For the Years Ended December 31, For the Years Ended December 31, 2020 2019 2018 2020 2019 2018 2020 2019 2018 Amortization $ (10,453) $ (7,036) $ (7,895) $ (476) $ (404) $ (361) $ 1,328 $ 1,495 $ 1,513 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The remaining unamortized balance for these outstanding intangible assets and liabilities as of December 31, 2020 will be amortized for the years ending December 31 as follows (in thousands): Tenant Origination and Above-Market Below-Market Housing Subsidy Tax Abatements 2021 $ (15,351) $ (515) $ 1,856 $ (71) $ (866) 2022 (8,529) (368) 1,520 (71) (466) 2023 (5,486) (356) 1,241 (71) (233) 2024 (4,228) (355) 974 (71) (14) 2025 (2,827) (339) 662 (71) — Thereafter (4,085) (1,224) 209 (1,625) — $ (40,506) $ (3,157) $ 6,462 $ (1,980) $ (1,579) Weighted-Average Remaining Amortization Period 4.8 years 9.1 years 4.1 years 27.9 years 2.1 years |
REAL ESTATE EQUITY SECURITIES (
REAL ESTATE EQUITY SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Real Estate Equity Securities | The following table sets forth the number of shares owned by the Company and the related carrying value of the shares as of December 31, 2020 and December 31, 2019 (dollars in thousands): December 31, 2020 December 31, 2019 Real Estate Equity Security Number of Shares Owned Total Carrying Value Number of Shares Owned Total Carrying Value Keppel Pacific Oak US REIT 64,165,352 $ 44,274 64,165,352 $ 50,049 Franklin Street Properties Corp. 6,915,089 30,219 2,773,729 23,743 Plymouth Industrial REIT, Inc. 1,560,660 23,410 415,841 7,647 72,641,101 $ 97,903 67,354,922 $ 81,439 |
Gain (Loss) on Investments | The following summarizes the portion of gain and loss for the period related to real estate equity securities held during the years ended December 31, 2020 and 2019 (in thousands): For the Years Ended December 31, 2020 2019 Net (loss) gain recognized during the period on real estate equity securities $ (14,814) $ 20,379 Less: Net gain recognized during the period on real estate equity securities sold during the period 711 4,158 Unrealized (loss) gain recognized during the reporting period on real estate equity securities still held at period end $ (15,525) $ 16,221 |
REAL ESTATE DISPOSITIONS (Table
REAL ESTATE DISPOSITIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets and Liabilities of Real Estate Held-for-Sale | as of December 31, 2020 and December 31, 2019. |
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 years ended December 31, 2020, 2019 and 2018 (in thousands): Years Ended December 31, 2020 2019 2018 Revenues Rental income $ — $ 30,744 $ 94,073 Other operating income — 1,171 5,668 Total revenues $ — $ 31,915 $ 99,741 Expenses Operating, maintenance, and management $ — $ 9,117 $ 28,931 Real estate taxes and insurance — 4,035 12,188 Asset management fees to affiliate — 2,435 6,458 Depreciation and amortization — 13,066 39,038 Interest expense — 8,083 17,974 Total expenses $ — $ 36,736 $ 104,589 |
NOTES AND BONDS PAYABLE (Tables
NOTES AND BONDS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes and Bonds Payable [Abstract] | |
Schedule of Long-term Debt Instruments | As of December 31, 2020 and December 31, 2019, the Company’s notes and bonds payable, consisted of the following (dollars in thousands): Book Value as of Book Value as of Contractual Interest Rate as of December 31, 2020 (1) Interest Rate at December 31, 2020 (1) Payment Type (3) Maturity Date (2) Richardson Portfolio Mortgage Loan $ 35,832 $ 36,000 One-Month LIBOR + 2.50% 2.64% Interest Only 11/01/2021 Park Centre Mortgage Loan 26,185 21,970 One-Month LIBOR + 1.75% 1.89% Interest Only 06/27/2022 1180 Raymond Mortgage Loan (4) 29,848 30,250 One-Month LIBOR + 2.50% (5) 3.50% Principal & Interest 12/01/2021 1180 Raymond Bond Payable 5,870 6,080 6.50% 6.50% Principal & Interest 09/01/2036 Pacific Oak SOR (BVI) Holdings, Ltd. Series A Debentures (6) 181,198 224,746 4.25% 4.25% (6) 03/01/2023 Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures (6) 79,078 — 3.93% 3.93% (6) 01/31/2026 Crown Pointe Mortgage Loan (4)(7) 53,072 51,171 One-Month LIBOR + 2.60% 2.74% Interest Only 02/13/2021 (7) City Tower Mortgage Loan (4) 94,167 89,000 One-Month LIBOR + 1.55% 1.69% Interest Only 03/05/2021 (8) The Marq Mortgage Loan 62,257 53,408 One-Month LIBOR + 1.55% 1.69% Interest Only 06/06/2021 Eight & Nine Corporate Centre Mortgage Loan 47,066 43,880 One-Month LIBOR + 1.60% 1.74% Interest Only 06/08/2021 Georgia 400 Center Mortgage Loan 59,690 59,690 One-Month LIBOR + 1.55% 1.69% Interest Only 05/22/2023 PORT Mortgage Loan 1 51,362 51,362 4.74% 4.74% Interest Only 10/01/2025 PORT Mortgage Loan 2 10,523 10,523 4.72% 4.72% Interest Only 03/01/2026 PORT Mortgage Loan 3 12,000 — 6.50% 6.50% Interest Only 03/31/2021 Battery Point Trust Mortgage Loan 38,608 — One-Month LIBOR + 2.50% (5) 3.50% Interest Only 03/20/2022 Springmaid Beach Resort Mortgage Loan (9) 57,015 — One-month LIBOR + 2.25% (9) 5.75% Principal & Interest 08/10/2022 Q&C Hotel Mortgage Loan 25,000 — One-month LIBOR + 2.50% (10) 4.50% Principal & Interest (9) 12/23/2022 Lincoln Court Mortgage Loan (4) 34,416 — One-month LIBOR + 1.75% 1.89% Principal & Interest 06/01/2021 Lofts at NoHo Commons Mortgage Loan (11) 74,536 — One-month LIBOR + 2.18% (11) 3.93% Interest Only 09/09/2021 210 West 31st Street Mortgage Loan (4) 15,050 — One-month LIBOR + 3.00% 3.14% Interest Only 06/16/2021 Oakland City Center Mortgage Loan (12) 96,782 — One-month LIBOR + 1.75% 1.89% Principal & Interest 09/01/2022 Madison Square Mortgage Loan (13) 16,822 — One-month LIBOR + 4.05% (13) 5.05% Interest Only 10/09/2021 Total Notes and Bonds Payable principal outstanding 1,106,377 678,080 Net (Discount) / Premium on Notes and Bonds Payable (14) (2,851) 783 Deferred financing costs, net (4,458) (5,200) Total Notes and Bonds Payable, net $ 1,099,068 $ 673,663 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of December 31, 2020. The interest rate is calculated as the actual interest rate in effect as of December 31, 2020 (consisting of the contractual interest rate and contractual floor rates), using interest rate indices at December 31, 2020, where applicable. (2) Represents the initial maturity date or the maturity date as extended as of December 31, 2020; subject to certain conditions, the maturity dates of certain loans may be extended beyond the date shown. (3) Represents the payment type required under the loan as of December 31, 2020. 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. (4) The Company’s notes and bond’s payable are generally non-recourse. These mortgage loans have guarantees over certain balances whereby the Company would be required to make guaranteed payments in the event that the Company turned the property over to the lender. The guarantees are typically 25% of the outstanding loan balance. As of December 31, 2020, the guaranteed amount in the aggregate was $67.9 million. (5) These mortgage loans have a LIBOR floor of 1%. (6) See “Israeli Bond Financing” below. (7) Subsequent to December 31, 2020, the Company extended the maturity of the Crown Pointe Mortgage Loan to February 13, 2022. (8) Subsequent to December 31, 2020, the Company initiated but has not completed the extension of City Tower Mortgage Loan to March 5, 2022. (9) As of December 31, 2020, $57.8 million had been disbursed to the Company and up to $9.6 million was available for future disbursements, subject to certain terms and conditions contained in the loan documents. The interest rate is variable at the higher of one-month LIBOR + 2.25% or 5.75%. (10) The interest rate is variable at the higher of one-month LIBOR + 2.5% or 4.5%. Principal payments will commence on January 1, 2022. (11) As of December 31, 2020 $74.5 million had been disbursed to the Company and up to $1.4 million is available for future disbursements to be used for tenant improvements and leasing commissions, subject to certain terms and conditions contained in the loan documents. The LIBOR rate is variable at the higher of one-month LIBOR or 1.75%. (12) As of December 31, 2020, $97.1 million had been disbursed to the Company and up to $6.3 million is available for future disbursements to be used for tenant improvements and leasing commissions, subject to certain terms and conditions contained in the loan documents. Beginning October 1, 2020, monthly payments included principal and interest with principal payments of $110,000 or, in the event the Company repays any principal of the loan amount, with principal payments calculated using an amortization schedule of 30 years and an annual interest rate of 6.0%, subject to certain terms and conditions contained in the loan documents. (13) As of December 31, 2020, $23.8 million had been disbursed to the Company and up to $8.8 million is available for future disbursements to be used for tenant improvements and leasing expenses, subject to certain terms and conditions contained in the loan documents. The Madison Square Mortgage Loan bears interest at a floating rate of 405 basis points over one-month LIBOR, but at no point shall the interest rate be less than 5.05%. (14) 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 December 31, 2020 (in thousands): 2021 $ 538,050 2022 301,864 2023 120,344 2024 26,629 2025 78,011 Thereafter 41,479 $ 1,106,377 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional and Fair Value of Interest Rate Swaps Designated as Cash Flow Hedges | The following table summarizes the notional amount and other information related to the Company’s foreign currency collar and foreign currency option as of December 31, 2019. On July 29, 2020, the Company terminated the foreign currency collars and as a result received $14.1 million and no collar was outstanding as of December 31, 2020. The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks (currency in thousands): December 31, 2020 December 31, 2019 Strike Price Trade Date Maturity Date Derivative Instruments Number of Instruments Notional Amount Number of Instruments Notional Amount Derivative instruments not designated as hedging instruments Foreign currency collar — — 1 776,182 ILS 3.38 - 3.4991 ILS - USD 08/20/2018 02/28/2019 Derivative Instrument Effective Date Maturity Date Notional Value Reference Rate Interest rate cap 02/21/2017 02/16/2021 $ 46,875 One-month LIBOR at 3.00% Interest rate cap 04/02/2018 03/05/2021 $ 77,513 One-month LIBOR at 3.50% Interest rate cap 07/25/2019 08/10/2021 $ 65,325 One-month LIBOR at 4.00% Interest rate cap 07/25/2019 08/10/2021 $ 1,675 One-month LIBOR at 4.00% Interest rate cap 08/30/2019 09/15/2021 $ 75,950 One-month LIBOR at 3.50% Interest rate cap 10/15/2020 10/15/2021 $ 26,200 One-month LIBOR at 3.00% Interest rate cap 06/21/2019 05/22/2023 $ 51,252 One-month LIBOR at 4.00% |
Schedule of Derivative Instruments in Statement of Financial Position | The following table sets forth the fair value of the Company’s derivative instruments as well as their classification on the consolidated balance sheets as of December 31, 2020 and 2019 (dollars in thousands): December 31, 2020 December 31, 2019 Derivative Instruments Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Derivative instruments not designated as hedging instruments Interest rate caps Prepaid expenses and other assets 7 $ 1 3 $ 12 Foreign currency collar Other liabilities — $ — 1 $ (179) |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and 2019, which carrying amounts do not approximate the fair values (in thousands): December 31, 2020 December 31, 2019 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities (Level 3): Notes and bond payable $ 846,101 $ 842,112 $ 846,608 $ 453,334 $ 451,743 $ 455,849 Financial liabilities (Level 1): Pacific Oak Strategic Opportunity (BVI) Holdings, Ltd. Series A Debentures $ 181,198 $ 179,786 $ 178,450 $ 224,746 $ 221,920 $ 229,877 Pacific Oak Strategic Opportunity (BVI) Holdings, Ltd. Series B Debentures $ 79,078 $ 77,170 $ 69,433 $ — $ — $ — |
Fair Value, Assets Measured on Recurring Basis | As of December 31, 2020, the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Recurring Basis: Real estate equity securities $ 97,903 $ 97,903 $ — $ — Asset derivative - interest rate caps $ 1 $ — $ 1 $ — As of December 31, 2019, the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Recurring Basis: Real estate equity securities $ 81,439 $ 81,439 $ — $ — Asset derivative - interest rate caps $ 12 $ — $ 12 $ — Liability derivative - foreign currency collar $ (179) $ — $ (179) $ — |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 years ended December 31, 2020, 2019 and 2018, respectively, and any related amounts payable as of December 31, 2020 and December 31, 2019 (in thousands): Incurred Payable as of 2020 2019 2018 2020 2019 Expensed Asset management fees $ 9,982 $ 8,158 $ 8,525 $ 2,837 $ 1,498 Property management fees (1) 229 — — — — Acquisition fees on business combination (2) — 1,185 — — — Reimbursable operating expenses (3) 148 236 410 — — Disposition fees (4) — 1,570 2,494 — — KBS Capital Advisors Termination Fee (5) — 32,640 — (4) (4) Change in subordinated performance fee due upon termination to affiliate (6) (1,720) — — (5) (5) Capitalized Acquisition fees on real estate (2) 171 897 3,094 — — Acquisition fees on real estate equity securities 143 — 239 5 — Acquisition fee on investment in unconsolidated entities — 207 — — 137 $ 8,953 $ 44,893 $ 14,762 $ 2,842 $ 1,635 _____________________ (1) Property management fees are for single-family homes under Battery Point and paid to DayMark. These fees are included in the line item “Operating, maintenance, and management cost” in the consolidated statement of operations. (2) Acquisition fees associated with asset acquisitions are capitalized, while costs associated with business combinations expensed as incurred. (3) The relevant advisor may seek reimbursement for certain employee costs under the relevant advisory agreement. The Company has reimbursed the relevant 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 $220,000 and $305,000 for the years ended December 31, 2019 and 2018, respectively, and were the only employee costs reimbursed under the relevant advisory agreement during these periods. There were no employee cost reimbursements during the year ended December 31, 2020. 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 relevant advisor for certain of the Company’s direct costs incurred from third parties that were initially paid by the relevant advisor on behalf of the Company. (4) 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. (5) Fee payable to KBS Capital Advisors due to the termination of the former advisory agreement with KBS Capital Advisors. See “Subordinated Performance Fee Due Upon Termination”, below, for more details. (6) Change in estimate of fees payable to KBS Capital Advisors due to the termination of the former advisory agreement with KBS Capital Advisors. See “Subordinated Performance Fee Due Upon Termination to KBS Capital Advisors”, below, for more details. |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Joint Ventures | As of December 31, 2020 and 2019, the Company’s investments in unconsolidated entities were composed of the following (dollars in thousands): Number of Properties at December 31, 2020 Investment Balance at Joint Venture Location Ownership % December 31, 2020 December 31, 2019 NIP Joint Venture — N/A N/A $ — $ 1,225 110 William Joint Venture 1 New York, New York 60.0% — — 353 Sacramento Joint Venture 1 San Francisco, California 55.0% 49,665 42,214 Battery Point Series A-3 Preferred Stock N/A N/A N/A — 13,991 Pacific Oak Opportunity Zone Fund I 3 Various N/A 24,996 20,846 PORT II OP LP 7 Southaven, Mississippi N/A 5,005 — $ 79,666 $ 78,276 Summarized financial information for the 110 William Joint Venture follows (in thousands): December 31, 2020 December 31, 2019 Assets: Real estate assets, net of accumulated depreciation and amortization $ 246,166 $ 242,430 Other assets 44,004 35,747 Total assets $ 290,170 $ 278,177 Liabilities and equity: Notes payable, net $ 316,421 $ 292,221 Other liabilities 5,532 10,664 Partners’ deficit (31,783) (24,708) Total liabilities and equity $ 290,170 $ 278,177 For the Years Ended December 31, 2020 2019 2018 Revenues $ 36,570 $ 34,186 $ 38,539 Expenses: Operating, maintenance, and management 8,095 9,213 9,844 Real estate taxes and insurance 7,515 7,064 6,718 Depreciation and amortization 11,849 11,166 15,596 Interest expense 16,252 16,742 17,815 Total expenses 43,711 44,185 49,973 Total other income 66 137 112 Net loss $ (7,075) $ (9,862) $ (11,322) Company’s share of net loss (1) $ (4,245) $ 5,917 $ (6,835) _____________________ (1) During the year ended December 31, 2019, the Company recorded $0.3 million of net losses in equity in income of unconsolidated joint ventures and suspended the recording of the Company's remaining share of net losses. Summarized financial information for the 353 Sacramento Joint Venture follows (in thousands): December 31, 2020 December 31, 2019 Assets: Real estate assets, net of accumulated depreciation and amortization $ 182,318 $ 180,592 Other assets 19,810 21,822 Total assets $ 202,128 $ 202,414 Liabilities and equity: Notes payable, net $ 109,783 $ 115,280 Other liabilities 7,639 11,193 Partners’ capital 84,706 75,941 Total liabilities and equity $ 202,128 $ 202,414 For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 Revenues $ 20,939 $ 17,015 $ 11,397 Expenses: Operating, maintenance, and management 3,388 3,785 3,654 Real estate taxes and insurance 2,986 2,822 2,372 Depreciation and amortization 7,007 6,485 5,680 Interest expense 4,293 5,734 5,374 Total expenses 17,674 18,826 17,080 Net income (loss) $ 3,265 $ (1,811) $ (5,683) Company’s equity in income (loss) of unconsolidated joint venture $ 1,946 $ (854) $ (2,995) |
SUPPLEMENTAL CASH FLOW AND SI_2
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow and Significant Noncash Transaction Disclosures [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow and significant noncash transaction disclosures were as follows (in thousands): Years Ended December 31, 2020 2019 2018 Supplemental Disclosure of Cash Flow Information: Interest paid, net of capitalized interest of $2,923, $2,565 and $2,339 for the years ended December 31, 2020, 2019 and 2018, respectively $ 23,765 $ 25,703 $ 27,029 Supplemental Disclosure of Significant Noncash Transactions: Assets acquired in the POSOR II merger 635,825 — — Liabilities assumed in the POSOR II merger 359,375 — — Assets acquired in the Battery Point acquisition 56,572 — — Liabilities assumed in the Battery Point acquisition 37,548 — — Assets acquired in the PORT acquisition — 121,316 — Liabilities assumed in the PORT acquisition — 64,682 — Acquisition fees due to affiliates on investment in unconsolidated entities — 137 — Accrued improvements to real estate 2,733 5,302 3,363 Redeemable common stock payable 864 829 10,000 Restricted stock payable 15,506 16,320 — Mezzanine equity in connection with subordinated performance fee due upon termination — 10,880 — Restricted stock (additional paid in capital) in connection with subordinated performance fee due upon termination — 5,440 — Mortgage loan assumed by buyer in connection with sale of real estate — 23,663 — Redemptions of Series B Preferred Stock in exchange for Series A-3 Preferred Units — 2,992 — Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan — 829 1,418 Distributions paid to common stockholders through common stock issuances pursuant to the December 2017 special dividend — — 150,299 Distributions paid to common stockholders through common stock issuances pursuant to the November 2018 special dividend — — 127,911 |
REPORTING SEGMENTS (Tables)
REPORTING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The selected financial information for the reporting segments for the years ended December 31, 2020 and 2019 is as follows: Year Ended December 31, 2020 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 93,252 $ 17,055 $ 3,718 $ 114,025 Total expenses (122,621) (19,332) (6,204) (148,157) Total other (loss) income (15,045) (51) 415 (14,681) Net loss $ (44,414) $ (2,328) $ (2,071) $ (48,813) Year Ended December 31, 2019 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 91,351 $ 1,807 $ — $ 93,158 Total expenses (130,448) (2,374) — (132,822) Total other income (loss) 28,944 (4,461) — 24,483 Net loss $ (10,153) $ (5,028) $ — $ (15,181) Total assets related to the three reporting segments as of December 31, 2020 and 2019 are as follows: December 31, 2020 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total assets $ 1,404,509 $ 182,486 $ 144,670 $ 1,731,665 Goodwill 12,297 — 4,045 16,342 December 31, 2019 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total assets $ 921,917 $ 119,325 $ — $ 1,041,242 |
PORT PREFERRED STOCK (Tables)
PORT PREFERRED STOCK (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following is a reconciliation of the Company’s noncontrolling cumulative convertible redeemable preferred stock for the years ended December 31, 2019 and 2020: Series A Preferred Stock Series B Preferred Stock Shares Amounts Shares Amounts Issuance of preferred stock 15,000 $ 15,000 125 $ 125 Other offering costs — (91) — (26) Balance, December 31, 2019 15,000 14,909 125 99 Dividends Available Upon Redemption — 973 — 16 Dividends Paid — (748) — (16) Balance, December 31, 2020 15,000 $ 15,134 125 $ 99 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Cost | As of December 31, 2020, the Company's lease included in the consolidated balance sheet as follows: Right-of-use asset (included in real estate held for investment, net) $ 9,258 Lease obligation (included in other liabilities) 9,274 Remaining lease term 93.0 years Discount rate 4.8 % The components of lease expense were as follows: Interest on lease obligation 107 |
Schedule of Finance Lease, Liability, Fiscal Year Maturity | Future minimum lease payments owed by the Company under the finance lease as of December 31, 2020 are as follows (in thousands): 2021 $ 360 2022 360 2023 360 2024 360 2025 393 Thereafter 52,563 Total expected minimum lease obligations 54,396 Less: Amount representing interest (1) (45,122) Present value of net minimum lease payments (2) $ 9,274 _____________________ (1) Interest includes the amount necessary to reduce the total expected minimum lease obligations to present value calculated at the Company’s incremental borrowing rate at acquisition. (2) The present value of net minimum lease payments are presented in other liabilities in the accompanying consolidated balance sheets. |
ORGANIZATION (Details)
ORGANIZATION (Details) | Oct. 05, 2020$ / sharesshares | Feb. 16, 2020USD ($) | Jan. 22, 2020USD ($) | Mar. 20, 2019USD ($) | Mar. 08, 2016USD ($) | Mar. 08, 2016ILS (â‚Ş) | Mar. 08, 2016ILS (â‚Ş) | Mar. 07, 2016ILS (â‚Ş) | Mar. 01, 2016ILS (â‚Ş) | Dec. 31, 2020USD ($)aportfolioinvestmentproperty$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2019USD ($)$ / sharesshares | Mar. 27, 2020shares | Feb. 19, 2020USD ($)propertyinstrumentinvestment | Feb. 16, 2020ILS (â‚Ş) | Mar. 02, 2016ILS (â‚Ş) | Dec. 18, 2015certificateshares | Oct. 23, 2012USD ($)shares | Dec. 29, 2011USD ($)shares | Jan. 08, 2009shares |
Organizational Structure [Line Items] | |||||||||||||||||||||
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||||||||||||||
Common stock, shares issued (in shares) | 98,054,582 | 65,866,765 | 65,866,765 | 55,249 | 220,994 | ||||||||||||||||
Issuance of common stock | $ | $ 262,000 | $ 835,000 | $ 1,418,000 | ||||||||||||||||||
Shares of common stock sold under dividend reinvestment plan | $ | $ 76,500,000 | ||||||||||||||||||||
Redemptions of common stock | $ | $ 8,600,000 | $ 2,230,000 | 10,028,000 | $ 123,613,000 | 287,600,000 | ||||||||||||||||
Common stock, special dividends, amount of shares issued | 25,976,746 | ||||||||||||||||||||
Common stock, value, issued | $ | $ 979,000 | $ 659,000 | $ 659,000 | $ 500,000 | $ 2,000,000 | ||||||||||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | ||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||
Total Company shares issued | 28,973,905 | ||||||||||||||||||||
Number of investments in equity securities | investment | 3 | ||||||||||||||||||||
Number of investments in unconsolidated joint venture | investment | 4 | ||||||||||||||||||||
Pacific Oak Strategic Opportunity REIT II, Inc. | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Number of investments in equity securities | investment | 2 | ||||||||||||||||||||
Number of investments in unconsolidated joint venture | instrument | 2 | ||||||||||||||||||||
Loans related to acquired properties | $ | $ 331,800,000 | ||||||||||||||||||||
Office Properties | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Number of real estate properties | property | 9 | ||||||||||||||||||||
Office Portfolio | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Number of real estate properties | portfolio | 1 | ||||||||||||||||||||
Office Buildings, Portfolio | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Number of real estate properties | property | 4 | ||||||||||||||||||||
Undeveloped Land, Portfolio | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Real estate area of undeveloped land | a | 14 | ||||||||||||||||||||
Apartment Properties, Portfolio | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Number of real estate properties | property | 2 | ||||||||||||||||||||
Hotel Property | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Number of real estate properties | property | 2 | ||||||||||||||||||||
Hotel Property | Pacific Oak Strategic Opportunity REIT II, Inc. | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Number of real estate properties | property | 2 | ||||||||||||||||||||
Undeveloped Land | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Real estate area of undeveloped land | a | 1,000 | ||||||||||||||||||||
Number of investments in real estate | investment | 3 | ||||||||||||||||||||
Office/ Retail Property | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Number of real estate properties | property | 1 | ||||||||||||||||||||
Office/ Retail Property | Pacific Oak Strategic Opportunity REIT II, Inc. | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Number of real estate properties | property | 1 | ||||||||||||||||||||
Pacific Oak Strategic Opportunity (BVI) Holdings, Ltd. Series A Debentures | Bonds Payable | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Maximum borrowing capacity | â‚Ş | â‚Ş 1,000,000,000 | ||||||||||||||||||||
Contractual interest rate, percentage | 4.25% | ||||||||||||||||||||
Proceeds from issuance of debt | $ 249,200,000 | â‚Ş 970,200,000 | â‚Ş 970,200,000 | â‚Ş 127,700,000 | â‚Ş 842,500,000 | ||||||||||||||||
Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | Bonds Payable | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Maximum borrowing capacity | $ 74,100,000 | â‚Ş 254,100,000 | |||||||||||||||||||
Contractual interest rate, percentage | 3.93% | 3.93% | |||||||||||||||||||
Principal of installment payments as percent of face amount | 33.33% | ||||||||||||||||||||
Maximum | Pacific Oak Strategic Opportunity (BVI) Holdings, Ltd. Series A Debentures | Bonds Payable | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Contractual interest rate, percentage | 4.25% | ||||||||||||||||||||
Common Stock | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Shares registered in primary offering (in shares) | 100,000,000 | ||||||||||||||||||||
Shares registered for sale under dividend reinvestment plan (in shares) | 40,000,000 | ||||||||||||||||||||
Issuance of common stock (in shares) | 24,645 | 84,248 | 123,264 | 56,584,976 | |||||||||||||||||
Issuance of common stock | $ | $ 1,000 | $ 1,000 | $ 561,700,000 | ||||||||||||||||||
Shares of common stock sold under dividend reinvestment plan (in shares) | 6,851,969 | ||||||||||||||||||||
Redemptions of common stock (in shares) | 222,470 | 1,040,344 | 11,330,966 | 24,041,545 | |||||||||||||||||
Redemptions of common stock | $ | $ 3,000 | $ 10,000 | $ 113,000 | ||||||||||||||||||
Common Stock | Minimum | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Stock offering, shares authorized for issuance (in shares) | 250,000 | ||||||||||||||||||||
Common Stock | Maximum | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Stock offering, shares authorized for issuance (in shares) | 140,000,000 | ||||||||||||||||||||
Shares authorized for issuance | $ | $ 1,000,000,000 | ||||||||||||||||||||
KBS Capital Advisors LLC | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Preferred stock, shares issued (in shares) | 3,411,737 | ||||||||||||||||||||
Pacific Oak Strategic Opportunity REIT II, Inc. | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||||||||||||||
Exchange ratio | 96.43% | ||||||||||||||||||||
Total Company shares issued | 28,973,905,000 | ||||||||||||||||||||
Operating Partnership | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Partnership interest in operating partnership | 0.10% | ||||||||||||||||||||
Partnership interest in the operating partnership and is its sole limited partner | 99.90% | ||||||||||||||||||||
Pacific Oak Strategic Opportunity BVI | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Common stock, shares authorized (in shares) | 50,000 | ||||||||||||||||||||
Number of certificates issued | certificate | 1 | ||||||||||||||||||||
Pacific Oak Strategic Opportunity BVI | Pacific Oak Strategic Opportunity Limited Partnership | |||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||
Common stock, shares issued (in shares) | 10,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 24, 2020USD ($) | Jan. 01, 2018USD ($)a | Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |||||||
Debt obligations coming due over the next 12-month period | $ 538,050,000 | $ 538,050,000 | $ 614,200,000 | ||||
Goodwill impairment | 0 | ||||||
Impairment of real estate | 0 | $ 0 | $ 0 | ||||
Restricted cash and cash equivalents | 0 | 0 | 0 | ||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Investments in unconsolidated entities | 79,666,000 | 79,666,000 | 78,276,000 | ||||
Equity | 519,712,000 | 519,712,000 | 277,388,000 | 293,964,000 | $ 260,983,000 | ||
Accounting Standards Update 2017-05 | Disposed of by Sale | Park Highlands | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Area of land sold | a | 102 | ||||||
Retained Earnings | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Equity | (325,720,000) | (325,720,000) | (277,196,000) | $ (256,984,000) | (155,454,000) | ||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Equity | 2,472,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Equity | $ 27,618,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accounting Standards Update 2017-05 | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Equity | $ 2,500,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accounting Standards Update 2016-01 | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Equity | $ 25,100,000 | ||||||
NIP Joint Venture | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Investments in unconsolidated entities | 0 | 0 | 1,225,000 | ||||
Battery Point Series A-3 Preferred Units | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Investments in unconsolidated entities | 0 | 0 | $ 13,991,000 | ||||
Pacific Oak Strategic Opportunity REIT II, Inc. | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Goodwill | $ 16,300,000 | ||||||
Pacific Oak Strategic Opportunity REIT II, Inc. | Strategic Opportunistic Properties | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Goodwill | 12,300,000 | ||||||
Pacific Oak Strategic Opportunity REIT II, Inc. | Hotel Property | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Goodwill | $ 4,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Useful Life) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 25 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Building improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Tenant improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Shorter of lease term or expected useful life |
Tenant origination and absorption costs | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Remaining term of related leases, including below-market renewal periods |
Real estate subsidies & tax abatements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Remaining term of agreement |
Furniture, fixtures & equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Furniture, fixtures & equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 12 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Dividend Reinvestment Plan) (Details) - $ / shares | Dec. 23, 2020 | Dec. 04, 2020 | Dec. 29, 2019 | Dec. 17, 2019 | Nov. 12, 2018 | Dec. 07, 2017 |
Accounting Policies [Abstract] | ||||||
Updated primary offering price (in dollars per share) | $ 9.68 | $ 9.68 | $ 10.63 | $ 10.63 | $ 9.91 | $ 11.50 |
Special dividends declared (in dollars per share) | $ 2.95 | $ 3.61 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Redeemable Common Stock) (Details) - USD ($) | Mar. 20, 2019 | Jun. 01, 2018 | Apr. 23, 2018 | Dec. 30, 2016 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 |
Summary of Significant Accounting Policies [Line Items] | |||||||||
Share holding term | 1 year | ||||||||
Maximum percentage of weighted-average shares outstanding available for redemption during any calendar year | 5.00% | ||||||||
Share redemption program, termination period | 10 days | 10 days | |||||||
Maximum number of shares redeemable per year, value | $ 1,000,000 | ||||||||
Maximum number of shares redeemable per quarter, value | 3,000,000 | ||||||||
Redemption price percentage of most recent estimated value per share | 95.00% | ||||||||
Proceeds from issuance of common stock, dividend reinvestment plan | 300,000 | ||||||||
Shares of common stock sold under dividend reinvestment plan | $ 76,500,000 | ||||||||
Redemptions of common stock | $ 8,600,000 | 2,230,000 | $ 10,028,000 | $ 123,613,000 | 287,600,000 | ||||
Other liabilities | 34,738,000 | 19,801,000 | 19,801,000 | ||||||
Common Stock | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Redemptions of common stock | 3,000 | 10,000 | $ 113,000 | ||||||
Self-tender Offer (SOR Offer) | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Number of shares authorized to be repurchased (in shares) | 8,234,217 | ||||||||
Average cost per share (in USD per share) | $ 10.93 | ||||||||
Authorized amount | $ 90,000,000 | ||||||||
Treasury stock, acquired (in shares) | 9,527,724 | 1,294,910 | |||||||
Treasury stock, acquired | $ 104,100,000 | $ 14,100,000 | |||||||
Unfulfilled Redemption Request | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Other liabilities | 900,000 | $ 800,000 | $ 800,000 | ||||||
Share Redemption Program | Common Stock | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Redemptions of common stock | $ 2,200,000 | ||||||||
Number of shares non-redeemable do to limitation, shares | 8,042,484 | ||||||||
Number of shares non-redeemable do to limitation, value | $ 74,000,000 | ||||||||
Reserved Exclusively for Stockholder’s Death, “Qualifying Disability" or “Determination of Incompetence” | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Funds available for redemption of shares | 1,000,000 | ||||||||
For December 2020 Redemption | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Funds available for redemption of shares | 2,000,000 | ||||||||
Twelfth SRP | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Funds available for redemption of shares | $ 600,000 | ||||||||
Forecast | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Remaining authorized repurchase amount | $ 900,000 | ||||||||
Forecast | Maximum | |||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||
Shares of common stock sold under dividend reinvestment plan | $ 900,000 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Fees and Segments) (Details) | 12 Months Ended |
Dec. 31, 2020marketsegment | |
Summary of Significant Accounting Policies [Line Items] | |
Number of reportable segments | 3 |
KBS Capital Advisors LLC | |
Summary of Significant Accounting Policies [Line Items] | |
Acquisition advisory fee, percent | 1.00% |
Monthly asset management fee, percent of acquisition expense | 0.00063% |
KBS Capital Advisors LLC or Affiliates | |
Summary of Significant Accounting Policies [Line Items] | |
Selling commissions fees paid, percent of sales price | 1.00% |
Maximum | KBS Capital Advisors LLC, Affiliates or Unaffiliated Third Parties | |
Summary of Significant Accounting Policies [Line Items] | |
Selling commissions fees paid, percent of sales price | 6.00% |
Single-Family Homes | |
Summary of Significant Accounting Policies [Line Items] | |
Number of reportable segments | 1 |
Number of markets in which the Company owns single-family homes | market | 17 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (EPS and Accounting Standards) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Distributions declared per common share (in dollars per share) | $ 0.009 | $ 0.03 | $ 3 |
REAL ESTATE (Narrative) (Detail
REAL ESTATE (Narrative) (Details) ft² in Millions | Dec. 31, 2020ft²aportfoliounitpropertyinvestment |
Real Estate Properties [Line Items] | |
Percentage of portfolio occupied | 76.00% |
Office Properties | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 9 |
Office Portfolio | |
Real Estate Properties [Line Items] | |
Number of real estate properties | portfolio | 1 |
Office Buildings, Portfolio | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 4 |
Undeveloped Land, Portfolio | |
Real Estate Properties [Line Items] | |
Real estate area of undeveloped land | a | 14 |
Rentable square feet | ft² | 3.8 |
Residential Home Portfolio | |
Real Estate Properties [Line Items] | |
Number of real estate properties | portfolio | 1 |
Rentable square feet | ft² | 2.4 |
Percentage of portfolio occupied | 94.00% |
Number of units in real estate property | unit | 1,766 |
Apartment Building | |
Real Estate Properties [Line Items] | |
Rentable square feet | ft² | 0.5 |
Percentage of portfolio occupied | 90.00% |
Number of units in real estate property | unit | 609 |
Number of real estate properties consolidated | 2 |
Hotel Property | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 2 |
Undeveloped Land | |
Real Estate Properties [Line Items] | |
Real estate area of undeveloped land | a | 1,000 |
Number of investments in real estate | investment | 3 |
Office/ Retail Property | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 1 |
REAL ESTATE (Schedule of Real E
REAL ESTATE (Schedule of Real Estate Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Real Estate Properties [Line Items] | ||
Total real estate, cost | $ 1,517,435 | $ 824,860 |
Accumulated depreciation and amortization | (104,412) | (65,381) |
Total real estate, net | 1,413,023 | 759,479 |
Land | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | 302,444 | 175,317 |
Buildings and improvements | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | 1,157,397 | 618,974 |
Tenant origination and absorption costs | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | $ 57,594 | $ 30,569 |
REAL ESTATE (Operating Leases)
REAL ESTATE (Operating Leases) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Leased Assets [Line Items] | |||
Deferred rent recognized | $ 3,400 | $ 4,100 | $ 4,700 |
Deferred rent receivables | 19,200 | 13,600 | |
Incentive to lessee | 4,700 | 3,100 | |
Adjustments to rental income | $ 2,200 | 600 | |
Apartment Building | |||
Operating Leased Assets [Line Items] | |||
Operating lease, term | 1 year | ||
Other liabilities | |||
Operating Leased Assets [Line Items] | |||
Security deposit liability | $ 5,700 | $ 4,300 | |
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating lease, term | 14 years 7 months 6 days | ||
Weighted Average | |||
Operating Leased Assets [Line Items] | |||
Operating lease, term | 4 years 3 months 18 days |
REAL ESTATE (Future Minimum Ren
REAL ESTATE (Future Minimum Rental Income) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Real Estate [Abstract] | |
2021 | $ 79,472 |
2022 | 69,670 |
2023 | 58,033 |
2024 | 49,623 |
2025 | 39,223 |
Thereafter | 90,255 |
Total | $ 386,276 |
REAL ESTATE (Highest Tenant Ind
REAL ESTATE (Highest Tenant Industry Concentrations- Grater than 10% of Annual Base Rent) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)tenant | |
Concentration Risk [Line Items] | |
Number of Tenants | tenant | 309 |
Annualized Base Rent | $ | $ 16,681 |
Percentage of Annualized Base Rent | 20.80% |
Insurance | |
Concentration Risk [Line Items] | |
Number of Tenants | tenant | 28 |
Annualized Base Rent | $ | $ 8,421 |
Percentage of Annualized Base Rent | 10.50% |
Computer Systems | |
Concentration Risk [Line Items] | |
Number of Tenants | tenant | 33 |
Annualized Base Rent | $ | $ 8,260 |
Percentage of Annualized Base Rent | 10.30% |
REAL ESTATE (Hotel Revenue and
REAL ESTATE (Hotel Revenue and Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Hotel expenses: | ||||
General and administrative | $ 7,664 | $ 7,388 | $ 8,220 | |
Hotel Property | ||||
Revenues | ||||
Revenue from contract with customer | $ 3,718 | |||
Hotel expenses: | ||||
Hotel expenses | 3,836 | |||
General and administrative | 563 | |||
Sales and marketing | 435 | |||
Repairs and maintenance | 537 | |||
Property taxes and insurance | 608 | |||
Hotel Property | Room | ||||
Revenues | ||||
Revenue from contract with customer | 2,545 | |||
Hotel expenses: | ||||
Hotel expenses | 801 | |||
Hotel Property | Food, beverage and convention services | ||||
Revenues | ||||
Revenue from contract with customer | 420 | |||
Hotel expenses: | ||||
Hotel expenses | 376 | |||
Hotel Property | Campground | ||||
Revenues | ||||
Revenue from contract with customer | 270 | |||
Hotel Property | Utilities | ||||
Hotel expenses: | ||||
Hotel expenses | 242 | |||
Hotel Property | Other | ||||
Revenues | ||||
Revenue from contract with customer | 483 | |||
Hotel expenses: | ||||
Hotel expenses | $ 274 |
REAL ESTATE (Contract Liabiliti
REAL ESTATE (Contract Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Product Liability Contingency [Line Items] | |||
Amounts included in contract liability at the beginning of the period | $ 3,447 | $ 4,078 | $ 4,736 |
Other liabilities | |||
Product Liability Contingency [Line Items] | |||
Contract with customer, liability | 3,369 | 3,100 | |
Amounts included in contract liability at the beginning of the period | $ 0 | $ 0 |
REAL ESTATE (Geographic Concent
REAL ESTATE (Geographic Concentration Risk) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 20.80% |
California | Assets, Total | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 29.60% |
REAL ESTATE (Battery Point Trus
REAL ESTATE (Battery Point Trust Inc. Acquisition) (Details) $ in Thousands | Jul. 01, 2020USD ($)propertyshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||
Total real estate, cost | $ 1,517,435 | $ 824,860 | |
Investments in unconsolidated entities | 79,666 | 78,276 | |
Land | |||
Business Acquisition [Line Items] | |||
Total real estate, cost | 302,444 | 175,317 | |
Buildings and improvements | |||
Business Acquisition [Line Items] | |||
Total real estate, cost | 1,157,397 | 618,974 | |
Tenant origination and absorption costs | |||
Business Acquisition [Line Items] | |||
Total real estate, cost | $ 57,594 | $ 30,569 | |
BPT Holdings, LLC | Subsidiaries | Battery Point Trust Inc. | |||
Business Acquisition [Line Items] | |||
Common equity units received in transaction | shares | 510,816 | ||
Percent of outstanding common equity units received in transaction | 4.50% | ||
Common equity units received in transaction | $ 3,000 | ||
Battery Point Trust Inc. | |||
Business Acquisition [Line Items] | |||
Common stock, shares acquired (in shares) | shares | 1,000,000 | ||
Battery Point Trust Inc. | Single Family | |||
Business Acquisition [Line Items] | |||
Number of homes | property | 559 | ||
Battery Point Trust Inc. | Single Family | Land | |||
Business Acquisition [Line Items] | |||
Total real estate, cost | $ 11,100 | ||
Battery Point Trust Inc. | Single Family | Buildings and improvements | |||
Business Acquisition [Line Items] | |||
Total real estate, cost | 44,600 | ||
Battery Point Trust Inc. | Single Family | Tenant origination and absorption costs | |||
Business Acquisition [Line Items] | |||
Total real estate, cost | 500 | ||
Battery Point Trust Inc. | Single Family | Series A-3 Preferred Units | |||
Business Acquisition [Line Items] | |||
Number of units, eliminated in consolidation | 16,000 | ||
Battery Point Trust Inc. | Single Family | Mortgages | Battery Point Trust Inc. Mortgage Loan | |||
Business Acquisition [Line Items] | |||
Notes payable | $ 36,600 |
REAL ESTATE (Redeemable Non-con
REAL ESTATE (Redeemable Non-controlling Interest Activities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investments [Line Items] | |||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest, Total | $ (56) | $ 0 | $ 0 |
Subsidiaries | Battery Point Trust Inc. | BPT Holdings, LLC | |||
Schedule of Investments [Line Items] | |||
Issuance of PORT OP Units | 3,024 | ||
Net loss attributable to redeemable noncontrolling interest | (56) | ||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest, Total | $ 2,968 |
REAL ESTATE (Single Family Home
REAL ESTATE (Single Family Home Acquisitions) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)property | Jul. 29, 2020property | Dec. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |||
Total real estate, cost | $ 1,517,435 | $ 824,860 | |
Single Family | Single-Family Home 1 | |||
Business Acquisition [Line Items] | |||
Number of homes | property | 196 | ||
Purchase price | $ 17,300 | ||
Single Family | Single-Family Home 2 | |||
Business Acquisition [Line Items] | |||
Number of homes | property | 12 | 12 | |
Purchase price | $ 1,000 | ||
Single Family | Single-Family Home 3 | |||
Business Acquisition [Line Items] | |||
Number of homes | property | 11 | ||
Purchase price | $ 1,000 |
REAL ESTATE (POSOR II Merger -
REAL ESTATE (POSOR II Merger - Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 05, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |
Total Company shares issued | 28,973,905 | ||||
Revenues | $ 114,025 | $ 93,158 | $ 95,787 | ||
Net (loss) income | (48,813) | $ (15,181) | $ 33,324 | ||
Pacific Oak Strategic Opportunity REIT II, Inc. | |||||
Business Acquisition [Line Items] | |||||
Preferred stock, par value (in dollars per share) | $ 0.01 | ||||
Total Company shares issued | 28,973,905,000 | ||||
Exchange ratio | 96.43% | ||||
Revenues | $ 12,300 | ||||
Net (loss) income | 10,100 | ||||
Goodwill | 16,300 | ||||
Business Acquisition, Transaction Costs | $ 6,000 | $ 6,000 |
REAL ESTATE (POSOR II Merger) (
REAL ESTATE (POSOR II Merger) (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 05, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Total Company shares issued | 28,973,905 | ||
Liabilities: | |||
Goodwill | $ 16,342 | $ 0 | |
Pacific Oak Strategic Opportunity REIT II, Inc. | |||
Business Acquisition [Line Items] | |||
POSOR II shares outstanding | 30,046,568,000 | ||
Exchange ratio | 96.43% | ||
Total Company shares issued | 28,973,905,000 | ||
Company price per share estimated NAV as of October 5, 2020 | $ 9.68 | ||
Consideration paid | $ 280,467,000 | ||
Assets: | |||
Land | 108,065 | ||
Building and improvements | 465,648 | ||
Tenant origination and absorption costs | 29,869 | ||
Cash and cash equivalents | 9,735 | ||
Real estate equity securities | 6,271 | ||
Restricted cash | 3,243 | ||
Investment in unconsolidated entities | 3,150 | ||
Rents and other receivables | 2,567 | ||
Prepaid expenses and other assets | 6,617 | ||
Above-market leases | 660 | ||
Total Assets | 635,825 | ||
Liabilities: | |||
Notes payable | (328,203) | ||
Other liabilities | (14,513) | ||
Accounts payable and accrued liabilities | (9,926) | ||
Below-market leases | (4,610) | ||
Due to affiliates | (2,123) | ||
Total Liabilities | (359,375) | ||
Noncontrolling interests | (12,325) | ||
Goodwill | 16,342 | ||
Total consideration | $ 280,467 |
REAL ESTATE (Pro Forma) (Detail
REAL ESTATE (Pro Forma) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Real Estate [Abstract] | ||
Revenues | $ 153,198 | $ 147,769 |
Expenses | (207,501) | (208,603) |
Other (loss) income | (16,434) | 14,587 |
Net loss | $ (70,737) | $ (46,247) |
Net loss per common share, basic and diluted (in dollars per share) | $ (0.94) | $ (0.49) |
TENANT ORIGINATION AND ABSORP_3
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Schedules) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract] | |||
Tenant Origination And Absorption Costs, Cost | $ 57,594 | $ 30,569 | |
Tenant Origination and Absorption Costs, Accumulated Amortization | (17,088) | (10,223) | |
Tenant Origination and Absorption Costs, Net Amount | 40,506 | 20,346 | |
Above-Market Lease Assets, Cost | 4,159 | 3,714 | |
Above-Market Lease Assets, Accumulated Amortization | (1,002) | (741) | |
Above-Market Lease Assets, Net Amount | 3,157 | 2,973 | |
Below-Market Lease Liabilities, Cost | (8,732) | (4,958) | |
Below-Market Lease Liabilities, Accumulated Amortization | 2,270 | 1,778 | |
Below-Market Lease Liabilities, Net Amount | (6,462) | (3,180) | |
Tenant Origination And Absorption Costs, Amortization | (10,453) | (7,036) | $ (7,895) |
Above-Market Lease Assets, Amortization | (476) | (404) | (361) |
Below-Market Lease Liabilities, Amortization | $ 1,328 | $ 1,495 | $ 1,513 |
TENANT ORIGINATION AND ABSORP_4
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Remaining Unamortized Balance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity | ||
2021 | $ 1,856 | |
2022 | 1,520 | |
2023 | 1,241 | |
2024 | 974 | |
2025 | 662 | |
Thereafter | 209 | |
Net Amount | 6,462 | $ 3,180 |
Housing subsidy intangible asset | ||
Assets, Expected Amortization | ||
2021 | (71) | |
2022 | (71) | |
2023 | (71) | |
2024 | (71) | |
2025 | (71) | |
Thereafter | (1,625) | |
Net amount | $ (1,980) | |
Weighted-Average Remaining Amortization Period | 27 years 10 months 24 days | |
Property tax abatement intangible assets | ||
Assets, Expected Amortization | ||
2021 | $ (866) | |
2022 | (466) | |
2023 | (233) | |
2024 | (14) | |
2025 | 0 | |
Thereafter | 0 | |
Net amount | $ (1,579) | |
Weighted-Average Remaining Amortization Period | 2 years 1 month 6 days | |
Tenant origination and absorption costs | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2021 | $ (15,351) | |
2022 | (8,529) | |
2023 | (5,486) | |
2024 | (4,228) | |
2025 | (2,827) | |
Thereafter | (4,085) | |
Net Amount | $ (40,506) | |
Assets, Expected Amortization | ||
Weighted-Average Remaining Amortization Period | 4 years 9 months 18 days | |
Above-Market Lease Assets | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2021 | $ (515) | |
2022 | (368) | |
2023 | (356) | |
2024 | (355) | |
2025 | (339) | |
Thereafter | (1,224) | |
Net Amount | $ (3,157) | |
Assets, Expected Amortization | ||
Weighted-Average Remaining Amortization Period | 9 years 1 month 6 days | |
Below-Market Lease Liabilities | ||
Assets, Expected Amortization | ||
Weighted-Average Remaining Amortization Period | 4 years 1 month 6 days |
TENANT ORIGINATION AND ABSORP_5
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items] | |||
Housing subsidy intangible asset | $ 2,000 | ||
Amortization expense | $ 45,041 | $ 34,004 | $ 35,006 |
Housing subsidy intangible asset | |||
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items] | |||
Remaining amortization period | 27 years 10 months 24 days | ||
Amortization expense | $ 18 | ||
Prepaid expenses and other assets | |||
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items] | |||
Tax abatement intangible assets | $ 1,600 | 1,000 | |
Property tax abatement intangible assets | |||
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items] | |||
Remaining amortization period | 2 years 1 month 6 days | ||
Amortization expense | $ 700 | $ 600 | $ 1,000 |
REAL ESTATE EQUITY SECURITIES_2
REAL ESTATE EQUITY SECURITIES (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)investment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Number of investments in equity securities | investment | 3 | ||
Interest and dividend income | $ | $ 5.3 | $ 5.8 | $ 6 |
REAL ESTATE EQUITY SECURITIES_3
REAL ESTATE EQUITY SECURITIES (Shares Owned) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Shares Owned (in shares) | 72,641,101 | 67,354,922 |
Real estate equity securities | $ 97,903 | $ 81,439 |
Kepple Pacific Oak US REIT | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Shares Owned (in shares) | 64,165,352 | 64,165,352 |
Real estate equity securities | $ 44,274 | $ 50,049 |
Franklin Street Properties Corp. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Shares Owned (in shares) | 6,915,089 | 2,773,729 |
Real estate equity securities | $ 30,219 | $ 23,743 |
Plymouth Industrial REIT, Inc. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Shares Owned (in shares) | 1,560,660 | 415,841 |
Real estate equity securities | $ 23,410 | $ 7,647 |
REAL ESTATE EQUITY SECURITIES_4
REAL ESTATE EQUITY SECURITIES (Portion of Gain and Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net (loss) gain recognized during the period on real estate equity securities | $ (14,814) | $ 20,379 | $ (19,010) |
Less: Net gain recognized during the period on real estate equity securities sold during the period | 711 | 4,158 | |
Unrealized (loss) gain recognized during the reporting period on real estate equity securities still held at period end | $ (15,525) | $ 16,221 |
REAL ESTATE DISPOSITIONS (Narra
REAL ESTATE DISPOSITIONS (Narrative) (Details) $ in Thousands | Nov. 01, 2019USD ($)propertyshares | Oct. 29, 2019USD ($)shares | Jul. 19, 2019USD ($) | Jan. 11, 2019USD ($) | Nov. 30, 2018USD ($)property | Nov. 26, 2018USD ($)shares | Jul. 17, 2018USD ($) | Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain on sale of real estate, net | $ (110) | $ 34,077 | $ 80,594 | |||||||
Accumulated depreciation and amortization | 104,412 | 65,381 | ||||||||
(Gain) loss on extinguishment of debt | (415) | 1,106 | 493 | |||||||
Real estate held for investment, net | 1,413,023 | 759,479 | ||||||||
Disposed of by Sale | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Closing costs | $ 0 | $ 36,736 | $ 104,589 | |||||||
Disposed of by Sale | SREIT | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Issuance of common stock (in shares) | shares | 56,979,352 | 186,236,224 | ||||||||
Common stock, shares acquired (in shares) | shares | 7,186,000 | |||||||||
Common stock, shares acquired | $ 5,200 | |||||||||
Disposed of by Sale | SREIT | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Ownership interest | 6.89% | 6.89% | 7.00% | |||||||
Common stock, shares acquired (in shares) | shares | 12,979,852 | |||||||||
Common stock, shares acquired | $ 6,500 | |||||||||
Disposed of by Sale | 125 John Carpenter | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Consideration | $ 99,800 | |||||||||
Closing costs | $ 200 | |||||||||
Gain on sale of real estate, net | $ 16,000 | |||||||||
Disposed of by Sale | Burbank Collection | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Consideration | $ 25,900 | |||||||||
Gain on sale of real estate, net | 10,500 | |||||||||
Real estate held for sale | 14,700 | |||||||||
Accumulated depreciation and amortization | $ 2,600 | |||||||||
Disposed of by Sale | 424 Bedford | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Consideration | $ 43,800 | |||||||||
Gain on sale of real estate, net | 7,600 | |||||||||
Real estate held for sale | 34,000 | |||||||||
Accumulated depreciation and amortization | $ 5,300 | |||||||||
Disposed of by Sale | Westpark Portfolio | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Consideration | $ 166,400 | |||||||||
Closing costs | 3,200 | |||||||||
Gain on sale of real estate, net | $ 32,500 | |||||||||
Disposed of by Sale | Central Building | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Consideration | $ 67,500 | |||||||||
Gain on sale of real estate, net | 32,100 | |||||||||
Real estate held for sale | 32,600 | |||||||||
Accumulated depreciation and amortization | $ 5,600 | |||||||||
Office Properties | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Number of real estate properties | property | 9 | |||||||||
Office Properties | Disposed of by Sale | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Number of real estate properties disposed | property | 1 | 1 | ||||||||
Office Properties | Disposed of by Sale | 125 John Carpenter | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Number of real estate properties disposed | property | 2 | |||||||||
Retail Property | Disposed of by Sale | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Number of real estate properties disposed | property | 1 | |||||||||
Apartment Building | Disposed of by Sale | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Number of real estate properties disposed | property | 1 | |||||||||
Office/Flex/Industrial Portfolio | Disposed of by Sale | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Number of real estate properties disposed | property | 1 | |||||||||
Office/Flex/Industrial Buildings | Disposed of by Sale | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Number of real estate properties disposed | property | 21 | |||||||||
Office/Flex/Industrial Buildings | Disposed of by Sale | Westpark Portfolio | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Number of real estate properties disposed | property | 21 |
REAL ESTATE DISPOSITIONS (Reven
REAL ESTATE DISPOSITIONS (Revenue and Expenses for Real Estate Held-for-Sale) (Details) - Disposed of by Sale - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Rental income | $ 0 | $ 30,744 | $ 94,073 |
Other operating income | 0 | 1,171 | 5,668 |
Total revenues | 0 | 31,915 | 99,741 |
Expenses | |||
Operating, maintenance, and management | 0 | 9,117 | 28,931 |
Real estate taxes and insurance | 0 | 4,035 | 12,188 |
Asset management fees to affiliate | 0 | 2,435 | 6,458 |
Depreciation and amortization | 0 | 13,066 | 39,038 |
Interest expense | 0 | 8,083 | 17,974 |
Total expenses | $ 0 | $ 36,736 | $ 104,589 |
NOTES AND BONDS PAYABLE (Schedu
NOTES AND BONDS PAYABLE (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Total Notes and Bond Payable principal outstanding | $ 1,106,377 | $ 678,080 |
Net (Discount) / Premium on Notes and Bonds Payable | (2,851) | 783 |
Deferred financing costs, net | (4,458) | (5,200) |
Notes and Bond Payable, Net | 1,099,068 | 673,663 |
Debt, outstanding amount | 1,106,377 | |
Mortgages | Richardson Portfolio Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 35,832 | 36,000 |
Interest rate, effective percentage | 2.64% | |
Debt, outstanding amount | $ 35,800 | |
Mortgages | Richardson Portfolio Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Mortgages | Park Centre Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 26,185 | 21,970 |
Interest rate, effective percentage | 1.89% | |
Mortgages | Park Centre Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Mortgages | 1180 Raymond Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 29,848 | 30,250 |
Interest rate, effective percentage | 3.50% | |
Mortgages | 1180 Raymond Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Mortgages | 1180 Raymond Bond Payable | ||
Debt Instrument [Line Items] | ||
Bonds payable | $ 5,870 | 6,080 |
Contractual interest rate, percentage | 6.50% | |
Interest rate, effective percentage | 6.50% | |
Mortgages | Pacific Oak SOR (BVI) Holdings, Ltd. Series A Debentures | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 181,198 | 224,746 |
Contractual interest rate, percentage | 4.25% | |
Interest rate, effective percentage | 4.25% | |
Mortgages | Pacific Oak SOR (BVI) Holdings, Ltd. Series B | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 79,078 | 0 |
Contractual interest rate, percentage | 3.93% | |
Interest rate, effective percentage | 3.93% | |
Mortgages | Crown Pointe Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 53,072 | 51,171 |
Interest rate, effective percentage | 2.74% | |
Mortgages | Crown Pointe Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.60% | |
Mortgages | City Tower Mortgage Loan (4) | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 94,167 | 89,000 |
Interest rate, effective percentage | 1.69% | |
Mortgages | City Tower Mortgage Loan (4) | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.55% | |
Mortgages | The Marq Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 62,257 | 53,408 |
Interest rate, effective percentage | 1.69% | |
Mortgages | The Marq Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.55% | |
Mortgages | Eight & Nine Corporate Centre Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 47,066 | 43,880 |
Interest rate, effective percentage | 1.74% | |
Mortgages | Eight & Nine Corporate Centre Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.60% | |
Mortgages | Georgia 400 Center Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 59,690 | 59,690 |
Interest rate, effective percentage | 1.69% | |
Mortgages | Georgia 400 Center Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.55% | |
Mortgages | PORT Mortgage Loan 1 | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 51,362 | 51,362 |
Contractual interest rate, percentage | 4.74% | |
Interest rate, effective percentage | 4.74% | |
Mortgages | PORT Mortgage Loan 2 | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 10,523 | 10,523 |
Contractual interest rate, percentage | 4.72% | |
Interest rate, effective percentage | 4.72% | |
Mortgages | PORT Mortgage Loan 3 | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 12,000 | 0 |
Contractual interest rate, percentage | 650.00% | |
Interest rate, effective percentage | 6.50% | |
Mortgages | Battery Point Trust Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 38,608 | 0 |
Interest rate, effective percentage | 3.50% | |
Mortgages | Battery Point Trust Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Mortgages | Battery Point Trust Mortgage Loan | One-month LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% | |
Mortgages | Springmaid Beach Resort Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 57,015 | 0 |
Basis spread on variable rate | 2.25% | |
Interest rate, effective percentage | 5.75% | |
Mortgages | Springmaid Beach Resort Mortgage Loan | Secured Debt | ||
Debt Instrument [Line Items] | ||
Amount outstanding | $ 57,800 | |
Unused borrowing capacity, amount | $ 9,600 | |
Mortgages | Springmaid Beach Resort Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Mortgages | Q and C Hotel Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 25,000 | 0 |
Interest rate, effective percentage | 4.50% | |
Mortgages | Q and C Hotel Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Mortgages | Lincoln Court Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 34,416 | 0 |
Interest rate, effective percentage | 1.89% | |
Mortgages | Lincoln Court Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Mortgages | Lofts at NoHo Commons Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 74,536 | 0 |
Interest rate, effective percentage | 3.93% | |
Mortgages | Lofts at NoHo Commons Mortgage Loan | Secured Debt | ||
Debt Instrument [Line Items] | ||
Amount outstanding | $ 74,500 | |
Unused borrowing capacity, amount | $ 1,400 | |
Mortgages | Lofts at NoHo Commons Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.18% | |
Mortgages | Lofts at NoHo Commons Mortgage Loan | One-month LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Mortgages | 210 West 31st Street Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 15,050 | 0 |
Interest rate, effective percentage | 3.14% | |
Mortgages | 210 West 31st Street Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.00% | |
Mortgages | Oakland City Center Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 96,782 | 0 |
Contractual interest rate, percentage | 6.00% | |
Interest rate, effective percentage | 1.89% | |
Periodic payment | $ 110 | |
Amortization schedule | 30 years | |
Mortgages | Oakland City Center Mortgage Loan | Secured Debt | ||
Debt Instrument [Line Items] | ||
Amount outstanding | $ 97,100 | |
Unused borrowing capacity, amount | $ 6,300 | |
Mortgages | Oakland City Center Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Mortgages | Madison Square Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 16,822 | $ 0 |
Interest rate, effective percentage | 5.05% | |
Mortgages | Madison Square Mortgage Loan | Secured Debt | ||
Debt Instrument [Line Items] | ||
Unused borrowing capacity, amount | $ 8,800 | |
Debt, outstanding amount | $ 23,800 | |
Mortgages | Madison Square Mortgage Loan | Maximum | ||
Debt Instrument [Line Items] | ||
Contractual interest rate, percentage | 5.05% | |
Mortgages | Madison Square Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 4.05% |
NOTES AND BONDS PAYABLE (Narrat
NOTES AND BONDS PAYABLE (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Notes and Bonds Payable [Abstract] | |||
Interest expense | $ 29,138 | $ 28,849 | $ 31,054 |
Amortization of deferred financing costs | 3,311 | 3,606 | 3,640 |
Net amortization of discount (premium) on bond and notes payable | 602 | (99) | 61 |
Interest payable | 6,200 | 4,800 | |
Real Estate [Line Items] | |||
Interest costs capitalized | 2,923 | 2,565 | 2,339 |
Undeveloped Land | |||
Real Estate [Line Items] | |||
Interest costs capitalized | $ 2,900 | $ 2,700 | $ 2,600 |
NOTES AND BONDS PAYABLE (Sche_2
NOTES AND BONDS PAYABLE (Schedule of Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 24, 2020 |
Notes and Bonds Payable [Abstract] | ||
2021 | $ 538,050 | $ 614,200 |
2022 | 301,864 | |
2023 | 120,344 | |
2024 | 26,629 | |
2025 | 78,011 | |
Thereafter | 41,479 | |
Notes and bond payable outstanding | $ 1,106,377 | |
Maturity with extension options | $ 383,300 |
NOTES AND BONDS PAYABLE (Israel
NOTES AND BONDS PAYABLE (Israeli Bond Financing) (Details) | Feb. 16, 2020ILS (â‚Ş) | Mar. 01, 2019ILS (â‚Ş) | Mar. 01, 2019USD ($) | Mar. 08, 2016ILS (â‚Ş) | Mar. 08, 2016ILS (â‚Ş) | Mar. 08, 2016USD ($) | Mar. 07, 2016ILS (â‚Ş) | Mar. 02, 2016ILS (â‚Ş) | Mar. 01, 2016ILS (â‚Ş) | Mar. 31, 2016 | Dec. 31, 2020USD ($)instrument | Feb. 16, 2020USD ($) | Dec. 31, 2019USD ($)instrument |
Foreign currency collar | Not Designated as Hedging Instrument | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Number of instruments | instrument | 0 | 1 | |||||||||||
Notional amount | $ | $ 0 | $ 776,182,000 | |||||||||||
Bonds Payable | Pacific Oak Strategic Opportunity (BVI) Holdings, Ltd. Series A Debentures | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | â‚Ş | â‚Ş 1,000,000,000 | ||||||||||||
Interest rate during period | 4.25% | ||||||||||||
Proceeds from issuance of debt | â‚Ş 970,200,000 | â‚Ş 970,200,000 | $ 249,200,000 | â‚Ş 127,700,000 | â‚Ş 842,500,000 | ||||||||
Periodic payment | â‚Ş 194,000,000 | $ 53,600,000 | |||||||||||
Contractual interest rate, percentage | 4.25% | ||||||||||||
Bonds Payable | Pacific Oak Strategic Opportunity (BVI) Holdings, Ltd. Series A Debentures | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate during period | 4.25% | ||||||||||||
Contractual interest rate, percentage | 4.25% | ||||||||||||
Bonds Payable | Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | â‚Ş 254,100,000 | $ 74,100,000 | |||||||||||
Contractual interest rate, percentage | 3.93% | 3.93% | |||||||||||
Principal of installment payments as percent of face amount | 33.33% |
DERIVATIVE INSTRUMENTS (Notiona
DERIVATIVE INSTRUMENTS (Notional Amount) (Details) | Jul. 29, 2020USD ($) | Dec. 31, 2020USD ($)instrument | Dec. 31, 2019USD ($)instrument | Nov. 25, 2019 | Mar. 07, 2019USD ($) |
Interest rate cap | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 348,500,000 | ||||
Interest rate cap | One-month LIBOR | |||||
Derivative [Line Items] | |||||
Variable interest rate | 3.75% | ||||
Not Designated as Hedging Instrument | Foreign currency collar | |||||
Derivative [Line Items] | |||||
Gain on sale of derivatives | $ 14,100,000 | ||||
Number of Instruments | instrument | 0 | 1 | |||
Notional Amount | $ 0 | $ 776,182,000 | |||
Not Designated as Hedging Instrument | Foreign currency collar | Minimum | |||||
Derivative [Line Items] | |||||
Exchange rate cap | 3.38 | ||||
Not Designated as Hedging Instrument | Foreign currency collar | Maximum | |||||
Derivative [Line Items] | |||||
Exchange rate cap | 3.4991 | ||||
Not Designated as Hedging Instrument | Interest rate cap | |||||
Derivative [Line Items] | |||||
Number of Instruments | instrument | 7 | ||||
Notional Amount | $ 46,875,000 | ||||
Not Designated as Hedging Instrument | Interest rate cap | One-month LIBOR | |||||
Derivative [Line Items] | |||||
Variable interest rate | 3.00% | ||||
Not Designated as Hedging Instrument | Interest rate cap 1 | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 77,513,000 | ||||
Not Designated as Hedging Instrument | Interest rate cap 1 | One-month LIBOR | |||||
Derivative [Line Items] | |||||
Variable interest rate | 3.50% | ||||
Not Designated as Hedging Instrument | Interest rate cap 2 | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 65,325,000 | ||||
Not Designated as Hedging Instrument | Interest rate cap 2 | One-month LIBOR | |||||
Derivative [Line Items] | |||||
Variable interest rate | 4.00% | ||||
Not Designated as Hedging Instrument | Interest rate cap 3 | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 1,675,000 | ||||
Not Designated as Hedging Instrument | Interest rate cap 3 | One-month LIBOR | |||||
Derivative [Line Items] | |||||
Variable interest rate | 4.00% | ||||
Not Designated as Hedging Instrument | Interest rate cap 4 | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 75,950,000 | ||||
Not Designated as Hedging Instrument | Interest rate cap 4 | One-month LIBOR | |||||
Derivative [Line Items] | |||||
Variable interest rate | 3.50% | ||||
Not Designated as Hedging Instrument | Interest rate cap 5 | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 26,200,000 | ||||
Not Designated as Hedging Instrument | Interest rate cap 5 | One-month LIBOR | |||||
Derivative [Line Items] | |||||
Variable interest rate | 3.00% | ||||
Not Designated as Hedging Instrument | Interest rate cap 6 | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 51,252,000 | ||||
Not Designated as Hedging Instrument | Interest rate cap 6 | One-month LIBOR | |||||
Derivative [Line Items] | |||||
Variable interest rate | 4.00% |
DERIVATIVE INSTRUMENTS (Balance
DERIVATIVE INSTRUMENTS (Balance Sheets) (Details) - Not Designated as Hedging Instrument $ in Thousands | Dec. 31, 2020USD ($)instrument | Dec. 31, 2019USD ($)instrument |
Interest rate cap | ||
Derivative [Line Items] | ||
Number of Instruments | 7 | |
Interest rate cap | Prepaid expenses and other assets | ||
Derivative [Line Items] | ||
Number of Instruments | 7 | 3 |
Derivative Asset, Fair Value, Gross Asset | $ | $ 1 | $ 12 |
Foreign currency collar | ||
Derivative [Line Items] | ||
Number of Instruments | 0 | 1 |
Foreign currency collar | Prepaid expenses and other assets (Other liabilities) | ||
Derivative [Line Items] | ||
Number of Instruments | 0 | 1 |
Derivative Asset, Fair Value, Gross Asset | $ | $ 0 | |
Derivative Liability, Fair Value, Gross Liability | $ | $ (179) |
DERIVATIVE INSTRUMENTS (Narrati
DERIVATIVE INSTRUMENTS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign currency collar | |||
Derivative [Line Items] | |||
Gain (loss) recognized on derivatives | $ 14,300 | $ 4,200 | $ 8,700 |
Foreign currency transaction gain (loss), net | 17,200 | 16,700 | 18,800 |
Interest rate cap | |||
Derivative [Line Items] | |||
Unrealized loss on derivatives | $ 27 | $ 100 | $ 100 |
FAIR VALUE DISCLOSURES (Schedul
FAIR VALUE DISCLOSURES (Schedule of Face Value, Carrying Amounts and Fair Value) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face amount | $ 846,101,000 | $ 453,334,000 |
Pacific Oak Strategic Opportunity (BVI) Holdings, Ltd. Series A Debentures | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pacific Oak SOR (BVI) Holdings, Ltd. Series A Debentures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face amount | 181,198,000 | 224,746,000 |
Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pacific Oak SOR (BVI) Holdings, Ltd. Series B | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face amount | 79,078,000 | 0 |
Carrying Amount | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial liabilities, Value | 842,112,000 | 451,743,000 |
Carrying Amount | Pacific Oak Strategic Opportunity (BVI) Holdings, Ltd. Series A Debentures | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pacific Oak SOR (BVI) Holdings, Ltd. Series A Debentures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial liabilities, Value | 179,786,000 | 221,920,000 |
Carrying Amount | Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pacific Oak SOR (BVI) Holdings, Ltd. Series B | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial liabilities, Value | 77,170,000 | 0 |
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial liabilities, Value | 846,608,000 | 455,849,000 |
Fair Value | Pacific Oak Strategic Opportunity (BVI) Holdings, Ltd. Series A Debentures | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pacific Oak SOR (BVI) Holdings, Ltd. Series A Debentures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial liabilities, Value | 178,450,000 | 229,877,000 |
Fair Value | Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pacific Oak SOR (BVI) Holdings, Ltd. Series B | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial liabilities, Value | $ 69,433,000 | $ 0 |
FAIR VALUE DISCLOSURES (Sched_2
FAIR VALUE DISCLOSURES (Schedule of Assets at Fair Value) (Details) - Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate equity securities | $ 97,903 | $ 81,439 |
Asset derivative - interest rate caps | 12 | |
Liability derivative - foreign currency collar | (179) | |
Interest rate cap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset derivative - interest rate caps | 1 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate equity securities | 97,903 | 81,439 |
Asset derivative - interest rate caps | 0 | |
Liability derivative - foreign currency collar | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate cap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset derivative - interest rate caps | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate equity securities | 0 | 0 |
Asset derivative - interest rate caps | 12 | |
Liability derivative - foreign currency collar | (179) | |
Significant Other Observable Inputs (Level 2) | Interest rate cap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset derivative - interest rate caps | 1 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate equity securities | 0 | 0 |
Asset derivative - interest rate caps | 0 | |
Liability derivative - foreign currency collar | $ 0 | |
Significant Unobservable Inputs (Level 3) | Interest rate cap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset derivative - interest rate caps | $ 0 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) | Nov. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 06, 2017 |
Related Party Transaction [Line Items] | |||||
Payment for administrative fees | $ 0 | $ 220,000 | $ 305,000 | ||
Migdal Members | |||||
Related Party Transaction [Line Items] | |||||
Ownership % | 45.00% | ||||
Pacific Oak Capital Advisors LLC | |||||
Related Party Transaction [Line Items] | |||||
Term of advisory agreement | 1 year | ||||
Advisory agreement, renewal period | 1 year |
RELATED PARTY TRANSACTIONS (Cos
RELATED PARTY TRANSACTIONS (Costs) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Payable as of | $ 2,842,000 | $ 1,635,000 | |
Payment for administrative fees | 0 | 220,000 | $ 305,000 |
Pacific Oak Capital Advisors LLC | |||
Related Party Transaction [Line Items] | |||
Incurred | 8,953,000 | 44,893,000 | 14,762,000 |
Payable as of | 2,842,000 | 1,635,000 | |
Pacific Oak Capital Advisors LLC | Asset management fees | |||
Related Party Transaction [Line Items] | |||
Expensed | (9,982,000) | (8,158,000) | (8,525,000) |
Payable as of | 2,837,000 | 1,498,000 | |
Pacific Oak Capital Advisors LLC | Property management fee | |||
Related Party Transaction [Line Items] | |||
Expensed | (229,000) | 0 | 0 |
Payable as of | 0 | 0 | |
Pacific Oak Capital Advisors LLC | Acquisition fees on business combination | |||
Related Party Transaction [Line Items] | |||
Expensed | 0 | (1,185,000) | 0 |
Payable as of | 0 | 0 | |
Pacific Oak Capital Advisors LLC | Reimbursable operating expenses | |||
Related Party Transaction [Line Items] | |||
Expensed | (148,000) | (236,000) | (410,000) |
Payable as of | 0 | 0 | |
Pacific Oak Capital Advisors LLC | Disposition fees | |||
Related Party Transaction [Line Items] | |||
Expensed | 0 | (1,570,000) | (2,494,000) |
Payable as of | 0 | 0 | |
Pacific Oak Capital Advisors LLC | Change in subordinated performance fee due upon termination to affiliate | |||
Related Party Transaction [Line Items] | |||
Expensed | (1,720,000) | 0 | 0 |
Pacific Oak Capital Advisors LLC | Acquisition fee on real estate | |||
Related Party Transaction [Line Items] | |||
Incurred | 171,000 | 897,000 | 3,094,000 |
Payable as of | 0 | 0 | |
Pacific Oak Capital Advisors LLC | Acquisition fees on real estate equity securities | |||
Related Party Transaction [Line Items] | |||
Incurred | 143,000 | 0 | 239,000 |
Payable as of | 5,000 | 0 | |
Pacific Oak Capital Advisors LLC | Acquisition fee on investment in unconsolidated entities | |||
Related Party Transaction [Line Items] | |||
Incurred | 0 | 207,000 | 0 |
Payable as of | 0 | 137,000 | |
KBS Capital Advisors LLC | Termination Fee | |||
Related Party Transaction [Line Items] | |||
Expensed | $ 0 | $ (32,640,000) | $ 0 |
RELATED PARTY TRANSACTIONS (Sub
RELATED PARTY TRANSACTIONS (Subordinated Performance Fee Due Upon Termination) (Details) - Subordinated Performance Fee Due Upon Termination - KBS Capital Advisors LLC | 12 Months Ended |
Dec. 31, 2020shares | |
Related Party Transaction [Line Items] | |
Shares to be awarded (in shares) | 3,411,737 |
Period of redemption after vesting | 60 days |
Termination fee as percent of liquidation proceeds | 50.00% |
Percent of total operating expenses in four consecutive quarters | 2.00% |
Percent of total operating expenses, benchmark | 25.00% |
After November 1, 2024 | |
Related Party Transaction [Line Items] | |
Period of redemption of remaining shares | 60 days |
RELATED PARTY TRANSACTIONS (N_2
RELATED PARTY TRANSACTIONS (Narrative1) (Details) | Oct. 29, 2019 | Mar. 20, 2019USD ($)$ / sharesshares | Dec. 31, 2020USD ($)unitshares | Dec. 31, 2019USD ($)unitshares | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)unitshares | Oct. 05, 2020USD ($)unit | May 12, 2017USD ($) | Oct. 28, 2016USD ($) |
Related Party Transaction [Line Items] | |||||||||
Redemptions of common stock | $ 8,600,000 | $ 2,230,000 | $ 10,028,000 | $ 123,613,000 | $ 287,600,000 | ||||
Battery Point | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of securities received (in shares) | shares | 210,000 | ||||||||
Price per share (in dollars per share) | $ / shares | $ 25 | ||||||||
Series B Preferred Units | Battery Point | |||||||||
Related Party Transaction [Line Items] | |||||||||
Redemptions of common stock (in shares) | shares | 13,000 | ||||||||
Stock redeemed (in dollars per share) | $ / shares | $ 1,000 | ||||||||
Principal paydown | $ 900,000 | ||||||||
Battery Point | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of securities received (in shares) | shares | 210,000 | ||||||||
Price per share (in dollars per share) | $ / shares | $ 25 | ||||||||
Battery Point | Series B Preferred Units | |||||||||
Related Party Transaction [Line Items] | |||||||||
Investments to be made | $ 17,500,000 | ||||||||
Investments | $ 4,500,000 | $ 4,500,000 | $ 4,500,000 | ||||||
Dividend rate, percentage | 12.00% | ||||||||
Redemptions of common stock (in shares) | shares | 13,000 | ||||||||
Stock redeemed (in dollars per share) | $ / shares | $ 1,000 | ||||||||
Battery Point | Series B Preferred Units | Maximum | |||||||||
Related Party Transaction [Line Items] | |||||||||
Investments to be made | $ 25,000,000 | ||||||||
Battery Point | Series A-3 Preferred Units | |||||||||
Related Party Transaction [Line Items] | |||||||||
Principal paydown | $ 8,600,000 | ||||||||
Number of securities received (in shares) | shares | 640,000 | 640,000 | |||||||
Stock repurchased during period (in shares) | shares | 430,000 | 430,000 | |||||||
Stock repurchased during period | $ 10,800,000 | $ 10,800,000 | |||||||
Pacific Oak Opportunity Zone Fund I | |||||||||
Related Party Transaction [Line Items] | |||||||||
Investments | $ 22,100,000 | $ 20,600,000 | $ 20,600,000 | $ 2,900,000 | |||||
Acquisition fee, percent of purchase price fee | 1.50% | ||||||||
Number of units in real estate property | unit | 13 | 91 | 91 | 13 | |||||
Investment, purchase price, benchmark | $ 25,000,000 | ||||||||
Acquisition fee of purchase price fee in excess of benchmark purchase price | 1.00% | ||||||||
Asset management fee, percent | 0.25% | ||||||||
Financing fee as percent of original principal amount of any indebtedness | 0.50% | ||||||||
KBS Capital Advisors LLC | Subordinated Participation in Net Cash Flows | |||||||||
Related Party Transaction [Line Items] | |||||||||
Noncompounded return on invested capital as percent per year, percent | 7.00% | ||||||||
Percent of net cash flows to be received by related party, percent | 15.00% | ||||||||
Distributions paid from operating cash flows, annual return, percent | 7.00% | ||||||||
KBS Capital Advisors LLC | Subordinated Incentive Listing Fee | |||||||||
Related Party Transaction [Line Items] | |||||||||
Noncompounded return on invested capital as percent per year, percent | 7.00% | ||||||||
Percent of net cash flows to be received by related party, percent | 15.00% | ||||||||
Distributions paid from operating cash flows, annual return, percent | 7.00% | ||||||||
KBS Capital Advisors LLC | Subordinated Performance Fee Due Upon Termination | |||||||||
Related Party Transaction [Line Items] | |||||||||
Noncompounded return on invested capital as percent per year, percent | 7.00% | ||||||||
Percent of net cash flows to be received by related party, percent | 15.00% | ||||||||
Distributions paid from operating cash flows, annual return, percent | 7.00% | ||||||||
Battery Point Holdings | DayMark | |||||||||
Related Party Transaction [Line Items] | |||||||||
Noncontrolling interest | 40.00% | ||||||||
DayMark Service Entities | |||||||||
Related Party Transaction [Line Items] | |||||||||
Property management fee, percent of gross asset value fee | 1.50% | ||||||||
Annual property management fee, percent of tenants rent received fee | 8.00% | ||||||||
Acquisition fee, percent of purchase price fee | 1.00% | ||||||||
Commission fee from sales as broker | 1.00% |
RELATED PARTY TRANSACTIONS (Sin
RELATED PARTY TRANSACTIONS (Singapore Transaction) (Details) | Nov. 01, 2019USD ($)ft²propertyshares | Oct. 29, 2019USD ($)shares | Nov. 30, 2018USD ($)aft²property | Nov. 26, 2018USD ($)shares | Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($) |
SREIT | |||||||
Related Party Transaction [Line Items] | |||||||
Common units owned (in shares) | shares | 56,979,352 | ||||||
Ownership % | 6.89% | 6.89% | |||||
Common units acquired (in shares) | shares | 7,186,000 | ||||||
Investments in unconsolidated entities | $ 5,200,000 | ||||||
Management fee | 10.00% | ||||||
Performance fee | 25.00% | ||||||
Acquisition fee as percent of purchase price of assets acquired | 1.00% | ||||||
Divestment fee as percent of sale price of assets disposed | 0.50% | ||||||
KBS Pacific Advisors, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership % | 50.00% | ||||||
Keppel Capital Holding Pte. Ltd. | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership % | 50.00% | ||||||
Investments in unconsolidated entities | $ 27,500,000 | ||||||
Disposed of by Sale | |||||||
Related Party Transaction [Line Items] | |||||||
Closing costs | $ 0 | $ 36,736,000 | $ 104,589,000 | ||||
Disposed of by Sale | SREIT | |||||||
Related Party Transaction [Line Items] | |||||||
Issuance of common stock (in shares) | shares | 56,979,352 | 186,236,224 | |||||
Common stock, shares acquired (in shares) | shares | 7,186,000 | ||||||
Common stock, shares acquired | $ 5,200,000 | ||||||
Disposed of by Sale | SREIT | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock, shares acquired (in shares) | shares | 12,979,852 | ||||||
Common stock, shares acquired | $ 6,500,000 | ||||||
Ownership interest | 6.89% | 6.89% | 7.00% | ||||
Westpark Portfolio | Disposed of by Sale | |||||||
Related Party Transaction [Line Items] | |||||||
Consideration | $ 166,400,000 | ||||||
Closing costs | $ 3,200,000 | ||||||
125 John Carpenter | Disposed of by Sale | |||||||
Related Party Transaction [Line Items] | |||||||
Consideration | $ 99,800,000 | ||||||
Closing costs | 200,000 | ||||||
Closing costs | $ 200,000 | ||||||
Asset management fees | SREIT | |||||||
Related Party Transaction [Line Items] | |||||||
Due from related parties | 5,900,000 | ||||||
Acquisition fees on real estate | SREIT | |||||||
Related Party Transaction [Line Items] | |||||||
Due from related parties | $ 0 | ||||||
Office/Flex/Industrial Buildings | Disposed of by Sale | |||||||
Related Party Transaction [Line Items] | |||||||
Number of real estate properties disposed | property | 21 | ||||||
Office/Flex/Industrial Buildings | Westpark Portfolio | Disposed of by Sale | |||||||
Related Party Transaction [Line Items] | |||||||
Number of real estate properties disposed | property | 21 | ||||||
Net rentable area | ft² | 778,472 | ||||||
Area of land | a | 41 | ||||||
Office Properties | Disposed of by Sale | |||||||
Related Party Transaction [Line Items] | |||||||
Number of real estate properties disposed | property | 1 | 1 | |||||
Office Properties | 125 John Carpenter | Disposed of by Sale | |||||||
Related Party Transaction [Line Items] | |||||||
Number of real estate properties disposed | property | 2 | ||||||
Net rentable area | ft² | 445,317 |
RELATED PARTY TRANSACTIONS (Bat
RELATED PARTY TRANSACTIONS (Battery Point Restructuring) (Details) | Jul. 29, 2020USD ($)property | Jul. 01, 2020USD ($)propertyshares | Oct. 29, 2019 | Mar. 20, 2019USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)propertyshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | May 12, 2017USD ($) | Oct. 28, 2016USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investments in unconsolidated entities | $ 79,666,000 | $ 78,276,000 | ||||||||
BPT Holdings, LLC | Subsidiaries | Battery Point Trust Inc. | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Common equity units received in transaction | shares | 510,816 | |||||||||
Percent of outstanding common equity units received in transaction | 4.50% | |||||||||
Common equity units received in transaction | $ 3,000,000 | |||||||||
Battery Point Trust Inc. | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Common stock, shares acquired (in shares) | shares | 1,000,000 | |||||||||
Battery Point Trust Inc. | Single Family | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Number of homes | property | 559 | |||||||||
Single-Family Home 2 | Single Family | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Number of homes | property | 12 | 12 | ||||||||
Payments to acquire assets | $ 1,000,000 | |||||||||
Capitalized acquisition costs | 10,000 | |||||||||
Land | 200,000 | |||||||||
Building and improvements | $ 800,000 | |||||||||
Battery Point Holdings | DayMark | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Noncontrolling interest | 40.00% | |||||||||
DayMark Service Entities | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Property management fee, percent of gross asset value fee | 1.50% | |||||||||
Annual property management fee, percent of tenants rent received fee | 8.00% | |||||||||
Acquisition fee, percent of purchase price fee | 1.00% | |||||||||
Commission fee from sales as broker | 1.00% | |||||||||
Series A-3 Preferred Units | Battery Point | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Number of securities eliminated in consolidation because of acquisition | shares | 640,000 | |||||||||
Battery Point | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Number of securities received (in shares) | shares | 210,000 | |||||||||
Price per share (in dollars per share) | $ / shares | $ 25 | |||||||||
Battery Point | Series B Preferred Units | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investments to be made | $ 17,500,000 | |||||||||
Investments | $ 4,500,000 | $ 4,500,000 | ||||||||
Dividend rate, percentage | 12.00% | |||||||||
Redemptions of common stock (in shares) | shares | 13,000 | |||||||||
Stock redeemed (in dollars per share) | $ / shares | $ 1,000 | |||||||||
Battery Point | Series B Preferred Units | Maximum | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investments to be made | $ 25,000,000 | |||||||||
Battery Point | Series A-3 Preferred Units | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Principal paydown | $ 8,600,000 | |||||||||
Accrued interest and exit fees | $ 900,000 | |||||||||
Number of securities received (in shares) | shares | 640,000 | |||||||||
Stock repurchased during period (in shares) | shares | 430,000 | 430,000 | ||||||||
Stock repurchased during period | $ 10,800,000 | $ 10,800,000 | ||||||||
Number of securities eliminated in consolidation because of acquisition | shares | 640,000 | |||||||||
Battery Point Series A-3 Preferred Units | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investments in unconsolidated entities | $ 0 | $ 13,991,000 | ||||||||
Battery Point Series A-3 Preferred Units | Series A-3 Preferred Units | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investments in unconsolidated entities | $ 14,000,000 | $ 14,000,000 | ||||||||
Gains (losses) on investment of real estate prior to acquisition | $ 2,000,000 | $ 2,000,000 |
RELATED PARTY TRANSACTIONS (Inv
RELATED PARTY TRANSACTIONS (Investment in Pacific Oak Opportunity Zone Fund I) (Details) - Pacific Oak Opportunity Zone Fund I $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)unit | Oct. 05, 2020USD ($)unit | Dec. 31, 2019USD ($)unit | |
Schedule of Equity Method Investments [Line Items] | |||
Number of units in real estate property | unit | 13 | 13 | 91 |
Investments | $ 22.1 | $ 2.9 | $ 20.6 |
Investments, fair value | $ 3 | ||
Acquisition fee, percent of purchase price fee | 1.50% | ||
Investment, purchase price, benchmark | $ 25 | ||
Acquisition fee of purchase price fee in excess of benchmark purchase price | 1.00% | ||
Asset management fee, percent | 0.25% | ||
Financing fee as percent of original principal amount of any indebtedness | 0.50% | ||
Waived asset management fees | $ 0.6 | ||
Asset management fees receivable | 0.1 | ||
Pacific Oak Strategic Opportunity REIT II, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments | $ 2.9 |
RELATED PARTY TRANSACTIONS (POR
RELATED PARTY TRANSACTIONS (PORT II) (Details) - USD ($) $ in Millions | Aug. 31, 2020 | Dec. 31, 2020 |
PORT II OP LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Payments to acquire investments | $ 5 | |
Insufficient fund fees, percent | 50.00% | |
Application fee collected, percent | 100.00% | |
PORT II OP LP | Tier 1 | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, percent of rent collections per year | 8.00% | |
PORT II OP LP | Tier 1 | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, benchmark of rent collections per year | $ 50 | |
PORT II OP LP | Tier 2 | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, percent of rent collections per year | 7.00% | |
PORT II OP LP | Tier 2 | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, benchmark of rent collections per year | $ 75 | |
PORT II OP LP | Tier 2 | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, benchmark of rent collections per year | $ 50 | |
PORT II OP LP | Tier 3 | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, percent of rent collections per year | 6.00% | |
PORT II OP LP | Tier 3 | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, benchmark of rent collections per year | $ 75 | |
PORT II OP LP | PORT II OP LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Payments to acquire investments | $ 5 | |
Investment in PORT II OP LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Cumulative percentage ownership after all transactions | 96.10% |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Investments in Unconsolidated Joint Ventures) (Details) $ in Thousands | Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($) | May 02, 2014 |
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | $ 79,666 | $ 78,276 | |
NIP Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | property | 0 | ||
Investments in unconsolidated entities | $ 0 | 1,225 | |
110 William Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | property | 1 | ||
Ownership % | 60.00% | 60.00% | |
Investments in unconsolidated entities | $ 0 | 0 | |
353 Sacramento Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | property | 1 | ||
Ownership % | 55.00% | ||
Investments in unconsolidated entities | $ 49,665 | 42,214 | |
Battery Point Series A-3 Preferred Units | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | $ 0 | 13,991 | |
Pacific Oak Opportunity Zone Fund I | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | property | 3 | ||
Investments in unconsolidated entities | $ 24,996 | 20,846 | |
Pacific Oak Residential Trust II, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | property | 7 | ||
Investments in unconsolidated entities | $ 5,005 | $ 0 |
INVESTMENT IN UNCONSOLIDATED _4
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Narrative) (Details) | May 09, 2012USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | May 02, 2014ft² |
Schedule of Equity Method Investments [Line Items] | |||||
Initial capital contribution | $ 12,620,000 | $ 31,845,000 | $ 1,320,000 | ||
Income from NIP | 97,000 | 0 | 428,000 | ||
Investments in unconsolidated joint ventures | 79,666,000 | 78,276,000 | |||
Equity in income of unconsolidated joint venture | 1,260,000 | 6,621,000 | (9,830,000) | ||
110 William JV Partner | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income from NIP | 0 | 5,200,000 | 0 | ||
NIP Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Initial capital contribution | $ 8,000,000 | ||||
Distributions | 1,300,000 | 300,000 | 2,600,000 | ||
Income from NIP | 400,000 | ||||
Return of capital | $ 2,200,000 | ||||
Investments in unconsolidated joint ventures | $ 0 | 1,225,000 | |||
NIP Joint Venture | Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest | 5.00% | ||||
110 William Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest | 60.00% | 60.00% | |||
Rentable square feet | ft² | 928,157 | ||||
Area of land | ft² | 0.8 | ||||
Investments in unconsolidated joint ventures | $ 0 | 0 | |||
Equity in income of unconsolidated joint venture | 7,800,000 | ||||
Equity in income (loss) of unconsolidated joint venture | $ 7,800,000 | ||||
110 William Joint Venture | 110 William JV Partner | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest | 40.00% |
INVESTMENT IN UNCONSOLIDATED _5
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Summarized Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balance Sheets | |||
Real estate assets, net of accumulated depreciation and amortization | $ 1,413,023 | $ 759,479 | |
Total assets | 1,731,665 | 1,041,242 | |
Other liabilities | 34,738 | 19,801 | |
Total liabilities, mezzanine equity and equity | 1,731,665 | 1,041,242 | |
Income Statement | |||
Revenues | 114,025 | 93,158 | $ 95,787 |
Real estate taxes and insurance | 15,702 | 12,631 | 11,762 |
Depreciation and amortization | 45,041 | 34,004 | 35,006 |
Interest expense | 29,138 | 28,849 | 31,054 |
Total expenses | 148,157 | 132,822 | 116,036 |
Net (loss) income attributable to common stockholders | (49,008) | (17,282) | 33,546 |
Company’s equity in loss of unconsolidated joint venture | 1,621 | 6,621 | (9,830) |
110 William Joint Venture | |||
Balance Sheets | |||
Real estate assets, net of accumulated depreciation and amortization | 246,166 | 242,430 | |
Other assets | 44,004 | 35,747 | |
Total assets | 290,170 | 278,177 | |
Notes Payable | 316,421 | 292,221 | |
Other liabilities | 5,532 | 10,664 | |
Partners’ capital | (31,783) | (24,708) | |
Total liabilities, mezzanine equity and equity | 290,170 | 278,177 | |
Income Statement | |||
Revenues | 36,570 | 34,186 | 38,539 |
Real estate taxes and insurance | 7,515 | 7,064 | 6,718 |
Depreciation and amortization | 11,849 | 11,166 | 15,596 |
Interest expense | 16,252 | 16,742 | 17,815 |
Total expenses | 43,711 | 44,185 | 49,973 |
Total other income | 66 | 137 | 112 |
Net (loss) income attributable to common stockholders | (7,075) | (9,862) | (11,322) |
Company’s share of net loss | (4,245) | 5,917 | (6,835) |
Gain (loss) equity method investments | 300 | ||
110 William Joint Venture | Real Estate | |||
Income Statement | |||
Operating, maintenance, and management | 8,095 | 9,213 | 9,844 |
353 Sacramento Joint Venture | |||
Balance Sheets | |||
Real estate assets, net of accumulated depreciation and amortization | 182,318 | 180,592 | |
Other assets | 19,810 | 21,822 | |
Total assets | 202,128 | 202,414 | |
Notes Payable | 109,783 | 115,280 | |
Other liabilities | 7,639 | 11,193 | |
Partners’ capital | 84,706 | 75,941 | |
Total liabilities, mezzanine equity and equity | 202,128 | 202,414 | |
Income Statement | |||
Revenues | 20,939 | 17,015 | 11,397 |
Real estate taxes and insurance | 2,986 | 2,822 | 2,372 |
Depreciation and amortization | 7,007 | 6,485 | 5,680 |
Interest expense | 4,293 | 5,734 | 5,374 |
Total expenses | 17,674 | 18,826 | 17,080 |
Net (loss) income attributable to common stockholders | 3,265 | (1,811) | (5,683) |
Equity in income (loss) of unconsolidated joint venture | 1,946 | (854) | (2,995) |
353 Sacramento Joint Venture | Real Estate | |||
Income Statement | |||
Operating, maintenance, and management | $ 3,388 | $ 3,785 | $ 3,654 |
INVESTMENT IN UNCONSOLIDATED _6
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (110 William Street Refinancing) (Details) | Mar. 07, 2019USD ($)extension |
Interest rate cap | |
Schedule of Equity Method Investments [Line Items] | |
Notional Amount | $ 348,500,000 |
One-month LIBOR | Interest rate cap | |
Schedule of Equity Method Investments [Line Items] | |
Variable interest rate | 3.75% |
110 William Joint Venture | 110 William Street Mortgage Loan | |
Schedule of Equity Method Investments [Line Items] | |
Extinguishment of debt | $ 268,000,000 |
Face amount | $ 261,400,000 |
Number of extensions | extension | 3 |
Contractual interest rate, percentage | 3.50% |
110 William Joint Venture | Mezzanine Loan | |
Schedule of Equity Method Investments [Line Items] | |
Face amount | $ 87,100,000 |
Contractual interest rate, percentage | 6.90% |
Amount outstanding | $ 70,300,000 |
110 William Joint Venture | Senior Mortgage Loan | |
Schedule of Equity Method Investments [Line Items] | |
Extinguishment of debt | 215,500,000 |
Amount outstanding | 210,800,000 |
Unused borrowing capacity, amount | 4,700,000 |
110 William Joint Venture | Building Loan | |
Schedule of Equity Method Investments [Line Items] | |
Extinguishment of debt | 45,900,000 |
Unused borrowing capacity, amount | 45,900,000 |
110 William Joint Venture | 110 William Street Mezzanine Loan | |
Schedule of Equity Method Investments [Line Items] | |
Unused borrowing capacity, amount | $ 16,800,000 |
110 William Joint Venture | One-month LIBOR | 110 William Street Mortgage Loan | |
Schedule of Equity Method Investments [Line Items] | |
Basis spread on variable rate | 1.50% |
110 William Joint Venture | One-month LIBOR | Mezzanine Loan | |
Schedule of Equity Method Investments [Line Items] | |
Basis spread on variable rate | 4.90% |
INVESTMENT IN UNCONSOLIDATED _7
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Investment in 353 Sacramento Joint Venture) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 06, 2017 | |
Migdal Members | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership % | 45.00% | |||
Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership % | 55.00% | |||
Office Properties | Disposed of by Sale | 353 Sacramento | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership % | 45.00% | |||
353 Sacramento Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership % | 55.00% | |||
Distributions | $ 5,500,000 | $ 0 | $ 1,300,000 |
INVESTMENT IN UNCONSOLIDATED _8
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Battery Point Restructuring) (Details) - USD ($) | Jul. 01, 2020 | Oct. 29, 2019 | Mar. 20, 2019 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 12, 2017 | Oct. 28, 2016 |
Schedule of Equity Method Investments [Line Items] | |||||||||
Investments in unconsolidated entities | $ 79,666,000 | $ 78,276,000 | |||||||
BPT Holdings, LLC | Subsidiaries | Battery Point Trust Inc. | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Common equity units received in transaction | 510,816 | ||||||||
Percent of outstanding common equity units received in transaction | 4.50% | ||||||||
Common equity units received in transaction | $ 3,000,000 | ||||||||
Battery Point Trust Inc. | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Common stock, shares acquired (in shares) | 1,000,000 | ||||||||
Battery Point Holdings | DayMark | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Noncontrolling interest | 40.00% | ||||||||
DayMark Service Entities | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Property management fee, percent of gross asset value fee | 1.50% | ||||||||
Annual property management fee, percent of tenants rent received fee | 8.00% | ||||||||
Acquisition fee, percent of purchase price fee | 1.00% | ||||||||
Commission fee from sales as broker | 1.00% | ||||||||
Battery Point | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of securities received (in shares) | 210,000 | ||||||||
Price per share (in dollars per share) | $ 25 | ||||||||
Battery Point | Series B Preferred Units | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investments to be made | $ 17,500,000 | ||||||||
Investments | $ 4,500,000 | $ 4,500,000 | |||||||
Dividend rate, percentage | 12.00% | ||||||||
Redemptions of common stock (in shares) | 13,000 | ||||||||
Stock redeemed (in dollars per share) | $ 1,000 | ||||||||
Battery Point | Series B Preferred Units | Maximum | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investments to be made | $ 25,000,000 | ||||||||
Battery Point | Series A-3 Preferred Units | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Principal paydown | $ 8,600,000 | ||||||||
Accrued interest and exit fees | $ 900,000 | ||||||||
Number of securities received (in shares) | 640,000 | ||||||||
Stock repurchased during period (in shares) | 430,000 | 430,000 | |||||||
Stock repurchased during period | $ 10,800,000 | $ 10,800,000 | |||||||
Number of securities eliminated in consolidation because of acquisition | 640,000 | ||||||||
Battery Point Series A-3 Preferred Units | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investments in unconsolidated entities | $ 0 | $ 13,991,000 | |||||||
Battery Point Series A-3 Preferred Units | Series A-3 Preferred Units | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investments in unconsolidated entities | $ 14,000,000 | $ 14,000,000 | |||||||
Gains (losses) on investment of real estate prior to acquisition | $ 2,000,000 | $ 2,000,000 |
INVESTMENT IN UNCONSOLIDATED _9
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Investment in Pacific Oak Opportunity Zone Fund I) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)propertyunit | Oct. 05, 2020USD ($)unit | Dec. 31, 2019USD ($)unit | |
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | $ 79,666 | $ 78,276 | |
Pacific Oak Opportunity Zone Fund I | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of units in real estate property | unit | 13 | 13 | 91 |
Investments | $ 22,100 | $ 2,900 | $ 20,600 |
Investments in unconsolidated entities | 24,996 | $ 20,846 | |
Acquisition related costs | $ 200 | ||
Number of joint venture with real estate under development | property | 3 |
INVESTMENT IN UNCONSOLIDATED_10
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (PORT II) (Details) - USD ($) $ in Millions | Aug. 31, 2020 | Dec. 31, 2020 |
PORT II OP LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Payments to acquire investments | $ 5 | |
Insufficient fund fees, percent | 50.00% | |
Application fee collected, percent | 100.00% | |
PORT II OP LP | Tier 1 | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, percent of rent collections per year | 8.00% | |
PORT II OP LP | Tier 1 | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, benchmark of rent collections per year | $ 50 | |
PORT II OP LP | Tier 2 | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, percent of rent collections per year | 7.00% | |
PORT II OP LP | Tier 2 | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, benchmark of rent collections per year | $ 75 | |
PORT II OP LP | Tier 2 | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, benchmark of rent collections per year | $ 50 | |
PORT II OP LP | Tier 3 | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, percent of rent collections per year | 6.00% | |
PORT II OP LP | Tier 3 | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, benchmark of rent collections per year | $ 75 | |
PORT II OP LP | PORT II OP LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Payments to acquire investments | $ 5 | |
Investment in PORT II OP LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Cumulative percentage ownership after all transactions | 96.10% |
SUPPLEMENTAL CASH FLOW AND SI_3
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid, net of capitalized interest of $2,923, $2,565 and $2,339 for the years ended December 31, 2020, 2019 and 2018, respectively | $ 23,765 | $ 25,703 | $ 27,029 |
Interest costs capitalized | 2,923 | 2,565 | 2,339 |
Business Acquisition [Line Items] | |||
Acquisition fees due to affiliates on investment in unconsolidated entities | 0 | 137 | 0 |
Accrued improvements to real estate | 2,733 | 5,302 | 3,363 |
Redeemable common stock payable | 864 | 829 | 10,000 |
Restricted stock payable | 15,506 | 16,320 | 0 |
Mezzanine equity in connection with subordinated performance fee due upon termination | 0 | 10,880 | 0 |
Restricted stock (additional paid in capital) in connection with subordinated performance fee due upon termination | 0 | 5,440 | 0 |
Mortgage loan assumed by buyer in connection with sale of real estate | 0 | 23,663 | 0 |
Redemptions of Series B Preferred Units in exchange for Series A-3 Preferred Units | 0 | 2,992 | 0 |
Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan | 0 | 829 | 1,418 |
Distributions paid to common stockholders through common stock issuances pursuant to the December 2017 special dividend | 0 | 0 | 150,299 |
Distributions paid to common stockholders through common stock issuances pursuant to the November 2018 special dividend | 0 | 0 | 127,911 |
Pacific Oak Strategic Opportunity REIT II, Inc. | |||
Business Acquisition [Line Items] | |||
Assets acquired | 635,825 | 0 | 0 |
Liabilities assumed | 359,375 | 0 | 0 |
Battery Point | |||
Business Acquisition [Line Items] | |||
Assets acquired | 56,572 | 0 | 0 |
Liabilities assumed | 37,548 | 0 | 0 |
PORT | |||
Business Acquisition [Line Items] | |||
Assets acquired | 0 | 121,316 | 0 |
Liabilities assumed | $ 0 | $ 64,682 | $ 0 |
REPORTING SEGMENTS (Details)
REPORTING SEGMENTS (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 3 | ||
Income Statement | |||
Total revenues | $ 114,025 | $ 93,158 | $ 95,787 |
Total expenses | (148,157) | (132,822) | $ (116,036) |
Total other (loss) income | (14,681) | 24,483 | |
Net loss | (48,813) | (15,181) | |
Balance Sheets | |||
Total assets | 1,731,665 | 1,041,242 | |
Goodwill | 16,342 | 0 | |
Strategic Opportunistic Properties | |||
Income Statement | |||
Total revenues | 93,252 | 91,351 | |
Total expenses | (122,621) | (130,448) | |
Total other (loss) income | (15,045) | 28,944 | |
Net loss | (44,414) | (10,153) | |
Balance Sheets | |||
Total assets | 1,404,509 | 921,917 | |
Goodwill | $ 12,297 | ||
Single-Family Homes | |||
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 1 | ||
Income Statement | |||
Total revenues | $ 17,055 | 1,807 | |
Total expenses | (19,332) | (2,374) | |
Total other (loss) income | (51) | (4,461) | |
Net loss | (2,328) | (5,028) | |
Balance Sheets | |||
Total assets | 182,486 | 119,325 | |
Goodwill | 0 | ||
Hotels | |||
Income Statement | |||
Total revenues | 3,718 | 0 | |
Total expenses | (6,204) | 0 | |
Total other (loss) income | 415 | 0 | |
Net loss | (2,071) | 0 | |
Balance Sheets | |||
Total assets | 144,670 | $ 0 | |
Goodwill | $ 4,045 |
PORT PREFERRED STOCK (Narrative
PORT PREFERRED STOCK (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 22, 2019 | Nov. 06, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Nov. 04, 2022 | Nov. 04, 2021 | Nov. 04, 2020 |
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||||||||
Issuance of common stock | $ 262 | $ 835 | $ 1,418 | |||||||
Pacific Oak Residential Trust, Inc. | Series A Cumulative Convertible Redeemable Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock (in shares) | 15,000 | |||||||||
Preferred stock, shares authorized (in shares) | 25,000,000 | |||||||||
Price per share (in dollars per share) | $ 1,000 | |||||||||
Issuance of common stock | $ 15,000 | |||||||||
Dividend rate, percentage | 6.00% | |||||||||
Percent of outstanding shares as benchmark for redemption | 10.00% | |||||||||
Redemption price (in dollars per share) | $ 1,120 | |||||||||
Conversion price of preferred stock into common stock (in dollars pr share) | $ 1,120 | |||||||||
Pacific Oak Residential Trust, Inc. | Series A Cumulative Convertible Redeemable Preferred Stock | Forecast | ||||||||||
Class of Stock [Line Items] | ||||||||||
Price per share (in dollars per share) | $ 1,120 | $ 1,000 | ||||||||
Pacific Oak Residential Trust, Inc. | Series A Cumulative Convertible Redeemable Preferred Stock | If All Shares are Not Redeemed | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividend rate, percentage | 12.00% | |||||||||
Pacific Oak Residential Trust, Inc. | Series B Cumulative Redeemable Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock (in shares) | 125 | |||||||||
Price per share (in dollars per share) | $ 1,000 | |||||||||
Issuance of common stock | $ 100 | |||||||||
Dividend rate, percentage | 12.50% | |||||||||
Pacific Oak Residential Trust, Inc. | Series B Cumulative Redeemable Preferred Stock | Forecast | ||||||||||
Class of Stock [Line Items] | ||||||||||
Price per share (in dollars per share) | $ 1,000 | $ 1,050 |
PORT PREFERRED STOCK (Schedule)
PORT PREFERRED STOCK (Schedule) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||
Issuance of common stock | $ 262 | $ 835 | $ 1,418 |
Other offering costs | $ (19) | $ (27) | (11) |
Balance (in shares) | 98,054,582 | 65,866,765 | |
Balance | $ 277,388 | $ 293,964 | 260,983 |
Balance | $ 519,712 | $ 277,388 | $ 293,964 |
Preferred Stock | Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Issuance of common stock (in shares) | 15,000 | ||
Issuance of common stock | $ 15,000 | ||
Other offering costs | $ (91) | ||
Balance (in shares) | 15,000 | 15,000 | |
Balance | $ 14,909 | ||
Dividends Available Upon Redemption | 973 | ||
Dividends Paid | (748) | ||
Balance | $ 15,134 | $ 14,909 | |
Preferred Stock | Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Issuance of common stock (in shares) | 125 | ||
Issuance of common stock | $ 125 | ||
Other offering costs | $ (26) | ||
Balance (in shares) | 125 | 125 | |
Balance | $ 99 | ||
Dividends Available Upon Redemption | 16 | ||
Dividends Paid | (16) | ||
Balance | $ 99 | $ 99 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 26, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Change in subordinated performance fee due upon termination to affiliate | $ (1,720) | $ 32,640 | $ 0 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value (in dollars per share) | $ 8.56 | $ 9.57 | ||
Restricted Stock | KBS Capital Advisors LLC | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of common stock (in shares) | 3,411,737 | |||
Period after vesting as requirement for redemption | 60 days | |||
Requirement of redemption of stock percent in cash | 50.00% | |||
Period after full vesting as requirement for redemption | 60 days | |||
Requirement of redemption of stock percent at net asset value price of share | 0.6667% | |||
Change in subordinated performance fee due upon termination to affiliate | $ 32,600 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020USD ($)property | |
Loss Contingencies [Line Items] | |
Remaining lease term | 93 years |
Doubletree Management LLC | Springmaid Beach Resort | |
Loss Contingencies [Line Items] | |
Base fee as percentage of total operating revenue in year one | 2.50% |
Base fee as percentage of total operating revenue in year wo | 2.75% |
Base fee as percentage of total operating revenue, thereafter | 3.00% |
Management fee as percent of any campground revenue | 2.00% |
Incentive fee as percent of operating cash flow | 15.00% |
Percent of total investments | 12.00% |
Brand services fee as percent of total room revenue | 4.00% |
Fees incurred to management agreement | $ 100,000 |
Encore Hospitality, LLC | Q and C Hotel | |
Loss Contingencies [Line Items] | |
Term agreement, extension period | 5 years |
Base fee as percentage of gross revenue | 4.00% |
Encore Hospitality, LLC | Q and C Hotel | Direct Costs of Hotels | |
Loss Contingencies [Line Items] | |
Management agreement, fees accrued | $ 47,000 |
Marriott International | Q and C Hotel | |
Loss Contingencies [Line Items] | |
Brand services fee as percent of total room revenue | 2.00% |
Fees incurred to management agreement | $ 100,000 |
Brand services fee as percent of total room revenue, after three years | 5.00% |
Monthly marketing fund contribution fees as percent of gross room sales | 1.50% |
Hotel Property | |
Loss Contingencies [Line Items] | |
Number of real estate properties acquired | property | 2 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Lease Cost) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Right-of-use asset (included in real estate held for investment, net) | $ 9,258 |
Lease obligation (included in other liabilities) | $ 9,274 |
Remaining lease term | 93 years |
Discount rate | 4.80% |
Interest on lease obligation | $ 107 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Future Minimum Lease Payments) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 360 |
2022 | 360 |
2023 | 360 |
2024 | 360 |
2025 | 393 |
Thereafter | 52,563 |
Total expected minimum lease obligations | 54,396 |
Less: Amount representing interest | (45,122) |
Present value of net minimum lease payments | $ 9,274 |
SUBSEQUENT EVENTS (Series B Deb
SUBSEQUENT EVENTS (Series B Debentures) (Details) - Subsequent Event - Debdntures, Series A $ in Millions | Mar. 04, 2021ILS (â‚Ş) | Mar. 04, 2021USD ($) |
Subsequent Event [Line Items] | ||
Maximum borrowing capacity | â‚Ş 250,000,000 | |
Discount rate, percent | 1.90% | 1.90% |
Maximum borrowing capacity after discount | â‚Ş 245,300,000 | $ 74 |
SCHEDULE III REAL ESTATE ASSE_2
SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION (Schedule) (Details) $ in Thousands | Jan. 08, 2019USD ($)shares | Sep. 07, 2016USD ($)unit | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Gross Amount at which Carried at Close of Period, Total | $ 1,517,435 | $ 824,860 | $ 730,962 | $ 574,684 | ||
Accumulated Depreciation and Amortization | (104,412) | $ (65,381) | $ (49,842) | $ (41,817) | ||
Aggregate cost of real estate for federal income tax purposes | 1,600,000 | |||||
Debt, outstanding amount | 1,106,377 | |||||
Subsidiary of Common Parent | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Interest rate on Class A non-voting preferred membership units | 10.00% | |||||
Proceeds from sale of units | $ 800 | |||||
Subsidiary of Common Parent | Preferred Class A-2 | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Interest rate on Class A non-voting preferred membership units | 10.00% | |||||
Proceeds from sale of units | $ 1,900 | |||||
Non-voting preferred membership units sold | shares | 1,927 | |||||
Disposed of by Sale | Subsidiary of Common Parent | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of real estate units | unit | 820 | |||||
Richardson Portfolio Mortgage Loan | Mortgages | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Debt, outstanding amount | $ 35,800 | |||||
Park Highlands | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 100.00% | |||||
Park Highlands II | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 100.00% | |||||
Properties Held for Investment | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Initial Cost to Company, Land | $ 272,636 | |||||
Initial Cost to Company, Building and Improvements | 1,141,408 | |||||
Initial Cost to Company, Total | 1,414,044 | |||||
Cost Capitalized Subsequent to Acquisition | 103,391 | |||||
Gross Amount at which Carried at Close of Period, Land | 302,444 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 1,214,991 | |||||
Gross Amount at which Carried at Close of Period, Total | 1,517,435 | |||||
Accumulated Depreciation and Amortization | (104,412) | |||||
Properties Held for Investment | Total Richardson Portfolio | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | 35,832 | |||||
Initial Cost to Company, Land | 5,107 | |||||
Initial Cost to Company, Building and Improvements | 30,998 | |||||
Initial Cost to Company, Total | 36,105 | |||||
Cost Capitalized Subsequent to Acquisition | 12,164 | |||||
Gross Amount at which Carried at Close of Period, Land | 6,244 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 42,025 | |||||
Gross Amount at which Carried at Close of Period, Total | 48,269 | |||||
Accumulated Depreciation and Amortization | $ (14,026) | |||||
Properties Held for Investment | Palisades Central I | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 90.00% | |||||
Initial Cost to Company, Land | $ 1,037 | |||||
Initial Cost to Company, Building and Improvements | 8,628 | |||||
Initial Cost to Company, Total | 9,665 | |||||
Cost Capitalized Subsequent to Acquisition | 4,715 | |||||
Gross Amount at which Carried at Close of Period, Land | 1,037 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 13,343 | |||||
Gross Amount at which Carried at Close of Period, Total | 14,380 | |||||
Accumulated Depreciation and Amortization | $ (4,404) | |||||
Original Date of Construction | 1980 | |||||
Date Acquired or Foreclosed on | Nov. 23, 2011 | |||||
Properties Held for Investment | Palisades Central II | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 90.00% | |||||
Initial Cost to Company, Land | $ 810 | |||||
Initial Cost to Company, Building and Improvements | 17,117 | |||||
Initial Cost to Company, Total | 17,927 | |||||
Cost Capitalized Subsequent to Acquisition | 5,149 | |||||
Gross Amount at which Carried at Close of Period, Land | 810 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 22,266 | |||||
Gross Amount at which Carried at Close of Period, Total | 23,076 | |||||
Accumulated Depreciation and Amortization | $ (6,801) | |||||
Original Date of Construction | 1985 | |||||
Date Acquired or Foreclosed on | Nov. 23, 2011 | |||||
Properties Held for Investment | Greenway I | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 90.00% | |||||
Initial Cost to Company, Land | $ 561 | |||||
Initial Cost to Company, Building and Improvements | 1,170 | |||||
Initial Cost to Company, Total | 1,731 | |||||
Cost Capitalized Subsequent to Acquisition | 1,286 | |||||
Gross Amount at which Carried at Close of Period, Land | 561 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 2,456 | |||||
Gross Amount at which Carried at Close of Period, Total | 3,017 | |||||
Accumulated Depreciation and Amortization | $ (1,197) | |||||
Original Date of Construction | 1983 | |||||
Date Acquired or Foreclosed on | Nov. 23, 2011 | |||||
Properties Held for Investment | Greenway III | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 90.00% | |||||
Initial Cost to Company, Land | $ 702 | |||||
Initial Cost to Company, Building and Improvements | 4,083 | |||||
Initial Cost to Company, Total | 4,785 | |||||
Cost Capitalized Subsequent to Acquisition | (123) | |||||
Gross Amount at which Carried at Close of Period, Land | 702 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 3,960 | |||||
Gross Amount at which Carried at Close of Period, Total | 4,662 | |||||
Accumulated Depreciation and Amortization | $ (1,624) | |||||
Original Date of Construction | 1983 | |||||
Date Acquired or Foreclosed on | Nov. 23, 2011 | |||||
Properties Held for Investment | Undeveloped Land | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 90.00% | |||||
Encumbrances | $ 0 | |||||
Initial Cost to Company, Land | 1,997 | |||||
Initial Cost to Company, Building and Improvements | 0 | |||||
Initial Cost to Company, Total | 1,997 | |||||
Cost Capitalized Subsequent to Acquisition | 1,137 | |||||
Gross Amount at which Carried at Close of Period, Land | 3,134 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 0 | |||||
Gross Amount at which Carried at Close of Period, Total | 3,134 | |||||
Accumulated Depreciation and Amortization | $ 0 | |||||
Date Acquired or Foreclosed on | Nov. 23, 2011 | |||||
Properties Held for Investment | Park Highlands | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 0 | |||||
Initial Cost to Company, Land | 17,066 | |||||
Initial Cost to Company, Building and Improvements | 0 | |||||
Initial Cost to Company, Total | 17,066 | |||||
Cost Capitalized Subsequent to Acquisition | 20,339 | |||||
Gross Amount at which Carried at Close of Period, Land | 37,405 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 0 | |||||
Gross Amount at which Carried at Close of Period, Total | 37,405 | |||||
Accumulated Depreciation and Amortization | $ 0 | |||||
Date Acquired or Foreclosed on | Dec. 30, 2011 | |||||
Properties Held for Investment | Park Centre | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 100.00% | |||||
Encumbrances | $ 26,185 | |||||
Initial Cost to Company, Land | 3,251 | |||||
Initial Cost to Company, Building and Improvements | 27,941 | |||||
Initial Cost to Company, Total | 31,192 | |||||
Cost Capitalized Subsequent to Acquisition | 6,893 | |||||
Gross Amount at which Carried at Close of Period, Land | 3,251 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 34,834 | |||||
Gross Amount at which Carried at Close of Period, Total | 38,085 | |||||
Accumulated Depreciation and Amortization | $ (8,546) | |||||
Original Date of Construction | 2000 | |||||
Date Acquired or Foreclosed on | Mar. 28, 2013 | |||||
Properties Held for Investment | 1180 Raymond | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 100.00% | |||||
Encumbrances | $ 29,848 | |||||
Initial Cost to Company, Land | 8,292 | |||||
Initial Cost to Company, Building and Improvements | 37,651 | |||||
Initial Cost to Company, Total | 45,943 | |||||
Cost Capitalized Subsequent to Acquisition | 1,672 | |||||
Gross Amount at which Carried at Close of Period, Land | 8,292 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 39,323 | |||||
Gross Amount at which Carried at Close of Period, Total | 47,615 | |||||
Accumulated Depreciation and Amortization | $ (9,170) | |||||
Original Date of Construction | 1929 | |||||
Date Acquired or Foreclosed on | Aug. 20, 2013 | |||||
Properties Held for Investment | Park Highlands II | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 0 | |||||
Initial Cost to Company, Land | 20,118 | |||||
Initial Cost to Company, Building and Improvements | 0 | |||||
Initial Cost to Company, Total | 20,118 | |||||
Cost Capitalized Subsequent to Acquisition | 7,977 | |||||
Gross Amount at which Carried at Close of Period, Land | 28,095 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 0 | |||||
Gross Amount at which Carried at Close of Period, Total | 28,095 | |||||
Accumulated Depreciation and Amortization | $ 0 | |||||
Date Acquired or Foreclosed on | Dec. 10, 2013 | |||||
Properties Held for Investment | Richardson Land II | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 90.00% | |||||
Encumbrances | $ 0 | |||||
Initial Cost to Company, Land | 3,096 | |||||
Initial Cost to Company, Building and Improvements | 0 | |||||
Initial Cost to Company, Total | 3,096 | |||||
Cost Capitalized Subsequent to Acquisition | 322 | |||||
Gross Amount at which Carried at Close of Period, Land | 3,418 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 0 | |||||
Gross Amount at which Carried at Close of Period, Total | 3,418 | |||||
Accumulated Depreciation and Amortization | $ 0 | |||||
Date Acquired or Foreclosed on | Sep. 4, 2014 | |||||
Properties Held for Investment | Crown Pointe | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 100.00% | |||||
Encumbrances | $ 53,072 | |||||
Initial Cost to Company, Land | 22,590 | |||||
Initial Cost to Company, Building and Improvements | 62,610 | |||||
Initial Cost to Company, Total | 85,200 | |||||
Cost Capitalized Subsequent to Acquisition | 10,581 | |||||
Gross Amount at which Carried at Close of Period, Land | 22,590 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 73,191 | |||||
Gross Amount at which Carried at Close of Period, Total | 95,781 | |||||
Accumulated Depreciation and Amortization | $ (14,926) | |||||
Original Date of Construction | 1985/1989 | |||||
Date Acquired or Foreclosed on | Feb. 14, 2017 | |||||
Properties Held for Investment | Marquette Plaza | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 100.00% | |||||
Encumbrances | $ 62,257 | |||||
Initial Cost to Company, Land | 10,387 | |||||
Initial Cost to Company, Building and Improvements | 75,878 | |||||
Initial Cost to Company, Total | 86,265 | |||||
Cost Capitalized Subsequent to Acquisition | 9,314 | |||||
Gross Amount at which Carried at Close of Period, Land | 10,387 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 85,192 | |||||
Gross Amount at which Carried at Close of Period, Total | 95,579 | |||||
Accumulated Depreciation and Amortization | $ (10,253) | |||||
Original Date of Construction | 1972 | |||||
Date Acquired or Foreclosed on | Mar. 1, 2018 | |||||
Properties Held for Investment | City Tower | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 100.00% | |||||
Encumbrances | $ 94,167 | |||||
Initial Cost to Company, Land | 13,930 | |||||
Initial Cost to Company, Building and Improvements | 136,068 | |||||
Initial Cost to Company, Total | 149,998 | |||||
Cost Capitalized Subsequent to Acquisition | 8,713 | |||||
Gross Amount at which Carried at Close of Period, Land | 13,930 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 144,781 | |||||
Gross Amount at which Carried at Close of Period, Total | 158,711 | |||||
Accumulated Depreciation and Amortization | $ (18,472) | |||||
Original Date of Construction | 1988 | |||||
Date Acquired or Foreclosed on | Mar. 6, 2018 | |||||
Properties Held for Investment | Eight and Nine Corporate Centre | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 100.00% | |||||
Encumbrances | $ 47,066 | |||||
Initial Cost to Company, Land | 17,401 | |||||
Initial Cost to Company, Building and Improvements | 58,794 | |||||
Initial Cost to Company, Total | 76,195 | |||||
Cost Capitalized Subsequent to Acquisition | 4,016 | |||||
Gross Amount at which Carried at Close of Period, Land | 17,401 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 62,810 | |||||
Gross Amount at which Carried at Close of Period, Total | 80,211 | |||||
Accumulated Depreciation and Amortization | $ (7,420) | |||||
Original Date of Construction | 2007 | |||||
Date Acquired or Foreclosed on | Jun. 8, 2018 | |||||
Properties Held for Investment | Georgia 400 Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 100.00% | |||||
Encumbrances | $ 59,690 | |||||
Initial Cost to Company, Land | 11,400 | |||||
Initial Cost to Company, Building and Improvements | 72,000 | |||||
Initial Cost to Company, Total | 83,400 | |||||
Cost Capitalized Subsequent to Acquisition | 9,475 | |||||
Gross Amount at which Carried at Close of Period, Land | 11,430 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 81,445 | |||||
Gross Amount at which Carried at Close of Period, Total | 92,875 | |||||
Accumulated Depreciation and Amortization | $ (7,607) | |||||
Original Date of Construction | 2001 | |||||
Date Acquired or Foreclosed on | May 23, 2019 | |||||
Properties Held for Investment | Springmaid Beach Resort | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 90.00% | |||||
Encumbrances | $ 57,015 | |||||
Initial Cost to Company, Land | 30,483 | |||||
Initial Cost to Company, Building and Improvements | 62,417 | |||||
Initial Cost to Company, Total | 92,900 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount at which Carried at Close of Period, Land | 30,483 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 62,417 | |||||
Gross Amount at which Carried at Close of Period, Total | 92,900 | |||||
Accumulated Depreciation and Amortization | $ (530) | |||||
Original Date of Construction | 1948/1980/1992/1995/2001 | |||||
Date Acquired or Foreclosed on | Oct. 5, 2020 | |||||
Properties Held for Investment | Q and C Hotel | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 90.00% | |||||
Encumbrances | $ 25,000 | |||||
Initial Cost to Company, Land | 2,669 | |||||
Initial Cost to Company, Building and Improvements | 41,431 | |||||
Initial Cost to Company, Total | 44,100 | |||||
Cost Capitalized Subsequent to Acquisition | 94 | |||||
Gross Amount at which Carried at Close of Period, Land | 2,669 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 41,525 | |||||
Gross Amount at which Carried at Close of Period, Total | 44,194 | |||||
Accumulated Depreciation and Amortization | $ (302) | |||||
Original Date of Construction | 1913 | |||||
Date Acquired or Foreclosed on | Oct. 5, 2020 | |||||
Properties Held for Investment | Lincoln Court | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 100.00% | |||||
Encumbrances | $ 34,416 | |||||
Initial Cost to Company, Land | 16,610 | |||||
Initial Cost to Company, Building and Improvements | 43,083 | |||||
Initial Cost to Company, Total | 59,693 | |||||
Cost Capitalized Subsequent to Acquisition | 194 | |||||
Gross Amount at which Carried at Close of Period, Land | 16,610 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 43,277 | |||||
Gross Amount at which Carried at Close of Period, Total | 59,887 | |||||
Accumulated Depreciation and Amortization | $ (913) | |||||
Original Date of Construction | 1985 | |||||
Date Acquired or Foreclosed on | Oct. 5, 2020 | |||||
Properties Held for Investment | Lofts at NoHo Commons | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 90.00% | |||||
Encumbrances | $ 74,536 | |||||
Initial Cost to Company, Land | 22,670 | |||||
Initial Cost to Company, Building and Improvements | 93,676 | |||||
Initial Cost to Company, Total | 116,346 | |||||
Cost Capitalized Subsequent to Acquisition | 81 | |||||
Gross Amount at which Carried at Close of Period, Land | 22,670 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 93,757 | |||||
Gross Amount at which Carried at Close of Period, Total | 116,427 | |||||
Accumulated Depreciation and Amortization | $ (1,461) | |||||
Original Date of Construction | 2007 | |||||
Date Acquired or Foreclosed on | Oct. 5, 2020 | |||||
Properties Held for Investment | 210 West 31st Street | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 80.00% | |||||
Encumbrances | $ 15,050 | |||||
Initial Cost to Company, Land | 0 | |||||
Initial Cost to Company, Building and Improvements | 51,358 | |||||
Initial Cost to Company, Total | 51,358 | |||||
Cost Capitalized Subsequent to Acquisition | 109 | |||||
Gross Amount at which Carried at Close of Period, Land | 0 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 51,467 | |||||
Gross Amount at which Carried at Close of Period, Total | 51,467 | |||||
Accumulated Depreciation and Amortization | $ 0 | |||||
Date Acquired or Foreclosed on | Oct. 5, 2020 | |||||
Properties Held for Investment | Oakland City Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 100.00% | |||||
Encumbrances | $ 96,782 | |||||
Initial Cost to Company, Land | 24,063 | |||||
Initial Cost to Company, Building and Improvements | 180,973 | |||||
Initial Cost to Company, Total | 205,036 | |||||
Cost Capitalized Subsequent to Acquisition | 60 | |||||
Gross Amount at which Carried at Close of Period, Land | 24,063 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 181,033 | |||||
Gross Amount at which Carried at Close of Period, Total | 205,096 | |||||
Accumulated Depreciation and Amortization | $ (3,730) | |||||
Original Date of Construction | 1985/1990 | |||||
Date Acquired or Foreclosed on | Oct. 5, 2020 | |||||
Properties Held for Investment | Madison Square | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 90.00% | |||||
Encumbrances | $ 16,822 | |||||
Initial Cost to Company, Land | 11,570 | |||||
Initial Cost to Company, Building and Improvements | 22,544 | |||||
Initial Cost to Company, Total | 34,114 | |||||
Cost Capitalized Subsequent to Acquisition | 56 | |||||
Gross Amount at which Carried at Close of Period, Land | 11,570 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 22,600 | |||||
Gross Amount at which Carried at Close of Period, Total | 34,170 | |||||
Accumulated Depreciation and Amortization | $ (861) | |||||
Original Date of Construction | 1911/2003/2007/2008 | |||||
Date Acquired or Foreclosed on | Oct. 5, 2020 | |||||
Properties Held for Investment | Single-Family Homes Portfolio | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 112,493 | |||||
Initial Cost to Company, Land | 31,933 | |||||
Initial Cost to Company, Building and Improvements | 145,956 | |||||
Initial Cost to Company, Total | 177,889 | |||||
Cost Capitalized Subsequent to Acquisition | 9,361 | |||||
Gross Amount at which Carried at Close of Period, Land | 31,936 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 155,314 | |||||
Gross Amount at which Carried at Close of Period, Total | 187,250 | |||||
Accumulated Depreciation and Amortization | $ (6,195) | |||||
Properties Held for Investment | Alabama Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 3,008 | |||||
Initial Cost to Company, Building and Improvements | 11,650 | |||||
Initial Cost to Company, Total | 14,658 | |||||
Cost Capitalized Subsequent to Acquisition | 1,076 | |||||
Gross Amount at which Carried at Close of Period, Land | 3,011 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 12,723 | |||||
Gross Amount at which Carried at Close of Period, Total | 15,734 | |||||
Accumulated Depreciation and Amortization | $ (613) | |||||
Properties Held for Investment | Arkansas Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 521 | |||||
Initial Cost to Company, Building and Improvements | 2,083 | |||||
Initial Cost to Company, Total | 2,604 | |||||
Cost Capitalized Subsequent to Acquisition | 74 | |||||
Gross Amount at which Carried at Close of Period, Land | 521 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 2,157 | |||||
Gross Amount at which Carried at Close of Period, Total | 2,678 | |||||
Accumulated Depreciation and Amortization | $ (71) | |||||
Properties Held for Investment | Delaware Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 134 | |||||
Initial Cost to Company, Building and Improvements | 537 | |||||
Initial Cost to Company, Total | 671 | |||||
Cost Capitalized Subsequent to Acquisition | 8 | |||||
Gross Amount at which Carried at Close of Period, Land | 134 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 545 | |||||
Gross Amount at which Carried at Close of Period, Total | 679 | |||||
Accumulated Depreciation and Amortization | $ (22) | |||||
Properties Held for Investment | Florida Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 5,522 | |||||
Initial Cost to Company, Building and Improvements | 34,930 | |||||
Initial Cost to Company, Total | 40,452 | |||||
Cost Capitalized Subsequent to Acquisition | 2,663 | |||||
Gross Amount at which Carried at Close of Period, Land | 5,522 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 37,593 | |||||
Gross Amount at which Carried at Close of Period, Total | 43,115 | |||||
Accumulated Depreciation and Amortization | $ (1,020) | |||||
Properties Held for Investment | Georgia Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 822 | |||||
Initial Cost to Company, Building and Improvements | 4,653 | |||||
Initial Cost to Company, Total | 5,475 | |||||
Cost Capitalized Subsequent to Acquisition | 554 | |||||
Gross Amount at which Carried at Close of Period, Land | 822 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 5,207 | |||||
Gross Amount at which Carried at Close of Period, Total | 6,029 | |||||
Accumulated Depreciation and Amortization | $ (264) | |||||
Properties Held for Investment | Iowa Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 155 | |||||
Initial Cost to Company, Building and Improvements | 619 | |||||
Initial Cost to Company, Total | 774 | |||||
Cost Capitalized Subsequent to Acquisition | 13 | |||||
Gross Amount at which Carried at Close of Period, Land | 155 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 632 | |||||
Gross Amount at which Carried at Close of Period, Total | 787 | |||||
Accumulated Depreciation and Amortization | $ (26) | |||||
Properties Held for Investment | Illinois Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 4,578 | |||||
Initial Cost to Company, Building and Improvements | 18,310 | |||||
Initial Cost to Company, Total | 22,888 | |||||
Cost Capitalized Subsequent to Acquisition | 151 | |||||
Gross Amount at which Carried at Close of Period, Land | 4,578 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 18,461 | |||||
Gross Amount at which Carried at Close of Period, Total | 23,039 | |||||
Accumulated Depreciation and Amortization | $ (492) | |||||
Properties Held for Investment | Indiana Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 1,848 | |||||
Initial Cost to Company, Building and Improvements | 7,392 | |||||
Initial Cost to Company, Total | 9,240 | |||||
Cost Capitalized Subsequent to Acquisition | 246 | |||||
Gross Amount at which Carried at Close of Period, Land | 1,848 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 7,638 | |||||
Gross Amount at which Carried at Close of Period, Total | 9,486 | |||||
Accumulated Depreciation and Amortization | $ (314) | |||||
Properties Held for Investment | Michigan Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 884 | |||||
Initial Cost to Company, Building and Improvements | 3,538 | |||||
Initial Cost to Company, Total | 4,422 | |||||
Cost Capitalized Subsequent to Acquisition | 70 | |||||
Gross Amount at which Carried at Close of Period, Land | 884 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 3,608 | |||||
Gross Amount at which Carried at Close of Period, Total | 4,492 | |||||
Accumulated Depreciation and Amortization | $ (148) | |||||
Properties Held for Investment | Missouri Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 390 | |||||
Initial Cost to Company, Building and Improvements | 1,560 | |||||
Initial Cost to Company, Total | 1,950 | |||||
Cost Capitalized Subsequent to Acquisition | 24 | |||||
Gross Amount at which Carried at Close of Period, Land | 390 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 1,584 | |||||
Gross Amount at which Carried at Close of Period, Total | 1,974 | |||||
Accumulated Depreciation and Amortization | $ (65) | |||||
Properties Held for Investment | Mississippi Home | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 200 | |||||
Initial Cost to Company, Building and Improvements | 802 | |||||
Initial Cost to Company, Total | 1,002 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount at which Carried at Close of Period, Land | 200 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 802 | |||||
Gross Amount at which Carried at Close of Period, Total | 1,002 | |||||
Accumulated Depreciation and Amortization | $ (10) | |||||
Properties Held for Investment | North Carolina Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 1,419 | |||||
Initial Cost to Company, Building and Improvements | 5,678 | |||||
Initial Cost to Company, Total | 7,097 | |||||
Cost Capitalized Subsequent to Acquisition | 145 | |||||
Gross Amount at which Carried at Close of Period, Land | 1,419 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 5,823 | |||||
Gross Amount at which Carried at Close of Period, Total | 7,242 | |||||
Accumulated Depreciation and Amortization | $ (239) | |||||
Properties Held for Investment | Ohio Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 2,298 | |||||
Initial Cost to Company, Building and Improvements | 9,191 | |||||
Initial Cost to Company, Total | 11,489 | |||||
Cost Capitalized Subsequent to Acquisition | 290 | |||||
Gross Amount at which Carried at Close of Period, Land | 2,298 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 9,481 | |||||
Gross Amount at which Carried at Close of Period, Total | 11,779 | |||||
Accumulated Depreciation and Amortization | $ (390) | |||||
Properties Held for Investment | Oklahoma Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 2,360 | |||||
Initial Cost to Company, Building and Improvements | 13,184 | |||||
Initial Cost to Company, Total | 15,544 | |||||
Cost Capitalized Subsequent to Acquisition | 689 | |||||
Gross Amount at which Carried at Close of Period, Land | 2,360 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 13,873 | |||||
Gross Amount at which Carried at Close of Period, Total | 16,233 | |||||
Accumulated Depreciation and Amortization | $ (664) | |||||
Properties Held for Investment | South Carolina Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 572 | |||||
Initial Cost to Company, Building and Improvements | 2,289 | |||||
Initial Cost to Company, Total | 2,861 | |||||
Cost Capitalized Subsequent to Acquisition | 44 | |||||
Gross Amount at which Carried at Close of Period, Land | 572 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 2,333 | |||||
Gross Amount at which Carried at Close of Period, Total | 2,905 | |||||
Accumulated Depreciation and Amortization | $ (96) | |||||
Properties Held for Investment | Tennessee Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 2,387 | |||||
Initial Cost to Company, Building and Improvements | 10,743 | |||||
Initial Cost to Company, Total | 13,130 | |||||
Cost Capitalized Subsequent to Acquisition | 1,319 | |||||
Gross Amount at which Carried at Close of Period, Land | 2,387 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 12,062 | |||||
Gross Amount at which Carried at Close of Period, Total | 14,449 | |||||
Accumulated Depreciation and Amortization | $ (658) | |||||
Properties Held for Investment | Texas Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 4,497 | |||||
Initial Cost to Company, Building and Improvements | 17,464 | |||||
Initial Cost to Company, Total | 21,961 | |||||
Cost Capitalized Subsequent to Acquisition | 1,970 | |||||
Gross Amount at which Carried at Close of Period, Land | 4,497 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 19,434 | |||||
Gross Amount at which Carried at Close of Period, Total | 23,931 | |||||
Accumulated Depreciation and Amortization | $ (1,046) | |||||
Properties Held for Investment | Wisconsin Homes | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Ownership Percent | 96.10% | |||||
Initial Cost to Company, Land | $ 338 | |||||
Initial Cost to Company, Building and Improvements | 1,333 | |||||
Initial Cost to Company, Total | 1,671 | |||||
Cost Capitalized Subsequent to Acquisition | 25 | |||||
Gross Amount at which Carried at Close of Period, Land | 338 | |||||
Gross Amount at which Carried at Close of Period, Building and Improvements | 1,358 | |||||
Gross Amount at which Carried at Close of Period, Total | 1,696 | |||||
Accumulated Depreciation and Amortization | $ (57) |
SCHEDULE III REAL ESTATE ASSE_3
SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION (Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Real Estate | |||
Balance at the beginning of the year | $ 824,860 | $ 730,962 | $ 574,684 |
Acquisitions | 679,042 | 200,918 | 312,457 |
Improvements | 17,103 | 34,435 | 31,818 |
Write-off of fully depreciated and fully amortized assets | (3,114) | (1,060) | (7,329) |
Loss due to property damages | 0 | 0 | (964) |
Sales | (456) | (140,395) | (178,068) |
Reimbursement of construction costs | 0 | 0 | (1,636) |
Balance at the end of the year | 1,517,435 | 824,860 | 730,962 |
Accumulated depreciation and amortization: | |||
Balance at the beginning of the year | 65,381 | 49,842 | 41,817 |
Depreciation and amortization expense | 42,159 | 31,961 | 32,661 |
Write-off of fully depreciated and fully amortized assets | (3,114) | (1,060) | (7,329) |
Sales | (14) | (15,362) | (17,307) |
Balance at the end of the year | $ 104,412 | $ 65,381 | $ 49,842 |