KBS Legacy Partners Apartment REIT 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 09, 2017
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
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		21,026,756

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Real estate held for investment:
Land	$ 21,205	$ 21,205
Buildings and improvements	162,858	162,574
Total real estate held for investment, cost	184,063	183,779
Less accumulated depreciation and amortization	(24,182)	(20,873)
Total real estate held for investment, net	159,881	162,906
Real estate held for sale, net	109,448	203,354
Total real estate, net	269,329	366,260
Cash and cash equivalents	47,547	15,998
Restricted cash	4,151	5,099
Assets related to real estate held for sale	17	477
Prepaid expenses and other assets	4,278	4,103
Total assets	325,322	391,937
Notes payable:
Notes payable, net	129,526	131,366
Notes payable related to real estate held for sale, net	82,397	147,780
Total notes payable, net	211,923	279,146
Accounts payable and accrued liabilities	4,729	5,566
Due to affiliates	260	157
Distributions payable	938	1,154
Other liabilities	2,465	2,778
Total liabilities	220,315	288,801
Commitments and contingencies (Note 7)
Redeemable common stock	482	350
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, 21,026,756 and 20,896,268 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively	210	209
Additional paid-in capital	181,138	180,196
Cumulative distributions and net losses	(76,823)	(77,619)
Total stockholders’ equity	104,525	102,786
Total liabilities and stockholders’ equity	$ 325,322	$ 391,937

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	21,026,756	20,896,268
Common stock, shares outstanding (in shares)	21,026,756	20,896,268

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Rental income	$ 10,111	$ 11,498	$ 31,458	$ 34,019
Total revenues	10,111	11,498	31,458	34,019
Expenses:
Operating, maintenance, and management	1,528	1,671	4,435	4,854
Real estate taxes and insurance	1,712	1,797	5,347	5,248
Asset management fees to affiliate	0	104	234	343
Property management fees and expenses to affiliate	1,432	1,506	4,422	4,359
General and administrative expenses	1,082	473	2,190	1,947
Depreciation and amortization	2,621	3,084	8,384	9,201
Interest expense	2,320	2,588	7,180	7,758
Total expenses	10,695	11,223	32,192	33,710
Other income:
Interest and other income	31	4,765	106	4,793
Gain on sale of real estate	14,653	0	31,123	0
Loss from extinguishment of debt	(403)	0	(671)	0
Total other income	14,281	4,765	30,558	4,793
Net income	$ 13,697	$ 5,040	$ 29,824	$ 5,102
Net income per common share, basic and diluted (in dollars per share)	$ 0.65	$ 0.24	$ 1.42	$ 0.25
Weighted-average number of common shares outstanding, basic and diluted (in shares)	21,010,781	20,718,265	20,935,670	20,601,992

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Cumulative Distributions and Net Income (Loss)
Balance (in shares) at Dec. 31, 2015		20,508,397
Balance at Dec. 31, 2015	$ 107,371	$ 205	$ 176,476	$ (69,310)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		586,585
Issuance of common stock	5,737	$ 6	5,731
Redemptions of common stock (in shares)		(198,714)
Redemptions of common stock	(2,019)	$ (2)	(2,017)
Distributions declared	(13,430)			(13,430)
Other offering costs	6		6
Net income	$ 5,121			5,121
Balance (in shares) at Dec. 31, 2016	20,896,268	20,896,268
Balance at Dec. 31, 2016	$ 102,786	$ 209	180,196	(77,619)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		347,390
Issuance of common stock	2,953	$ 3	2,950
Redemptions of common stock (in shares)		(216,902)
Redemptions of common stock	(2,000)	$ (2)	(1,998)
Distributions declared	(29,028)			(29,028)
Other offering costs	(10)		(10)
Net income	$ 29,824			29,824
Balance (in shares) at Sep. 30, 2017	21,026,756	21,026,756
Balance at Sep. 30, 2017	$ 104,525	$ 210	$ 181,138	$ (76,823)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Cash Flows from Operating Activities:
Net income	$ 13,697	$ 5,040	$ 29,824	$ 5,102	$ 5,121
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,621	3,084	8,384	9,201
Bad debt expense			334	371
Loss due to property damages			767	145
Loss due to extinguishment of debt	403	0	671	0
Amortization of discount on notes payable			66	65
Amortization of deferred financing costs			316	311
Gain on sale of real estate, net			(31,123)	0
Changes in operating assets and liabilities:
Prepaid expenses and other assets			(1,382)	(709)
Accounts payable and accrued liabilities			(844)	159
Due to affiliates			103	(4,615)
Other liabilities			(181)	89
Net cash provided by operating activities			6,935	10,119
Cash Flows from Investing Activities:
Proceeds from sale of real estate			121,305	0
Improvements to real estate			(1,804)	(1,749)
Insurance proceeds received for property damage			742	133
Net cash provided by (used in) investing activities			120,243	(1,616)
Cash Flows from Financing Activities:
Principal payments on mortgage notes payable			(67,668)	(4,355)
Prepayment fees related to the extinguishment of debt			(608)	0
Payments to redeem common stock			(2,000)	(2,019)
Payments of other offering costs			(10)	7
Distributions paid			(26,291)	(5,715)
Net cash used in financing activities			(96,577)	(12,082)
Net increase (decrease) in cash, cash equivalents and restricted cash			30,601	(3,579)
Cash, cash equivalents and restricted cash, beginning of period			21,097	24,869	24,869
Cash, cash equivalents and restricted cash, end of period	$ 51,698	$ 21,290	51,698	21,290	$ 21,097
Supplemental Disclosure of Cash Flow Information:
Interest paid			6,957	7,413
Supplemental Disclosure of Noncash Transactions:
Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan			2,953	4,324
Increase in redeemable common stock payable			$ 132	$ 483

ORGANIZATION

ORGANIZATION	9 Months Ended
	Sep. 30, 2017
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, 2017 (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, 2017 , the Sub-Advisor owned 20,000 shares of common stock of the Company. The Company invested in and manages a portfolio of high quality apartment complexes located throughout the United States. The Company’s portfolio consists of “core” apartment complexes that were already well-positioned and producing rental income at acquisition. As of September 30, 2017 , the Company owned eight apartment complexes, all of which were under contract to sell. The sale of four of such properties (the “Core-Portfolio Properties”) is subject to stockholder approval of the Plan of Liquidation (defined below) and as such, the Core-Portfolio Properties are held for investment. As of September 30, 2017 , the Company’s remaining four properties were held for sale and subsequent to September 30, 2017 , the Company completed the sale of three of these properties. See Note 8, “Subsequent Events — Dispositions Subsequent to September 30, 2017.” 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. In the Follow-on Offering, the Company sold 3,943,266 shares of common stock for gross offering proceeds of $39.7 million , including 2,447,068 shares of common stock under the dividend reinvestment plan for gross offering proceeds of $23.9 million . The Company sold an aggregate of 22,031,350 shares of common stock in the Offerings for gross offering proceeds of $218.9 million , including an aggregate of 2,815,940 shares of common stock under the dividend reinvestment plan for gross offering proceeds of $27.4 million . The Company terminated the dividend reinvestment plan effective as of August 20, 2017. Also, as of September 30, 2017 , the Company had redeemed 1,024,594 shares sold in the Offerings for $9.9 million . Plan of Liquidation On August 14, 2017, in connection with a review of potential strategic alternatives available to the Company, the board of directors unanimously approved the sale of all of the Company’s properties and the dissolution of the Company pursuant to the terms of a plan of complete liquidation and dissolution of the Company (the “Plan of Liquidation”), pending stockholder approval. The principal purpose of the Plan of Liquidation is to maximize stockholder value by selling the Company’s properties, paying its debts and distributing the net proceeds from liquidation to the Company’s stockholders. Pursuant to the Company’s charter, the affirmative vote of a majority of all of the shares of common stock entitled to vote on the Plan of Liquidation is required for approval of the Plan of Liquidation. The Company can provide no assurance that the Plan of Liquidation will be approved by the Company’s stockholders. If the Plan of Liquidation is approved by the Company’s stockholders, the Company expects to pay liquidating distributions to its stockholders during the liquidation process and to pay the final liquidating distribution after the Company sells all of its remaining properties, pays all of its known liabilities and provides for unknown liabilities. The Company expects to complete these activities within 12 months after stockholder approval of the Plan of Liquidation. However, there can be no assurances regarding the amounts of any liquidating distributions or the timing thereof.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2017
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, 2016 . 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, 2016 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, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . 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 unaudited consolidated financial statements and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and condensed notes. Actual results could materially differ from those estimates. Segments As of September 30, 2017 , the Company owned eight apartment complexes, all of which were under contract to sell. The sale of the Core-Portfolio Properties is subject to stockholder approval of the Plan of Liquidation and as such, the Core-Portfolio Properties are held for investment. As of September 30, 2017 , the Company’s remaining four properties were held for sale. 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. 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. During the nine months ended September 30, 2017 , the Company sold three apartment complexes. Additionally, as of September 30, 2017 , the Company had classified four apartment complexes as held for sale. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented. Additionally, during the year ended December 31, 2016, the Company elected to early adopt ASU No. 2016-18 (as defined below). As a result, the Company no longer presents the changes within restricted cash in the consolidated statements of cash flows. Instead, restricted cash is included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the consolidated statements of cash flows. In addition, during the nine months ended September 30, 2017 , the Company reclassed the prepayment fee incurred related to the repayment of the mortgage loan secured by a real estate property sold in March 2017, previously recorded as interest expense during the three months ended March 31, 2017, to loss from extinguishment of debt. Square Footage, Occupancy and Other Measures Any references to square footage or occupancy are unaudited and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. 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, 2017 and 2016 . Distributions declared per share of common stock were $0.137 and $1.388 for the three and nine months ended September 30, 2017 . Distributions declared per share of common stock were based on daily record dates for each day during the period commencing January 1, 2017 through February 28, 2017. Distributions declared per share of common stock assumes each share was issued and outstanding each day during this period. For each day that was a record date for distributions during this period, distributions were calculated at a rate of $0.00178082 per share per day. For the month of March 2017 and for the period from May 2017 through September 2017, the Company’s board of directors declared monthly distributions based on a monthly record date. Additionally, the Company’s board of directors declared a special distribution in the amount $1.00 per share of common stock to stockholders of record as of the close of business on April 20, 2017. Distributions declared per share of common stock were $0.164 and $0.486 for the three and nine months ended September 30, 2016 , respectively. Distributions declared per share of common stock assumes each share was issued and outstanding each day that was a record date for distributions during these periods. For the three and nine months ended September 30, 2016 , 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, 2016 through February 28, 2016 and March 1, 2016 through September 30, 2016 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 primary source of revenue for the Company is generated through leasing arrangements, which are excluded from this standard. The Company’s revenues that may be impacted by this standard primarily include other operating income, sales of real estate and other ancillary income earned at its properties. In 2016, other operating income and other ancillary income were approximately 3% of consolidated revenue. The Company is in process of evaluating how this standard will impact sales of real estate. The Company continues to evaluate the impact that the standard will have on its consolidated financial statements. The Company expects to adopt the standard using the modified retrospective approach, which requires a cumulative effect adjustment as of the date of the adoption. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU No. 2016-01”). The amendments in ASU No. 2016-01 address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU No. 2016-01 primarily affects accounting for equity investments and financial liabilities where the fair value option has been elected. ASU No. 2016-01 also requires entities to present financial assets and financial liabilities separately, grouped by measurement category and form of financial asset in the balance sheet or in the accompanying notes to the financial statements. ASU No. 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early application of certain provisions of the standard is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU No. 2016-01 to have a significant impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). The amendments in ASU No. 2016-02 change the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU No. 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of ASU No. 2016-02 as of its issuance is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the new leases standard on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU No. 2016-15”). ASU No. 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The amendments in ASU No. 2016-15 provide guidance on eight specific cash flow issues, including the following that are or may be relevant to the Company: (a) Cash payments for debt prepayment or debt extinguishment costs should be classified as cash outflows for financing activities; (b) Cash payments relating to contingent consideration made soon after an acquisition’s consummation date (i.e., approximately three months or less) should be classified as cash outflows for investing activities. Payments made thereafter should be classified as cash outflows for financing activities up to the amount of the original contingent consideration liability. Payments made in excess of the amount of the original contingent consideration liability should be classified as cash outflows for operating activities; (c) Cash payments received from the settlement of insurance claims should be classified on the basis of the nature of the loss (or each component loss, if an entity receives a lump-sum settlement); and (d) In the absence of specific guidance, an entity should classify each separately identifiable cash source and use on the basis of the nature of the underlying cash flows. For cash flows with aspects of more than one class that cannot be separated, the classification should be based on the activity that is likely to be the predominant source or use of cash flow. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is still evaluating the impact of adopting ASU No. 2016-15 on its financial statements, but does not expect the adoption of ASU No. 2016-15 to have a material impact on its financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU No. 2016-18”). ASU No. 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company elected to early adopt ASU No. 2016-18 for the reporting period ended December 31, 2016 and applied it retrospectively. As a result of the adoption of ASU No. 2016-18, the Company no longer presents the changes within restricted cash in the consolidated statements of cash flows.

REAL ESTATE

REAL ESTATE	9 Months Ended
	Sep. 30, 2017
Real Estate [Abstract]
REAL ESTATE	REAL ESTATE Real Estate Held for Investment As of September 30, 2017 , the Company’s portfolio of real estate held for investment consisted of the four Core-Portfolio Properties (further described in the table below), all of which were under contract to sell. The sale of the Core-Portfolio Properties is subject to stockholder approval of the Plan of Liquidation and as such, the Core-Portfolio Properties are held for investment. These properties contained 1,273 units and encompassing 1.4 million rentable square feet, and were 93% occupied. The following table provides summary information regarding the properties that were held for investment by the Company as of September 30, 2017 (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 $ 36,636 $ (5,813 ) $ 30,823 The Residence at Waterstone 04/06/2012 Pikesville, MD 65,213 (8,658 ) 56,555 Crystal Park at Waterford 05/08/2013 Frederick, MD 46,224 (6,253 ) 39,971 Lofts at the Highlands 02/25/2014 St. Louis, MO 35,990 (3,458 ) 32,532 $ 184,063 $ (24,182 ) $ 159,881 Additionally, as of September 30, 2017 and December 31, 2016 , the Company had recorded unamortized tax abatement intangible assets relating to its real estate held for investment, which are included in prepaid expenses and other assets in the accompanying balance sheets, of $2.3 million and $2.5 million , respectively. During the three and nine months ended September 30, 2017 , the Company recorded amortization expense of $41,000 and $0.1 million , respectively, related to tax abatement intangible assets. During the three and nine months ended September 30, 2016 , the Company recorded amortization expense of $65,000 and $0.2 million , respectively, related to tax abatement intangible assets. Real Estate Held for Sale In accordance with ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU No. 2014-08”), results of operations from properties that are classified as held for sale in the ordinary course of business would generally be included in continuing operations on the Company’s consolidated statements of operations. During the nine months ended September 30, 2017 , the Company disposed of three apartment complexes. Additionally, as of September 30, 2017 , the Company had classified Poplar Creek, Legacy at Martin’s Point, Millennium Apartment Homes and Legacy Grand at Concord as held for sale and subsequent to September 30, 2017 , the Company completed the sale of three of these properties. See Note 8, “Subsequent Events — Dispositions Subsequent to September 30, 2017.” The results of operations for the properties sold during the nine months ended September 30, 2017 and the properties held for sale as of September 30, 2017 are included in continuing operations on the Company’s consolidated statements of operations. The following table summarizes certain revenues and expenses related to these seven properties, which were included in continuing operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues Rental income $ 4,968 $ 6,271 $ 15,903 $ 18,583 Total revenues 4,968 6,271 15,903 18,583 Expenses Operating, maintenance, and management 714 875 2,220 2,564 Real estate taxes and insurance 896 918 2,918 2,911 Asset management fees to affiliate — 174 138 174 Property management fees to affiliate 767 843 2,390 2,415 General and administrative expenses 55 — 99 7 Depreciation and amortization 1,279 1,755 4,361 5,237 Interest expense 1,048 1,293 3,645 3,876 Total expenses $ 4,759 $ 5,858 $ 15,771 $ 17,184 The following summary presents the major components of assets and liabilities related to the Company’s four real estate properties held for sale as of September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 Assets related to real estate held for sale Total real estate, at cost $ 125,737 $ 230,072 Accumulated depreciation and amortization (16,289 ) (26,718 ) Real estate held for sale, net 109,448 203,354 Other assets 17 477 Total assets related to real estate held for sale $ 109,465 $ 203,831 Liabilities related to real estate held for sale Notes payable, net 82,397 147,780 Total liabilities related to real estate held for sale $ 82,397 $ 147,780

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2017
Notes Payable [Abstract]
NOTES PAYABLE	NOTES PAYABLE As of September 30, 2017 and December 31, 2016 , the Company’s notes payable, including notes payable related to real estate held for sale, consisted of the following (dollars in thousands): Book Value as of September 30, 2017 Book Value as of December 31, 2016 Contractual Interest Rate as of September 30, 2017 Payment Type Maturity Date Legacy at Valley Ranch Mortgage Loan $ 30,493 $ 30,958 3.9% Principal & Interest 04/01/2019 Poplar Creek Mortgage Loan 19,125 19,414 4.0% Principal & Interest 03/01/2019 (1) The Residence at Waterstone Mortgage Loan 44,955 45,653 3.8% Principal & Interest 05/01/2019 (1) Legacy Crescent Park Mortgage Loan (2) — 13,560 (2) (2) (2) Legacy at Martin’s Point Mortgage Loan 21,506 21,866 3.3% Principal & Interest 06/01/2019 (1) Wesley Village Mortgage Loan (3) — 26,862 (3) (3) (3) Watertower Mortgage Loan (4) — 23,943 (4) (4) (4) Crystal Park Mortgage Loan 26,477 27,013 2.5% Principal & Interest 06/01/2018 (1) Millennium Mortgage Loan 19,806 20,190 2.7% Principal & Interest 07/01/2018 (1) Legacy Grand at Concord Mortgage Loan 22,158 22,392 4.1% Principal & Interest 12/01/2050 (1) Lofts at the Highlands Mortgage Loan 30,417 30,754 3.4% Principal & Interest 08/01/2052 (1) Total notes payable principal outstanding $ 214,937 $ 282,605 Discount on note payable, net (2,578 ) (2,644 ) Deferred financing costs, net (436 ) (815 ) Total notes payable, net $ 211,923 $ 279,146 ____________________ (1) The Company has the right to repay the loan subject to certain conditions and prepayment penalties. (2) On September 29, 2017, in connection with the disposition of Legacy Crescent Park, the Company paid off the Legacy Crescent Park Mortgage Loan. (3) On March 9, 2017, in connection with the disposition of Wesley Village, the Company paid off the Wesley Village Mortgage Loan. (4) On September 12, 2017, in connection with the disposition of Watertower Apartments, the Company paid off the Watertower Mortgage Loan. During the three and nine months ended September 30, 2017 , the Company incurred $2.3 million and $7.2 million of interest expense, respectively. During the three and nine months ended September 30, 2016 , the Company incurred $2.6 million and $7.8 million of interest expense, respectively. Included in interest expense for the three and nine months ended September 30, 2017 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, 2016 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, 2017 were $22,000 and $66,000 of amortization of discount on a note payable, respectively, and $22,000 and $65,000 of amortization of discount on a note payable for the three and nine months ended September 30, 2016 , respectively. As of September 30, 2017 and December 31, 2016 , the Company recorded interest payable of $0.6 million and $0.8 million , respectively. The following is a schedule of maturities, including principal payments, for the Company’s notes payable outstanding as of September 30, 2017 (in thousands): October 1, 2017 through December 31, 2017 $ 1,125 2018 49,291 2019 113,752 2020 852 2021 884 Thereafter 49,033 $ 214,937

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURES	FAIR VALUE DISCLOSURES Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other non-financial and financial assets at fair value on a non-recurring basis (e.g., carrying value of impaired 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, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 December 31, 2016 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 214,937 $ 211,923 $ 217,106 $ 282,605 $ 279,146 $ 279,258 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. Low levels of transaction volume for certain financial instruments have 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, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Company has entered into the Advisory Agreement with the Advisor and the Follow-on Dealer Manager Agreement 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 Follow-on Offering and entitle the Advisor to specified fees upon the provision of certain services with regard to the management and disposition 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, which the Company terminated effective as of August 20, 2017, and certain costs incurred by the Advisor in providing services to the Company, such as certain operating costs. 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 or served as the advisor and dealer manager, respectively, for KBS Real Estate Investment Trust, Inc. (“KBS REIT I”), KBS Real Estate Investment Trust II, Inc., KBS 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 REIT I, 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. In June 2017, the Company renewed its participation in the program, and the program is effective through June 30, 2018. As KBS REIT I is implementing its plan of liquidation, at renewal in June 2017, KBS REIT I elected to cease participation in the program and obtain separate insurance coverage. During the three and nine months ended September 30, 2017 and 2016 , no other business transactions occurred between the Company and KBS REIT I, 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, 2017 and 2016 , respectively, and any related amounts payable as of September 30, 2017 and December 31, 2016 (in thousands): Incurred Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, December 31, 2017 2016 2017 2016 2017 2016 Expensed Asset management fees (1) $ — $ 104 $ 234 $ 343 $ — $ — Reimbursable operating expenses (2) 68 68 192 184 24 15 Property management fees and expenses (3) 1,432 1,506 4,422 4,359 236 142 Disposition fees (4) 436 — 807 — — — $ 1,936 $ 1,678 $ 5,655 $ 4,886 $ 260 $ 157 ____________________ (1) See “Advisory Agreement – Asset Management Fee” below. (2) Reimbursable operating expenses primarily consist of marketing research costs and property site visit expenses incurred by the Sub-Advisor and internal audit personnel costs, accounting software and cybersecurity related expenses incurred by the Advisor 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 $47,000 and $48,000 for the three months ended September 30, 2017 and 2016 , respectively, and $119,000 and $123,000 for the nine months ended September 30, 2017 and 2016 , respectively, and were the only type of employee costs reimbursed under the Advisory Agreement through September 30, 2017 . 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. In addition to the amounts above, the Company reimburses the Advisor and Sub-Advisor for certain of the Company’s direct property operating costs incurred from third parties that were initially paid by the Advisor and Sub-Advisor on behalf of the Company. (3) Property management fees and expenses are all paid to Legacy Partners, Inc. (“LPI”), an affiliate of the Sub-Advisor, and consist of (i) reimbursable on-site salary and related benefits expenses for personnel at the managed properties, and (ii) fees for account maintenance and bookkeeping services. See “— Property Management Agreements.” (4) Disposition fees with respect to real estate sold are included in the gain on sale of real estate, net, in the accompanying consolidated statements of operations. During the nine months ended September 30, 2017 , the Advisor reimbursed the Company for a $27,000 property insurance rebate. In connection with the Follow-on 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, 2017 , the Advisor incurred $61,000 for the costs of the supplemental coverage obtained by the Company. On March 9, 2017, the Company sold Wesley Village to the Purchaser. Gary T. Kachadurian, one of the Company’s independent directors, is also a director of a real estate investment trust sponsored by the purchaser of Wesley Village (the “Purchaser REIT”) and is Vice Chairman of the manager of the Purchaser REIT and as such, Mr. Kachadurian (i) recused himself from all of the Company’s deliberations relating to the disposition of Wesley Village, and (ii) informed the Company and its board of directors that he recused himself from all of the Purchaser REIT’s and its manager’s deliberations relating to the acquisition of Wesley Village. 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, 2017 , the Company had deferred payment of $1.5 million of asset management fees for the period from February 2013 through July 2013, but did not record an accrual on its books as the Company believed that the chance of payment of this amount to the Advisor is remote. 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 September 30, 2017 , the Company had deferred payment of $8.0 million of asset management fees for the period from August 2013 through December 2016, but did not record an accrual on its books as the Company believed that the chance of payment of this amount to the Advisor is remote. During the nine months ended September 30, 2017 , the Company incurred $2.0 million of asset management fees. However, the Company only recorded $0.2 million pursuant to the limitations in the Advisory Agreement as noted above. The Company did not accrue the remaining $1.8 million of these asset management fees as it is not expected that any of these amounts will be paid in the future. During the nine months ended September 30, 2016 , the Company incurred $2.2 million of asset management fees. However, the Company only recorded $0.3 million pursuant to the limitations in the Advisory Agreement as noted above. The Company did not accrue the remaining $1.9 million of these asset management fees as it is not expected that 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 Agreements The Company, through indirect wholly owned subsidiaries (each, a “Property Owner”), entered into property management agreements with LPI (each a “Property Management Agreement”), pursuant to which LPI provides or provided, 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 (1) 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 (2) 05/19/2015 3.00% Legacy Grand at Concord 05/21/2015 3.00% Millennium Apartment Homes (3) 05/27/2015 3.00% Legacy Crescent Park (3) (4) 05/29/2015 3.00% Legacy at Valley Ranch 06/09/2015 3.00% ____________________ (1) On September 12, 2017, the Company sold Watertower Apartments. The Property Management Agreement for Watertower Apartments was terminated effective as of September 12, 2017. (2) On March 9, 2017, the Company sold Wesley Village. The Property Management Agreement for Wesley Village was terminated effective as of March 9, 2017. (3) Under the Property Management Agreement, the Property Owner pays or paid LPI 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 per month. (4) On September 29, 2017, the Company sold Legacy Crescent Park. The Property Management Agreement for Legacy Crescent Park was terminated effective as of September 29, 2017. Under the Property Management Agreements for the Company’s remaining properties, each Property Owner pays or paid LPI: (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 LPI 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 LPI for executed retail leases that were procured or obtained by LPI, (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, LPI is responsible for all expenses that it incurs in rendering services pursuant to each Property Management Agreement. Each Property Management Agreement had an initial term of one year and each has continued on a month-to-month basis pursuant to its terms. Either party may terminate a Property Management Agreement provided it gives 30 days’ prior written notice of its desire to terminate such agreement. The Property Owner may also terminate the Property Management Agreement with cause immediately upon notice to LPI and the expiration of any applicable cure period. LPI 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. LPI 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 LPI to a Property Owner for a default or, in the case of Lofts at the Highlands, Legacy Grand at Concord, and Millennium Apartment Homes, if a monetary default continues for a period of 10 days after notice of such monetary default.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2017
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 LPI to provide the property management services under the Property Management Agreements. In the event that these companies are unable to provide any of 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, 2017
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 2, 2017, the Company paid distributions of $0.9 million , which related to distributions declared for September 2017 in the amount of $0.04460959 per share of common stock to stockholders of record as of the close of business on September 20, 2017. Dispositions Subsequent to September 30, 2017 Disposition of Legacy Grand at Concord On February 18, 2014, the Company, through an indirect wholly owned subsidiary, purchased a 240 -unit apartment complex (“Legacy Grand at Concord”) on approximately 18.4 acres of land located in Concord, North Carolina. On October 30, 2017, the Company completed the sale of Legacy Grand at Concord to an unaffiliated buyer for $32.9 million , net of closing costs and fees. In connection with the disposition of Legacy Grand at Concord, the Company repaid the entire $22.1 million principal balance and all other sums due under the mortgage loan secured by Legacy Grand at Concord, including a prepayment fee of $0.9 million . Disposition of Millennium Apartment Homes On June 7, 2013, the Company, through an indirect wholly owned subsidiary, purchased a 305 -unit apartment complex (“Millennium Apartment Homes”) on approximately 32.9 acres of land located in Greenville, South Carolina. On October 31, 2017, the Company completed the sale of Millennium Apartment Homes to an unaffiliated buyer for $35.6 million , net of closing costs and fees. In connection with the disposition of Millennium Apartment Homes, the Company repaid the entire $19.8 million principal balance and all other sums due under the mortgage loan secured by Millennium Apartment Homes, including a prepayment fee of $0.2 million . Disposition of Legacy at Martin’s Point On May 31, 2012, the Company, through an indirect wholly owned subsidiary, purchased a 256 -unit apartment complex (“Legacy at Martin’s Point”) on approximately 13.2 acres of land located in the Chicago suburb of Lombard, Illinois. On October 31, 2017, the Company completed the sale of Legacy at Martin’s Point to an unaffiliated buyer for $37.6 million , net of closing costs and fees. In connection with the disposition of Legacy at Martin’s Point, the Company repaid the entire $21.5 million principal balance and all other sums due under the mortgage loan secured by Legacy at Martin’s Point, including a prepayment fee of $0.5 million .

SUMMARY OF SIGNIFICANT ACCOUN15

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2017
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, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 .
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 unaudited consolidated financial statements and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and condensed notes. Actual results could materially differ from those estimates.
Segments	As of September 30, 2017 , the Company owned eight apartment complexes, all of which were under contract to sell. The sale of the Core-Portfolio Properties is subject to stockholder approval of the Plan of Liquidation and as such, the Core-Portfolio Properties are held for investment. As of September 30, 2017 , the Company’s remaining four properties were held for sale. 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.
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. During the nine months ended September 30, 2017 , the Company sold three apartment complexes. Additionally, as of September 30, 2017 , the Company had classified four apartment complexes as held for sale. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented. Additionally, during the year ended December 31, 2016, the Company elected to early adopt ASU No. 2016-18 (as defined below). As a result, the Company no longer presents the changes within restricted cash in the consolidated statements of cash flows. Instead, restricted cash is included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the consolidated statements of cash flows. In addition, during the nine months ended September 30, 2017 , the Company reclassed the prepayment fee incurred related to the repayment of the mortgage loan secured by a real estate property sold in March 2017, previously recorded as interest expense during the three months ended March 31, 2017, to loss from extinguishment of debt.
Square Footage, Occupancy and Other Measures	Any references to square footage or occupancy are unaudited and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board.
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, 2017 and 2016 . Distributions declared per share of common stock were $0.137 and $1.388 for the three and nine months ended September 30, 2017 . Distributions declared per share of common stock were based on daily record dates for each day during the period commencing January 1, 2017 through February 28, 2017. Distributions declared per share of common stock assumes each share was issued and outstanding each day during this period. For each day that was a record date for distributions during this period, distributions were calculated at a rate of $0.00178082 per share per day. For the month of March 2017 and for the period from May 2017 through September 2017, the Company’s board of directors declared monthly distributions based on a monthly record date. Additionally, the Company’s board of directors declared a special distribution in the amount $1.00 per share of common stock to stockholders of record as of the close of business on April 20, 2017. Distributions declared per share of common stock were $0.164 and $0.486 for the three and nine months ended September 30, 2016 , respectively. Distributions declared per share of common stock assumes each share was issued and outstanding each day that was a record date for distributions during these periods. For the three and nine months ended September 30, 2016 , 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, 2016 through February 28, 2016 and March 1, 2016 through September 30, 2016 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 primary source of revenue for the Company is generated through leasing arrangements, which are excluded from this standard. The Company’s revenues that may be impacted by this standard primarily include other operating income, sales of real estate and other ancillary income earned at its properties. In 2016, other operating income and other ancillary income were approximately 3% of consolidated revenue. The Company is in process of evaluating how this standard will impact sales of real estate. The Company continues to evaluate the impact that the standard will have on its consolidated financial statements. The Company expects to adopt the standard using the modified retrospective approach, which requires a cumulative effect adjustment as of the date of the adoption. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU No. 2016-01”). The amendments in ASU No. 2016-01 address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU No. 2016-01 primarily affects accounting for equity investments and financial liabilities where the fair value option has been elected. ASU No. 2016-01 also requires entities to present financial assets and financial liabilities separately, grouped by measurement category and form of financial asset in the balance sheet or in the accompanying notes to the financial statements. ASU No. 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early application of certain provisions of the standard is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU No. 2016-01 to have a significant impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). The amendments in ASU No. 2016-02 change the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU No. 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of ASU No. 2016-02 as of its issuance is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the new leases standard on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU No. 2016-15”). ASU No. 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The amendments in ASU No. 2016-15 provide guidance on eight specific cash flow issues, including the following that are or may be relevant to the Company: (a) Cash payments for debt prepayment or debt extinguishment costs should be classified as cash outflows for financing activities; (b) Cash payments relating to contingent consideration made soon after an acquisition’s consummation date (i.e., approximately three months or less) should be classified as cash outflows for investing activities. Payments made thereafter should be classified as cash outflows for financing activities up to the amount of the original contingent consideration liability. Payments made in excess of the amount of the original contingent consideration liability should be classified as cash outflows for operating activities; (c) Cash payments received from the settlement of insurance claims should be classified on the basis of the nature of the loss (or each component loss, if an entity receives a lump-sum settlement); and (d) In the absence of specific guidance, an entity should classify each separately identifiable cash source and use on the basis of the nature of the underlying cash flows. For cash flows with aspects of more than one class that cannot be separated, the classification should be based on the activity that is likely to be the predominant source or use of cash flow. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is still evaluating the impact of adopting ASU No. 2016-15 on its financial statements, but does not expect the adoption of ASU No. 2016-15 to have a material impact on its financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU No. 2016-18”). ASU No. 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company elected to early adopt ASU No. 2016-18 for the reporting period ended December 31, 2016 and applied it retrospectively. As a result of the adoption of ASU No. 2016-18, the Company no longer presents the changes within restricted cash in the consolidated statements of cash flows.

REAL ESTATE (Tables)

REAL ESTATE (Tables)	9 Months Ended
	Sep. 30, 2017
Real Estate [Abstract]
Schedule of Real Estate Investments	The following table provides summary information regarding the properties that were held for investment by the Company as of September 30, 2017 (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 $ 36,636 $ (5,813 ) $ 30,823 The Residence at Waterstone 04/06/2012 Pikesville, MD 65,213 (8,658 ) 56,555 Crystal Park at Waterford 05/08/2013 Frederick, MD 46,224 (6,253 ) 39,971 Lofts at the Highlands 02/25/2014 St. Louis, MO 35,990 (3,458 ) 32,532 $ 184,063 $ (24,182 ) $ 159,881
Schedule of Revenue and Expenses of Real Estate Disposed of by Sale	The following table summarizes certain revenues and expenses related to these seven properties, which were included in continuing operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues Rental income $ 4,968 $ 6,271 $ 15,903 $ 18,583 Total revenues 4,968 6,271 15,903 18,583 Expenses Operating, maintenance, and management 714 875 2,220 2,564 Real estate taxes and insurance 896 918 2,918 2,911 Asset management fees to affiliate — 174 138 174 Property management fees to affiliate 767 843 2,390 2,415 General and administrative expenses 55 — 99 7 Depreciation and amortization 1,279 1,755 4,361 5,237 Interest expense 1,048 1,293 3,645 3,876 Total expenses $ 4,759 $ 5,858 $ 15,771 $ 17,184
Schedule of Assets and Liabilities of Real Estate Held-for-Sale	The following summary presents the major components of assets and liabilities related to the Company’s four real estate properties held for sale as of September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 Assets related to real estate held for sale Total real estate, at cost $ 125,737 $ 230,072 Accumulated depreciation and amortization (16,289 ) (26,718 ) Real estate held for sale, net 109,448 203,354 Other assets 17 477 Total assets related to real estate held for sale $ 109,465 $ 203,831 Liabilities related to real estate held for sale Notes payable, net 82,397 147,780 Total liabilities related to real estate held for sale $ 82,397 $ 147,780

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Payable [Abstract]
Schedule of Long-term Debt Instruments	As of September 30, 2017 and December 31, 2016 , the Company’s notes payable, including notes payable related to real estate held for sale, consisted of the following (dollars in thousands): Book Value as of September 30, 2017 Book Value as of December 31, 2016 Contractual Interest Rate as of September 30, 2017 Payment Type Maturity Date Legacy at Valley Ranch Mortgage Loan $ 30,493 $ 30,958 3.9% Principal & Interest 04/01/2019 Poplar Creek Mortgage Loan 19,125 19,414 4.0% Principal & Interest 03/01/2019 (1) The Residence at Waterstone Mortgage Loan 44,955 45,653 3.8% Principal & Interest 05/01/2019 (1) Legacy Crescent Park Mortgage Loan (2) — 13,560 (2) (2) (2) Legacy at Martin’s Point Mortgage Loan 21,506 21,866 3.3% Principal & Interest 06/01/2019 (1) Wesley Village Mortgage Loan (3) — 26,862 (3) (3) (3) Watertower Mortgage Loan (4) — 23,943 (4) (4) (4) Crystal Park Mortgage Loan 26,477 27,013 2.5% Principal & Interest 06/01/2018 (1) Millennium Mortgage Loan 19,806 20,190 2.7% Principal & Interest 07/01/2018 (1) Legacy Grand at Concord Mortgage Loan 22,158 22,392 4.1% Principal & Interest 12/01/2050 (1) Lofts at the Highlands Mortgage Loan 30,417 30,754 3.4% Principal & Interest 08/01/2052 (1) Total notes payable principal outstanding $ 214,937 $ 282,605 Discount on note payable, net (2,578 ) (2,644 ) Deferred financing costs, net (436 ) (815 ) Total notes payable, net $ 211,923 $ 279,146 ____________________ (1) The Company has the right to repay the loan subject to certain conditions and prepayment penalties. (2) On September 29, 2017, in connection with the disposition of Legacy Crescent Park, the Company paid off the Legacy Crescent Park Mortgage Loan. (3) On March 9, 2017, in connection with the disposition of Wesley Village, the Company paid off the Wesley Village Mortgage Loan. (4) On September 12, 2017, in connection with the disposition of Watertower Apartments, the Company paid off the Watertower Mortgage Loan.
Schedule of Maturities of Long-term Debt	The following is a schedule of maturities, including principal payments, for the Company’s notes payable outstanding as of September 30, 2017 (in thousands): October 1, 2017 through December 31, 2017 $ 1,125 2018 49,291 2019 113,752 2020 852 2021 884 Thereafter 49,033 $ 214,937

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 December 31, 2016 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 214,937 $ 211,923 $ 217,106 $ 282,605 $ 279,146 $ 279,258

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 and 2016 , respectively, and any related amounts payable as of September 30, 2017 and December 31, 2016 (in thousands): Incurred Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, December 31, 2017 2016 2017 2016 2017 2016 Expensed Asset management fees (1) $ — $ 104 $ 234 $ 343 $ — $ — Reimbursable operating expenses (2) 68 68 192 184 24 15 Property management fees and expenses (3) 1,432 1,506 4,422 4,359 236 142 Disposition fees (4) 436 — 807 — — — $ 1,936 $ 1,678 $ 5,655 $ 4,886 $ 260 $ 157 ____________________ (1) See “Advisory Agreement – Asset Management Fee” below. (2) Reimbursable operating expenses primarily consist of marketing research costs and property site visit expenses incurred by the Sub-Advisor and internal audit personnel costs, accounting software and cybersecurity related expenses incurred by the Advisor 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 $47,000 and $48,000 for the three months ended September 30, 2017 and 2016 , respectively, and $119,000 and $123,000 for the nine months ended September 30, 2017 and 2016 , respectively, and were the only type of employee costs reimbursed under the Advisory Agreement through September 30, 2017 . 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. In addition to the amounts above, the Company reimburses the Advisor and Sub-Advisor for certain of the Company’s direct property operating costs incurred from third parties that were initially paid by the Advisor and Sub-Advisor on behalf of the Company. (3) Property management fees and expenses are all paid to Legacy Partners, Inc. (“LPI”), an affiliate of the Sub-Advisor, and consist of (i) reimbursable on-site salary and related benefits expenses for personnel at the managed properties, and (ii) fees for account maintenance and bookkeeping services. See “— Property Management Agreements.” (4) Disposition fees with respect to real estate sold are included in the gain on sale of real estate, net, in the accompanying consolidated statements of operations.
Schedule of Property Management Agreements	The Company, through indirect wholly owned subsidiaries (each, a “Property Owner”), entered into property management agreements with LPI (each a “Property Management Agreement”), pursuant to which LPI provides or provided, 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 (1) 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 (2) 05/19/2015 3.00% Legacy Grand at Concord 05/21/2015 3.00% Millennium Apartment Homes (3) 05/27/2015 3.00% Legacy Crescent Park (3) (4) 05/29/2015 3.00% Legacy at Valley Ranch 06/09/2015 3.00% ____________________ (1) On September 12, 2017, the Company sold Watertower Apartments. The Property Management Agreement for Watertower Apartments was terminated effective as of September 12, 2017. (2) On March 9, 2017, the Company sold Wesley Village. The Property Management Agreement for Wesley Village was terminated effective as of March 9, 2017. (3) Under the Property Management Agreement, the Property Owner pays or paid LPI 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 per month. (4) On September 29, 2017, the Company sold Legacy Crescent Park. The Property Management Agreement for Legacy Crescent Park was terminated effective as of September 29, 2017.

ORGANIZATION (Details)

ORGANIZATION (Details)	Oct. 01, 2017property	Sep. 30, 2017USD ($)propertyshares	Dec. 31, 2016USD ($)shares	Mar. 12, 2013USD ($)shares	Sep. 30, 2017USD ($)propertyshares	Sep. 30, 2017USD ($)propertyshares	May 31, 2012USD ($)	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 (in shares)		21,026,756	20,896,268		21,026,756	21,026,756
Issuance of common stock | $		$ 2,953,000	$ 5,737,000
Redemptions of common stock | $		$ 2,000,000	$ 2,019,000
Apartment Building
Organizational Structure [Line Items]
Number of real estate properties | property		8			8	8
Apartment Building | Subsequent Event
Organizational Structure [Line Items]
Number of properties sold | property	3
Apartment Building | Held-for-sale
Organizational Structure [Line Items]
Number of real estate properties | property		4			4	4
Common Stock
Organizational Structure [Line Items]
Shares of common stock authorized under dividend reinvestment plan, shares								80,000,000
Issuance of common stock (in shares)		347,390	586,585	18,088,084	3,943,266	22,031,350
Issuance of common stock | $		$ 3,000	$ 6,000	$ 179,200,000	$ 39,700,000	$ 218,900,000
Shares of common stock sold under dividend reinvestment plan, shares				368,872	2,447,068	2,815,940
Shares of common stock sold under dividend reinvestment plan, value | $				$ 3,500,000	$ 23,900,000	$ 27,400,000
Redemptions of common stock (in shares)		216,902	198,714			1,024,594
Redemptions of common stock | $		$ 2,000	$ 2,000			$ 9,900,000
Common Stock | Minimum
Organizational Structure [Line Items]
Number of shares authorized to be repurchased								250,000
Common Stock | Maximum
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
Organizational Structure [Line Items]
Common stock, shares issued (in shares)									20,000
Common stock, purchase price per share | $ / shares									$ 10
KBS-Legacy Apartment Community REIT Venture, LLC | Common Stock
Organizational Structure [Line Items]
Shares held by affiliate		20,000			20,000	20,000

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Apr. 20, 2017$ / shares	Feb. 28, 2017$ / shares	Sep. 30, 2017property$ / shares	Sep. 30, 2016$ / shares	Sep. 30, 2017segmentsproperty$ / shares	Sep. 30, 2016$ / shares	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Distributions declared per common share (in dollars per share) | $ / shares	$ 1		$ 0.137	$ 0.164	$ 1.388	$ 0.486
Distribution rate per share per day on annual basis, declared | $ / shares		$ 0.00178082		$ 0.00178082		$ 0.00178082
Real Estate Properties [Line Items]
Number of reportable segments | segments					1
Apartment Building
Real Estate Properties [Line Items]
Number of real estate properties			8		8
Apartment Building | Held-for-sale
Real Estate Properties [Line Items]
Number of real estate properties			4		4
Apartment Building | Disposed of by Sale
Real Estate Properties [Line Items]
Number of real estate properties			3		3
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other operating income and other ancillary income as percent of consolidated revenue							3.00%

REAL ESTATE (Narrative) (Detail

REAL ESTATE (Narrative) (Details) $ in Thousands, ft² in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)ft²Unitsproperty	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)ft²Unitsproperty	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Real Estate Properties [Line Items]
Tax abatement asset | $	$ 2,300		$ 2,300		$ 2,500
Property Tax Abatement Intangible Asset
Real Estate Properties [Line Items]
Amortization of intangible assets | $	$ 41	$ 65	$ 100	$ 200
Apartment Building
Real Estate Properties [Line Items]
Number of real estate properties | property	8		8
Apartment Building | Held-for-sale
Real Estate Properties [Line Items]
Number of real estate properties | property	4		4
Number of real estate units | Units	1,273		1,273
Rentable square feet | ft²	1.4		1.4
Percentage of portfolio occupied	93.00%		93.00%

REAL ESTATE (Schedule of Real E

REAL ESTATE (Schedule of Real Estate Investments) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Real Estate Properties [Line Items]
Total Real Estate at Cost	$ 184,063	$ 183,779
Accumulated Depreciation and Amortization	(24,182)	(20,873)
Total real estate held for investment, net	$ 159,881	$ 162,906
Legacy at Valley Ranch
Real Estate Properties [Line Items]
Date Acquired	Oct. 26, 2010
Total Real Estate at Cost	$ 36,636
Accumulated Depreciation and Amortization	(5,813)
Total real estate held for investment, net	$ 30,823
The Residence at Waterstone
Real Estate Properties [Line Items]
Date Acquired	Apr. 6, 2012
Total Real Estate at Cost	$ 65,213
Accumulated Depreciation and Amortization	(8,658)
Total real estate held for investment, net	$ 56,555
Crystal Park at Waterford
Real Estate Properties [Line Items]
Date Acquired	May 8, 2013
Total Real Estate at Cost	$ 46,224
Accumulated Depreciation and Amortization	(6,253)
Total real estate held for investment, net	$ 39,971
Lofts at the Highlands
Real Estate Properties [Line Items]
Date Acquired	Feb. 25, 2014
Total Real Estate at Cost	$ 35,990
Accumulated Depreciation and Amortization	(3,458)
Total real estate held for investment, net	$ 32,532

REAL ESTATE (Revenue and Expens

REAL ESTATE (Revenue and Expenses of Real Estate Held-for-Sale) (Details) $ in Thousands	Oct. 01, 2017property	Sep. 30, 2017USD ($)property	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)property	Sep. 30, 2016USD ($)
Revenues
Rental income		$ 4,968	$ 6,271	$ 15,903	$ 18,583
Total revenues		4,968	6,271	15,903	18,583
Expenses
Operating, maintenance, and management		714	875	2,220	2,564
Real estate taxes and insurance		896	918	2,918	2,911
Asset management fees to affiliate		0	174	138	174
Property management fees to affiliate		767	843	2,390	2,415
General and administrative expenses		55	0	99	7
Depreciation and amortization		1,279	1,755	4,361	5,237
Interest expense		1,048	1,293	3,645	3,876
Total expenses		$ 4,759	$ 5,858	$ 15,771	$ 17,184
Apartment Building
Real Estate Properties [Line Items]
Number of real estate properties | property		8		8
Apartment Building | Disposed of by Sale
Real Estate Properties [Line Items]
Number of properties sold | property				3
Number of real estate properties | property		3		3
Apartment Building | Held-for-sale and Disposed of by Sale
Real Estate Properties [Line Items]
Number of real estate properties | property		7		7
Subsequent Event | Apartment Building
Real Estate Properties [Line Items]
Number of properties sold | property	3

REAL ESTATE (Schedule of Assets

REAL ESTATE (Schedule of Assets and Liabilities Related to Real Estate Held for Sale) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total liabilities related to real estate held for sale	$ 82,397	$ 147,780
Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total real estate, at cost	125,737	230,072
Accumulated depreciation and amortization	(16,289)	(26,718)
Real estate held for sale, net	109,448	203,354
Other assets	17	477
Total assets related to real estate held for sale	109,465	203,831
Notes payable, net	82,397	147,780
Total liabilities related to real estate held for sale	$ 82,397	$ 147,780

NOTES PAYABLE (Schedule of Long

NOTES PAYABLE (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 214,937	$ 282,605
Discount on note payable, net	(2,578)	(2,644)
Deferred financing costs, net	(436)	(815)
Total notes payable, net	211,923	279,146
Mortgages | Legacy at Valley Ranch Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 30,493	30,958
Contractual Interest Rate	3.93%
Maturity Date	Apr. 1, 2019
Mortgages | Poplar Creek Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 19,125	19,414
Contractual Interest Rate	4.00%
Maturity Date	Mar. 1, 2019
Mortgages | The Residence at Waterstone Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 44,955	45,653
Contractual Interest Rate	3.79%
Maturity Date	May 1, 2019
Mortgages | Legacy Crescent Park Mortgage Loan (2)
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 0	13,560
Mortgages | Legacy at Martin’s Point Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 21,506	21,866
Contractual Interest Rate	3.33%
Maturity Date	Jun. 1, 2019
Mortgages | Wesley Village Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 0	26,862
Mortgages | Watertower Mortgage Loan (4)
Debt Instrument [Line Items]
Total notes payable principal outstanding	0	23,943
Mortgages | Crystal Park Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 26,477	27,013
Contractual Interest Rate	2.50%
Maturity Date	Jun. 1, 2018
Mortgages | Millennium Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 19,806	20,190
Contractual Interest Rate	2.74%
Maturity Date	Jul. 1, 2018
Mortgages | Legacy Grand at Concord Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 22,158	22,392
Contractual Interest Rate	4.05%
Maturity Date	Dec. 1, 2050
Mortgages | Lofts at the Highlands Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 30,417	$ 30,754
Contractual Interest Rate	3.40%
Maturity Date	Aug. 1, 2052

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Interest expense	$ 2,320	$ 2,588	$ 7,180	$ 7,758
Amortization of deferred financing costs	100	100	300	300
Amortization of discount on notes payable			66	65
Interest payable, current	600		600		$ 800
Notes Payable
Debt Instrument [Line Items]
Amortization of discount on notes payable	$ 22	$ 22	$ 66	$ 65

NOTES PAYABLE (Schedule of Matu

NOTES PAYABLE (Schedule of Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Notes Payable [Abstract]
October 1, 2017 through December 31, 2017	$ 1,125
2,018	49,291
2,019	113,752
2,020	852
2,021	884
Thereafter	49,033
Notes payable	$ 214,937	$ 282,605

FAIR VALUE DISCLOSURES (Details

FAIR VALUE DISCLOSURES (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Face Value	$ 214,937,000	$ 282,605,000
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Value	211,923,000	279,146,000
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Value	$ 217,106,000	$ 279,258,000

RELATED PARTY TRANSACTIONS (Sch

RELATED PARTY TRANSACTIONS (Schedule of Related Party Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Payable as of	$ 260		$ 260		$ 157
Administrative fees	47	$ 48	119	$ 123
Asset management fees
Related Party Transaction [Line Items]
Expenses			2,000	2,200
Payable as of	200	300	200	300
Advisor and Dealer Manager
Related Party Transaction [Line Items]
Incurred	1,936	1,678	5,655	4,886
Payable as of	260		260		157
Advisor and Dealer Manager | Asset management fees
Related Party Transaction [Line Items]
Expenses	0	104	234	343
Payable as of	0		0		0
Advisor and Dealer Manager | Reimbursable operating expenses
Related Party Transaction [Line Items]
Expenses	68	68	192	184
Payable as of	24		24		15
Advisor and Dealer Manager | Property management fees and expenses
Related Party Transaction [Line Items]
Expenses	1,432	1,506	4,422	4,359
Payable as of	236		236		142
Advisor and Dealer Manager | Disposition fees
Related Party Transaction [Line Items]
Expenses	436	$ 0	807	$ 0
Payable as of	$ 0		$ 0		$ 0

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jul. 31, 2013	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2017	Dec. 31, 2016	Aug. 14, 2013
Related Party Transaction [Line Items]
Due to affiliates	$ 260			$ 260			$ 157
Asset management fees to affiliate	$ 0	$ 104	$ 1,500	$ 234	$ 343
Non‑compounded return on net invested capital	8.00%			8.00%
LPI Inc.
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 material default				30 days
LPI Inc. | Lofts at the Highlands
Related Party Transaction [Line Items]
Period of monetary default				10 days
LPI Inc. | Legacy Grand at Concord
Related Party Transaction [Line Items]
Period of monetary default				10 days
LPI Inc. | Millennium Apartment Homes
Related Party Transaction [Line Items]
Period of monetary default				10 days
Option One
Related Party Transaction [Line Items]
Monthly asset management fee, percent of acquisition expense								0.083%
Acquisition advisory fee, percent						1.00%
Option Two
Related Party Transaction [Line Items]
Monthly asset management fee, percent of acquisition expense								0.166%
Acquisition advisory fee, percent						2.00%
Asset Management Fees
Related Party Transaction [Line Items]
Due to affiliates	$ 200	$ 300		$ 200	300
Incurred expenses				2,000	2,200
Deferred fees				1,800	$ 1,900
Asset Management Fees | August 2013 through December 2016
Related Party Transaction [Line Items]
Due to affiliates	8,000			8,000
KBS Capital Advisors LLC
Related Party Transaction [Line Items]
Due to affiliates	$ 61			61
KBS Capital Advisors LLC | Property Insurance Rebate
Related Party Transaction [Line Items]
Incurred				$ 27

RELATED PARTY TRANSACTIONS (Pro

RELATED PARTY TRANSACTIONS (Property Management Agreements) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Watertower Apartments
Related Party Transaction [Line Items]
Management Fee Percentage	2.75%
Crystal Park at Waterford
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
The Residence at Waterstone
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
Lofts at the Highlands
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
Legacy at Martin’s Point
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
Poplar Creek
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
Wesley Village
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
Legacy Grand at Concord
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
Millennium Apartment Homes
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
Property management fee, amount	$ 4
Legacy Crescent Park
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%
Property management fee, amount	$ 4
Legacy at Valley Ranch
Related Party Transaction [Line Items]
Management Fee Percentage	3.00%

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 02, 2017	Apr. 20, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Subsequent Event [Line Items]
Distributions declared					$ 29,028		$ 13,430
Distributions declared per common share (in dollars per share)		$ 1	$ 0.137	$ 0.164	$ 1.388	$ 0.486
Subsequent Event | Dividend Paid
Subsequent Event [Line Items]
Distributions declared	$ 900
Distributions declared per common share (in dollars per share)	$ 0.04460959

SUBSEQUENT EVENTS SUBSEQUENT EV

SUBSEQUENT EVENTS SUBSEQUENT EVENTS (Dispositions) (Details) $ in Thousands	Oct. 31, 2017USD ($)	Oct. 30, 2017USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Feb. 18, 2014aunit	Jun. 07, 2013aunit	May 31, 2012aunit
Subsequent Event [Line Items]
Prepayment fees related to the extinguishment of debt			$ 608	$ 0
Subsequent Event | Legacy Grand at Concord Mortgage Loan
Subsequent Event [Line Items]
Extinguishment of debt, amount		$ 22,100
Prepayment fees related to the extinguishment of debt		900
Subsequent Event | Millennium Mortgage Loan
Subsequent Event [Line Items]
Extinguishment of debt, amount	$ 19,800
Prepayment fees related to the extinguishment of debt	200
Subsequent Event | Legacy at Martin’s Point Mortgage Loan
Subsequent Event [Line Items]
Extinguishment of debt, amount	21,500
Prepayment fees related to the extinguishment of debt	500
Subsequent Event | Legacy Grand at Concord | Disposed of by Sale
Subsequent Event [Line Items]
Disposal group, consideration		$ 32,900
Subsequent Event | Millennium Apartment Homes | Disposed of by Sale
Subsequent Event [Line Items]
Disposal group, consideration	35,600
Subsequent Event | Legacy at Martin’s Point | Disposed of by Sale
Subsequent Event [Line Items]
Disposal group, consideration	$ 37,600
Legacy Grand at Concord | Apartment Building
Subsequent Event [Line Items]
Number of units in real estate property | unit					240
Area of land | a					18.4
Millennium Apartment Homes | Apartment Building
Subsequent Event [Line Items]
Number of units in real estate property | unit						305
Area of land | a						32.9
Legacy at Martin’s Point | Apartment Building
Subsequent Event [Line Items]
Number of units in real estate property | unit							256
Area of land | a							13.2