KBS Legacy Partners Apartment REIT 10-Q 12 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 09, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Entity Registrant Name	KBS Legacy Partners Apartment REIT, Inc.
Entity Central Index Key	1,469,822
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		20,473,365

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Real estate:
Land	$ 46,828	$ 46,828
Buildings and improvements	365,137	363,379
Total real estate, cost	411,965	410,207
Less accumulated depreciation and amortization	(33,200)	(24,344)
Total real estate, net	378,765	385,863
Cash and cash equivalents	20,706	23,878
Cash and cash equivalents	4,260	4,570
Deferred financing costs, prepaid expenses and other assets	6,613	6,923
Total assets	410,344	421,234
Liabilities and stockholders’ equity
Notes payable, net	287,138	291,214
Accounts payable and accrued liabilities	4,628	5,281
Due to affiliates	5,058	4,797
Distributions payable	1,088	1,109
Other liabilities	1,909	1,570
Total liabilities	$ 299,821	$ 303,971
Commitments and contingencies (Note 7)
Redeemable common stock	$ 1,626	$ 1,539
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, 20,373,543 and 20,084,830 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively	204	201
Additional paid-in capital	174,736	172,448
Cumulative distributions and net losses	(66,043)	(56,925)
Total stockholders’ equity	108,897	115,724
Total liabilities and stockholders’ equity	$ 410,344	$ 421,234

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	20,373,543	20,084,830
Common stock, shares outstanding	20,373,543	20,084,830

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Rental income	$ 11,330	$ 10,909	$ 33,570	$ 31,349
Total revenues	11,330	10,909	33,570	31,349
Expenses:
Operating, maintenance, and management	1,915	2,950	6,914	8,282
Real estate taxes and insurance	1,487	1,470	4,509	4,324
Asset management fees to affiliate	144	670	687	1,917
Property management fees and expenses to affiliate	1,368	73	2,136	207
Real estate acquisition fees to affiliate	0	0	0	701
Real estate acquisition fees and expenses	0	0	0	264
General and administrative expenses	485	556	1,697	1,803
Depreciation and amortization	3,036	3,107	9,056	9,603
Interest expense	2,636	2,644	7,879	7,581
Total expenses	11,071	11,470	32,878	34,682
Other income:
Interest and other income	4	61	13	72
Net income (loss)	$ 263	$ (500)	$ 705	$ (3,261)
Net income (loss) per common share, basic and diluted (in dollars per share)	$ 0.01	$ (0.03)	$ 0.03	$ (0.16)
Weighted-average number of common shares outstanding, basic and diluted (in shares)	20,322,618	19,953,306	20,206,023	19,788,480

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Cumulative Distributions and Net Income (Loss) [Member]
Balance, shares at Dec. 31, 2013		19,196,501
Balance, value at Dec. 31, 2013	$ 121,060	$ 192	$ 161,328	$ (40,460)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, shares		1,081,474
Issuance of common stock, value	11,250	$ 11	11,239
Redemptions of common stock, shares		(193,145)
Redemptions of common stock, value	(1,853)	$ (2)	(1,851)
Transfers from redeemable common stock	2,888		2,888
Distributions declared	(12,905)			(12,905)
Commissions on stock sales and related dealer manager fees to affiliates	(536)		(536)
Other offering costs	(620)		(620)
Net income (loss)	$ (3,560)			(3,560)
Balance, shares at Dec. 31, 2014	20,084,830	20,084,830
Balance, value at Dec. 31, 2014	$ 115,724	$ 201	172,448	(56,925)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, shares		445,902
Issuance of common stock, value	4,298	$ 4	4,294
Redemptions of common stock, shares		(157,189)
Redemptions of common stock, value	(1,550)	$ (1)	(1,549)
Transfers to redeemable common stock	(450)		(450)
Distributions declared	(9,823)			(9,823)
Other offering costs	(7)		(7)
Net income (loss)	$ 705			705
Balance, shares at Sep. 30, 2015	20,373,543	20,373,543
Balance, value at Sep. 30, 2015	$ 108,897	$ 204	$ 174,736	$ (66,043)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows from Operating Activities:
Net income (loss)	$ 705	$ (3,261)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	9,056	9,603
Bad debt expense	351	285
Loss due to property damages	78	576
Amortization of discount and premium on notes payable, net	65	57
Amortization of deferred financing costs	311	311
Changes in operating assets and liabilities:
Restricted cash for operational expenditures	310	(421)
Prepaid expenses and other assets	(949)	(733)
Accounts payable and accrued liabilities	(744)	96
Due to affiliates	261	1,826
Other liabilities	(24)	134
Net cash provided by operating activities	9,420	8,473
Cash Flows from Investing Activities:
Acquisitions of real estate	0	(13,141)
Improvements to real estate	(1,745)	(3,865)
Restricted cash for capital expenditures	0	539
Insurance proceeds received for property damages	397	0
Net cash used in investing activities	(1,348)	(16,467)
Cash Flows from Financing Activities:
Principal payments on mortgage notes payable	(4,141)	(2,733)
Payments of deferred financing costs	0	(90)
Payments to redeem common stock	0	5,785
Payments to redeem common stock	(1,550)	(1,642)
Payments of commissions on stock sales and related dealer manager fees	0	(536)
Payments of other offering costs	(7)	(335)
Reimbursements of other offering costs from affiliates	0	745
Distributions paid	(5,546)	(5,426)
Net cash used in financing activities	(11,244)	(4,232)
Net decrease in cash and cash equivalents	(3,172)	(12,226)
Cash and cash equivalents, beginning of period	23,878	36,698
Cash and cash equivalents, end of period	20,706	24,472
Supplemental Disclosure of Cash Flow Information:
Interest paid	7,534	7,072
Supplemental Disclosure of Noncash Transactions:
Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan	4,298	4,180
Mortgage debt assumed in connection with real estate acquisitions at fair value	0	52,268
Application of escrow deposits to purchase real estate	0	1,500
Increase in redeemable common stock payable	363	322
Increase in distributions payable	$ 0	$ 14

ORGANIZATION

ORGANIZATION	9 Months Ended
	Sep. 30, 2015
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 renewed with the Advisor on January 25, 2015 (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 September 30, 2015 , the Sub-Advisor owned 20,000 shares of common stock of the Company. The Company has invested in and manages a portfolio of high quality apartment communities located throughout the United States. The Company’s portfolio consists of “core” apartment buildings that were already well-positioned and producing rental income at acquisition. As of September 30, 2015 , 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. In the Initial Offering, 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 . The Company ceased offering shares in the primary Follow-on Offering on March 31, 2014 and completed subscription processing procedures on April 30, 2014. The Company sold 1,496,198 shares of common stock in the primary Follow-on Offering for gross offering proceeds of $15.9 million . As of September 30, 2015 , the Company had sold an aggregate of 20,948,181 shares of common stock in the Offerings for gross offering proceeds of $208.7 million , including an aggregate of 1,732,771 shares of common stock under the dividend reinvestment plan for gross offering proceeds of $17.2 million . Also, as of September 30, 2015 , the Company had redeemed 594,638 shares sold in the Offerings for $5.7 million . The Company continues to offer shares of common stock under the dividend reinvestment plan.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2015
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, 2014 . 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, 2014 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . 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 and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and 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 had invested in 11 apartment complexes as of September 30, 2015 . Substantially all of the Company’s revenue and net income (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 nine months ended September 30, 2015 and 2014 . Distributions declared per common share were $0.164 and $0.486 for the three and nine months ended September 30, 2015 , respectively, and $0.164 and $0.486 for the three and nine months ended September 30, 2014 , respectively. Distributions declared per common share assumes each share was issued and outstanding each day during the three and nine months ended September 30, 2015 and 2014 . For the three and nine months ended September 30, 2015 and 2014 , distributions were based on daily record dates and calculated at a rate of $0.00178082 per share per day. Each day during the periods from January 1, 2014 through September 30, 2014 and January 1, 2015 through September 30, 2015 was a record date for distributions. Recently Issued Accounting Standards Update In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). ASU No. 2014-09 requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU No. 2014-09 supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU No. 2014-09 does not apply to lease contracts within the scope of Leases (Topic 840) . ASU No. 2014-09 was to be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU No. 2015-14”), which defers the effective date of ASU No. 2014-09 by one year. Early adoption is permitted but not before the original effective date. The Company is still evaluating the impact of adopting ASU No. 2014-09 on its financial statements, but does not expect the adoption of ASU No. 2014-09 to have a material impact on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Subtopic 205-40) , Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”). The amendments in ASU No. 2014-15 require management to evaluate, for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued when applicable) and, if so, provide related disclosures. ASU No. 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect the adoption of ASU No. 2014-15 to have a significant impact on its financial statements. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU No. 2015-01”). The amendments in ASU No. 2015-01 eliminate from GAAP the concept of extraordinary items. Although the amendments will eliminate the requirements in Subtopic 225-20 for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU No. 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU No. 2015-01 to have a significant impact on its financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs (“ASU No. 2015-03”). The amendments in ASU No. 2015-03 require debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. ASU No. 2015-03 is limited to the presentation of debt issuance costs and does not affect the recognition and measurement of debt issuance costs. Given the absence of authoritative guidance within ASU No. 2015-03 for debt issuance costs related to line-of-credit arrangements, in August 2015, the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU No. 2015-15”), which clarifies ASU No. 2015-03 by stating that the staff of the SEC would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU No. 2015-03 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and is to be applied retrospectively. Early adoption is permitted for financial statements that have not been previously issued. The adoption of ASU No. 2015-03 would change the presentation of debt issuance costs, as the Company presents debt issuance costs as deferred financing costs, prepaid expenses and other assets on the accompanying consolidated balance sheets. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments (“ASU No. 2015-16”). The amendments in ASU No. 2015-16 require that in a business combination, an acquirer recognizes adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU No. 2015-16 is effective for annual periods beginning after December 15, 2015, and interim periods within those fiscal years and is to be applied prospectively. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU No. 2015-16 to have a significant impact on its financial statements.

REAL ESTATE

REAL ESTATE	9 Months Ended
	Sep. 30, 2015
Real Estate [Abstract]
REAL ESTATE	REAL ESTATE As of September 30, 2015 , the Company owned 11 apartment complexes, containing 3,039 units and encompassing 3.1 million rentable square feet, which were 94% occupied. The following table provides summary information regarding the properties owned by the Company as of September 30, 2015 (dollars in thousands): Property Name Date Acquired Location Total Real Estate, Cost Accumulated Depreciation and Amortization Total Real Estate, Net Legacy at Valley Ranch 10/26/2010 Irving, TX $ 36,646 $ (4,621 ) $ 32,025 Poplar Creek 02/09/2012 Schaumburg, IL 27,091 (2,188 ) 24,903 The Residence at Waterstone 04/06/2012 Pikesville, MD 64,957 (5,645 ) 59,312 Legacy Crescent Park 05/03/2012 Greer, SC 20,611 (2,103 ) 18,508 Legacy at Martin’s Point 05/31/2012 Lombard, IL 37,252 (3,851 ) 33,401 Wesley Village 11/06/2012 Charlotte, NC 44,312 (3,433 ) 40,879 Watertower Apartments 01/15/2013 Eden Prairie, MN 38,592 (2,880 ) 35,712 Crystal Park at Waterford 05/08/2013 Frederick, MD 45,893 (3,283 ) 42,610 Millennium Apartment Homes 06/07/2013 Greenville, SC 33,174 (2,338 ) 30,836 Legacy Grand at Concord 02/18/2014 Concord, NC 27,728 (1,321 ) 26,407 Lofts at the Highlands 02/25/2014 St. Louis, MO 35,709 (1,537 ) 34,172 $ 411,965 $ (33,200 ) $ 378,765 Additionally, as of September 30, 2015 and December 31, 2014 , 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 $3.2 million and $3.4 million , respectively. During the three and nine months ended September 30, 2015 , the Company recorded amortization expense of $65,000 and $0.2 million , respectively, related to tax abatement intangible assets. During the three and nine months ended September 30, 2014 , the Company recorded amortization expense of $65,000 and $0.2 million , respectively, related to tax abatement intangible assets. Property Damage During the nine months ended September 30, 2015 , one of the Company’s apartment complexes suffered physical damage due to storms. The Company’s insurance policies provide coverage for property damage and business interruption subject to a deductible of up to $25,000 per incident. The Company recognized a loss due to damage of $78,000 during the nine months ended September 30, 2015 , which was reduced by a $53,000 insurance recovery related to such damage. The net loss due to damage of $25,000 during the nine months ended September 30, 2015 was classified as operating, maintenance and management expenses on the accompanying consolidated statements of operations and relates to the Company’s insurance deductible.

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2015
Notes Payable [Abstract]
NOTES PAYABLE	NOTES PAYABLE As of September 30, 2015 and December 31, 2014 , the Company’s notes payable consisted of the following (dollars in thousands): Principal as of September 30, 2015 Principal as of December 31, 2014 Contractual Interest Rate as of September 30, 2015 Payment Type Maturity Date Legacy at Valley Ranch Mortgage Loan $ 31,701 $ 32,131 3.9% Principal & Interest 04/01/2019 Poplar Creek Mortgage Loan 19,876 20,143 4.0% Principal & Interest 03/01/2019 The Residence at Waterstone Mortgage Loan 46,772 47,419 3.8% Principal & Interest 05/01/2019 Legacy Crescent Park Mortgage Loan 13,931 14,146 3.5% Principal & Interest 06/01/2019 Legacy at Martin’s Point Mortgage Loan 22,445 22,781 3.3% Principal & Interest 06/01/2019 Wesley Village Mortgage Loan 27,740 28,253 2.6% Principal & Interest 12/01/2017 Watertower Mortgage Loan 24,669 25,000 2.5% Principal & Interest 02/10/2018 Crystal Park Mortgage Loan 27,882 28,391 2.5% Principal & Interest 06/01/2018 Millennium Mortgage Loan 20,812 21,175 2.7% Principal & Interest 07/01/2018 Legacy Grand at Concord Mortgage Loan 22,766 22,981 4.1% Principal & Interest 12/01/2050 Lofts at the Highlands Mortgage Loan 31,296 31,611 3.4% Principal & Interest 08/01/2052 Total notes payable principal outstanding $ 289,890 $ 294,031 Discount on note payable, net (2,752 ) (2,817 ) Total notes payable, net $ 287,138 $ 291,214 As of September 30, 2015 and December 31, 2014 , the Company’s deferred financing costs were $1.3 million and $1.6 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 and nine months ended September 30, 2015 , the Company incurred $2.6 million and $7.9 million of interest expense, respectively. During the three and nine months ended September 30, 2014 , the Company incurred $2.6 million and $7.6 million of interest expense, respectively. Included in interest expense for the three and nine months ended September 30, 2015 were $0.1 million and $0.3 million of amortization of deferred financing costs, respectively. Included in interest expense for the three and nine months ended September 30, 2014 were $0.1 million and $0.3 million of amortization of deferred financing costs, respectively. Also included in interest expense for the three and nine months ended September 30, 2015 were $22,000 and $65,000 of amortization of discount on a note payable, respectively, and $22,000 and $57,000 of amortization of discount on a note payable for the three and nine months ended September 30, 2014 , respectively. As of September 30, 2015 and December 31, 2014 , the Company recorded interest payable of $0.8 million and $0.9 million , respectively. The following is a schedule of maturities, including principal amortization payments, for the Company’s notes payable outstanding as of September 30, 2015 (in thousands): October 1, 2015 through December 31, 2015 $ 1,441 2016 5,844 2017 32,196 2018 72,958 2019 126,682 Thereafter 50,769 $ 289,890

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	9 Months Ended
	Sep. 30, 2015
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, as defined under GAAP, is 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 instrument 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 face value, carrying amount and fair value of the Company’s notes payable as of September 30, 2015 and December 31, 2014 (dollars in thousands): September 30, 2015 December 31, 2014 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 289,890 $ 287,138 $ 290,329 $ 294,031 $ 291,214 $ 296,581 Disclosure of the fair values 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	9 Months Ended
	Sep. 30, 2015
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 entitled the Advisor and/or the Dealer Manager to specified fees upon the provision of certain services with regard to the Offerings and entitle the Advisor to specified fees upon the provision of certain services with regard to the management of the Company’s real estate properties, 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, such as expenses related to the dividend reinvestment plan, and certain costs incurred by the Advisor in providing services to the Company. The Company has also entered into a fee 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 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., KBS Strategic Opportunity REIT II, Inc. and KBS Growth & Income REIT, Inc. 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 such insurance 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 program, and is billed directly to each entity. The allocation of these shared coverage costs is proportionate to the pricing by the insurance marketplace for the first tiers of directors and officers liability coverage purchased individually by each REIT. The Advisor’s and the Dealer Manager’s portion of the shared lower tiers’ cost is proportionate to the respective entities’ prior cost for the errors and omissions insurance. In June 2015, KBS Growth & Income REIT, Inc. was added to the insurance program at terms similar to those described above. During the three and nine months ended September 30, 2015 and 2014 , no other business 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., KBS Strategic Opportunity REIT II, Inc. and KBS Growth & Income REIT, Inc. Pursuant to the terms of these agreements and the property management agreements discussed below, summarized below are the related-party costs incurred by the Company for the three and nine months ended September 30, 2015 and 2014 , respectively, and any related amounts payable as of September 30, 2015 and December 31, 2014 (in thousands): Incurred Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, December 31, 2015 2014 2015 2014 2015 2014 Expensed Asset management fees (1) $ 144 $ 670 $ 687 $ 1,917 $ 4,877 $ 4,752 Reimbursable operating expenses (2) 58 71 264 360 1 45 Acquisition fees on real properties — — — 701 — — Property management fees and expenses (3) 1,368 73 2,136 207 180 — Additional Paid-in Capital Selling commissions — — — 363 — — Dealer manager fees — — — 173 — — Reimbursable other offering costs (4) — — — 59 — — $ 1,570 $ 814 $ 3,087 $ 3,780 $ 5,058 $ 4,797 ____________________ (1) See “Advisory Agreement – Asset Management Fees” 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 certain 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 $44,000 and $29,000 for the three months ended September 30, 2015 and 2014 , respectively, and $92,000 and $82,000 for the nine months ended September 30, 2015 and 2014, respectively, and were the only employee costs reimbursable under the Advisory Agreement through September 30, 2015 . The Company does 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) Property management fees and expenses consist of property management fees paid to Legacy Partners Residential Inc. (“LPR Inc.”), an affiliate of the Sub-Advisor, as well as reimbursable on-site personnel salary and related benefits expenses at the properties. See “— Property Management — Account Services Agreements.” (4) See “— Other Offering Costs Related to Follow-on Offering.” In connection with the Offering, the Company’s sponsors agreed to provide additional indemnification to one of the participating broker dealers. The Company agreed to add supplemental coverage to its directors’ and officers’ insurance coverage to insure the sponsors’ obligations under this indemnification agreement in exchange for reimbursement by the sponsors to the Company for all costs, expenses and premiums related to this supplemental coverage. During the nine months ended September 30, 2015 , the Advisor incurred $61,000 for the costs of the supplemental coverage obtained by the Company. Other Offering Costs Related to Follow-on Offering The offering costs related to the Follow-on Offering (other than selling commissions and dealer manager fees) were either paid directly by the Company or in some instances paid by the Advisor, the Dealer Manager or their affiliates on the Company’s behalf. Offering costs include all expenses in connection with an offering and are charged as incurred as a reduction to stockholders’ equity. Pursuant to the Advisory Agreement and the Follow-on Dealer Manager Agreement, the Company is obligated to reimburse the Advisor, the Dealer Manager or their affiliates, as applicable, for offering costs paid by them on the Company’s behalf. However, at the termination of the primary Follow-on Offering and at the termination of the offering under the Company’s dividend reinvestment plan, the Advisor agreed to reimburse the Company to the extent that selling commissions, dealer manager fees and other offering costs incurred by the Company exceed 15% of the gross offering proceeds. Further, the Company is only liable to reimburse offering costs incurred by the Advisor up to an amount that, when combined with selling commissions, dealer manager fees and all other amounts spent by the Company on offering expenses, does not exceed 15% of the gross proceeds of the primary Follow-on Offering and the offering under the Company’s dividend reinvestment plan as of the date of reimbursement. Within 30 days after the end of the month in which the Company’s primary Follow-on Offering terminates, the Dealer Manager must reimburse the Company to the extent that the Company’s reimbursements to the Dealer Manager and payment of selling commissions and dealer manager fees cause total underwriting compensation for the Company’s primary Follow-on Offering to exceed 10% of the gross offering proceeds from the primary Follow-on Offering. The Company ceased offering shares in the primary Follow-on Offering on March 31, 2014 and completed subscription processing procedures on April 30, 2014. Through April 30, 2014, the Company sold an aggregate of 2,051,925 shares of common stock in the Follow-on Offering for gross offering proceeds of $21.5 million , including 555,727 shares under the dividend reinvestment plan for proceeds of $5.7 million . Total offering expenses in the Follow-on Offering were $4.2 million , including $1.8 million in underwriting compensation (which includes selling commissions, dealer manager fees and any other items viewed as underwriting compensation by the Financial Industry Regulatory Authority). After reimbursements from the Advisor and the Dealer Manager, the Company incurred offering expenses of $3.2 million in the Follow-on Offering (representing 15.0% of gross offering proceeds), which includes underwriting compensation of $1.6 million (representing 9.9% of primary Follow-on Offering proceeds). Including the reimbursements to the Company, the Dealer Manager incurred underwriting expenses of $0.2 million in the Follow-on Offering. In addition, because of the aggregate underwriting compensation incurred in the Follow-on Offering, on August 20, 2014, the Dealer Manager made a payment to the Company of $55,000 . Advisory Agreement - Asset Management Fee Pursuant to the Advisory Agreement, the asset management fee payable by the Company to the Advisor with respect to investments in real estate is 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 (whether at or subsequent to acquisition), including acquisition expenses and budgeted capital improvement costs, less any debt used to finance the investment. The Advisory Agreement 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 the Advisory Agreement) and then to pay asset management fees previously deferred by the Advisor in accordance with the Advisory Agreement that remain unpaid. As of September 30, 2015 , the Company had accrued and deferred payment of $1.5 million of asset management fees for February 2013 through July 2013 under the Advisory Agreement, as the Company believed the payment of this amount to the Advisor was considered probable at the time it was recorded. These fees will be reimbursed in accordance with the terms noted above. In addition, the Advisory Agreement defers without interest under certain circumstances, the Company’s obligation to pay asset management fees accruing from August 1, 2013. Specifically, the Advisory Agreement defers the Company’s obligation to pay an asset management fee for any month in which the Company’s modified funds from operations (“MFFO”) for such month, 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 by the Company for record dates of that month. The Company remains obligated to pay the Advisor an asset management fee in any month in which the Company’s 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”); however, any amount of such asset management fee in excess of the MFFO Surplus is also deferred under the Advisory Agreement. 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 the Advisory Agreement. As of December 31, 2014 , the Company had accrued and deferred payment of $3.3 million of asset management fees for August 2013 through December 2014 under the Advisory Agreement, as the Company believed the payment of this amount to the Advisor was considered probable at the time it was recorded. These fees will be reimbursed in accordance with the terms noted above. During the nine months ended September 30, 2015 , the Company incurred $2.1 million of asset management fees. However, the Company only recorded $0.7 million pursuant to the limitations in the Advisory Agreement as noted above. The Company did not accrue the remaining $1.4 million of these deferred asset management fees as it is uncertain whether any of these amounts will be paid in the future. However, notwithstanding any of the foregoing, any and all deferred asset management fees shall be immediately due and payable at such time as 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 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. Property Management — Account Services Agreements In connection with certain of its property acquisitions, the Company, through separate indirect wholly owned subsidiaries, entered into separate Property Management — Account Services Agreements (each, a “Services Agreement”) with Legacy Partners Residential L.P. (“LPR”), an affiliate of the Sub-Advisor, pursuant to which LPR provided certain account maintenance and bookkeeping services related to these properties. Under each Services Agreement, the Company paid 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 was responsible for all expenses that it incurred in rendering services pursuant to each Services Agreement. Each Services Agreement had an initial term of one year and continued thereafter on a month-to-month basis unless either party gave 30 days’ prior written notice of its desire to terminate the Services Agreement. Notwithstanding the foregoing, the Company had the right to terminate each Services Agreement at any time without cause upon 30 days’ prior written notice to LPR. As described below, as of June 9, 2015, each of the Services Agreements had been terminated. During the nine months ended September 30, 2015 , the Company, through indirect wholly owned subsidiaries (each, a “Property Owner”), entered into property management agreements with LPR Inc. (each, a “Property Management Agreement”), pursuant to which LPR Inc. will provide, among other services, general property management services, including bookkeeping and accounting services, construction management services and budgeting and business plans for the Company’s properties as follows: Property Name Effective Date Management Fee Percentage Watertower Apartments 04/07/2015 2.75% Crystal Park at Waterford 04/14/2015 3.00% The Residence at Waterstone 04/28/2015 3.00% Lofts at the Highlands 05/05/2015 3.00% Legacy at Martin’s Point 05/12/2015 3.00% Poplar Creek 05/14/2015 3.00% Wesley Village 05/19/2015 3.00% Legacy Grand at Concord 05/21/2015 3.00% Millennium Apartment Homes (1) 05/27/2015 3.00% Legacy Crescent Park (1) 05/29/2015 3.00% Legacy at Valley Ranch 06/09/2015 3.00% ____________________ (1) Under the Property Management Agreement, the Property Owner will pay LPR Inc. the Management Fee Percentage in an amount equal to the greater of (a) 3% of the Gross Monthly Collections (as defined in the Property Management Agreement) or (b) $4,000 . Under the Property Management Agreements, each Property Owner will pay LPR Inc.: (i) a monthly fee based on a percentage (as described in the table above, the “Management Fee Percentage”) of the Gross Monthly Collections (as defined in each Property Management Agreement), (ii) a construction supervision fee equal to a percentage of construction costs to the extent overseen by LPR Inc. and as further detailed in each Property Management Agreement, (iii) a leasing commission at a rate to be agreed upon between the Property Owner and LPR Inc. for retail leases executed that were procured or obtained by LPR Inc., (iv) certain reimbursements if included in an approved capital budget and (v) certain reimbursements if included in the approved operating budget, including the reimbursement of the salaries and benefits for on-site personnel. Unless otherwise provided for in an approved operating budget, LPR Inc. will be responsible for all expenses that it incurs in rendering services pursuant to each Property Management Agreement. Each Property Management 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 Property Management Agreement. Notwithstanding the foregoing, the Property Owner may terminate each Property Management Agreement at any time without cause upon 30 days’ prior written notice to LPR Inc. The Property Owner may also terminate the Property Management Agreement with cause immediately upon notice to LPR Inc. and the expiration of any applicable cure period. LPR Inc. may terminate each Property Management Agreement at any time without cause upon prior written notice to the Property Owner which, depending upon the terms of the particular Property Management Agreement, requires either 30 , 60 or 90 days prior written notice. LPR Inc. may terminate the Property Management Agreement for cause if a Property Owner commits any material default under the Property Management Agreement and the default continues for a period of 30 days after notice from LPR Inc. to a Property Owner for a default or, in the case of Watertower Apartments, Lofts at the Highlands, Wesley Village, Legacy Grand at Concord, Millennium Apartment Homes and Legacy Crescent Park, if a monetary default continues for a period of 10 days after notice of such monetary default. The properties were previously managed by third-party property management companies pursuant to the terms of individual property management agreements (together, the “Prior Management Agreements”). The termination of services under the Prior Management Agreements and the Services Agreements (with respect to The Residence at Waterstone, Lofts at the Highlands, Legacy at Martin’s Point, Poplar Creek, Wesley Village, Legacy Grand at Concord, Millennium Apartment Homes and Legacy Crescent Park) were negotiated to coincide with the Effective Date of the respective Property Management Agreements. The Management Fee Percentage and any other fees and reimbursements payable to LPR Inc. by the Property Owner under each Property Management Agreement are approximately equal to the applicable percentage and other fees and reimbursements payable to the prior third party management companies and LPR by the Property Owner under the now-terminated Services Agreements and Prior Management Agreements.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Economic Dependency The Company is dependent on the Advisor and the Sub-Advisor for certain services that are essential to the Company, including the management of the daily operations of the Company’s investment portfolio; the disposition of investments; and other general and administrative responsibilities. The Company is also dependent on LPR Inc. to provide the property management services under the Property Management Agreements. 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	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Distributions Paid On October 1, 2015, the Company paid distributions of $1.1 million , which related to distributions declared for daily record dates for each day in the period from September 1, 2015 through September 30, 2015 . On November 2, 2015, the Company paid distributions of $1.1 million , which related to distributions declared for daily record dates for each day in the period from October 1, 2015 through October 31, 2015. Distributions Declared On October 13, 2015, the Company’s board of directors declared distributions based on daily record dates for the period from November 1, 2015 through November 30, 2015, which the Company expects to pay in December 2015. On November 11, 2015, the Company’s board of directors declared distributions based on daily record dates for the period from December 1, 2015 through December 31, 2015, which the Company expects to pay in January 2016, and distributions based on daily record dates for the period from January 1, 2016 through January 31, 2016, which the Company expects to pay in February 2016. 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 equal a daily amount that, if paid each day for a 365 -day period, would equal a 6.5% annualized rate based on the initial primary offering price for the Initial Offering of $10.00 per share or a 6.4% annualized rate based on the Company’s December 9, 2014 estimated value per share of $10.14 .

SUMMARY OF SIGNIFICANT ACCOUN15

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 .
Principles of Consolidation	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 and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and 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 had invested in 11 apartment complexes as of September 30, 2015 . Substantially all of the Company’s revenue and net income (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 nine months ended September 30, 2015 and 2014 . Distributions declared per common share were $0.164 and $0.486 for the three and nine months ended September 30, 2015 , respectively, and $0.164 and $0.486 for the three and nine months ended September 30, 2014 , respectively. Distributions declared per common share assumes each share was issued and outstanding each day during the three and nine months ended September 30, 2015 and 2014 . For the three and nine months ended September 30, 2015 and 2014 , distributions were based on daily record dates and calculated at a rate of $0.00178082 per share per day. Each day during the periods from January 1, 2014 through September 30, 2014 and January 1, 2015 through September 30, 2015 was a record date for distributions.
Recently Issued Accounting Standards Update	In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). ASU No. 2014-09 requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU No. 2014-09 supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU No. 2014-09 does not apply to lease contracts within the scope of Leases (Topic 840) . ASU No. 2014-09 was to be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU No. 2015-14”), which defers the effective date of ASU No. 2014-09 by one year. Early adoption is permitted but not before the original effective date. The Company is still evaluating the impact of adopting ASU No. 2014-09 on its financial statements, but does not expect the adoption of ASU No. 2014-09 to have a material impact on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Subtopic 205-40) , Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”). The amendments in ASU No. 2014-15 require management to evaluate, for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued when applicable) and, if so, provide related disclosures. ASU No. 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect the adoption of ASU No. 2014-15 to have a significant impact on its financial statements. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU No. 2015-01”). The amendments in ASU No. 2015-01 eliminate from GAAP the concept of extraordinary items. Although the amendments will eliminate the requirements in Subtopic 225-20 for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU No. 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU No. 2015-01 to have a significant impact on its financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs (“ASU No. 2015-03”). The amendments in ASU No. 2015-03 require debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. ASU No. 2015-03 is limited to the presentation of debt issuance costs and does not affect the recognition and measurement of debt issuance costs. Given the absence of authoritative guidance within ASU No. 2015-03 for debt issuance costs related to line-of-credit arrangements, in August 2015, the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU No. 2015-15”), which clarifies ASU No. 2015-03 by stating that the staff of the SEC would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU No. 2015-03 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and is to be applied retrospectively. Early adoption is permitted for financial statements that have not been previously issued. The adoption of ASU No. 2015-03 would change the presentation of debt issuance costs, as the Company presents debt issuance costs as deferred financing costs, prepaid expenses and other assets on the accompanying consolidated balance sheets. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments (“ASU No. 2015-16”). The amendments in ASU No. 2015-16 require that in a business combination, an acquirer recognizes adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU No. 2015-16 is effective for annual periods beginning after December 15, 2015, and interim periods within those fiscal years and is to be applied prospectively. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU No. 2015-16 to have a significant impact on its financial statements.

REAL ESTATE (Tables)

REAL ESTATE (Tables)	9 Months Ended
	Sep. 30, 2015
Real Estate [Abstract]
Schedule of Real Estate Investments	The following table provides summary information regarding the properties owned by the Company as of September 30, 2015 (dollars in thousands): Property Name Date Acquired Location Total Real Estate, Cost Accumulated Depreciation and Amortization Total Real Estate, Net Legacy at Valley Ranch 10/26/2010 Irving, TX $ 36,646 $ (4,621 ) $ 32,025 Poplar Creek 02/09/2012 Schaumburg, IL 27,091 (2,188 ) 24,903 The Residence at Waterstone 04/06/2012 Pikesville, MD 64,957 (5,645 ) 59,312 Legacy Crescent Park 05/03/2012 Greer, SC 20,611 (2,103 ) 18,508 Legacy at Martin’s Point 05/31/2012 Lombard, IL 37,252 (3,851 ) 33,401 Wesley Village 11/06/2012 Charlotte, NC 44,312 (3,433 ) 40,879 Watertower Apartments 01/15/2013 Eden Prairie, MN 38,592 (2,880 ) 35,712 Crystal Park at Waterford 05/08/2013 Frederick, MD 45,893 (3,283 ) 42,610 Millennium Apartment Homes 06/07/2013 Greenville, SC 33,174 (2,338 ) 30,836 Legacy Grand at Concord 02/18/2014 Concord, NC 27,728 (1,321 ) 26,407 Lofts at the Highlands 02/25/2014 St. Louis, MO 35,709 (1,537 ) 34,172 $ 411,965 $ (33,200 ) $ 378,765

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2015
Notes Payable [Abstract]
Schedule of Long-term Debt Instruments	As of September 30, 2015 and December 31, 2014 , the Company’s notes payable consisted of the following (dollars in thousands): Principal as of September 30, 2015 Principal as of December 31, 2014 Contractual Interest Rate as of September 30, 2015 Payment Type Maturity Date Legacy at Valley Ranch Mortgage Loan $ 31,701 $ 32,131 3.9% Principal & Interest 04/01/2019 Poplar Creek Mortgage Loan 19,876 20,143 4.0% Principal & Interest 03/01/2019 The Residence at Waterstone Mortgage Loan 46,772 47,419 3.8% Principal & Interest 05/01/2019 Legacy Crescent Park Mortgage Loan 13,931 14,146 3.5% Principal & Interest 06/01/2019 Legacy at Martin’s Point Mortgage Loan 22,445 22,781 3.3% Principal & Interest 06/01/2019 Wesley Village Mortgage Loan 27,740 28,253 2.6% Principal & Interest 12/01/2017 Watertower Mortgage Loan 24,669 25,000 2.5% Principal & Interest 02/10/2018 Crystal Park Mortgage Loan 27,882 28,391 2.5% Principal & Interest 06/01/2018 Millennium Mortgage Loan 20,812 21,175 2.7% Principal & Interest 07/01/2018 Legacy Grand at Concord Mortgage Loan 22,766 22,981 4.1% Principal & Interest 12/01/2050 Lofts at the Highlands Mortgage Loan 31,296 31,611 3.4% Principal & Interest 08/01/2052 Total notes payable principal outstanding $ 289,890 $ 294,031 Discount on note payable, net (2,752 ) (2,817 ) Total notes payable, net $ 287,138 $ 291,214
Schedule of Maturities of Long-term Debt	The following is a schedule of maturities, including principal amortization payments, for the Company’s notes payable outstanding as of September 30, 2015 (in thousands): October 1, 2015 through December 31, 2015 $ 1,441 2016 5,844 2017 32,196 2018 72,958 2019 126,682 Thereafter 50,769 $ 289,890

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Schedule of Face Value, Carrying Amounts and Fair Value	The following were the face value, carrying amount and fair value of the Company’s notes payable as of September 30, 2015 and December 31, 2014 (dollars in thousands): September 30, 2015 December 31, 2014 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 289,890 $ 287,138 $ 290,329 $ 294,031 $ 291,214 $ 296,581

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Schedule of Related Party Costs	Pursuant to the terms of these agreements and the property management agreements discussed below, summarized below are the related-party costs incurred by the Company for the three and nine months ended September 30, 2015 and 2014 , respectively, and any related amounts payable as of September 30, 2015 and December 31, 2014 (in thousands): Incurred Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, December 31, 2015 2014 2015 2014 2015 2014 Expensed Asset management fees (1) $ 144 $ 670 $ 687 $ 1,917 $ 4,877 $ 4,752 Reimbursable operating expenses (2) 58 71 264 360 1 45 Acquisition fees on real properties — — — 701 — — Property management fees and expenses (3) 1,368 73 2,136 207 180 — Additional Paid-in Capital Selling commissions — — — 363 — — Dealer manager fees — — — 173 — — Reimbursable other offering costs (4) — — — 59 — — $ 1,570 $ 814 $ 3,087 $ 3,780 $ 5,058 $ 4,797 ____________________ (1) See “Advisory Agreement – Asset Management Fees” 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 certain 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 $44,000 and $29,000 for the three months ended September 30, 2015 and 2014 , respectively, and $92,000 and $82,000 for the nine months ended September 30, 2015 and 2014, respectively, and were the only employee costs reimbursable under the Advisory Agreement through September 30, 2015 . The Company does 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) Property management fees and expenses consist of property management fees paid to Legacy Partners Residential Inc. (“LPR Inc.”), an affiliate of the Sub-Advisor, as well as reimbursable on-site personnel salary and related benefits expenses at the properties. See “— Property Management — Account Services Agreements.” (4) See “— Other Offering Costs Related to Follow-on Offering.”
Schedule of Property Management Agreements	During the nine months ended September 30, 2015 , the Company, through indirect wholly owned subsidiaries (each, a “Property Owner”), entered into property management agreements with LPR Inc. (each, a “Property Management Agreement”), pursuant to which LPR Inc. will provide, among other services, general property management services, including bookkeeping and accounting services, construction management services and budgeting and business plans for the Company’s properties as follows: Property Name Effective Date Management Fee Percentage Watertower Apartments 04/07/2015 2.75% Crystal Park at Waterford 04/14/2015 3.00% The Residence at Waterstone 04/28/2015 3.00% Lofts at the Highlands 05/05/2015 3.00% Legacy at Martin’s Point 05/12/2015 3.00% Poplar Creek 05/14/2015 3.00% Wesley Village 05/19/2015 3.00% Legacy Grand at Concord 05/21/2015 3.00% Millennium Apartment Homes (1) 05/27/2015 3.00% Legacy Crescent Park (1) 05/29/2015 3.00% Legacy at Valley Ranch 06/09/2015 3.00% ____________________ (1) Under the Property Management Agreement, the Property Owner will pay LPR Inc. the Management Fee Percentage in an amount equal to the greater of (a) 3% of the Gross Monthly Collections (as defined in the Property Management Agreement) or (b) $4,000 .

ORGANIZATION (Details)

ORGANIZATION (Details)	9 Months Ended	12 Months Ended	31 Months Ended	36 Months Ended	67 Months Ended	121 Months Ended
	Sep. 30, 2015USD ($)propertyshares	Dec. 31, 2014USD ($)shares	Sep. 30, 2015USD ($)propertyshares	Mar. 12, 2013USD ($)shares	Sep. 30, 2015USD ($)propertyshares	Apr. 30, 2014USD ($)shares	May. 31, 2012USD ($)	Aug. 19, 2009shares	Aug. 07, 2009$ / sharesshares
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	20,373,543	20,084,830	20,373,543		20,373,543
Issuance of common stock, value | $	$ 4,298,000	$ 11,250,000	$ 15,900,000	$ 179,200,000	$ 208,700,000	$ 21,500,000
Shares of common stock sold under dividend reinvestment plan, value | $				$ 3,500,000	17,200,000	$ 5,700,000
Redemptions of common stock, value | $	$ 1,550,000	$ 1,853,000			$ 5,700,000
Apartment Complex [Member]
Organizational Structure [Line Items]
Number of real estate properties | property	11		11		11
Common Stock [Member]
Organizational Structure [Line Items]
Shares of common stock authorized under dividend reinvestment plan, shares								80,000,000
Issuance of common stock, shares	445,902	1,081,474	1,496,198	18,088,084	20,948,181	2,051,925
Issuance of common stock, value | $	$ 4,000	$ 11,000
Shares of common stock sold under dividend reinvestment plan, shares				368,872	1,732,771	555,727
Redemptions of common stock, shares	157,189	193,145			594,638
Redemptions of common stock, value | $	$ 1,000	$ 2,000
Common Stock [Member] | Minimum [Member]
Organizational Structure [Line Items]
Number of shares authorized to be repurchased								250,000
Common Stock [Member] | Maximum [Member]
Organizational Structure [Line Items]
Number of shares authorized to be repurchased								280,000,000
Stock offering, shares authorized for issuance, value | $							$ 2,000,000,000
Stock offering, shares authorized for dividend reinvestment plan, value | $							$ 760,000,000
KBS-Legacy Apartment Community REIT Venture, LLC [Member]
Organizational Structure [Line Items]
Common stock, shares issued									20,000
Common stock, purchase price per share | $ / shares									$ 10
KBS-Legacy Apartment Community REIT Venture, LLC [Member] | Common Stock [Member]
Organizational Structure [Line Items]
Shares held by affiliate	20,000		20,000		20,000

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015property$ / shares	Sep. 30, 2014$ / shares	Sep. 30, 2015segmentsproperty$ / shares	Sep. 30, 2014$ / shares
Real Estate Properties [Line Items]
Number of reportable segments | segments			1
Distributions declared per common share	$ 0.164	$ 0.164	$ 0.486	$ 0.486
Distribution rate per share per day on annual basis, declared	$ 0.00178082	$ 0.00178082	$ 0.00178082	$ 0.00178082
Apartment Complex [Member]
Real Estate Properties [Line Items]
Number of real estate properties | property	11		11

REAL ESTATE (Narrative) (Detail

REAL ESTATE (Narrative) (Details) $ in Thousands, ft² in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)ft²propertyUnits	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)ft²propertyUnits	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Real Estate Properties [Line Items]
Number of real estate units | Units	3,039		3,039
Rentable square feet | ft²	3.1		3.1
Percentage of portfolio occupied	94.00%		94.00%
Tax abatement asset	$ 3,200		$ 3,200		$ 3,400
Property Tax Abatement Intangible Asset [Member]
Real Estate Properties [Line Items]
Amortization of intangible assets	$ 65	$ 65	$ 200	$ 200
Apartment Complex [Member]
Real Estate Properties [Line Items]
Number of real estate properties | property	11		11

REAL ESTATE (Schedule of Real E

REAL ESTATE (Schedule of Real Estate Investments) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Real Estate Properties [Line Items]
Total Real Estate at Cost	$ 411,965	$ 410,207
Accumulated Depreciation and Amortization	(33,200)	(24,344)
Total real estate, net	$ 378,765	$ 385,863
Legacy at Valley Ranch [Member]
Real Estate Properties [Line Items]
Date Acquired	Oct. 26, 2010
Total Real Estate at Cost	$ 36,646
Accumulated Depreciation and Amortization	(4,621)
Total real estate, net	$ 32,025
Poplar Creek [Member]
Real Estate Properties [Line Items]
Date Acquired	Feb. 9, 2012
Total Real Estate at Cost	$ 27,091
Accumulated Depreciation and Amortization	(2,188)
Total real estate, net	$ 24,903
The Residence at Waterstone [Member]
Real Estate Properties [Line Items]
Date Acquired	Apr. 6, 2012
Total Real Estate at Cost	$ 64,957
Accumulated Depreciation and Amortization	(5,645)
Total real estate, net	$ 59,312
Legacy Crescent Park [Member]
Real Estate Properties [Line Items]
Date Acquired	May 3, 2012
Total Real Estate at Cost	$ 20,611
Accumulated Depreciation and Amortization	(2,103)
Total real estate, net	$ 18,508
Legacy at Martin’s Point [Member]
Real Estate Properties [Line Items]
Date Acquired	May 31, 2012
Total Real Estate at Cost	$ 37,252
Accumulated Depreciation and Amortization	(3,851)
Total real estate, net	$ 33,401
Wesley Village [Member]
Real Estate Properties [Line Items]
Date Acquired	Nov. 6, 2012
Total Real Estate at Cost	$ 44,312
Accumulated Depreciation and Amortization	(3,433)
Total real estate, net	$ 40,879
Watertower Apartments [Member]
Real Estate Properties [Line Items]
Date Acquired	Jan. 15, 2013
Total Real Estate at Cost	$ 38,592
Accumulated Depreciation and Amortization	(2,880)
Total real estate, net	$ 35,712
Crystal Park at Waterford [Member]
Real Estate Properties [Line Items]
Date Acquired	May 8, 2013
Total Real Estate at Cost	$ 45,893
Accumulated Depreciation and Amortization	(3,283)
Total real estate, net	$ 42,610
Millennium Apartment Homes [Member]
Real Estate Properties [Line Items]
Date Acquired	Jun. 7, 2013
Total Real Estate at Cost	$ 33,174
Accumulated Depreciation and Amortization	(2,338)
Total real estate, net	$ 30,836
Legacy Grand at Concord [Member]
Real Estate Properties [Line Items]
Date Acquired	Feb. 18, 2014
Total Real Estate at Cost	$ 27,728
Accumulated Depreciation and Amortization	(1,321)
Total real estate, net	$ 26,407
Lofts of the Highlands [Member]
Real Estate Properties [Line Items]
Date Acquired	Feb. 25, 2014
Total Real Estate at Cost	$ 35,709
Accumulated Depreciation and Amortization	(1,537)
Total real estate, net	$ 34,172

REAL ESTATE (Property Damages)

REAL ESTATE (Property Damages) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)property	Sep. 30, 2014USD ($)
Real Estate Properties [Line Items]
Number of real estate properties suffered from physical damage | property			1
Maximum deductible per incident			$ 25,000
Loss due to property damages			78,000	$ 576,000
Insurance recoveries			53,000
Operating, maintenance, and management	$ 1,915,000	$ 2,950,000	6,914,000	$ 8,282,000
Damaged Properties [Member]
Real Estate Properties [Line Items]
Operating, maintenance, and management			$ 25,000

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Debt Instrument [Line Items]
Interest expense	$ 2,636	$ 2,644	$ 7,879	$ 7,581
Amortization of deferred financing costs	100	100	300	300
Amortization of discount and premium on notes payable, net			65	57
Interest payable, current	800		800		$ 900
Notes Payable [Member]
Debt Instrument [Line Items]
Amortization of discount and premium on notes payable, net	22	$ 22	65	$ 57
Deferred Financing Costs, Prepaid Expenses and Other Assets [Member]
Debt Instrument [Line Items]
Deferred financing costs	$ 1,300		$ 1,300		$ 1,600

NOTES PAYABLE (Schedule of Long

NOTES PAYABLE (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Notes Payable	$ 287,138	$ 291,214
Long-term Debt, Gross	289,890	294,031
Discount on note payable, net	(2,752)	(2,817)
Long-term Debt	$ 287,138	291,214
Mortgages [Member] | Legacy at Valley Ranch [Member]
Debt Instrument [Line Items]
Contractual Interest Rate	3.90%
Maturity Date	Apr. 1, 2019
Long-term Debt, Gross	$ 31,701	32,131
Mortgages [Member] | Poplar Creek [Member]
Debt Instrument [Line Items]
Contractual Interest Rate	4.00%
Maturity Date	Mar. 1, 2019
Long-term Debt, Gross	$ 19,876	20,143
Mortgages [Member] | The Residence at Waterstone [Member]
Debt Instrument [Line Items]
Contractual Interest Rate	3.80%
Maturity Date	May 1, 2019
Long-term Debt, Gross	$ 46,772	47,419
Mortgages [Member] | Legacy Crescent Park [Member]
Debt Instrument [Line Items]
Contractual Interest Rate	3.50%
Maturity Date	Jun. 1, 2019
Long-term Debt, Gross	$ 13,931	14,146
Mortgages [Member] | Legacy at Martin’s Point [Member]
Debt Instrument [Line Items]
Contractual Interest Rate	3.30%
Maturity Date	Jun. 1, 2019
Long-term Debt, Gross	$ 22,445	22,781
Mortgages [Member] | Wesley Village [Member]
Debt Instrument [Line Items]
Contractual Interest Rate	2.60%
Maturity Date	Dec. 1, 2017
Long-term Debt, Gross	$ 27,740	28,253
Mortgages [Member] | Watertower Apartments [Member]
Debt Instrument [Line Items]
Contractual Interest Rate	2.50%
Maturity Date	Feb. 10, 2018
Long-term Debt, Gross	$ 24,669	25,000
Mortgages [Member] | Crystal Park Mortgage Loan [Member]
Debt Instrument [Line Items]
Contractual Interest Rate	2.50%
Maturity Date	Jun. 1, 2018
Long-term Debt, Gross	$ 27,882	28,391
Mortgages [Member] | Millennium Mortgage Loan [Member]
Debt Instrument [Line Items]
Contractual Interest Rate	2.70%
Maturity Date	Jul. 1, 2018
Long-term Debt, Gross	$ 20,812	21,175
Mortgages [Member] | Legacy Grand at Concord Mortgage Loan [Member]
Debt Instrument [Line Items]
Contractual Interest Rate	4.10%
Maturity Date	Dec. 1, 2050
Long-term Debt, Gross	$ 22,766	22,981
Mortgages [Member] | Lofts at the Highlands Mortgage Loan [Member]
Debt Instrument [Line Items]
Contractual Interest Rate	3.40%
Maturity Date	Aug. 1, 2052
Long-term Debt, Gross	$ 31,296	$ 31,611

NOTES PAYABLE (Schedule of Matu

NOTES PAYABLE (Schedule of Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Notes Payable [Abstract]
October 1, 2015 through December 31, 2015	$ 1,441
2,016	5,844
2,017	32,196
2,018	72,958
2,019	126,682
Thereafter	50,769
Notes payable	$ 289,890	$ 294,031

FAIR VALUE DISCLOSURES (Details

FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Face Value	$ 289,890	$ 294,031
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Value	287,138	291,214
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Value	$ 290,329	$ 296,581

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended	31 Months Ended	36 Months Ended	65 Months Ended	67 Months Ended	121 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2015	Mar. 12, 2013	Jun. 30, 2015	Sep. 30, 2015	Apr. 30, 2014	Aug. 20, 2014	Mar. 05, 2014	Aug. 14, 2013
Related Party Transaction [Line Items]
Percentage of selling commissions, dealer manager fees, and organization and other offering costs of gross offering proceeds						10.00%
Issuance of common stock, value		$ 4,298,000	$ 11,250,000	$ 15,900,000	$ 179,200,000		$ 208,700,000	$ 21,500,000
Shares of common stock sold under dividend reinvestment plan, value					$ 3,500,000		17,200,000	5,700,000
Expense offering cost								$ 4,200,000
Non‑compounded return on net invested capital								9.90%		8.00%
Due to affiliates	$ 5,058,000	$ 5,058,000	4,797,000	$ 5,058,000			$ 5,058,000
Monthly fees paid of property's gross monthly collections, percentage	1.00%	1.00%		1.00%			1.00%
Initial term of management agreements		1 year
Period of termination notice		30 days
KBS Capital Advisors LLC [Member]
Related Party Transaction [Line Items]
Incurred expenses		$ 61,000
LPR Inc. [Member]
Related Party Transaction [Line Items]
Initial term of management agreements	1 year
Period of termination notice	30 days
Period of termination notice 2	60 days
Period of termination notice 3	90 days
Period of monetary default	30 days
LPR Inc. [Member] | Watertower Apartments and Lofts at the Highlands [Member]
Related Party Transaction [Line Items]
Period of monetary default	10 days
Asset Management Fees [Member]
Related Party Transaction [Line Items]
Due to affiliates	$ 700,000	700,000		$ 700,000			$ 700,000
Incurred expenses		2,100,000
Related parties, deferred fees		1,400,000
February through July 2013 [Member] | Asset Management Fees [Member]
Related Party Transaction [Line Items]
Due to affiliates	$ 1,500,000	$ 1,500,000		$ 1,500,000			$ 1,500,000
August 2013 through June 2014 [Member] | Asset Management Fees [Member]
Related Party Transaction [Line Items]
Due to affiliates			$ 3,300,000
Option One [Member]
Related Party Transaction [Line Items]
Asset management fee, as percent											0.083%
Acquisition advisory fee, percent	1.00%	1.00%		1.00%			1.00%
Option Two [Member]
Related Party Transaction [Line Items]
Asset management fee, as percent											0.166%
Acquisition advisory fee, percent	2.00%	2.00%		2.00%			2.00%
Dealer Manager [Member]
Related Party Transaction [Line Items]
Expense offering cost								$ 200,000
Additional payment received									$ 55,000
After Reimbursements from the Advisor and the Dealer Manager [Member]
Related Party Transaction [Line Items]
Expense offering cost								3,200,000
Underwriting Compensation [Member]
Related Party Transaction [Line Items]
Expense offering cost								1,800,000
Underwriting Compensation [Member] | After Reimbursements from the Advisor and the Dealer Manager [Member]
Related Party Transaction [Line Items]
Expense offering cost								$ 1,600,000
Common Stock [Member]
Related Party Transaction [Line Items]
Issuance of common stock, shares		445,902	1,081,474	1,496,198	18,088,084		20,948,181	2,051,925
Issuance of common stock, value		$ 4,000	$ 11,000
Shares of common stock sold under dividend reinvestment plan, shares					368,872		1,732,771	555,727
Maximum [Member]
Related Party Transaction [Line Items]
Reimbursed offering costs determination, gross offering costs, percentage (exceeds amount)						15.00%		15.00%

RELATED PARTY TRANSACTIONS (Sch

RELATED PARTY TRANSACTIONS (Schedule of Related Party Costs) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Payable as of		$ 5,058		$ 5,058		$ 4,797
Administrative fees		44	$ 29	92	$ 82
Asset Management Fees [Member]
Related Party Transaction [Line Items]
Expenses				2,100
Payable as of		700		700
Advisor and Dealer Manager [Member]
Related Party Transaction [Line Items]
Incurred		1,570	814	3,087	3,780
Payable as of		5,058		5,058		4,797
Advisor and Dealer Manager [Member] | Expensed [Member] | Asset Management Fees [Member]
Related Party Transaction [Line Items]
Expenses	[1]	144	670	687	1,917
Payable as of	[1]	4,877		4,877		4,752
Advisor and Dealer Manager [Member] | Expensed [Member] | Reimbursement of Operating Expenses [Member]
Related Party Transaction [Line Items]
Expenses	[2]	58	71	264	360
Payable as of	[2]	1		1		45
Advisor and Dealer Manager [Member] | Expensed [Member] | Acquisition Fees [Member]
Related Party Transaction [Line Items]
Expenses		0	0	0	701
Payable as of		0		0		0
Advisor and Dealer Manager [Member] | Expensed [Member] | Property Management Fees and Expenses [Member]
Related Party Transaction [Line Items]
Expenses	[3]	1,368	73	2,136	207
Payable as of	[3]	180		180		0
Advisor and Dealer Manager [Member] | Additional Paid-in Capital [Member] | Sales Commissions [Member]
Related Party Transaction [Line Items]
Incurred		0	0	0	363
Payable as of		0		0		0
Advisor and Dealer Manager [Member] | Additional Paid-in Capital [Member] | Dealer Manager Fees [Member]
Related Party Transaction [Line Items]
Incurred		0	0	0	173
Payable as of		0		0		0
Advisor and Dealer Manager [Member] | Additional Paid-in Capital [Member] | Reimbursable Other Offering Costs [Member]
Related Party Transaction [Line Items]
Incurred	[4]	0	$ 0	0	$ 59
Payable as of	[4]	$ 0		$ 0		$ 0
[1]	See “Advisory Agreement – Asset Management Fees” 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 certain 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 $44,000 and $29,000 for the three months ended September 30, 2015 and 2014, respectively, and $92,000 and $82,000 for the nine months ended September 30, 2015 and 2014, respectively, and were the only employee costs reimbursable under the Advisory Agreement through September 30, 2015. The Company does 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]	Property management fees and expenses consist of property management fees paid to Legacy Partners Residential Inc. (“LPR Inc.”), an affiliate of the Sub-Advisor, as well as reimbursable on-site personnel salary and related benefits expenses at the properties. See “— Property Management — Account Services Agreements.”
[4]	See “— Other Offering Costs Related to Follow-on Offering.”

RELATED PARTY TRANSACTIONS (Pro

RELATED PARTY TRANSACTIONS (Property Management Agreements) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Watertower Apartments [Member]
Related Party Transaction [Line Items]
Management Fee Percentage	2.75%
Crystal Park at Waterford [Member]
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
The Residence at Waterstone [Member]
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
Lofts of the Highlands [Member]
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
Legacy at Martin’s Point [Member]
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
Poplar Creek [Member]
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
Wesley Village [Member]
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
Legacy Grand at Concord [Member]
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
Millennium Apartment Homes [Member]
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%	[1]
Property management fee, amount	$ 4
Legacy Crescent Park [Member]
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%	[1]
Property management fee, amount	$ 4
Legacy at Valley Ranch [Member]
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
[1]	Under the Property Management Agreement, the Property Owner will pay LPR Inc. the Management Fee Percentage in an amount equal to the greater of (a) 3% of the Gross Monthly Collections (as defined in the Property Management Agreement) or (b) $4,000.

SUBSEQUENT EVENTS (Distribution

SUBSEQUENT EVENTS (Distributions) (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 11, 2015	Nov. 02, 2015	Oct. 13, 2015	Oct. 01, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Subsequent Event [Line Items]
Distributions declared							$ 9,823		$ 12,905
Distribution rate per share per day on annual basis, declared					$ 0.00178082	$ 0.00178082	$ 0.00178082	$ 0.00178082
Subsequent Event [Member] | Dividend Paid [Member]
Subsequent Event [Line Items]
Distributions declared		$ 1,100		$ 1,100
Subsequent Event [Member] | Dividend Declared [Member]
Subsequent Event [Line Items]
Distribution rate per share per day on annual basis, declared	$ 0.00178082		$ 0.00178082
Distribution rate per share annualized, declared, based on purchase price	6.50%		6.50%
Distribution rate per share annualized, declared, based on offering price	6.40%		6.40%
Offering price per share	$ 10.14		$ 10.14
Subsequent Event [Member] | Dividend Declared [Member] | Initial Primary Offering Purchase Price [Member]
Subsequent Event [Line Items]
Common stock, purchase price per share	$ 10		$ 10