KBS Legacy Partners Apartment REIT Inactive 10-Q12 May 142014 Q1 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2014	6-May-14
Document and Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Mar-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Entity Registrant Name	'KBS Legacy Partners Apartment REIT, Inc.	'
Entity Central Index Key	'0001469822	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	19,917,629

CONSOLIDATED_BALANCE_SHEETS_Un

CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Real estate:	'	'
Land	$46,828	$42,363
Buildings and improvements	360,371	301,022
Tenant origination and absorption costs	1,052	249
Total real estate, cost	408,251	343,634
Less accumulated depreciation and amortization	-16,096	-13,317
Total real estate, net	392,155	330,317
Cash and cash equivalents	24,796	36,698
Restricted cash	4,067	4,454
Due from Affiliates	865	0
Deferred financing costs, prepaid expenses and other assets	7,870	6,697
Total assets	429,753	378,166
Liabilities and stockholders' equity	'	'
Notes payable	294,557	242,856
Accounts payable and accrued liabilities	3,982	5,040
Due to affiliates	3,071	2,670
Distributions payable	1,089	1,054
Other liabilities	889	725
Total liabilities	303,588	252,345
Commitments and contingencies (Note 9)	'	'
Redeemable common stock	2,955	4,761
Stockholders' equity	'	'
Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $.01 par value; 1,000,000,000 shares authorized, 19,789,521 and 19,196,501 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively	198	192
Additional paid-in capital	168,429	161,328
Cumulative distributions and net losses	-45,417	-40,460
Total stockholders' equity	123,210	121,060
Total liabilities and stockholders' equity	$429,753	$378,166

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value	$0.01	$0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$0.01	$0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	19,789,521	19,196,501
Common stock, shares outstanding	19,789,521	19,196,501

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Revenues:	'	'
Rental income	$9,617	$6,730
Total revenues	9,617	6,730
Expenses:	'	'
Operating, maintenance, and management	2,393	1,651
Real estate taxes and insurance	1,393	927
Asset management fees to affiliate	595	659
Property management fees to affiliate	62	45
Real estate acquisition fees to affiliate	701	389
Real estate acquisition fees and expenses	252	202
General and administrative expenses	680	530
Depreciation and amortization	3,080	2,811
Interest expense	2,298	1,691
Total expenses	11,454	8,905
Other income:	'	'
Interest income	6	8
Net loss	($1,831)	($2,167)
Net loss per common share, basic and diluted (usd per share)	($0.09)	($0.14)
Weighted-average number of common shares outstanding, basic and diluted	19,506,585	15,061,420

CONSOLIDATED_STATEMENTS_OF_STO

CONSOLIDATED STATEMENTS OF STOCKHOLDERSb EQUITY (Unaudited) (USD $)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Cumulative Distributions and Net Loss [Member]
In Thousands, except Share data, unless otherwise specified	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Cumulative Distributions and Net Loss [Member]
Balance, value at Jul. 30, 2009	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'
Issuance of common stock, shares	'	1,966,777	'	'
Issuance of common stock, value	$20,600	'	'	'
Balance, value at Mar. 31, 2014	123,210	198	'	'
Balance, shares at Mar. 31, 2014	19,789,521	19,789,521	'	'
Balance, value at Mar. 11, 2010	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'
Issuance of common stock, shares	'	20,054,861	'	'
Issuance of common stock, value	199,700	'	'	'
Redemptions of common stock, shares	'	-285,340	'	'
Redemptions of common stock, value	-2,700	'	'	'
Balance, value at Mar. 31, 2014	123,210	198	'	'
Balance, shares at Mar. 31, 2014	19,789,521	19,789,521	'	'
Balance, value at Dec. 31, 2012	86,572	129	107,685	-21,242
Balance, shares at Dec. 31, 2012	'	12,866,456	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'
Issuance of common stock, shares	'	6,538,502	'	'
Issuance of common stock, value	65,139	65	65,074	'
Redemptions of common stock, shares	'	-208,457	'	'
Redemptions of common stock, value	-1,978	-2	-1,976	'
Transfers (to)/ from redeemable common stock	-2,532	'	-2,532	'
Distributions declared	-11,473	'	'	-11,473
Commissions on stock sales and related dealer manager fees to affiliates	-4,898	'	-4,898	'
Other offering costs	-2,025	'	-2,025	'
Net loss	-7,745	'	'	-7,745
Balance, value at Dec. 31, 2013	121,060	192	161,328	-40,460
Balance, shares at Dec. 31, 2013	19,196,501	19,196,501	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'
Issuance of common stock, shares	'	634,056	'	'
Issuance of common stock, value	6,696	7	6,689	'
Redemptions of common stock, shares	'	-41,036	'	'
Redemptions of common stock, value	-389	-1	-388	'
Transfers (to)/ from redeemable common stock	1,806	'	1,806	'
Distributions declared	-3,126	'	'	-3,126
Commissions on stock sales and related dealer manager fees to affiliates	-496	'	-496	'
Other offering costs	-510	'	-510	'
Net loss	-1,831	'	'	-1,831
Balance, value at Mar. 31, 2014	$123,210	$198	$168,429	($45,417)
Balance, shares at Mar. 31, 2014	19,789,521	19,789,521	'	'

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash Flows from Operating Activities:	'	'
Net loss	($1,831)	($2,167)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Depreciation and amortization	3,080	2,811
Bad debt expense	45	47
Loss due to property damages	307	0
Amortization of discount on notes payable	15	0
Amortization of deferred financing costs	103	76
Changes in operating assets and liabilities:	'	'
Restricted cash for operational expenditures	89	408
Prepaid expenses and other assets	-920	-210
Accounts payable and accrued liabilities	-1,010	-671
Due to affiliates	420	447
Other liabilities	164	12
Net cash provided by operating activities	462	753
Cash Flows from Investing Activities:	'	'
Acquisitions of real estate	-13,141	-36,375
Improvements to real estate	-1,301	-543
Restricted cash for capital expenditures	298	0
Net cash used in investing activities	-14,144	-36,918
Cash Flows from Financing Activities:	'	'
Proceeds from notes payable	0	25,000
Principal payments on mortgage note payable	-582	-164
Payments of deferred financing costs	-79	-237
Proceeds from issuance of common stock	5,352	50,346
Payments to redeem common stock	-389	-338
Payments of commissions on stock sales and related dealer manager fees	-496	-4,053
Payments of other offering costs	-279	-823
Distributions paid	-1,747	-1,221
Net cash provided by financing activities	1,780	68,510
Net increase in cash and cash equivalents	-11,902	32,345
Cash and cash equivalents, beginning of period	36,698	31,849
Cash and cash equivalents, end of period	24,796	64,194
Supplemental Disclosure of Cash Flow Information:	'	'
Interest paid	2,014	1,581
Supplemental Disclosure of Noncash Transactions:	'	'
Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan	1,344	925
Mortgage debt assumed in connection with real estate acquisitions at fair value	52,268	0
Application of escrow deposits to purchase real estate	1,500	2,000
Increase in other offering costs payable	43	164
Decrease in other offering costs due to affiliates	0	-25
Increase in distributions payable	$35	$270

ORGANIZATION

ORGANIZATION	3 Months Ended
ORGANIZATION	Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
ORGANIZATION	'
	ORGANIZATION
	KBS Legacy Partners Apartment REIT, Inc. (the “Company”) was formed on July 31, 2009 as a Maryland corporation that elected to be taxed as a real estate investment trust (“REIT”) beginning with the taxable year ended December 31, 2010. Substantially all of the Company’s business is conducted through KBS Legacy Partners Limited Partnership (the “Operating Partnership”), a Delaware limited partnership formed on August 4, 2009. The Company is the sole general partner of and owns a 0.1% partnership interest in the Operating Partnership. KBS Legacy Partners Holdings LLC (“REIT Holdings”), a Delaware limited liability company formed on August 4, 2009, owns the remaining 99.9% interest in the Operating Partnership and is its sole limited partner. The Company is the sole member and manager of REIT Holdings.
	Subject to certain restrictions and limitations, the business of the Company is externally managed by KBS Capital Advisors LLC (the “Advisor”), an affiliate of the Company, pursuant to an advisory agreement the Company originally entered into with the Advisor on January 25, 2010, amended on January 8, 2013 and further amended on August 14, 2013, and renewed for an additional one-year term on January 25, 2014 (the “Advisory Agreement”).
	On August 7, 2009, the Company issued 20,000 shares of its common stock to KBS-Legacy Apartment Community REIT Venture, LLC (the “Sub-Advisor”), an affiliate of the Company, at a purchase price of $10.00 per share. As of March 31, 2014, the Sub-Advisor owns 20,000 shares of common stock of the Company.
	The Company invests in and manages a portfolio of high quality apartment communities located throughout the United States. The Company’s portfolio includes “core” apartment buildings that are already well positioned and producing rental income. As of March 31, 2014, the Company owned 11 apartment complexes.
	On August 19, 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 280,000,000 shares of common stock for sale to the public (the “Initial Offering”), of which 80,000,000 shares would be offered pursuant to the Company’s dividend reinvestment plan.
	The SEC declared the Company’s registration statement for the Initial Offering effective on March 12, 2010, and the Company retained KBS Capital Markets Group LLC (the “Dealer Manager”), an affiliate of the Company, to serve as the dealer manager for the Initial Offering pursuant to a dealer manager agreement dated March 12, 2010 (the “Initial Dealer Manager Agreement”). Under the Initial Dealer Manager Agreement, the Dealer Manager was responsible for marketing the Company’s shares being offered pursuant to the Initial Offering.
	On May 31, 2012, the Company filed a registration statement on Form S-11 with the SEC to register a follow-on public offering (the “Follow-on Offering” and together with the Initial Offering, the “Offerings”). Pursuant to the registration statement, as amended, the Company registered up to an additional $2,000,000,000 of shares of common stock for sale to the public and up to an additional $760,000,000 of shares of common stock pursuant to the dividend reinvestment plan. The SEC declared the Company’s registration statement for the Follow-on Offering effective on March 8, 2013.
	The Company retained the Dealer Manager to serve as the dealer manager for the Follow-on Offering pursuant to a dealer manager agreement dated March 8, 2013 (the “Follow-on Dealer Manager Agreement” and together with the Initial Dealer Manager Agreement, the “Dealer Manager Agreements”). On March 12, 2013, the Company ceased offering shares pursuant to the Initial Offering and on March 13, 2013, the Company commenced offering shares to the public pursuant to the Follow-on Offering.
	From the inception of the Initial Offering through its completion on March 12, 2013, the Company sold 18,088,084 shares of common stock for gross offering proceeds of $179.2 million, including 368,872 shares of common stock under the dividend reinvestment plan for gross offering proceeds of $3.5 million.
	As of March 31, 2014, the Company had sold an aggregate of 20,054,861 shares of common stock in the Offerings for gross offering proceeds of $199.7 million, including an aggregate of 879,244 shares of common stock under the dividend reinvestment plan for gross offering proceeds of $8.7 million. Also, as of March 31, 2014, the Company had redeemed 285,340 shares sold in the Offerings for $2.7 million. The Company ceased offering shares of common stock in the primary portion of the Follow-on Offering on March 31, 2014, but continues to offer shares of common stock under the dividend reinvestment plan.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Mar. 31, 2014
Accounting Policies [Abstract]	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2013. During the three months ended March 31, 2014, the Company adopted ASU No. 2014-08 (defined below), which impacts the Company’s reporting of discontinued operations. For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K filed with the SEC.
	Principles of Consolidation and Basis of Presentation
	The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.
	The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation.
	Use of Estimates
	The preparation of the consolidated financial statements 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 prior periods.
	Segments
	The Company has invested in 11 apartment complexes as of March 31, 2014. Substantially all of the Company’s revenue and net loss is from real estate, and therefore, the Company currently operates in one reportable segment.
	Per Share Data
	Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding during the three months ended March 31, 2014 and 2013.
	Distributions declared per common share was $0.160 and $0.160 for the three months ended March 31, 2014 and 2013, respectively. Distributions declared per common share assumes each share was issued and outstanding each day during the three months ended March 31, 2014 and 2013. For the three months ended March 31, 2014 and 2013, distributions were based on daily record dates and calculated at a rate of $0.00178082 per share per day. Each day during the period from January 1, 2013 through March 31, 2013 and January 1, 2014 through March 31, 2014 was a record date for distributions.
	Recently Issued Accounting Standards Update
	In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU No. 2014-08”). ASU No. 2014-08 limits discontinued operations reporting to disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: a) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; b) the component of an entity or group of components of an entity is disposed of by sale; and c) the component of an entity or group of components of an entity is disposed of other than by sale. ASU No. 2014-08 also requires additional disclosures about discontinued operations. ASU No. 2014-08 is effective for reporting periods beginning after December 15, 2014. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company early adopted ASU No. 2014-08 for the reporting period beginning January 1, 2014. As a result of the adoption of ASU No. 2014-08, results of operations for properties that are classified as held for sale in the ordinary course of business on or subsequent to January 1, 2014 would generally be included in continuing operations on the Company’s consolidated statements of operations, to the extent such disposals did not meet the criteria for classification as a discontinued operation. Additionally, any gain or loss on sale of real estate that do not meet the criteria for classification as a discontinued operation would be presented, on the consolidated statements of operations, below income from continuing operations. As there are no properties currently classified as held for sale, ASU No. 2014-08 did not have an impact on the presentation of the Company’s financial statements.

RECENT_ACQUISITIONS_OF_REAL_ES

RECENT ACQUISITIONS OF REAL ESTATE	3 Months Ended
	Mar. 31, 2014
Business Combinations [Abstract]	'
RECENT ACQUISITIONS OF REAL ESTATE	'
	RECENT ACQUISITIONS OF REAL ESTATE
	During the three months ended March 31, 2014, the Company acquired the following properties (dollars in thousands):


	Property Name	City	State	Acquisition Date	Land		Building		Tenant		Other Intangible Assets			Total
							and Improvements		Origination and					Purchase Price
									Absorption Costs
	Legacy Grand at Concord	Concord	NC	2/18/14	$	1,465	$	25,960	$	542	$	—		$	27,967

	Lofts at the Highlands (1)	St. Louis	MO	2/25/14	3,000		32,486		510		2,946		(2)	38,942

					$	4,465	$	58,446	$	1,052	$	2,946		$	66,909

	_____________________
	(1) In connection with the acquisition of Lofts at the Highlands, the Company assumed the Lofts at the Highlands Mortgage Loan. The Company recorded the mortgage debt assumed with an outstanding principal balance of $32.0 million at an estimated fair value of $29.1 million, which is net of a discount on note payable of $2.9 million due to below-market interest rate. The discount on note payable is amortized over the remaining life of the loan of 38.5 years.
	(2) The property is subject to certain property tax abatement through 2031. The estimated fair value of the property tax abatement of $2.9 million is recorded as deferred financing costs, prepaid expenses and other assets on the Company's consolidated balance sheet as of the acquisition date and amortized over the tax abatement period of 17.9 years.
	The in-place leases acquired in connection with these acquisitions have a total weighted-average amortization period of 6 months as of the date of acquisition.
	The Company recorded each acquisition as a business combination and expensed $1.0 million of acquisition costs related to these properties for the three months ended March 31, 2014. During the three months ended March 31, 2014, the Company recognized $0.6 million of total revenues and $0.5 million of operating expenses from these properties.

REAL_ESTATE

REAL ESTATE	3 Months Ended
	Mar. 31, 2014
Real Estate [Abstract]	'
REAL ESTATE	'
	REAL ESTATE
	As of March 31, 2014, the Company owned 11 apartment complexes, containing 3,039 units and encompassing 3.1 million rentable square feet, which were 93% occupied. The following table provides summary information regarding the properties owned by the Company as of March 31, 2014 (dollars in thousands):


	Property Name	Date Acquired	Location	Total		Accumulated			Total
				Real Estate, Cost		Depreciation and			Real Estate, Net
						Amortization
	Legacy at Valley Ranch	10/26/10	Irving, TX	$	36,284	$	(3,136	)	$	33,148

	Poplar Creek	2/9/12	Schaumburg, IL	26,944		(1,267		)	25,677

	The Residence at Waterstone	4/6/12	Pikesville, MD	64,378		(3,141		)	61,237

	Legacy Crescent Park	5/3/12	Greer, SC	20,496		(1,149		)	19,347

	Legacy at Martin’s Point	5/31/12	Lombard, IL	36,345		(1,930		)	34,415

	Wesley Village	11/6/12	Charlotte, NC	44,098		(1,635		)	42,463

	Watertower Apartments	1/15/13	Eden Prairie, MN	37,844		(1,245		)	36,599

	Crystal Park at Waterford	5/8/13	Frederick, MD	44,896		(1,145		)	43,751

	Millennium Apartment Homes	6/7/13	Greenville, SC	32,978		(819		)	32,159

	Legacy Grand at Concord	2/18/14	Concord, NC	27,992		(309		)	27,683

	Lofts at the Highlands	2/25/14	St. Louis, MO	35,996		(320		)	35,676

				$	408,251	$	(16,096	)	$	392,155

	Additionally, as of March 31, 2014 and December 31, 2013, the Company had recorded unamortized tax abatement intangible assets, which are included in deferred financing costs, prepaid expenses and other assets in the accompanying balance sheets, of $3.6 million and $0.7 million, respectively. During the three months ended March 31, 2014 and 2013, the Company recorded amortization expense of $52,000 and $24,000, respectively, related to tax abatement intangible assets.
	Property Damage
	During the first quarter of 2014, one of the Company’s apartment complexes suffered physical damage due to winter storms. The Company’s insurance policy provides coverage for property damage and business interruption subject to a deductible of up to $25,000 per incident. Based on management’s estimates, the Company recognized an estimated aggregate loss due to damages of $0.3 million during the three months ended March 31, 2014, which was reduced by $0.3 million of estimated insurance recoveries related to such damages, which the Company determined were probable of collection. The net loss due to damages of $37,500 during the three months ended March 31, 2014 was classified as operating, maintenance and management expenses on the accompanying consolidated statements of operations and relates to the Company’s insurance deductible. As of March 31, 2014, the total estimated insurance recovery to be collected related to this loss of $0.3 million, was classified as deferred financing costs, prepaid expenses and other assets on the accompanying consolidated balance sheets.

NOTES_PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2014
Notes Payable [Abstract]	'
NOTES PAYABLE	'
	NOTES PAYABLE
	As of March 31, 2014 and December 31, 2013, the Company’s notes payable consisted of the following (dollars in thousands):


			Principal as of March 31, 2014			Principal as of		Contractual	Payment Type		Maturity Date
						31-Dec-13		Interest Rate as of
								31-Mar-14
	Legacy at Valley Ranch Mortgage Loan		$	32,500		$	32,500	3.90%	Principal & Interest	(1)	4/1/19

	Poplar Creek Mortgage Loan		20,400			20,400		4.00%	Principal & Interest	(1)	3/1/19

	The Residence at Waterstone Mortgage Loan		47,905			47,905		3.80%	Principal & Interest	(1)	5/1/19

	Legacy Crescent Park Mortgage Loan		14,355			14,425		3.50%	Principal & Interest	(2)	6/1/19

	Legacy at Martin’s Point Mortgage Loan		23,000			23,000		3.30%	Principal & Interest	(1)	6/1/19

	Wesley Village Mortgage Loan		28,754			28,923		2.60%	Principal & Interest	(3)	12/1/17

	Watertower Mortgage Loan		25,000			25,000		2.50%	Principal & Interest	(1)	2/10/18

	Crystal Park Mortgage Loan		28,888			29,055		2.50%	Principal & Interest	(3)	6/1/18

	Millennium Mortgage Loan		21,529			21,648		2.70%	Principal & Interest	(3)	7/1/18

	Legacy Grand at Concord Mortgage Loan (4)		23,190			—		4.10%	Principal & Interest		12/1/50

	Lofts at the Highlands Mortgage Loan (5)		31,917			—		3.40%	Principal & Interest		8/1/52

	Total notes payable principal outstanding		$	297,438		$	242,856

	Discount on note payable, net (6)		(2,881		)	—

	Total notes payable, net		$	294,557		$	242,856

	_____________________
	(1) Monthly payments are interest-only during the first two years of the loan. Beginning with the third year of the loan, monthly payments include principal and interest with principal payments calculated using an amortization schedule of 30 years.
	(2) Monthly payments are interest-only during the first year of the loan. Beginning with the second year of the loan, monthly payments include principal and interest with principal payments calculated using an amortization schedule of 30 years.
	(3) Monthly payments include principal and interest with principal payments calculated using an amortization schedule of 30 years.
	(4) See “—Recent Financings — Legacy Grand at Concord Mortgage Loan.”
	(5) See “—Recent Financings — Lofts at the Highlands Mortgage Loan.”
	(6) Represents the unamortized discount on Lofts at the Highlands Mortgage Loan due to the below-market interest rate when the loan was assumed. The discount is amortized over the remaining life of the loan.
	As of March 31, 2014 and December 31, 2013, the Company’s deferred financing costs were $1.9 million and $2.0 million, respectively, net of amortization, and are included in deferred financing costs, prepaid expenses and other assets on the accompanying consolidated balance sheets.
	During the three months ended March 31, 2014 and 2013, the Company incurred $2.3 million and $1.7 million of interest expense, respectively. Included in interest expense for the three months ended March 31, 2014 and 2013 were $0.1 million and $0.1 million of amortization of deferred financing costs, respectively. As of March 31, 2014 and December 31, 2013, the Company recorded interest payable of $0.8 million and $0.7 million, respectively.
	The following is a schedule of maturities, including principal payments, for the Company’s notes payable outstanding as of March 31, 2014 (in thousands):


	April 1, 2014 through December 31, 2014	$	3,407

	2015	5,582

	2016	5,844

	2017	32,196

	2018	72,958

	Thereafter	177,451

		$	297,438

	Recent Financings
	Legacy Grand at Concord Mortgage Loan
On February 18, 2014, in connection with the acquisition of Legacy Grand at Concord, the Company, through an indirect wholly owned subsidiary, assumed a U.S. Housing and Urban Development Section 221d(4) loan with an outstanding principal balance of $23.2 million (the “Legacy Grand at Concord Mortgage Loan”). The Legacy Grand at Concord Mortgage Loan matures on December 1, 2050 and bears interest at a fixed rate of 4.05%. Monthly payments include principal and interest in the sum of $101,159. The Company has the right to repay the loan in whole or in part subject to certain conditions and a fixed percentage prepayment premium which declines over time. The loan is fully assumable by a subsequent purchaser of Legacy Grand at Concord, subject to certain conditions contained in the loan documents.
Lofts at the Highlands Mortgage Loan
On February 25, 2014, in connection with the acquisition of the Lofts at the Highlands, the Company, through an indirect wholly owned subsidiary, assumed a U.S. Housing and Urban Development Section 221d(4) loan with an outstanding principal balance of $32.0 million (the “Lofts at the Highlands Mortgage Loan”). At acquisition, the Company recorded the Lofts at the Highlands Mortgage Loan at an estimated fair value of $29.1 million, which includes a discount on note payable due to below-market interest rate of $2.9 million. The Lofts at the Highlands Mortgage Loan matures on August 1, 2052 and bears interest at a fixed rate of 3.4%. Monthly payments include principal and interest in the sum of $124,111. The Company has the right to repay the loan in whole or in part subject to certain conditions and a fixed percentage prepayment premium which declines over time. The loan is fully assumable by a subsequent purchaser of the Lofts at the Highlands, subject to certain conditions in the loan documents.

FAIR_VALUE_DISCLOSURES

FAIR VALUE DISCLOSURES	3 Months Ended
FAIR VALUE DISCLOSURES	Mar. 31, 2014
Fair Value Disclosures [Abstract]	'
FAIR VALUE DISCLOSURES	'
	FAIR VALUE DISCLOSURES
	Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories:

	•	Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;

	•	Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and

	•	Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable.
	The fair value for certain financial instruments is derived using valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of financial instruments for which it is practicable to estimate the fair value:
	Cash and cash equivalents, restricted cash, and accounts payable and accrued liabilities: These balances approximate their fair values due to the short maturities of these items.
	Notes payable: The fair value of the Company’s notes payable is estimated using a discounted cash flow analysis based on management’s estimates of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. Additionally, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities or similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. The Company classifies these inputs as Level 3 inputs.
	The following were the carrying amounts and fair values of the Company’s financial instruments as of March 31, 2014 and December 31, 2013 (dollars in thousands):


			March 31, 2014						December 31, 2013
			Face Value		Carrying Amount		Fair Value		Face Value		Carrying Amount		Fair Value
	Financial liabilities:
	Notes payable		$	297,438	$	294,557	$	292,685	$	242,856	$	242,856	$	237,728
	Notes payable		$	297,438	$	294,557	$	292,685	$	242,856	$	242,856	$	237,728
	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. Despite increased capital market and credit market activity, transaction volume for certain financial instruments remains relatively low. This has made the estimation of fair values difficult and, therefore, both the actual results and the Company’s estimate of value at a future date could be materially different.

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2014
Related Party Transactions [Abstract]	'
RELATED PARTY TRANSACTIONS	'
	RELATED PARTY TRANSACTIONS
	The Company has entered into the Advisory Agreement with the Advisor and the Dealer Manager Agreements with the Dealer Manager. These agreements entitle the Advisor and the Dealer Manager to specified fees upon the provision of certain services with regard to the Offerings and the investment of proceeds from the Offerings in real estate related investments, among other services, as well as reimbursement of organization and offering costs incurred by the Advisor and the Dealer Manager on behalf of the Company and certain costs incurred by the Advisor in providing services to the Company. The Company has also entered into a fee reimbursement agreement (the “AIP Reimbursement Agreement”) with the Dealer Manager pursuant to which the Company agreed to reimburse the Dealer Manager for certain fees and expenses it incurs for administering the Company’s participation in the Depository Trust & Clearing Corporation (“DTCC”) Alternative Investment Product Platform with respect to certain accounts of the Company’s investors serviced through the platform. The Advisor and Dealer Manager also serve as the advisor and dealer manager, respectively, for KBS Real Estate Investment Trust, Inc., KBS Real Estate Investment Trust II, Inc., KBS Real Estate Investment Trust III, Inc., KBS Strategic Opportunity REIT, Inc and KBS Strategic Opportunity REIT II, Inc. During the three months ended March 31, 2014 and 2013, no transactions occurred between the Company and these other KBS-sponsored programs.
	On January 6, 2014, the Company, together with KBS Real Estate Investment Trust, Inc., KBS Real Estate Investment Trust II, Inc., KBS Real Estate Investment Trust III, Inc., KBS Strategic Opportunity REIT, Inc., KBS Strategic Opportunity REIT II, Inc., the Dealer Manager, the Advisor and other KBS-affiliated entities, entered into an errors and omissions and directors and officers liability insurance program where the lower tiers of coverage are shared. The cost of these lower tiers is allocated by the Advisor and its insurance broker among each of the various entities covered by the plan, and is billed directly to each entity. The allocation of these shared coverage costs is proportionate to the pricing by the insurance marketplace for the first tiers of directors and officers liability coverage purchased individually by each REIT. The Advisor’s and the Dealer Manager’s portion of the shared lower tiers’ cost is proportionate to the respective entities’ prior cost for the errors and omissions insurance.
	During the three months ended March 31, 2014 and 2013, no other transactions occurred between the Company and KBS Real Estate Investment Trust, Inc., KBS Real Estate Investment Trust II, Inc., KBS Real Estate Investment Trust III, Inc., KBS Strategic Opportunity REIT, Inc. and KBS Strategic Opportunity REIT II, Inc.
	Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three months ended March 31, 2014 and 2013, respectively, and any related amounts payable as of March 31, 2014 and December 31, 2013 (in thousands):


		Incurred				Receivable as of				Payable as of
		Three Months Ended March 31,				March 31,		December 31,		March 31,		December 31,
		2014		2013		2014		2013		2014		2013
	Expensed
	Asset management fees (1)	$	595	$	659	$	—	$	—	$	3,048	$	2,454

	Reimbursable operating expenses (2)	214		103		—		—		23		63

	Acquisition fees on real properties	701		389		—		—		—		—

	Property management fees (3)	62		45		—		—		—		—

	Capitalized
	Construction management fees	—		—		—		—		—		134

	Additional Paid-in Capital
	Selling commissions	336		2,557		—		—		—		—

	Dealer manager fees	160		1,496		—		—		—		—

	Reimbursable other offering costs (4)	58		315		865		—		—		19

		$	2,126	$	5,564	$	865	$	—	$	3,071	$	2,670

	____________________
	(1) See “Amendments to the Advisory Agreement” below.
	(2) Reimbursable operating expenses primarily consists of marketing research costs and property pursuit costs incurred by the Sub-Advisor. In addition, the Advisor may seek reimbursement for employee costs under the Advisory Agreement. Beginning July 1, 2010, the Company has reimbursed the Advisor for the Company’s allocable portion of the salaries, benefits and overhead of internal audit department personnel providing services to the Company. These amounts totaled $23,000 and $15,000 for the three months ended March 31, 2014 and 2013, respectively, and were the only employee costs reimbursable under the Advisory Agreement through March 31, 2014. The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition 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.
	(3) See “— Property Management — Account Services Agreements.”
	(4) See “— Other Offering Costs.”
	Other Offering Costs
	From inception of the Follow-on Offering through March 31, 2014, the Company has recognized and paid $1.3 million in selling commissions and dealer manager fees related to the Follow-on Offering. Additionally, the Company has incurred $2.7 million of other organization and offering costs related to the Follow-on Offering. As of March 31, 2014, the selling commissions, dealer manager fees, and organization and other offering costs related to the Follow-on Offering exceeded 15% of the gross offering proceeds. Through March 31, 2014, including shares issued through the Company’s dividend reinvestment plan, the Company had sold 1,966,777 shares in the Follow-on Offering for gross offering proceeds of $20.6 million. Pursuant to the Advisory Agreement, the Advisor is obligated to reimburse the Company to the extent selling commissions, dealer manager fees and other organization and offering costs incurred by the Company in each of the Offerings exceed 15% of the gross offering proceeds of the respective Offering. Due to this limitation, the Company recorded $3.1 million of selling commissions, dealer manager fees and other organization and offering costs as additional paid-in capital and $0.9 million of amounts due from affiliates.
	Amendments to the Advisory Agreement
	On January 8, 2013, the Company entered into an amendment to the advisory agreement with the Advisor, which defers the Company’s obligation to pay asset management fees, without interest, accruing from February 1, 2013 through July 31, 2013. The Company will only be obligated to pay the Advisor such deferred amounts if and to the extent that the Company’s funds from operations, as such term is defined by the National Association of Real Estate Investment Trusts and interpreted by the Company, as adjusted for the effects of straight-line rents and acquisition costs and expenses (“AFFO”) for the immediately preceding month exceeds the amount of distributions declared for record dates of such prior month (an “AFFO Surplus”). The amount of any AFFO Surplus in a given month shall be applied first to pay to the Advisor asset management fees currently due with respect to such month (including any that would otherwise have been deferred for that month in accordance with this amendment) and then to pay asset management fees previously deferred by the Advisor in accordance with this amendment that remain unpaid. As of March 31, 2014, the Company had accrued and deferred payment of $1.5 million of asset management fees for February through July 2013 under this amendment, as the Company believes the payment of this amount to the Advisor is probable. These fees will be reimbursed in accordance with the terms noted above.
	On August 14, 2013, the Company and the Advisor entered into an amendment to the advisory agreement between the parties. The amendment reduces the asset management fee payable by the Company to the Advisor with respect to investments in real estate to a monthly fee equal to the lesser of one-twelfth of (i) 1.0% of the amount paid or allocated to fund the acquisition, development, construction or improvement of the property (whether at or subsequent to acquisition), including acquisition expenses and budgeted capital improvement costs (regardless of the level of debt used to finance the investment), and (ii) 2.0% of the amount paid or allocated to fund the acquisition, development, construction or improvement of the property, including acquisition expenses and budgeted capital improvement costs, less any debt used to finance the investment. In addition, the amendment defers without interest under certain circumstances, the Company’s obligation to pay asset management fees accruing from August 1, 2013. Specifically, the amendment defers the Company’s obligation to pay an asset management fee for any month in which the Company’s modified funds from operations (“MFFO”), as such term is defined in the practice guideline issued by the Investment Program Association (“IPA”) in November 2010 and interpreted by the Company, excluding asset management fees, does not exceed the amount of distributions declared for record dates of the corresponding month. The Company remains obligated to pay the Advisor an asset management fee in any month in which the MFFO, excluding asset management fees, for such month exceeds the amount of distributions declared for the record dates of that month (such excess amount, an “MFFO Surplus”), but any amount of the asset management fee for such month in excess of the MFFO Surplus will also be deferred under the amendment. If the MFFO Surplus for any month exceeds the amount of the asset management fee payable for such month, any remaining MFFO Surplus will not be applied to pay asset management fee amounts previously deferred by the Advisor in accordance with this amendment. However, notwithstanding the foregoing, any and all deferred asset management fees shall be immediately due and payable at such time as the 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 plan, and (ii) an 8.0% per year cumulative, non-compounded return on such net invested capital (the “Stockholders’ 8% Return”). The Stockholders’ 8% 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 deferred asset management fees. As of March 31, 2014, the Company accrued and deferred payment of $1.5 million of asset management fees for August 2013 through March 2014 under this amendment, as the Company believes the payment of this amount to the Advisor is probable. These fees will be reimbursed in accordance with the terms noted above.

	Property Management — Account Services Agreements
	In connection with each of its acquisitions of Poplar Creek, The Residence at Waterstone, Legacy Crescent Park, Legacy at Martin’s Point, Wesley Village, Millennium Apartment Homes, Legacy Grand at Concord and Lofts at the Highlands, the Company, through an indirect wholly owned subsidiary, entered into a separate Property Management — Account Services Agreement (collectively, the “Services Agreement”) with Legacy Partners Residential L.P. (“LPR”), an affiliate of the Sub-Advisor, pursuant to which LPR will provide certain account maintenance and bookkeeping services related to these properties. Under each Services Agreement, the Company pays LPR a monthly fee in an amount equal to 1% of each property’s gross monthly collections. Unless otherwise provided for in an approved operating budget for a property, LPR will be responsible for all expenses that it incurs in rendering services pursuant to each Services Agreement. Each Services Agreement has an initial term of one year and will continue thereafter on a month-to-month basis unless either party gives 30 days’ prior written notice of its desire to terminate the Services Agreement. Notwithstanding the foregoing, the Company may terminate each Services Agreement at any time without cause upon 30 days’ prior written notice to LPR. The Company may also terminate each Services Agreement with cause immediately upon notice to LPR and the expiration of any applicable cure period. LPR may terminate each Services Agreement at any time without cause upon 90 days’ prior written notice to the Company.

PRO_FORMA_FINANCIAL_INFORMATIO

PRO FORMA FINANCIAL INFORMATION (UNAUDITED)	3 Months Ended
	Mar. 31, 2014
Business Acquisition, Pro Forma Information [Abstract]	'
PRO FORMA FINANCIAL INFORMATION (UNAUDITED)	'
	PRO FORMA FINANCIAL INFORMATION
	The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company for the three months ended March 31, 2014 and 2013. The Company acquired two apartment complexes during the three months ended March 31, 2014, both of which were accounted for as business combinations. The following unaudited pro forma information for the three months ended March 31, 2014 and 2013 has been prepared to give effect to the acquisition of Lofts at the Highlands as if the acquisition occurred on January 1, 2013. This pro forma information does not purport to represent what the actual results of operations of the Company would have been had this acquisition occurred on January 1, 2013, nor do they purport to predict the results of operations for future periods (in thousands, except share and per share amounts).


		For the Three Months Ended March 31,
		2014			2013
	Revenues	$	10,494		$	7,315

	Depreciation and amortization	$	3,347		$	3,240

	Net loss	$	(1,869	)	$	(1,887	)
	Net loss per common share, basic and diluted	$	(0.09	)	$	(0.12	)
	Weighted-average number of common shares outstanding,	19,789,521			16,195,950
	basic and diluted
	The unaudited pro forma information for the three months ended March 31, 2014 was adjusted to exclude $0.6 million of acquisition costs incurred in 2014 related to Lofts at the Highlands.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
COMMITMENTS AND CONTINGENCIES	'
	COMMITMENTS AND CONTINGENCIES
	Economic Dependency
	The Company is dependent on the Advisor, the Sub-Advisor and the Dealer Manager for certain services that are essential to the Company, including the sale of the Company’s shares in its Offerings; 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 these companies are unable to provide the respective 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. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s property, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the property could result in future environmental liabilities.
	Legal Matters
	From time to time, the Company may become 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 possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Mar. 31, 2014
Subsequent Events [Abstract]	'
SUBSEQUENT EVENTS	'
	SUBSEQUENT EVENTS
	The Company evaluates subsequent events up until the date the consolidated financial statements are issued.
	Status of Offerings
	The Company ceased offering shares pursuant to the Initial Offering on March 12, 2013 and commenced offering shares to the public pursuant to the Follow-on Offering on March 13, 2013. The Company ceased offering shares pursuant to the Follow-on Offering on March 31, 2014 and completed subscription processing procedures on April 30, 2014. As of May 6, 2014, the Company had sold an aggregate of 20,184,399 shares of common stock in the Offerings for gross offering proceeds of $201.1 million, including an aggregate of 968,989 shares of common stock under the dividend reinvestment plan for gross offering proceeds of $9.6 million. Also as of May 6, 2014, the Company had redeemed 286,770 shares sold in the Offerings for $2.7 million. The Company may continue to offer shares under the dividend reinvestment plan until it has sold $760,000,000 of shares through the reinvestment of distributions.
	Distributions Paid
	On April 1, 2014, the Company paid distributions of $1.1 million, which related to distributions declared for each day in the period from March 1, 2014 through March 31, 2014. On May 1, 2014, the Company paid distributions of $1.1 million, which related to distributions declared for each day in the period from April 1, 2014 through April 30, 2014.
	Distributions Declared
	On May 8, 2014, the Company’s board of directors declared distributions based on daily record dates for the period from June 1, 2014 through June 30, 2014, which the Company expects to pay in July 2014, and distributions based on daily record dates for the period from July 1, 2014 through July 31, 2014, which the Company expects to pay in August 2014. Investors may choose to receive cash distributions or purchase additional shares through the Company’s dividend reinvestment plan.
	Distributions for these periods will be calculated based on stockholders of record each day during these periods at a rate of $0.00178082 per share per day and if paid each day for a 365-day period, would equal a 6.5% annualized rate based on a purchase price of $10.00 per share or a 5.93% annualized rate based on the most recent offering price of $10.96 per share (which became effective March 11, 2014).

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Mar. 31, 2014
Accounting Policies [Abstract]	'
Principles of Consolidation and Basis of Presentation Policy	'
	The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.
	The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation.
Use of Estimates	'
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	'
Reclassifications	Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods.
Segments	'
Segments	The Company has invested in 11 apartment complexes as of March 31, 2014. Substantially all of the Company’s revenue and net loss is from real estate, and therefore, the Company currently operates in one reportable segment.
Per Share Data	'
	Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding during the three months ended March 31, 2014 and 2013.
	Distributions declared per common share was $0.160 and $0.160 for the three months ended March 31, 2014 and 2013, respectively. Distributions declared per common share assumes each share was issued and outstanding each day during the three months ended March 31, 2014 and 2013. For the three months ended March 31, 2014 and 2013, distributions were based on daily record dates and calculated at a rate of $0.00178082 per share per day. Each day during the period from January 1, 2013 through March 31, 2013 and January 1, 2014 through March 31, 2014 was a record date for distributions.
Recently Issued Accounting Standards Update	'
Recently Issued Accounting Standards Update	In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU No. 2014-08”). ASU No. 2014-08 limits discontinued operations reporting to disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: a) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; b) the component of an entity or group of components of an entity is disposed of by sale; and c) the component of an entity or group of components of an entity is disposed of other than by sale. ASU No. 2014-08 also requires additional disclosures about discontinued operations. ASU No. 2014-08 is effective for reporting periods beginning after December 15, 2014. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company early adopted ASU No. 2014-08 for the reporting period beginning January 1, 2014. As a result of the adoption of ASU No. 2014-08, results of operations for properties that are classified as held for sale in the ordinary course of business on or subsequent to January 1, 2014 would generally be included in continuing operations on the Company’s consolidated statements of operations, to the extent such disposals did not meet the criteria for classification as a discontinued operation. Additionally, any gain or loss on sale of real estate that do not meet the criteria for classification as a discontinued operation would be presented, on the consolidated statements of operations, below income from continuing operations. As there are no properties currently classified as held for sale, ASU No. 2014-08 did not have an impact on the presentation of the Company’s financial statements.

RECENT_ACQUISITIONS_OF_REAL_ES1

RECENT ACQUISITIONS OF REAL ESTATE (Tables)	3 Months Ended
	Mar. 31, 2014
Business Combinations [Abstract]	'
Schedule of Business Acquisitions, Properties Acquired	'
	During the three months ended March 31, 2014, the Company acquired the following properties (dollars in thousands):


	Property Name	City	State	Acquisition Date	Land		Building		Tenant		Other Intangible Assets			Total
							and Improvements		Origination and					Purchase Price
									Absorption Costs
	Legacy Grand at Concord	Concord	NC	2/18/14	$	1,465	$	25,960	$	542	$	—		$	27,967

	Lofts at the Highlands (1)	St. Louis	MO	2/25/14	3,000		32,486		510		2,946		(2)	38,942

					$	4,465	$	58,446	$	1,052	$	2,946		$	66,909

	_____________________
	(1) In connection with the acquisition of Lofts at the Highlands, the Company assumed the Lofts at the Highlands Mortgage Loan. The Company recorded the mortgage debt assumed with an outstanding principal balance of $32.0 million at an estimated fair value of $29.1 million, which is net of a discount on note payable of $2.9 million due to below-market interest rate. The discount on note payable is amortized over the remaining life of the loan of 38.5 years.
	(2) The property is subject to certain property tax abatement through 2031. The estimated fair value of the property tax abatement of $2.9 million is recorded as deferred financing costs, prepaid expenses and other assets on the Company's consolidated balance sheet as of the acquisition date and amortized over the tax abatement period of 17.9 years.

REAL_ESTATE_Tables

REAL ESTATE (Tables)	3 Months Ended
	Mar. 31, 2014
Real Estate [Abstract]	'
Schedule of Real Estate Investments	'
	The following table provides summary information regarding the properties owned by the Company as of March 31, 2014 (dollars in thousands):


	Property Name	Date Acquired	Location	Total		Accumulated			Total
				Real Estate, Cost		Depreciation and			Real Estate, Net
						Amortization
	Legacy at Valley Ranch	10/26/10	Irving, TX	$	36,284	$	(3,136	)	$	33,148

	Poplar Creek	2/9/12	Schaumburg, IL	26,944		(1,267		)	25,677

	The Residence at Waterstone	4/6/12	Pikesville, MD	64,378		(3,141		)	61,237

	Legacy Crescent Park	5/3/12	Greer, SC	20,496		(1,149		)	19,347

	Legacy at Martin’s Point	5/31/12	Lombard, IL	36,345		(1,930		)	34,415

	Wesley Village	11/6/12	Charlotte, NC	44,098		(1,635		)	42,463

	Watertower Apartments	1/15/13	Eden Prairie, MN	37,844		(1,245		)	36,599

	Crystal Park at Waterford	5/8/13	Frederick, MD	44,896		(1,145		)	43,751

	Millennium Apartment Homes	6/7/13	Greenville, SC	32,978		(819		)	32,159

	Legacy Grand at Concord	2/18/14	Concord, NC	27,992		(309		)	27,683

	Lofts at the Highlands	2/25/14	St. Louis, MO	35,996		(320		)	35,676

				$	408,251	$	(16,096	)	$	392,155

NOTES_PAYABLE_Tables

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2014
Notes Payable [Abstract]	'
Schedule of Long-term Debt Instruments	'
	As of March 31, 2014 and December 31, 2013, the Company’s notes payable consisted of the following (dollars in thousands):


			Principal as of March 31, 2014			Principal as of		Contractual	Payment Type		Maturity Date
						31-Dec-13		Interest Rate as of
								31-Mar-14
	Legacy at Valley Ranch Mortgage Loan		$	32,500		$	32,500	3.90%	Principal & Interest	(1)	4/1/19

	Poplar Creek Mortgage Loan		20,400			20,400		4.00%	Principal & Interest	(1)	3/1/19

	The Residence at Waterstone Mortgage Loan		47,905			47,905		3.80%	Principal & Interest	(1)	5/1/19

	Legacy Crescent Park Mortgage Loan		14,355			14,425		3.50%	Principal & Interest	(2)	6/1/19

	Legacy at Martin’s Point Mortgage Loan		23,000			23,000		3.30%	Principal & Interest	(1)	6/1/19

	Wesley Village Mortgage Loan		28,754			28,923		2.60%	Principal & Interest	(3)	12/1/17

	Watertower Mortgage Loan		25,000			25,000		2.50%	Principal & Interest	(1)	2/10/18

	Crystal Park Mortgage Loan		28,888			29,055		2.50%	Principal & Interest	(3)	6/1/18

	Millennium Mortgage Loan		21,529			21,648		2.70%	Principal & Interest	(3)	7/1/18

	Legacy Grand at Concord Mortgage Loan (4)		23,190			—		4.10%	Principal & Interest		12/1/50

	Lofts at the Highlands Mortgage Loan (5)		31,917			—		3.40%	Principal & Interest		8/1/52

	Total notes payable principal outstanding		$	297,438		$	242,856

	Discount on note payable, net (6)		(2,881		)	—

	Total notes payable, net		$	294,557		$	242,856

	_____________________
	(1) Monthly payments are interest-only during the first two years of the loan. Beginning with the third year of the loan, monthly payments include principal and interest with principal payments calculated using an amortization schedule of 30 years.
	(2) Monthly payments are interest-only during the first year of the loan. Beginning with the second year of the loan, monthly payments include principal and interest with principal payments calculated using an amortization schedule of 30 years.
	(3) Monthly payments include principal and interest with principal payments calculated using an amortization schedule of 30 years.
	(4) See “—Recent Financings — Legacy Grand at Concord Mortgage Loan.”
	(5) See “—Recent Financings — Lofts at the Highlands Mortgage Loan.”
	(6) Represents the unamortized discount on Lofts at the Highlands Mortgage Loan due to the below-market interest rate when the loan was assumed. The discount is amortized over the remaining life of the loan.
Schedule of Maturities of Long-term Debt	'
	The following is a schedule of maturities, including principal payments, for the Company’s notes payable outstanding as of March 31, 2014 (in thousands):


	April 1, 2014 through December 31, 2014	$	3,407

	2015	5,582

	2016	5,844

	2017	32,196

	2018	72,958

	Thereafter	177,451

		$	297,438

FAIR_VALUE_DISCLOSURES_Tables

FAIR VALUE DISCLOSURES (Tables)	3 Months Ended
	Mar. 31, 2014
Fair Value Disclosures [Abstract]	'
Schedule of Face Value, Carrying Amounts and Fair Value	'
	The following were the carrying amounts and fair values of the Company’s financial instruments as of March 31, 2014 and December 31, 2013 (dollars in thousands):


		March 31, 2014						December 31, 2013
		Face Value		Carrying Amount		Fair Value		Face Value		Carrying Amount		Fair Value
	Financial liabilities:
	Notes payable	$	297,438	$	294,557	$	292,685	$	242,856	$	242,856	$	237,728

RELATED_PARTY_TRANSACTIONS_Tab

RELATED PARTY TRANSACTIONS (Tables)	3 Months Ended
	Mar. 31, 2014
Related Party Transactions [Abstract]	'
Schedule of Related Party Costs	'
	Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three months ended March 31, 2014 and 2013, respectively, and any related amounts payable as of March 31, 2014 and December 31, 2013 (in thousands):


		Incurred				Receivable as of				Payable as of
		Three Months Ended March 31,				March 31,		December 31,		March 31,		December 31,
		2014		2013		2014		2013		2014		2013
	Expensed
	Asset management fees (1)	$	595	$	659	$	—	$	—	$	3,048	$	2,454

	Reimbursable operating expenses (2)	214		103		—		—		23		63

	Acquisition fees on real properties	701		389		—		—		—		—

	Property management fees (3)	62		45		—		—		—		—

	Capitalized
	Construction management fees	—		—		—		—		—		134

	Additional Paid-in Capital
	Selling commissions	336		2,557		—		—		—		—

	Dealer manager fees	160		1,496		—		—		—		—

	Reimbursable other offering costs (4)	58		315		865		—		—		19

		$	2,126	$	5,564	$	865	$	—	$	3,071	$	2,670

	____________________
	(1) See “Amendments to the Advisory Agreement” below.
	(2) Reimbursable operating expenses primarily consists of marketing research costs and property pursuit costs incurred by the Sub-Advisor. In addition, the Advisor may seek reimbursement for employee costs under the Advisory Agreement. Beginning July 1, 2010, the Company has reimbursed the Advisor for the Company’s allocable portion of the salaries, benefits and overhead of internal audit department personnel providing services to the Company. These amounts totaled $23,000 and $15,000 for the three months ended March 31, 2014 and 2013, respectively, and were the only employee costs reimbursable under the Advisory Agreement through March 31, 2014. The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition 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.
	(3) See “— Property Management — Account Services Agreements.”
	(4) See “— Other Offering Costs.”

PRO_FORMA_FINANCIAL_INFORMATIO1

PRO FORMA FINANCIAL INFORMATION (UNAUDITED) (Tables)	3 Months Ended
	Mar. 31, 2014
Business Acquisition, Pro Forma Information [Abstract]	'
Business Acquisition, Pro Forma Information	'
	This pro forma information does not purport to represent what the actual results of operations of the Company would have been had this acquisition occurred on January 1, 2013, nor do they purport to predict the results of operations for future periods (in thousands, except share and per share amounts).


		For the Three Months Ended March 31,
		2014			2013
	Revenues	$	10,494		$	7,315

	Depreciation and amortization	$	3,347		$	3,240

	Net loss	$	(1,869	)	$	(1,887	)
	Net loss per common share, basic and diluted	$	(0.09	)	$	(0.12	)
	Weighted-average number of common shares outstanding,	19,789,521			16,195,950
	basic and diluted

ORGANIZATION_Details

ORGANIZATION (Details) (USD $)

3 Months Ended

12 Months Ended

36 Months Ended

49 Months Ended

56 Months Ended

3 Months Ended

12 Months Ended

36 Months Ended

49 Months Ended

56 Months Ended

Mar. 31, 2014

Dec. 31, 2013

Mar. 12, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 12, 2013

Mar. 31, 2014

Aug. 19, 2009

31-May-12

Aug. 19, 2009

Aug. 07, 2009

Mar. 31, 2014

Apartment Complex [Member]

Common Stock [Member]

KBS-Legacy Apartment Community REIT Venture, LLC [Member]

properties

Minimum [Member]

Maximum [Member]

Common Stock [Member]

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%

Common stock, shares issued

19,789,521

19,196,501

19,789,521

20,000

Common stock, purchase price per share

$10

Shares held by affiliate

20,000

Number of real estate properties

Number of shares authorized to be repurchased

250,000

280,000,000

Shares of common stock authorized under dividend reinvestment plan, shares

80,000,000

Stock offering, shares authorized for issuance, value

$2,000,000,000

Stock offering, shares authorized for dividend reinvestment plan, value

760,000,000

Issuance of common stock, shares

634,056

6,538,502

18,088,084

20,054,861

1,966,777

Issuance of common stock, value

6,696,000

65,139,000

179,200,000

199,700,000

20,600,000

7,000

65,000

Shares of common stock sold under dividend reinvestment plan, shares

368,872

879,244

Shares of common stock sold under dividend reinvestment plan, value

3,500,000

8,700,000

Redemptions of common stock, shares

41,036

208,457

285,340

Redemptions of common stock, value

$389,000

$1,978,000

$2,700,000

$1,000

$2,000

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Real Estate Properties [Line Items]	'	'
Distributions declared per common share	$0.16	$0.16
Distribution rate per share per day, declared	$0.00	$0.00
Apartment Complex [Member]	'	'
Real Estate Properties [Line Items]	'	'
Number of real estate properties	11	'

RECENT_ACQUISITIONS_OF_REAL_ES2

RECENT ACQUISITIONS OF REAL ESTATE (Schedule of Business Acquisitions, Properties Acquired) (Details) (USD $)	Mar. 31, 2014		Dec. 31, 2013	Mar. 31, 2014		Feb. 25, 2014	Mar. 31, 2014	Mar. 31, 2014
				Lofts at the Highlands Mortgage Loan [Member]		Lofts at the Highlands Mortgage Loan [Member]	Legacy Grand at Concord [Member]	Lofts of the Highlands [Member]
				Mortgages [Member]		Mortgages [Member]
Business Acquisition [Line Items]	'		'	'		'	'	'
Acquisition Date	'		'	'		'	18-Feb-14	25-Feb-14	[1]
Land	$4,465,000		'	'		'	$1,465,000	$3,000,000	[1]
Building and Improvements	58,446,000		'	'		'	25,960,000	32,486,000	[1]
Tenant Origination and Absorption Costs	1,052,000		'	'		'	542,000	510,000	[1],[2]
Other Intangible Assets	2,946,000	[1]	'	'		'	0	2,946,000	[1]
Total Purchase Price	66,909,000		'	'		'	27,967,000	38,942,000	[1]
Notes payable	294,557,000		242,856,000	32,000,000	[3]	32,000,000	'	'
Debt, fair value	'		'	29,100,000	[3]	'	'	'
Discount on notes payable	2,881,000		0	2,900,000	[3]	'	'	'
Loan, remaining life	'		'	'38 years 6 months	[3]	'	'	'
Property tax abatement, fair value	'		'	'		'	'	$2,900,000
Property tax abatement, period	'		'	'		'	'	'17 years 10 months 24 days

[1]	In connection with the acquisition of Lofts at the Highlands, the Company assumed the Lofts at the Highlands Mortgage Loan. The Company recorded the mortgage debt assumed with an outstanding principal balance of $32.0 million at an estimated fair value of $29.1 million, which is net of a discount on note payable of $2.9 million due to below-market interest rate. The discount on note payable is amortized over the remaining life of the loan of 38.5 years.
[2]	The property is subject to certain property tax abatement through 2031. The estimated fair value of the property tax abatement of $2.9 million is recorded as deferred financing costs, prepaid expenses and other assets on the Company's consolidated balance sheet as of the acquisition date and amortized over the tax abatement period of 17.9 years.
[3]	See bbRecent Financings b Lofts at the Highlands Mortgage Loan.

RECENT_ACQUISITIONS_OF_REAL_ES3

RECENT ACQUISITIONS OF REAL ESTATE (Narrative) (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014
Business Acquisition [Line Items]	'
Business combination and acquisition cost expensed	$1
Total revenues recognized from business combination	0.6
Operating expense recognized from business combination	$0.50
Leases, Acquired-in-Place [Member]	'
Business Acquisition [Line Items]	'
Weighted-average amortization period	'0 years 6 months 0 days

REAL_ESTATE_Narrative_Details

REAL ESTATE (Narrative) (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
	sqft		Property Tax Abatement Intangible Asset [Member]	Property Tax Abatement Intangible Asset [Member]	Apartment Complex [Member]
	Units				properties
Real Estate Properties [Line Items]	'	'	'	'	'
Number of real estate properties	'	'	'	'	11
Number of real estate units	3,039	'	'	'	'
Rentable square feet	3,100,000	'	'	'	'
Percentage of portfolio occupied	93.00%	'	'	'	'
Tax abatement asset	$3,600,000	$700,000	'	'	'
Amortization of intangible assets	'	'	$52,000	$24,000	'

REAL_ESTATE_Schedule_of_Real_E

REAL ESTATE (Schedule of Real Estate Investments) (Details) (USD $)

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

In Thousands, unless otherwise specified

Legacy at Valley Ranch [Member]

Poplar Creek [Member]

The Residence at Waterstone [Member]

Legacy Crescent Park [Member]

Legacy at Martinbs Point [Member]

Wesley Village [Member]

Watertower Apartments [Member]

Crystal Park at Waterford [Member]

Millennium Apartment Homes [Member]

Legacy Grand at Concord [Member]

Lofts of the Highlands [Member]

Real Estate Properties [Line Items]

Date Acquired

26-Oct-10

9-Feb-12

6-Apr-12

3-May-12

31-May-12

6-Nov-12

15-Jan-13

8-May-13

7-Jun-13

18-Feb-14

25-Feb-14

Total Real Estate at Cost

$408,251

$343,634

$36,284

$26,944

$64,378

$20,496

$36,345

$44,098

$37,844

$44,896

$32,978

$27,992

$35,996

Accumulated Depreciation and Amortization

-16,096

-13,317

-3,136

-1,267

-3,141

-1,149

-1,930

-1,635

-1,245

-1,145

-819

-309

-320

Total real estate, net

$392,155

$330,317

$33,148

$25,677

$61,237

$19,347

$34,415

$42,463

$36,599

$43,751

$32,159

$27,683

$35,676

REAL_ESTATE_Property_Damages_D

REAL ESTATE (Property Damages) (Details) (USD $)	3 Months Ended
REAL ESTATE (Property Damages) (Details) (USD $)	Mar. 31, 2014	Mar. 31, 2013
Real Estate Properties [Line Items]	'	'
Maximum deductible per incident	$25,000	'
Loss due to property damages	307,000	0
Estimated insurance recoveries	300,000	'
Operating, maintenance, and management	2,393,000	1,651,000
Estimated insurance recoveries to be collected	300,000	'
Damaged Properties [Member]	'	'
Real Estate Properties [Line Items]	'	'
Operating, maintenance, and management	$38,000	'

NOTES_PAYABLE_Narrative_Detail

NOTES PAYABLE (Narrative) (Details) (USD $)	3 Months Ended
NOTES PAYABLE (Narrative) (Details) (USD $)	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Debt Instrument [Line Items]	'	'	'
Interest expense	$2,298,000	$1,691,000	'
Amortization of deferred financing costs	100,000	100,000	'
Interest payable, current	800,000	'	700,000
Deferred Financing Costs, Prepaid Expenses and Other Assets [Member]	'	'	'
Debt Instrument [Line Items]	'	'	'
Deferred financing costs	$1,900,000	'	$2,000,000

NOTES_PAYABLE_Schedule_of_Long

NOTES PAYABLE (Schedule of Long-term Debt Instruments) (Details) (USD $)

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Feb. 18, 2014

Mar. 31, 2014

Dec. 31, 2013

Feb. 25, 2014

Mar. 31, 2014

Dec. 31, 2013

In Thousands, unless otherwise specified

Mortgages [Member]

Legacy at Valley Ranch [Member]

Poplar Creek [Member]

The Residence at Waterstone [Member]

Legacy Crescent Park [Member]

Legacy at Martinbs Point [Member]

Wesley Village [Member]

Watertower Apartments [Member]

Crystal Park Mortgage Loan [Member]

Millennium Mortgage Loan [Member]

Legacy Grand at Concord Mortgage Loan [Member]

Lofts at the Highlands Mortgage Loan [Member]

First Two Years [Member]