Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 05, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
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 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 0 |
CONSOLIDATED STATEMENT OF NET A
CONSOLIDATED STATEMENT OF NET ASSETS $ in Thousands | Dec. 31, 2017USD ($) |
Assets | |
Real estate | $ 217,500 |
Cash and cash equivalents | 14,133 |
Restricted cash | 3,042 |
Rents and other receivables, net | 169 |
Other assets, net | 325 |
Total assets | 235,169 |
Liabilities | |
Liabilities for estimated costs in excess of estimated receipts during liquidation | 686 |
Notes payable | 132,932 |
Accounts payable and accrued liabilities | 2,609 |
Due to affiliates | 85 |
Liabilities for estimated closing costs and disposition fees | 4,131 |
Other liabilities | 1,379 |
Total liabilities | 141,822 |
Commitments and contingencies (Note 11) | |
Net assets in liquidation | $ 93,347 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS $ in Thousands | Dec. 31, 2016USD ($) |
Assets | |
Real estate held for sale, net | $ 366,260 |
Cash and cash equivalents | 15,998 |
Restricted cash | 5,099 |
Assets related to real estate held for sale | 2,944 |
Prepaid expenses and other assets | 1,636 |
Total assets | 391,937 |
Liabilities and stockholders’ equity | |
Notes payable related to real estate held for sale, net | 279,146 |
Accounts payable and accrued liabilities | 5,566 |
Due to affiliates | 157 |
Distributions payable | 1,154 |
Liabilities related to real estate held for sale | 143 |
Other liabilities | 2,635 |
Total liabilities | 288,801 |
Commitments and contingencies (Note 11) | |
Redeemable common stock | 350 |
Stockholders’ equity: | |
Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding | 0 |
Common stock, $.01 par value; 1,000,000,000 shares authorized, 20,896,268 shares issued and outstanding as of December 31, 2016 | 209 |
Additional paid-in capital | 180,196 |
Cumulative distributions and net losses | (77,619) |
Total stockholders’ equity | 102,786 |
Total liabilities and stockholders’ equity | $ 391,937 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2016$ / sharesshares |
Statement of Financial Position [Abstract] | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 |
Preferred stock, shares outstanding (in shares) | 0 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 |
Common stock, shares issued (in shares) | 20,896,268 |
Common stock, shares outstanding (in shares) | 20,896,268 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS $ in Thousands | 1 Months Ended |
Dec. 31, 2017USD ($) | |
Changes in Net Assets in Liquidation [Roll Forward] | |
Net assets in liquidation, beginning of period | $ 178,251 |
Other changes, net | 254 |
Net increase in liquidation value | 254 |
Liquidating distribution to stockholders | (85,158) |
Changes in net assets in liquidation | (84,904) |
Net assets in liquidation, end of period | $ 93,347 |
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, shares at Dec. 31, 2014 | 20,084,830 | |||
Balance, value at Dec. 31, 2014 | $ 115,724 | $ 201 | $ 172,448 | $ (56,925) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock (in shares) | 595,095 | |||
Issuance of common stock | 5,736 | $ 6 | 5,730 | |
Redemptions of common stock (in shares) | (171,528) | |||
Redemptions of common stock | (1,697) | $ (2) | (1,695) | |
Distributions declared | (13,176) | (13,176) | ||
Other offering costs | (7) | (7) | ||
Net income | 791 | 791 | ||
Balance, shares at Dec. 31, 2015 | 20,508,397 | |||
Balance, value 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, shares at Dec. 31, 2016 | 20,896,268 | 20,896,268 | ||
Balance, value 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 | 49,114 | 49,114 | ||
Balance, shares at Nov. 30, 2017 | 21,026,756 | |||
Balance, value at Nov. 30, 2017 | $ 123,815 | $ 210 | $ 181,138 | $ (57,533) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities: | |||
Net income | $ 49,114 | $ 5,121 | $ 791 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 9,279 | 12,302 | 12,090 |
Bad debt expense | 364 | 522 | 501 |
Loss due to property damages | 767 | 145 | 211 |
Loss due to extinguishment of debt | 2,080 | 0 | 0 |
Amortization of discount on notes payable | 81 | 87 | 86 |
Amortization of deferred financing costs | 491 | 415 | 415 |
Gain on sale of real estate, net | (51,885) | 0 | 0 |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other assets | (983) | (523) | (862) |
Accounts payable and accrued liabilities | (2,248) | 536 | (269) |
Due to affiliates | 36 | (4,737) | 97 |
Other liabilities | (367) | 71 | (52) |
Net cash provided by operating activities | 6,729 | 13,939 | 13,008 |
Cash Flows from Investing Activities: | |||
Proceeds from sale of real estate | 227,386 | 0 | 0 |
Improvements to real estate | (2,022) | (2,315) | (2,282) |
Insurance proceeds received for property damage | 742 | 133 | 397 |
Net cash provided by (used in) investing activities | 226,106 | (2,182) | (1,885) |
Cash Flows from Financing Activities: | |||
Principal payments on mortgage notes payable | (131,661) | (5,844) | (5,582) |
Prepayment fees related to the extinguishment of debt | (2,017) | 0 | 0 |
Deposit for notes payable defeasance costs | (25) | 0 | 0 |
Payments to redeem common stock | (2,000) | (2,019) | (1,697) |
Payments of other offering costs | (10) | 6 | (7) |
Distributions paid | (27,229) | (7,672) | (7,416) |
Net cash used in financing activities | (162,942) | (15,529) | (14,702) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 69,893 | (3,772) | (3,579) |
Cash, cash equivalents and restricted cash, beginning of period | 21,097 | 24,869 | 28,448 |
Cash, cash equivalents and restricted cash, end of period | 90,990 | 21,097 | 24,869 |
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid | 8,124 | 9,846 | 10,015 |
Supplemental Disclosure of Noncash Transactions: | |||
Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan | 2,953 | 5,737 | 5,736 |
Increase in redeemable common stock payable | 131 | 544 | 645 |
Increase in accrued improvements to real estate | $ 0 | $ 0 | $ 224 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Rental income | $ 36,293 | $ 45,301 | $ 44,613 |
Total revenues | 36,293 | 45,301 | 44,613 |
Expenses: | |||
Operating, maintenance, and management | 5,084 | 6,389 | 8,674 |
Real estate taxes and insurance | 6,159 | 7,088 | 6,144 |
Asset management fees to affiliate | 234 | 399 | 729 |
Property management fees and expenses to affiliate | 5,249 | 5,811 | 3,523 |
General and administrative expenses | 2,594 | 2,663 | 2,176 |
Depreciation and amortization | 9,279 | 12,302 | 12,090 |
Interest expense | 8,623 | 10,332 | 10,501 |
Total expenses | 37,222 | 44,984 | 43,837 |
Other income: | |||
Interest income | 238 | 52 | 15 |
Gain on sale of real estate | 51,885 | 0 | 0 |
Loss from extinguishment of debt | (2,080) | 0 | 0 |
Other income | 0 | 4,752 | 0 |
Total other income | 50,043 | 4,804 | 15 |
Net income | $ 49,114 | $ 5,121 | $ 791 |
Net income per common share, basic and diluted (in dollars per share) | $ 2.34 | $ 0.25 | $ 0.04 |
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 20,952,306 | 20,663,506 | 20,272,697 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 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 February 1, 2018, with an effective date of January 25, 2018 (the “Advisory Agreement”). See Note 12, “Subsequent Events — Renewal of 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 December 31, 2017 , the Company owned four apartment communities, all of which were under contract to sell (the “Core-Portfolio Properties” and the sale of such real estate properties, the “Core-Portfolio Sale”). On February 8, 2018, the Company completed the sale of two of the Core-Portfolio Properties. See Note 12, “Subsequent Events — Dispositions Subsequent to December 31, 2017.” The Company anticipates completing the sale of its remaining real estate properties by the end of the first quarter of 2018. On March 12, 2010, the Company commenced its initial public offering of 280,000,000 shares of common stock for sale to the public, of which 80,000,000 shares were offered pursuant to its dividend reinvestment plan (the “Initial Offering”). On May 31, 2012, the Company filed a registration statement on Form S-11 with the Securities and Exchange Commission (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 pursuant to its dividend reinvestment plan. The SEC declared the Company’s registration statement for the Follow-on Offering effective on March 8, 2013. 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. The Company ceased offering shares of common stock in the primary Follow-on Offering on March 31, 2014. The Company terminated its dividend reinvestment plan effective as of August 20, 2017. Through its completion on March 12, 2013, the Company sold 18,088,084 shares of common stock in the Initial Offering for gross offering proceeds of $179.2 million , including 368,872 shares of common stock under its 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. In the Company’s 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 its 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 its dividend reinvestment plan for gross offering proceeds of $27.4 million . Also, as of December 31, 2017, the Company had redeemed 1,024,594 shares sold in the Offerings for $9.9 million . |
PLAN OF LIQUIDATION
PLAN OF LIQUIDATION | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
PLAN OF LIQUIDATION | PLAN OF LIQUIDATION On December 19, 2017, the Company’s stockholders approved the sale of all of the Company’s assets and its dissolution pursuant to the terms of a plan of complete liquidation and dissolution (the “Plan of Liquidation”). For more information, see the Plan of Liquidation, which is included as an exhibit to this Annual Report on Form 10-K. The Plan of Liquidation authorizes the Company to undertake an orderly liquidation. In an orderly liquidation, the Company will sell all of its remaining properties, pay all of its known liabilities, provide for the payment of its unknown or contingent liabilities, distribute its remaining cash to its stockholders, wind up its operations and dissolve. The Company is authorized to provide for the payment of any unascertained or contingent liabilities and may do so by purchasing insurance, by establishing a reserve fund or in other ways. The Plan of Liquidation enables the Company to sell any and all of its assets without further approval of its stockholders and provides that the amounts and timing of liquidating distributions will be determined by the Company’s board of directors or, if a liquidating trust is formed, by the trustees of the liquidating trust, in their discretion. Pursuant to applicable REIT rules, liquidating distributions the Company pays pursuant to the Plan of Liquidation will qualify for the dividends paid deduction, provided that they are paid within 24 months of the December 19, 2017 approval of the plan by the Company’s stockholders. However, if the Company cannot sell its properties and pay its debts within such time period, or if the board of directors and the Special Committee determine that it is otherwise advisable to do so, the Company may transfer and assign its remaining assets to a liquidating trust. Upon such transfer and assignment, the Company’s stockholders would receive beneficial interests in the liquidating trust. The liquidating trust would pay or provide for all of the Company’s liabilities and distribute any remaining net proceeds from liquidation to the holders of beneficial interests in the liquidating trust. The Company’s expectations about the implementation of the Plan of Liquidation and the amount of any additional liquidating distributions that the Company pays to its stockholders and when the Company will pay them are subject to risks and uncertainties and are based on certain estimates and assumptions, one or more of which may prove to be incorrect. As a result, the actual amount of any additional liquidating distributions the Company pays to its stockholders may be more or less than the Company estimates and the liquidating distributions may be paid later than the Company predicts. Accordingly, it is not possible to precisely predict the timing of any additional liquidating distributions the Company pays to it stockholders or the aggregate amount of liquidating distributions that the Company will ultimately pay to its stockholders. No assurance can be given that any additional liquidating distributions the Company pays to its stockholders will equal or exceed the estimate of net assets in liquidation presented on the Consolidated Statement of Net Assets. The Company expects to comply with the requirements necessary to continue to qualify as a REIT through the completion of the liquidation process, or until such time as any remaining assets are transferred into a liquidating trust. The board of directors shall use commercially reasonable efforts to continue to cause the Company to maintain its REIT status, provided however, that the board of directors may elect to terminate the Company’s status as a REIT if it determines that such termination would be in the best interest of the stockholders. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), including Subtopic 205-30, “Liquidation Basis of Accounting,” and the rules and regulations of the SEC. Pursuant to the Company’s stockholders’ approval of the Plan of Liquidation, the Company adopted the liquidation basis of accounting as of December 1, 2017 (as the approval of the Plan of Liquidation by the Company’s stockholders became imminent within the last week of November 2017 based on the results of the Company’s solicitation of proxies from its stockholders for their approval of the Plan of Liquidation) and for the periods subsequent to December 1, 2017 in accordance with GAAP. Accordingly, on December 1, 2017, assets were adjusted to their estimated net realizable value, or liquidation value, which represents the estimated amount of cash that the Company will collect on disposal of assets as it carries out the Plan of Liquidation. The liquidation values of the Company’s remaining real estate properties are presented on an undiscounted basis. Estimated costs to dispose of assets and estimated capital expenditures through the anticipated disposition date of the properties have been presented separately from the related assets. Liabilities are carried at their contractual amounts due or estimated settlement amounts. The Company accrues costs and income that it expects to incur and earn through the completion of its liquidation, including the estimated amount of cash the Company expects to collect on the disposal of its assets and the estimated costs to dispose of its assets, to the extent it has a reasonable basis for estimation. These amounts are classified as a liability for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statement of Net Assets. Actual costs and income may differ from amounts reflected in the financial statements because of the inherent uncertainty in estimating future events. These differences may be material. See Note 4, “Liabilities for Estimated Costs in Excess of Estimated Receipts During Liquidation” for further discussion. Actual costs incurred but unpaid as of December 31, 2017 are included in accounts payable and accrued liabilities, due to affiliates and other liabilities on the Consolidated Statement of Net Assets. Net assets in liquidation represents the remaining estimated liquidation value available to stockholders upon liquidation. Due to the uncertainty in the timing of the sale of the Company’s remaining real estate properties and the estimated cash flows from operations, actual liquidation costs and sale proceeds may differ materially from the amounts estimated. All financial results and disclosures through November 30, 2017, prior to the adoption of the liquidation basis of accounting, are presented based on a going concern basis, which contemplates the realization of assets and liabilities in the normal course of business. As a result, the balance sheet as of December 31, 2016, the statements of operations, the statements of stockholders’ equity and the statements of cash flows for the 11 months ended November 30, 2017 and the comparative years ended December 31, 2016 and 2015 are presented using the going concern basis of accounting. Under the going concern basis of accounting, the Company’s consolidated financial statements included its accounts and the accounts of REIT Holdings, the Operating Partnership and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions were eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements and accompanying notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. Reclassifications Certain amounts in the Company’s prior period consolidated financial statements have been reclassified. These reclassifications have not changed the results of operations of prior periods. During the 11 months ended November 30, 2017 , the Company sold six apartment complexes and classified five other apartment complexes as held for sale. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheet for the year ended December 31, 2016. Revenue Recognition Liquidation Basis of Accounting Under the liquidation basis of accounting, the Company has accrued all income that it expects to earn through the completion of its liquidation to the extent it has a reasonable basis for estimation. Revenue from tenants is estimated based on the contractual in-place leases and projected leases through the anticipated disposition date of the property. These amounts are classified in liabilities for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statement of Net Assets. Going Concern Basis The Company leases apartment units under operating leases with terms generally of one year or less. Generally, credit investigations will be performed for prospective residents and security deposits will be obtained. Prior to the adoption of liquidation basis of accounting, the Company recognized rental revenue, net of concessions, on a straight-line basis over the term of the lease, when collectibility was reasonably assured. The Company recognized gains on sales of real estate either in total or deferred for a period of time, depending on whether a sale had been consummated, the extent of the buyer’s investment in the property being sold, whether the receivable of the Company was subject to future subordination, and the degree of the Company’s continuing involvement with the property after the sale. If the criteria for profit recognition under the full-accrual method were not met, the Company would defer gain recognition and account for the continued operations of the property by applying the percentage-of-completion, reduced profit, deposit, installment or cost recovery method, as appropriate, until the appropriate criteria were met. Other income, including interest earned on the Company’s cash, was recognized as it was earned. Real Estate Liquidation Basis of Accounting As of December 1, 2017, the Company’s investments in real estate were adjusted to their estimated net realizable value, or liquidation value, to reflect the change to the liquidation basis of accounting. The liquidation value represents the estimated amount of cash that the Company will collect on disposal of its assets as it carries out the Plan of Liquidation. The Company estimated the liquidation value of its investments in real estate based on purchase and sale agreements into which the Company had entered as of December 31, 2017. The liquidation values of the Company’s investments in real estate are presented on an undiscounted basis and investments in real estate are no longer depreciated. Estimated costs to dispose of these investments are carried at their contractual amounts due or estimated settlement amounts and are presented separately from the related assets. Subsequent to December 1, 2017, all changes in the estimated liquidation value of the investments in real estate are reflected as a change to the Company’s net assets in liquidation. Going Concern Basis Depreciation and Amortization Prior to the adoption of liquidation basis of accounting, real estate properties were carried at cost and depreciated using the straight-line method over the estimated useful lives of 40 years for buildings, 10 – 20 years for building improvements, 10 – 20 years for land improvements and five to 12 years for computer, furniture, fixtures and equipment. Costs directly associated with the development of land and those incurred during construction were capitalized as part of the investment basis. Acquisition costs were expensed as incurred. Operating expenses incurred that were not related to the development and construction of the real estate investments were expensed as incurred. Repair, maintenance and tenant turnover costs were expensed as incurred and significant replacements and improvements were capitalized. Repair, maintenance and tenant turnover costs included all costs that did not extend the useful life of the real estate property. The Company considered the period of future benefit of an asset to determine its appropriate useful life. Intangible assets related to in-place leases were amortized to expense over the average remaining non-cancelable terms of the respective in-place leases. Impairment of Real Estate and Related Intangible Assets and Liabilities Prior to the adoption of liquidation basis of accounting, the Company continually monitored events and changes in circumstances that could indicate that the carrying amounts of its real estate and related intangible assets and liabilities may not be recoverable or realized. When indicators of potential impairment suggested that the carrying value of real estate and related intangible assets and liabilities may not be recoverable, the Company would assess the recoverability by estimating whether the Company could recover the carrying value of the real estate and related intangible assets and liabilities through its undiscounted future cash flows and its eventual disposition. If, based on this analysis, the Company did not believe that it will be able to recover the carrying value of the real estate and related intangible assets and liabilities, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the real estate and related intangible assets and liabilities. The Company did not record any impairment loss on its real estate and related intangible assets and liabilities during the 11 months ended November 30, 2017 and years ended December 31, 2016 and 2015 . Insurance Proceeds for Property Damage The Company maintains an insurance policy that provides coverage for property damage and business interruption. Prior to the adoption of liquidation basis of accounting, losses due to physical damage were recognized during the accounting period in which they occurred while the amount of monetary assets to be received from the insurance policy was recognized when receipt of insurance recoveries was probable. Losses, which were reduced by the related probable insurance recoveries, were recorded as operating, maintenance and management expenses on the accompanying consolidated statements of operations. Anticipated proceeds in excess of recognized losses would be considered a gain contingency and recognized when the contingency related to the insurance claim had been resolved. Anticipated recoveries for lost rental revenue due to property damage were also considered to be a gain contingency and recognized when the contingency related to the insurance claim had been resolved. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short term investments. Cash and cash equivalents are stated at cost, which approximates fair value. There are no restrictions on the use of the Company’s cash and cash equivalents as of December 31, 2017 . The Company’s cash and cash equivalents balance exceeds federally insurable limits as of December 31, 2017 . The Company monitors the cash balances in its operating accounts and adjusts the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts. Restricted Cash Restricted cash is comprised of lender impound reserve accounts for property taxes and insurance proceeds for property damages. Rents and Other Receivables In accordance with the liquidation basis of accounting, as of December 1, 2017, rents and other receivables were adjusted to their net realizable value. The Company periodically evaluates the collectibility of amounts due from tenants. Any changes in the collectibility of the receivables are reflected as a change to the Company’s net assets in liquidation. Accrued Liquidation Costs In accordance with the liquidation basis of accounting, the Company accrues for certain estimated liquidation costs to the extent it has a reasonable basis for estimation. These consist of legal fees, dissolution costs, final audit/tax costs, fees paid to financial advisors, insurance, and distribution processing costs. Deferred Financing Costs Prior to the adoption of the liquidation basis of accounting, deferred financing costs represented commitment fees, loan fees, legal fees and other third-party costs associated with obtaining financing and were presented on the balance sheet as a direct deduction from the carrying value of the associated debt liability. These costs were amortized over the terms of the respective financing agreements using the interest method. Unamortized deferred financing costs were generally expensed when the associated debt was refinanced or repaid before maturity unless specific rules were met that would allow for the carryover of such costs to the refinanced debt. Deferred financing costs incurred before an associated debt liability is recognized were included in prepaid and other assets on the balance sheet. Costs incurred in seeking financing transactions that did not close were expensed in the period in which it was determined that the financing will not close. Dividend Reinvestment Plan The Company had a dividend reinvestment plan through which its common stockholders were able to elect to reinvest an amount equal to the distributions declared on their shares in additional shares of the Company’s common stock in lieu of receiving cash distributions. Participants in the dividend reinvestment plan were able to acquire shares of common stock under the plan at a price equal to 95% of the estimated value per share of the Company’s common stock. On December 9, 2016, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $9.35 (unaudited) based on the estimated value of the Company’s assets less the estimated value of the Company’s liabilities, divided by the number of shares outstanding, all as of September 30, 2016. On April 5, 2017, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $8.35 (unaudited), effective April 20, 2017. The estimated value per share was equal to the December 2016 estimated value per share of the Company’s common stock of $9.35 (unaudited), reduced for the impact of the $1.00 per share special distribution the Company paid to its stockholders on May 1, 2017 in connection with the disposition of Wesley Village. Commencing with the April 20, 2017 purchase date, the purchase price per share under the dividend reinvestment plan was $7.93 . The Company terminated the dividend reinvestment plan effective as of August 20, 2017. Redeemable Common Stock On December 19, 2017, in connection with the implementation of the Plan of Liquidation, the Company’s board of directors approved the termination of the Company’s share redemption program effective as of January 21, 2018. Thus, the last redemption date under the share redemption program would have been December 29, 2017. However, because of certain limitations on the dollar value of shares that could have been redeemed under the share redemption program (described below), the Company exhausted funds available for all redemptions for the remainder of 2017 in January 2017 and funds available for redemptions made in connection with a stockholder’s death, “qualifying disability,” or “determination of incompetence” (both as defined in the share redemption program and together with redemptions in connection with a stockholder’s death, “Special Redemptions”) for the remainder of 2017 in August 2017. As such, the Company was unable to redeem any shares on December 29, 2017. Pursuant to the Company’s share redemption program, there were several limitations on the Company’s ability to redeem shares: • Unless the shares were being redeemed in connection with a Special Redemption, the Company was not able to redeem shares until the stockholder has held his or her shares for one year. • During any calendar year, the Company could redeem no more than 5% of the weighted-average number of shares outstanding during the prior calendar year. • The Company had no obligation to redeem shares if the redemption would have violated the restrictions on distributions under Maryland law, which prohibits distributions that would cause a corporation to fail to meet statutory tests of solvency. • The Company could redeem only the number of shares that it could purchase with the amount of the net proceeds from the sale of shares under its dividend reinvestment plan during the prior calendar year; provided that the Company could not redeem more than $2.0 million of shares in the aggregate during any calendar year. Furthermore, during any calendar year, once the Company had redeemed $1.5 million of shares under its share redemption program, including in connection with Special Redemptions, the remaining $0.5 million of the $2.0 million annual redemption limit was reserved exclusively for Special Redemptions. Pursuant to the share redemption program, Special Redemptions were made at a price per share equal to the most recent estimated value per share of the Company’s common stock as of the applicable redemption date. The price at which the Company redeemed all other shares eligible for redemption was as follows: • For those shares held by the redeeming stockholder for at least one year, 92.5% of the Company’s most recent estimated value per share as of the applicable redemption date; • For those shares held by the redeeming stockholder for at least two years, 95.0% of the Company’s most recent estimated value per share as of the applicable redemption date; • For those shares held by the redeeming stockholder for at least three years, 97.5% of the Company’s most recent estimated value per share as of the applicable redemption date; and • For those shares held by the redeeming stockholder for at least four years, 100% of the Company’s most recent estimated value per share as of the applicable redemption date. On December 9, 2016, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $9.35 (unaudited) based on the estimated value of the Company’s assets less the estimated value of the Company’s liabilities, divided by the number of shares outstanding, all as of September 30, 2016. This estimated value per share became effective for the December 2016 redemption date, which was December 30, 2016. For a full description of the assumption and methodologies used to value the Company’s assets and liabilities in connection with the calculation of the December 2016 estimated value per share, see Part II, Item 5, “Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities — Market Information” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on March 10, 2017. On April 5, 2017, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $8.35 (unaudited), effective April 20, 2017. The estimated value per share was equal to the December 2016 estimated value per share of the the Company’s common stock of $9.35 (unaudited), reduced for the impact of the $1.00 per share special distribution the Company paid to its stockholders on May 1, 2017 in connection with the disposition of Wesley Village. For a full description of the methodologies and assumptions used in the determination of the April 2017 estimated value per share, see the Company’s Current Report on Form 8-K, filed with the SEC on April 11, 2017. If the Company could not redeem all shares presented for redemption in any month because of the limitations on redemptions set forth in the share redemption program, then the Company honored redemption requests on a pro rata basis, except that if a pro rata redemption would have resulted in a stockholder owning less than the minimum purchase requirement described in the Company’s then-effective, or the most recently effective, registration statement as such registration statement had been amended or supplemented, then the Company would redeem all of such stockholder’s shares. The Company recorded amounts that were redeemable under the share redemption program as redeemable common stock in its consolidated balance sheets because the shares would be mandatorily redeemable at the option of the holder and therefore their redemption would be outside the control of the Company. The maximum amount redeemable under the Company’s share redemption program was limited to the number of shares the Company could redeem with the amount of the net proceeds from the sale of shares under its dividend reinvestment plan during the prior calendar year; provided, that the Company was not able to redeem more than $2.0 million of shares in the aggregate during any calendar year. Furthermore, during any calendar year, once the Company had redeemed $1.5 million of shares under the share redemption program, including Special Redemptions, the remaining $0.5 million of the $2.0 million annual limit would be reserved exclusively for Special Redemptions. However, because the amounts that could be redeemed were determinable and only contingent on an event that was likely to occur (e.g., the passage of time), the Company presented the net proceeds from the current year dividend reinvestment plan as redeemable common stock in its accompanying consolidated balance sheets. The Company classified as liabilities financial instruments that represented a mandatory obligation of the Company to redeem shares. The Company’s redeemable common shares were contingently redeemable at the option of the holder. When the Company determined it had a mandatory obligation to repurchase shares under the share redemption program, it reclassified such obligations from temporary equity to a liability based upon their respective settlement values. During the year ended December 31, 2016, the Company redeemed $2.0 million of common stock, which represented all redemption requests received in good order and eligible for redemption through the December 31, 2016 redemption date, except for 176,510 shares due to the limitations described above, of which 154,109 shares were redeemed in January 2017 and February 2017. The Company recorded $1.7 million of other liabilities on the Company’s consolidated balance sheets as of December 31, 2016 related to these unfulfilled redemption requests. Related Party Transactions The Company has entered into the Advisory Agreement with the Advisor and that certain dealer manager agreement related to the Follow-on Offering, dated March 8, 2013 (the “Follow-on Dealer Manager Agreement”), with KBS Capital Markets Group LLC (the “Dealer Manager”), an affiliate of the Company that acted as the Company’s 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 now-terminated Follow-on Offering and entitle the Advisor to specified fees upon the provision of certain services with regard to the management of the Company’s real estate properties, among other services (including, but not limited to, the disposition of investments), 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 now-terminated dividend reinvestment plan, and certain costs incurred by the Advisor in providing services to the Company, such as certain operating costs. The Company has entered into a fee reimbursement agreement (the “AIP Reimbursement Agreement”) with the Dealer Manager pursuant to which the Company agreed to reimburse the Dealer Manager for certain fees and expenses it incurs for administering the Company’s participation in the DTCC Alternative Investment Product Platform (“AIP 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 II, Inc. (“KBS REIT II”), KBS Real Estate Investment Trust III, Inc. (“KBS REIT III”), KBS Strategic Opportunity REIT, Inc. (“KBS Strategic Opportunity REIT”), KBS Strategic Opportunity REIT II, Inc. (“KBS Strategic Opportunity REIT II)” and KBS Growth & Income REIT, Inc. (“KBS Growth & Income REIT”). The Company records all related party fees as incurred, subject to any limitations described in the Advisory Agreement. The Company did not incur any subordinated participations in net cash flows, or subordinated incentive listing fees during the year ended December 31, 2017 . Operating Expenses Under the Advisory Agreement, the Advisor has the right to seek reimbursement from the Company for all costs and expenses it incurs in connection with the provision of services to the Company, including the Company’s allocable share of the Advisor’s overhead, such as rent, employee costs, accounting software and cybersecurity costs. In addition, the Sub-Advisor had the right to seek reimbursement for certain marketing research costs and property pursuit costs it incurred. Commencing 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. In the future, the Advisor may seek reimbursement for additional employee costs. The Company does not reimburse the Advisor for employee costs in connection with services for which the Advisor earned or earns acquisition or disposition fees (other than reimbursement of travel and communication expenses) or for the salaries and benefits the Advisor or its affiliates may pay to the Company’s executive officers. Asset Management Fee Until August 13, 2013, the asset management fee payable to the Advisor with respect to investments in real estate was equal to one twelfth of 1.0% of the amount paid to fund the acquisition, development, construction or improvement of the investment, inclusive of acquisition expenses related thereto (but excluding any acquisition fees related thereto). The amount paid included any portion of the investment that was debt financed. In the case of investments made through joint ventures, the asset management fee was determined based on the Company’s proportionate share of the underlying investment. Effective August 14, 2013, 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. See Note 9, “Related Party Transactions — Advisory Agreement — Asset Management Fee.” On February 1, 2018, the Company renewed the Advisory Agreement with the Advisor, effective as of January 25, 2018. The renewed Advisory Agreement (i) contains certain changes to the fees and reimbursements the Company pays to its advisor which become effective on the day after the Company’s sells its final real estate property and (ii) provides for the automatic termination of the agreement in certain circumstances. See Note 12, “Subsequent Events — Renewal of the Advisory Agreement.” Property Management Fees During the year ended December 31, 2015, the Company, through its indirect wholly owned subsidiaries that owned each of its real estate properties (each, a “Property Owner”), entered into property management agreements with Legacy Partners, Inc., formerly known as Legacy Partners Residential, Inc. (“LPI”), an affiliate of the Sub-Advisor (each, a “Property Management Agreement”), pursuant to which LPI provides or provided, among other services, general property management services, including bookkeeping and accounting services for each of the Company’s real estate properties. Under the Property Management Agreements for each of the Company’s remaining real estate properties, each Property Owner will pay LPI: (i) a monthly fee based on the Management Fee Percentage (as described below), (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 retail leases executed 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. For more information, see Note 9, “Related Party Transactions – Property Management Agreements.” Disposition Fees The Advisory Agreement provides that if the Advisor or any of its affiliates provide a substantial amount of services (as determined by the conflicts committee) in connection with the sales of single real estate properties or the sale of all or a portion of the Company’s real estate properties through a portfolio sale, merger or other business combination transaction, the Company would pay the Advisor or its affiliates a disposition fee of up to 1% of the contract sales price of the real estate property or properties sold. Insurance Program On January 6, 2014, the Company, together with KBS Real Estate Investment Trust, Inc. (“KBS REIT I”), KBS REIT II, KBS REIT III, KBS Strategic Opportunity REIT and KBS Strategic Opportunity REIT II, the Dealer Manager, the Advisor and other KBS-affiliated entities, entered into an errors and omissions and directors and officers liability insurance program where the lower tiers of 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 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 was 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. Income Taxes The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company’s annual REIT taxable income to its stockholders (which is computed without regard to the divi |
LIABILITIES FOR ESTIMATED COSTS
LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION | 12 Months Ended |
Dec. 31, 2017 | |
Liability during Liquidation [Abstract] | |
LIABILITY FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION | LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION The liquidation basis of accounting requires the Company to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the Plan of Liquidation. As of December 31, 2017 , the Company estimated that it will have costs in excess of estimated receipts during the liquidation process. These amounts can vary significantly due to, among other things, the timing and estimates for executing and renewing leases, estimates of tenant improvement costs, the timing of property sales, direct costs incurred to complete the sales, the timing and amounts associated with discharging known and contingent liabilities and the costs associated with the winding down of operations. These costs are estimated and are anticipated to be paid out over the liquidation period. Upon transition to the liquidation basis of accounting on December 1, 2017, the Company accrued the following revenues and expenses expected to be incurred during liquidation (in thousands): Rental income $ 5,196 Operating, maintenance, and management (1,230 ) Real estate taxes and insurance 151 Asset management fees due to affiliates — Property management fees and expenses to affiliate (299 ) General and administrative expenses (1,103 ) Interest expense (1,391 ) Other interest income 100 Liquidation transaction costs (1,500 ) Capital expenditures (187 ) Liabilities for estimated costs in excess of estimated receipts during liquidation $ (263 ) The change in the liabilities for estimated costs in excess of estimated receipts during liquidation as of December 31, 2017 is as follows (in thousands): December 1, 2017 Cash Payments (Receipts) Remeasurement of Assets and Liabilities December 31, 2017 Assets: Estimated net inflows from investments in real estate $ 2,427 $ (861 ) $ 254 $ 1,820 2,427 (861 ) 254 1,820 Liabilities: Liquidation transaction costs (1,500 ) — — (1,500 ) Corporate expenditures (1,003 ) 176 — (827 ) Capital expenditures (187 ) 8 — (179 ) (2,690 ) 184 — (2,506 ) Total liabilities for estimated costs in excess of estimated receipts during liquidation $ (263 ) $ (677 ) $ 254 $ (686 ) |
NET ASSETS IN LIQUIDATION
NET ASSETS IN LIQUIDATION | 12 Months Ended |
Dec. 31, 2017 | |
Net Assets In Liquidation [Abstract] | |
NET ASSETS IN LIQUIDATION | NET ASSETS IN LIQUIDATION Net assets in liquidation decreased by approximately $84.9 million during the month ended December 31, 2017 . Pursuant to the Plan of Liquidation, on December 20, 2017, the Company’s board of directors authorized the Initial Liquidating Distribution in the amount of $4.05 per share of common stock to the Company’s stockholders of record as of the close of business on December 21, 2017, for an aggregate cash distribution of approximately $85.2 million , which was the primary reason for the decline in net assets in liquidation. The Initial Liquidating Distribution was paid on December 27, 2017 and was funded with proceeds from asset sales. The net assets in liquidation as of December 31, 2017 would result in the payment of additional estimated liquidating distributions of approximately $4.44 per share of common stock to the Company’s stockholders of record as of December 31, 2017 . This estimate of additional liquidating distributions includes projections of costs and expenses to be incurred during the estimated period required to complete the Plan of Liquidation. There is inherent uncertainty with these estimates and projections, and they could change materially based on the timing of the sales of the Company’s remaining real estate properties, the performance of the Company’s remaining assets and any changes in the underlying assumptions of the projected cash flows from such properties. |
REAL ESTATE
REAL ESTATE | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
REAL ESTATE | REAL ESTATE As of December 31, 2017 , the Company’s real estate investments consisted of the Core-Portfolio Properties. These four properties contain 1,273 units, and encompass 1.4 million rentable square feet and were 93% occupied in the aggregate. As of December 31, 2017 , the Company’s liquidation value of real estate was $217.5 million . As a result of adopting the liquidation basis of accounting in December 2017, as of December 31, 2017 , real estate properties were recorded at their estimated liquidation value, which represents the estimated gross amount of cash that the Company will collect on the sale of its real estate properties owned as of December 31, 2017 as it carries out its Plan of Liquidation. Real Estate Sales During the 11 months ended November 30, 2017 and for the period from December 1, 2017 through December 31, 2017, the Company sold the following seven real estate properties: Property Name Location Date Sold Number of Units Contractual Sales Price (1) (in thousands) Wesley Village Charlotte, NC 03/09/2017 301 $ 57,150 Watertower Apartments Eden Prairie, MN 09/12/2017 228 42,500 Legacy Crescent Park Greer, SC 09/29/2017 240 24,500 Legacy Grand at Concord Concord, NC 10/30/2017 240 33,500 Legacy at Martin’s Point Lombard, IL 10/31/2017 256 38,250 Millennium Apartment Homes Greenville, SC 10/31/2017 305 36,250 Total for the 11 months ended November 30, 2017 1,570 232,150 Poplar Creek Schaumburg, IL 12/20/2017 196 31,000 Total 1,766 $ 263,150 ____________________ (1) Contractual sales price excludes closing credits, closing costs and fees. On February 8, 2018, the Company completed the sale of two of the Core-Portfolio Properties. See Note 12, “Subsequent Events — Dispositions Subsequent to December 31, 2017.” |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTES PAYABLE As of December 31, 2017 and 2016 , the Company’s notes payable consisted of the following (dollars in thousands): Book Value as of December 31, 2017 Book Value as of December 31, 2016 Contractual Interest Rate as of December 31, 2017 Payment Type Maturity Date Legacy at Valley Ranch Mortgage Loan (2) $ 30,334 $ 30,958 3.9% Principal & Interest 04/01/2019 Poplar Creek Mortgage Loan (3) — 19,414 (3) (3) (3) The Residence at Waterstone Mortgage Loan 44,716 45,653 3.8% Principal & Interest 05/01/2019 (1) Legacy Crescent Park Mortgage Loan (4) — 13,560 (4) (4) (4) Legacy at Martin’s Point Mortgage Loan (5) — 21,866 (5) (5) (5) Wesley Village Mortgage Loan (6) — 26,862 (6) (6) (6) Watertower Mortgage Loan (7) — 23,943 (7) (7) (7) Crystal Park Mortgage Loan (8) 26,296 27,013 2.5% Principal & Interest 06/01/2018 (1) Millennium Mortgage Loan (9) — 20,190 (9) (9) (9) Legacy Grand at Concord Mortgage Loan (10) — 22,392 (10) (10) (10) Lofts at the Highlands Mortgage Loan 30,303 30,754 3.4% Principal & Interest 08/01/2052 (1) Total notes payable principal outstanding $ 131,649 $ 282,605 Discount on note payable, net (11) — (2,644 ) Deferred financing costs, net (11) — (815 ) Prepayment penalties (11) 1,283 — Total notes payable, net $ 132,932 $ 279,146 ____________________ (1) The Company has the right to repay the loan subject to certain conditions and prepayment penalties. (2) On February 8, 2018, in connection with the disposition of Legacy at Valley Ranch, the Company entered into a defeasance agreement with the lender to defease the entire outstanding principal balance of the Legacy at Valley Ranch Mortgage Loan and release Legacy at Valley Ranch as security for the Legacy at Valley Ranch Mortgage Loan. See Note 12, “Subsequent Events — Dispositions Subsequent to December 31, 2017 — Disposition of Legacy at Valley Ranch.” (3) On December 20, 2017, in connection with the disposition of Poplar Creek, the Company entered into a defeasance with the lender to defease the entire outstanding principal balance of the Poplar Creek Mortgage Loan and release Poplar Creek as security for the Poplar Creek Mortgage Loan. (4) On September 29, 2017, in connection with the disposition of Legacy Crescent Park, the Company paid off the Legacy Crescent Park Mortgage Loan. (5) On October 31, 2017, in connection with the disposition of Legacy at Martin’s Point, the Company paid off the Legacy at Martin’s Point Mortgage Loan. (6) On March 9, 2017, in connection with the disposition of Wesley Village, the Company paid off the Wesley Village Mortgage Loan. (7) On September 12, 2017, in connection with the disposition of Watertower Apartments, the Company paid off the Watertower Mortgage Loan. (8) On February 8, 2018, in connection with the disposition of Crystal Park at Waterford, the Company entered into a defeasance agreement with the lender to defease the entire outstanding principal balance of the Crystal Park Mortgage Loan and release Crystal Park at Waterford as security for the Crystal Park Mortgage Loan. See Note 12, “Subsequent Events — Dispositions Subsequent to December 31, 2017 — Disposition of Crystal Park at Waterford.” (9) On October 31, 2017, in connection with the disposition of Millennium Apartment Homes, the Company paid off the Millennium Mortgage Loan. (10) On October 30, 2017, in connection with the disposition of Legacy Grand at Concord, the Company paid off the Legacy Grand at Concord Mortgage Loan. (11) As described in Note 3, “Summary of Significant Accounting Policies — Principles of Consolidation and Basis of Presentation,” on December 1, 2017, the Company adopted the liquidation basis of accounting which requires the Company to record notes payable at their contractual amounts. During the 11 months ended November 30, 2017 and the years ended December 31, 2016 and 2015 , the Company incurred $8.6 million , $10.3 million and $10.5 million of interest expense, respectively. Included in interest expense for the 11 months ended November 30, 2017 and the years ended December 31, 2016 and 2015 were $0.5 million , $0.4 million and $0.4 million of amortization of deferred financing costs, respectively. Also included in interest expense for the 11 months ended November 30, 2017 and the years ended December 31, 2016 and 2015 were $81,000 , $87,000 and $86,000 of amortization of discount on a note payable, respectively. As of December 31, 2016 , the Company recorded interest payable of $0.8 million . |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES Under the going concern basis of accounting, 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 December 31, 2016 (dollars in thousands): December 31, 2016 Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 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 | 12 Months Ended |
Dec. 31, 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 now-terminated 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 now-terminated dividend reinvestment plan, and certain costs incurred by the Advisor in providing services to the Company, such as certain operating costs. The Company has also entered into the AIP Reimbursement Agreement with the Dealer Manager pursuant to which the Company agreed to reimburse the Dealer Manager for certain fees and expenses it incurs for administering the Company’s participation in the AIP 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 REIT II, KBS REIT III, KBS Strategic Opportunity REIT, KBS Strategic Opportunity REIT II and KBS Growth & Income REIT. On January 6, 2014, the Company, together with KBS REIT I, KBS REIT II, KBS REIT III, KBS Strategic Opportunity REIT and KBS Strategic Opportunity REIT II., the Dealer Manager, the Advisor and other KBS-affiliated entities, entered into an errors and omissions and directors and officers liability insurance program where the lower tiers of 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. 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 was 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. 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’s 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 November 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 does not expect to pay this amount to the Advisor. 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 November 30, 2017 , the Company had deferred payment of $9.8 million of asset management fees for the period from August 2013 through November 2017, but did not record an accrual on its books as the Company does not expect to pay this amount to the Advisor. During the 11 months ended November 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 deferred asset management fees as the Company does not expect to pay this amount to the Advisor. As the Company ceased paying regular monthly distributions after October 2, 2017, the Advisor has agreed to waive all future asset management fees. As of December 31, 2017 , as part of the liquidation basis of accounting, the Company accrued $0 of asset management fees. During the year ended December 31, 2016 , the Company incurred $3.0 million of asset management fees. However, the Company only recorded $0.4 million pursuant to the limitations in the Advisory Agreement as noted above. The Company did not accrue the remaining $2.6 million of these asset management fees as it is not expected that any of these amounts will be paid in the future. During the year ended December 31, 2015 , the Company incurred $2.8 million of asset management fees. However, the Company only recorded $0.7 million pursuant to the limitations in the Advisory Agreement as noted above. The Company did not accrue the remaining $2.1 million of these asset management fees as it is not expected that any of these amounts will be paid in the future. On February 1, 2018, the Company renewed the Advisory Agreement with the Advisor, effective as of January 25, 2018. The renewed Advisory Agreement (i) contains certain changes to the fees and reimbursements the Company pays to its advisor which become effective on the day after the Company’s sells its final real estate property and (ii) provides for the automatic termination of the agreement in certain circumstances. See Note 12, “Subsequent Events — Renewal of the Advisory Agreement.” During the years ended December 31, 2017 , 2016 and 2015 , no other business transactions occurred between the Company and KBS REIT I, KBS REIT II, KBS REIT III, KBS Strategic Opportunity REIT, KBS Strategic Opportunity REIT II and KBS Growth & Income REIT. Property Management Agreements In connection with certain of its property acquisitions, the Company, through certain Property Owners, entered into separate Property Management — Account Services Agreements (each, a “Services Agreement”) with Legacy Partners Residential L.P. (“LPR”), an affiliate of the Sub-Advisor, pursuant to which LPR provided certain account maintenance and bookkeeping services related to these properties. Under each Services Agreement, the Company paid LPR a monthly fee in an amount equal to 1% of each property’s gross monthly collections. Unless otherwise provided for in an approved operating budget for a property, LPR was responsible for all expenses that it incurred in rendering services pursuant to each Services Agreement. As described below, as of June 9, 2015, each of the Services Agreements had been terminated. During the year ended December 31, 2015, the Company, through the Property Owners, entered into the Property Management Agreements, 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 (2) 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 (3) 05/12/2015 3.00% Poplar Creek (4) 05/14/2015 3.00% Wesley Village (5) 05/19/2015 3.00% Legacy Grand at Concord (6) 05/21/2015 3.00% Millennium Apartment Homes (7) 05/27/2015 3.00% Legacy Crescent Park (8) 05/29/2015 3.00% Legacy at Valley Ranch (9) 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 February 8, 2018, the Company sold Crystal Park at Waterford. See Note 12, “Subsequent Events — Dispositions Subsequent to December 31, 2017 — Disposition of Crystal Park at Waterford.” The Property Management Agreement for Crystal Park at Waterford was terminated effective as of February 8, 2018. (3) On October 31, 2017, the Company sold Legacy at Martin’s Point. The Property Management Agreement for Legacy at Martin’s Point was terminated effective as of October 31, 2017. (4) On December 20, 2017, the Company sold Poplar Creek. The Property Management Agreement for Poplar Creek was terminated effective as of December 20, 2017. (5) On March 9, 2017, the Company sold Wesley Village. The Property Management Agreement for Wesley Village was terminated effective as of March 9, 2017. (6) On October 30, 2017, the Company sold Legacy Grand at Concord. The Property Management Agreement for Legacy Grand at Concord was terminated effective as of October 30, 2017. (7) On October 31, 2017, the Company sold Millennium Apartment Homes. The Property Management Agreement for Millennium Apartment Homes was terminated effective as of October 31, 2017. (8) 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. (9) On February 8, 2018, the Company sold Legacy at Valley Ranch. See Note 12, “Subsequent Events — Dispositions Subsequent to December 31, 2017 — Disposition of Legacy at Valley Ranch.” The Property Management Agreement for Legacy at Valley Ranch was terminated effective as of February 8, 2018. Under the Property Management Agreements, 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 or was responsible for all expenses that it incurs or incurred 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, if a monetary default continues for a period of 10 days after notice of such monetary default. Pursuant to the terms of these agreements and the Services Agreements and Property Management Agreements discussed above, summarized below are the related-party costs incurred by the Company for the years ended December 31, 2017 , 2016 and 2015 , respectively, and any related amounts payable as of December 31, 2017 and 2016 (in thousands): Incurred Payable as of Years Ended December 31, December 31, 2017 2016 2015 2017 2016 Expensed Asset management fees (1) $ 234 $ 399 $ 729 $ — $ — Reimbursable operating expenses (2) 246 225 356 16 15 Property management fees and expenses (3) 5,547 5,811 3,523 69 142 Disposition fees (4) 1,710 — — — — $ 7,737 $ 6,435 $ 4,608 $ 85 $ 157 ____________________ (1) See “Advisory Agreement — Asset Management Fee” above. For the 11 months ended November 30, 2017 , asset management fees were $0.2 million as presented on a going concern basis. (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 $171,000 , $161,000 and $141,000 for the years ended December 31, 2017 , 2016 and 2015 , respectively, and were the only type of employee costs reimbursed under the Advisory Agreement through December 31, 2017 . The Company does not reimburse for employee costs in connection with services for which the Advisor earns or earned 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. For the 11 months ended November 30, 2017 , reimbursable operating expenses were $0.2 million as presented on a going concern basis. (3) Property management fees and expenses are all paid to LPI. Those fees and expenses are described above under “— Property Management Agreements.” For the 11 months ended November 30, 2017 , property management fees and expenses were $5.2 million as presented on a going concern basis. (4) Disposition fees presented are amounts incurred pursuant to the Advisory Agreement and approved by the conflicts committee during the year ended December 31, 2017 . For the 11 months ended November 30, 2017 , disposition fees were $1.5 million as presented on a going concern basis. Disposition fees accrued as of December 31, 2017 , as part of the liquidation basis of accounting, of $1.4 million are included in liabilities for estimated closing costs and disposition fees in the accompanying Consolidated Statement of Net Assets. During the year ended December 31, 2017 , the Advisor reimbursed the Company for a property insurance rebate $27,000 . 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 years ended December 31, 2017 , 2016 and 2015 the Advisor incurred $61,000 , $61,000 and $61,000 , respectively, 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. Other Offering Costs Related to Follow-on Offering and Dividend Reinvestment Plan The offering costs related to the Follow-on Offering (other than selling commissions and dealer manager fees) were either paid directly by the Company or in some instances paid by the Advisor, the Dealer Manager or their affiliates on the Company’s behalf. Offering costs include all expenses in connection with the Follow-on Offering and were charged as incurred as a reduction to stockholders’ equity. Pursuant to the Advisory Agreement and the Follow-on Dealer Manager Agreement, the Company was obligated to reimburse the Advisor, the Dealer Manager or their affiliates, as applicable, for offering costs paid by them on the Company’s behalf. However, at the termination of the primary Follow-on Offering and at the termination of the offering under the Company’s dividend reinvestment plan, the Advisor agreed to reimburse the Company to the extent that selling commissions, dealer manager fees and other offering costs incurred by the Company exceeded 15% of the gross offering proceeds. Further, the Company was only liable to reimburse offering costs incurred by the Advisor up to an amount that, when combined with selling commissions, dealer manager fees and all other amounts spent by the Company on offering expenses, did not exceed 15% of the gross proceeds of the primary Follow-on Offering and the offering under the Company’s dividend reinvestment plan as of the date of reimbursement. The Company terminated the dividend reinvestment plan effective as of August 20, 2017. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Presented below is a summary of the unaudited quarterly financial information for the 11 months ended November 30, 2017 and year ended December 31, 2016 (in thousands, except per share amounts): 2017 First Quarter Second Quarter Third Quarter Period from October 1, 2017 through November 30, 2017 Revenues $ 10,966 $ 10,381 $ 10,111 $ 4,835 Net income 16,076 51 13,697 19,290 Net income per common share, basic and diluted 0.77 — 0.65 0.92 Distributions declared per common share (1) 0.160 1.091 0.137 — 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 11,154 $ 11,367 $ 11,498 $ 11,282 Net income (loss) 86 (24 ) 5,040 19 Net income per common share, basic and diluted — — 0.24 0.01 Distributions declared per common share (1) 0.160 0.162 0.164 0.164 _____________________ (1) See Note 3, “Summary of Significant Accounting Policies — Per Share Data,” for more information regarding distributions declared. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 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's implementation of the Plan of Liquidation, including the management of the daily operations of the Company’s remaining real estate properties; the disposition of the Company’s remaining real estate properties; 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 net assets in liquidation. 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 financial condition or net assets in liquidation, 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 | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Dispositions Subsequent to December 31, 2017 Disposition of Legacy at Valley Ranch On October 26, 2010, the Company, through an indirect wholly owned subsidiary (the “Legacy at Valley Ranch Owner”), purchased a 504 -unit apartment complex (“Legacy at Valley Ranch”) on approximately 20.3 acres of land located in the Valley Ranch community of Irving, Texas. On February 8, 2018, the Company completed the sale of Legacy at Valley Ranch to an unaffiliated buyer for $67.5 million , net of closing credits. The liquidation value of Legacy at Valley Ranch as of December 1, 2017 was $67.5 million . In connection with the disposition of Legacy at Valley Ranch, the Company, through the Legacy at Valley Ranch Owner, entered into a defeasance agreement with the lender under the Legacy at Valley Ranch Mortgage Loan to defease the entire outstanding principal balance of $30.2 million and release Legacy at Valley Ranch as security for the Legacy at Valley Ranch Mortgage Loan. Disposition of Crystal Park at Waterford On May 8, 2013, the Company, through an indirect wholly owned subsidiary (the “Crystal Park at Waterford Owner”), purchased a 314 -unit apartment complex (“Crystal Park at Waterford”) on approximately 16.3 acres of land located in Frederick, Maryland. On February 8, 2018, the Company completed the sale of Crystal Park at Waterford to to an unaffiliated buyer for $45.7 million , net of closing credits. The liquidation value of Crystal Park at Waterford as of December 1, 2017 was $45.7 million . In connection with the disposition of Crystal Park at Waterford, the Company, through the Crystal Park at Waterford Owner, entered into a defeasance agreement with the lender under the Crystal Park at Waterford Mortgage Loan to defease the entire outstanding principal balance of $26.2 million and release Crystal Park at Waterford as security for the Crystal Park at Waterford Mortgage Loan. Renewal of the Advisory Agreement On February 1, 2018, the Company renewed its advisory agreement with the Advisor. The effective date of the renewed advisory agreement is January 25, 2018. The renewed advisory agreement (i) removes the Company’s responsibility for paying any fees or compensation to the Advisor for services rendered commencing with the day immediately following the date on which the Company sells its final real estate property, (ii) removes the Company’s responsibility for paying directly or reimbursing the Advisor for any of the expenses paid or incurred by the Advisor on the Company’s behalf or in connection with the services provided to the Company commencing with the day immediately following the date on which the Company sells its final real estate property, and (iii) provides for the automatic termination of the advisory agreement, without further action by or on behalf of the Company or the Advisor, upon the payment by the Company of the final liquidating distribution pursuant to the Plan of Liquidation and the completion of all of the Advisor’s duties under the renewed advisory agreement, including without limitation, those duties relating to completing tax reporting and providing related information. Other than the changes described above, there were no material changes to the terms of the advisory agreement previously in effect. |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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. |
Principles of Consolidation | The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), including Subtopic 205-30, “Liquidation Basis of Accounting,” and the rules and regulations of the SEC. Pursuant to the Company’s stockholders’ approval of the Plan of Liquidation, the Company adopted the liquidation basis of accounting as of December 1, 2017 (as the approval of the Plan of Liquidation by the Company’s stockholders became imminent within the last week of November 2017 based on the results of the Company’s solicitation of proxies from its stockholders for their approval of the Plan of Liquidation) and for the periods subsequent to December 1, 2017 in accordance with GAAP. Accordingly, on December 1, 2017, assets were adjusted to their estimated net realizable value, or liquidation value, which represents the estimated amount of cash that the Company will collect on disposal of assets as it carries out the Plan of Liquidation. The liquidation values of the Company’s remaining real estate properties are presented on an undiscounted basis. Estimated costs to dispose of assets and estimated capital expenditures through the anticipated disposition date of the properties have been presented separately from the related assets. Liabilities are carried at their contractual amounts due or estimated settlement amounts. The Company accrues costs and income that it expects to incur and earn through the completion of its liquidation, including the estimated amount of cash the Company expects to collect on the disposal of its assets and the estimated costs to dispose of its assets, to the extent it has a reasonable basis for estimation. These amounts are classified as a liability for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statement of Net Assets. Actual costs and income may differ from amounts reflected in the financial statements because of the inherent uncertainty in estimating future events. These differences may be material. See Note 4, “Liabilities for Estimated Costs in Excess of Estimated Receipts During Liquidation” for further discussion. Actual costs incurred but unpaid as of December 31, 2017 are included in accounts payable and accrued liabilities, due to affiliates and other liabilities on the Consolidated Statement of Net Assets. Net assets in liquidation represents the remaining estimated liquidation value available to stockholders upon liquidation. Due to the uncertainty in the timing of the sale of the Company’s remaining real estate properties and the estimated cash flows from operations, actual liquidation costs and sale proceeds may differ materially from the amounts estimated. All financial results and disclosures through November 30, 2017, prior to the adoption of the liquidation basis of accounting, are presented based on a going concern basis, which contemplates the realization of assets and liabilities in the normal course of business. As a result, the balance sheet as of December 31, 2016, the statements of operations, the statements of stockholders’ equity and the statements of cash flows for the 11 months ended November 30, 2017 and the comparative years ended December 31, 2016 and 2015 are presented using the going concern basis of accounting. Under the going concern basis of accounting, the Company’s consolidated financial statements included its accounts and the accounts of REIT Holdings, the Operating Partnership and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions were eliminated in consolidation. |
Use of Estimates | The preparation of the consolidated financial statements and accompanying notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. |
Reclassifications | Certain amounts in the Company’s prior period consolidated financial statements have been reclassified. These reclassifications have not changed the results of operations of prior periods. During the 11 months ended November 30, 2017 , the Company sold six apartment complexes and classified five other apartment complexes as held for sale. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheet for the year ended December 31, 2016. |
Revenue Recognition | Liquidation Basis of Accounting Under the liquidation basis of accounting, the Company has accrued all income that it expects to earn through the completion of its liquidation to the extent it has a reasonable basis for estimation. Revenue from tenants is estimated based on the contractual in-place leases and projected leases through the anticipated disposition date of the property. These amounts are classified in liabilities for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statement of Net Assets. Going Concern Basis The Company leases apartment units under operating leases with terms generally of one year or less. Generally, credit investigations will be performed for prospective residents and security deposits will be obtained. Prior to the adoption of liquidation basis of accounting, the Company recognized rental revenue, net of concessions, on a straight-line basis over the term of the lease, when collectibility was reasonably assured. The Company recognized gains on sales of real estate either in total or deferred for a period of time, depending on whether a sale had been consummated, the extent of the buyer’s investment in the property being sold, whether the receivable of the Company was subject to future subordination, and the degree of the Company’s continuing involvement with the property after the sale. If the criteria for profit recognition under the full-accrual method were not met, the Company would defer gain recognition and account for the continued operations of the property by applying the percentage-of-completion, reduced profit, deposit, installment or cost recovery method, as appropriate, until the appropriate criteria were met. Other income, including interest earned on the Company’s cash, was recognized as it was earned. |
Real Estate, Liquidation Basis of Accounting | As of December 1, 2017, the Company’s investments in real estate were adjusted to their estimated net realizable value, or liquidation value, to reflect the change to the liquidation basis of accounting. The liquidation value represents the estimated amount of cash that the Company will collect on disposal of its assets as it carries out the Plan of Liquidation. The Company estimated the liquidation value of its investments in real estate based on purchase and sale agreements into which the Company had entered as of December 31, 2017. The liquidation values of the Company’s investments in real estate are presented on an undiscounted basis and investments in real estate are no longer depreciated. Estimated costs to dispose of these investments are carried at their contractual amounts due or estimated settlement amounts and are presented separately from the related assets. Subsequent to December 1, 2017, all changes in the estimated liquidation value of the investments in real estate are reflected as a change to the Company’s net assets in liquidation. |
Real Estate, Depreciation and Amortization | Prior to the adoption of liquidation basis of accounting, real estate properties were carried at cost and depreciated using the straight-line method over the estimated useful lives of 40 years for buildings, 10 – 20 years for building improvements, 10 – 20 years for land improvements and five to 12 years for computer, furniture, fixtures and equipment. Costs directly associated with the development of land and those incurred during construction were capitalized as part of the investment basis. Acquisition costs were expensed as incurred. Operating expenses incurred that were not related to the development and construction of the real estate investments were expensed as incurred. Repair, maintenance and tenant turnover costs were expensed as incurred and significant replacements and improvements were capitalized. Repair, maintenance and tenant turnover costs included all costs that did not extend the useful life of the real estate property. The Company considered the period of future benefit of an asset to determine its appropriate useful life. Intangible assets related to in-place leases were amortized to expense over the average remaining non-cancelable terms of the respective in-place leases. |
Real Estate, Impairments of Real Estate and Related Intangible Assets and Liabilities | Prior to the adoption of liquidation basis of accounting, the Company continually monitored events and changes in circumstances that could indicate that the carrying amounts of its real estate and related intangible assets and liabilities may not be recoverable or realized. When indicators of potential impairment suggested that the carrying value of real estate and related intangible assets and liabilities may not be recoverable, the Company would assess the recoverability by estimating whether the Company could recover the carrying value of the real estate and related intangible assets and liabilities through its undiscounted future cash flows and its eventual disposition. If, based on this analysis, the Company did not believe that it will be able to recover the carrying value of the real estate and related intangible assets and liabilities, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the real estate and related intangible assets and liabilities. The Company did not record any impairment loss on its real estate and related intangible assets and liabilities during the 11 months ended November 30, 2017 and years ended December 31, 2016 and 2015 . |
Real Estate, Insurance Proceeds for Property Damage | The Company maintains an insurance policy that provides coverage for property damage and business interruption. Prior to the adoption of liquidation basis of accounting, losses due to physical damage were recognized during the accounting period in which they occurred while the amount of monetary assets to be received from the insurance policy was recognized when receipt of insurance recoveries was probable. Losses, which were reduced by the related probable insurance recoveries, were recorded as operating, maintenance and management expenses on the accompanying consolidated statements of operations. Anticipated proceeds in excess of recognized losses would be considered a gain contingency and recognized when the contingency related to the insurance claim had been resolved. Anticipated recoveries for lost rental revenue due to property damage were also considered to be a gain contingency and recognized when the contingency related to the insurance claim had been resolved. |
Cash and Cash Equivalents | The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short term investments. Cash and cash equivalents are stated at cost, which approximates fair value. There are no restrictions on the use of the Company’s cash and cash equivalents as of December 31, 2017 . The Company’s cash and cash equivalents balance exceeds federally insurable limits as of December 31, 2017 . The Company monitors the cash balances in its operating accounts and adjusts the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts. |
Restricted Cash | Restricted cash is comprised of lender impound reserve accounts for property taxes and insurance proceeds for property damages. |
Rents and Other Receivables | In accordance with the liquidation basis of accounting, as of December 1, 2017, rents and other receivables were adjusted to their net realizable value. The Company periodically evaluates the collectibility of amounts due from tenants. Any changes in the collectibility of the receivables are reflected as a change to the Company’s net assets in liquidation. |
Accrued Liquidation Costs | In accordance with the liquidation basis of accounting, the Company accrues for certain estimated liquidation costs to the extent it has a reasonable basis for estimation. These consist of legal fees, dissolution costs, final audit/tax costs, fees paid to financial advisors, insurance, and distribution processing costs. |
Deferred Financing Costs | Prior to the adoption of the liquidation basis of accounting, deferred financing costs represented commitment fees, loan fees, legal fees and other third-party costs associated with obtaining financing and were presented on the balance sheet as a direct deduction from the carrying value of the associated debt liability. These costs were amortized over the terms of the respective financing agreements using the interest method. Unamortized deferred financing costs were generally expensed when the associated debt was refinanced or repaid before maturity unless specific rules were met that would allow for the carryover of such costs to the refinanced debt. Deferred financing costs incurred before an associated debt liability is recognized were included in prepaid and other assets on the balance sheet. Costs incurred in seeking financing transactions that did not close were expensed in the period in which it was determined that the financing will not close. |
Dividend Reinvestment Plan | The Company had a dividend reinvestment plan through which its common stockholders were able to elect to reinvest an amount equal to the distributions declared on their shares in additional shares of the Company’s common stock in lieu of receiving cash distributions. Participants in the dividend reinvestment plan were able to acquire shares of common stock under the plan at a price equal to 95% of the estimated value per share of the Company’s common stock. On December 9, 2016, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $9.35 (unaudited) based on the estimated value of the Company’s assets less the estimated value of the Company’s liabilities, divided by the number of shares outstanding, all as of September 30, 2016. On April 5, 2017, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $8.35 (unaudited), effective April 20, 2017. The estimated value per share was equal to the December 2016 estimated value per share of the Company’s common stock of $9.35 (unaudited), reduced for the impact of the $1.00 per share special distribution the Company paid to its stockholders on May 1, 2017 in connection with the disposition of Wesley Village. Commencing with the April 20, 2017 purchase date, the purchase price per share under the dividend reinvestment plan was $7.93 . The Company terminated the dividend reinvestment plan effective as of August 20, 2017. |
Redeemable Common Stock | On December 19, 2017, in connection with the implementation of the Plan of Liquidation, the Company’s board of directors approved the termination of the Company’s share redemption program effective as of January 21, 2018. Thus, the last redemption date under the share redemption program would have been December 29, 2017. However, because of certain limitations on the dollar value of shares that could have been redeemed under the share redemption program (described below), the Company exhausted funds available for all redemptions for the remainder of 2017 in January 2017 and funds available for redemptions made in connection with a stockholder’s death, “qualifying disability,” or “determination of incompetence” (both as defined in the share redemption program and together with redemptions in connection with a stockholder’s death, “Special Redemptions”) for the remainder of 2017 in August 2017. As such, the Company was unable to redeem any shares on December 29, 2017. Pursuant to the Company’s share redemption program, there were several limitations on the Company’s ability to redeem shares: • Unless the shares were being redeemed in connection with a Special Redemption, the Company was not able to redeem shares until the stockholder has held his or her shares for one year. • During any calendar year, the Company could redeem no more than 5% of the weighted-average number of shares outstanding during the prior calendar year. • The Company had no obligation to redeem shares if the redemption would have violated the restrictions on distributions under Maryland law, which prohibits distributions that would cause a corporation to fail to meet statutory tests of solvency. • The Company could redeem only the number of shares that it could purchase with the amount of the net proceeds from the sale of shares under its dividend reinvestment plan during the prior calendar year; provided that the Company could not redeem more than $2.0 million of shares in the aggregate during any calendar year. Furthermore, during any calendar year, once the Company had redeemed $1.5 million of shares under its share redemption program, including in connection with Special Redemptions, the remaining $0.5 million of the $2.0 million annual redemption limit was reserved exclusively for Special Redemptions. Pursuant to the share redemption program, Special Redemptions were made at a price per share equal to the most recent estimated value per share of the Company’s common stock as of the applicable redemption date. The price at which the Company redeemed all other shares eligible for redemption was as follows: • For those shares held by the redeeming stockholder for at least one year, 92.5% of the Company’s most recent estimated value per share as of the applicable redemption date; • For those shares held by the redeeming stockholder for at least two years, 95.0% of the Company’s most recent estimated value per share as of the applicable redemption date; • For those shares held by the redeeming stockholder for at least three years, 97.5% of the Company’s most recent estimated value per share as of the applicable redemption date; and • For those shares held by the redeeming stockholder for at least four years, 100% of the Company’s most recent estimated value per share as of the applicable redemption date. On December 9, 2016, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $9.35 (unaudited) based on the estimated value of the Company’s assets less the estimated value of the Company’s liabilities, divided by the number of shares outstanding, all as of September 30, 2016. This estimated value per share became effective for the December 2016 redemption date, which was December 30, 2016. For a full description of the assumption and methodologies used to value the Company’s assets and liabilities in connection with the calculation of the December 2016 estimated value per share, see Part II, Item 5, “Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities — Market Information” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on March 10, 2017. On April 5, 2017, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $8.35 (unaudited), effective April 20, 2017. The estimated value per share was equal to the December 2016 estimated value per share of the the Company’s common stock of $9.35 (unaudited), reduced for the impact of the $1.00 per share special distribution the Company paid to its stockholders on May 1, 2017 in connection with the disposition of Wesley Village. For a full description of the methodologies and assumptions used in the determination of the April 2017 estimated value per share, see the Company’s Current Report on Form 8-K, filed with the SEC on April 11, 2017. If the Company could not redeem all shares presented for redemption in any month because of the limitations on redemptions set forth in the share redemption program, then the Company honored redemption requests on a pro rata basis, except that if a pro rata redemption would have resulted in a stockholder owning less than the minimum purchase requirement described in the Company’s then-effective, or the most recently effective, registration statement as such registration statement had been amended or supplemented, then the Company would redeem all of such stockholder’s shares. The Company recorded amounts that were redeemable under the share redemption program as redeemable common stock in its consolidated balance sheets because the shares would be mandatorily redeemable at the option of the holder and therefore their redemption would be outside the control of the Company. The maximum amount redeemable under the Company’s share redemption program was limited to the number of shares the Company could redeem with the amount of the net proceeds from the sale of shares under its dividend reinvestment plan during the prior calendar year; provided, that the Company was not able to redeem more than $2.0 million of shares in the aggregate during any calendar year. Furthermore, during any calendar year, once the Company had redeemed $1.5 million of shares under the share redemption program, including Special Redemptions, the remaining $0.5 million of the $2.0 million annual limit would be reserved exclusively for Special Redemptions. However, because the amounts that could be redeemed were determinable and only contingent on an event that was likely to occur (e.g., the passage of time), the Company presented the net proceeds from the current year dividend reinvestment plan as redeemable common stock in its accompanying consolidated balance sheets. The Company classified as liabilities financial instruments that represented a mandatory obligation of the Company to redeem shares. The Company’s redeemable common shares were contingently redeemable at the option of the holder. When the Company determined it had a mandatory obligation to repurchase shares under the share redemption program, it reclassified such obligations from temporary equity to a liability based upon their respective settlement values. During the year ended December 31, 2016, the Company redeemed $2.0 million of common stock, which represented all redemption requests received in good order and eligible for redemption through the December 31, 2016 redemption date, except for 176,510 shares due to the limitations described above, of which 154,109 shares were redeemed in January 2017 and February 2017. The Company recorded $1.7 million of other liabilities on the Company’s consolidated balance sheets as of December 31, 2016 related to these unfulfilled redemption requests. |
Related Party Transactions | The Company has entered into the Advisory Agreement with the Advisor and that certain dealer manager agreement related to the Follow-on Offering, dated March 8, 2013 (the “Follow-on Dealer Manager Agreement”), with KBS Capital Markets Group LLC (the “Dealer Manager”), an affiliate of the Company that acted as the Company’s 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 now-terminated Follow-on Offering and entitle the Advisor to specified fees upon the provision of certain services with regard to the management of the Company’s real estate properties, among other services (including, but not limited to, the disposition of investments), 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 now-terminated dividend reinvestment plan, and certain costs incurred by the Advisor in providing services to the Company, such as certain operating costs. The Company has entered into a fee reimbursement agreement (the “AIP Reimbursement Agreement”) with the Dealer Manager pursuant to which the Company agreed to reimburse the Dealer Manager for certain fees and expenses it incurs for administering the Company’s participation in the DTCC Alternative Investment Product Platform (“AIP 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 II, Inc. (“KBS REIT II”), KBS Real Estate Investment Trust III, Inc. (“KBS REIT III”), KBS Strategic Opportunity REIT, Inc. (“KBS Strategic Opportunity REIT”), KBS Strategic Opportunity REIT II, Inc. (“KBS Strategic Opportunity REIT II)” and KBS Growth & Income REIT, Inc. (“KBS Growth & Income REIT”). The Company records all related party fees as incurred, subject to any limitations described in the Advisory Agreement. The Company did not incur any subordinated participations in net cash flows, or subordinated incentive listing fees during the year ended December 31, 2017 . |
Related Party Transactions, Operating Expenses | Under the Advisory Agreement, the Advisor has the right to seek reimbursement from the Company for all costs and expenses it incurs in connection with the provision of services to the Company, including the Company’s allocable share of the Advisor’s overhead, such as rent, employee costs, accounting software and cybersecurity costs. In addition, the Sub-Advisor had the right to seek reimbursement for certain marketing research costs and property pursuit costs it incurred. Commencing 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. In the future, the Advisor may seek reimbursement for additional employee costs. The Company does not reimburse the Advisor for employee costs in connection with services for which the Advisor earned or earns acquisition or disposition fees (other than reimbursement of travel and communication expenses) or for the salaries and benefits the Advisor or its affiliates may pay to the Company’s executive officers. |
Related Party Transactions, Assets Management Fee | Until August 13, 2013, the asset management fee payable to the Advisor with respect to investments in real estate was equal to one twelfth of 1.0% of the amount paid to fund the acquisition, development, construction or improvement of the investment, inclusive of acquisition expenses related thereto (but excluding any acquisition fees related thereto). The amount paid included any portion of the investment that was debt financed. In the case of investments made through joint ventures, the asset management fee was determined based on the Company’s proportionate share of the underlying investment. Effective August 14, 2013, 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. See Note 9, “Related Party Transactions — Advisory Agreement — Asset Management Fee.” On February 1, 2018, the Company renewed the Advisory Agreement with the Advisor, effective as of January 25, 2018. The renewed Advisory Agreement (i) contains certain changes to the fees and reimbursements the Company pays to its advisor which become effective on the day after the Company’s sells its final real estate property and (ii) provides for the automatic termination of the agreement in certain circumstances. See Note 12, “Subsequent Events — Renewal of the Advisory Agreement.” |
Property Management Fees | During the year ended December 31, 2015, the Company, through its indirect wholly owned subsidiaries that owned each of its real estate properties (each, a “Property Owner”), entered into property management agreements with Legacy Partners, Inc., formerly known as Legacy Partners Residential, Inc. (“LPI”), an affiliate of the Sub-Advisor (each, a “Property Management Agreement”), pursuant to which LPI provides or provided, among other services, general property management services, including bookkeeping and accounting services for each of the Company’s real estate properties. Under the Property Management Agreements for each of the Company’s remaining real estate properties, each Property Owner will pay LPI: (i) a monthly fee based on the Management Fee Percentage (as described below), (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 retail leases executed 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. For more information, see Note 9, “Related Party Transactions – Property Management Agreements.” |
Disposition Fees | The Advisory Agreement provides that if the Advisor or any of its affiliates provide a substantial amount of services (as determined by the conflicts committee) in connection with the sales of single real estate properties or the sale of all or a portion of the Company’s real estate properties through a portfolio sale, merger or other business combination transaction, the Company would pay the Advisor or its affiliates a disposition fee of up to 1% of the contract sales price of the real estate property or properties sold. |
Insurance Program | On January 6, 2014, the Company, together with KBS Real Estate Investment Trust, Inc. (“KBS REIT I”), KBS REIT II, KBS REIT III, KBS Strategic Opportunity REIT and KBS Strategic Opportunity REIT II, the Dealer Manager, the Advisor and other KBS-affiliated entities, entered into an errors and omissions and directors and officers liability insurance program where the lower tiers of 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 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 was 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. |
Income Taxes | The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company’s annual REIT taxable income to its stockholders (which is computed without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax on income that it distributes as dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company believes that it is organized and operates in such a manner as to continue to qualify for treatment as a REIT. The Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. Neither the Company nor its subsidiaries have been assessed interest or penalties by any major tax jurisdictions. The Company’s evaluations were performed for all open tax years through December 31, 2017 . As of December 31, 2017 , returns for calendar years 2013 through 2016 remain subject to examination by major tax jurisdictions. |
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 11 months ended November 30, 2017 and years ended December 31, 2016 and 2015 . Distributions declared per share of common stock were $1.388 for the 11 months ended November 30, 2017 and $0.650 and 0.650 for the years ended December 31, 2016 and 2015 , respectively. Distributions declared per share of common stock were based on daily record dates for each day during the period commencing January 1, 2015 through February 28, 2016 and March 1, 2016 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, which was paid on May 1, 2017 and funded from the net proceeds from the sale of Wesley Village. In addition, pursuant to the Plan of Liquidation, on December 20, 2017, the Company’s board of directors authorized an initial liquidating distribution in the amount of $4.05 per share of common stock to the Company’s stockholders of record as of the close of business on December 21, 2017 (the “Initial Liquidating Distribution”). The Initial Liquidating Distribution was paid on December 27, 2017 and was funded from proceeds from real estate property sales. |
Square Footage, Occupancy and Other Measures | Square footage, occupancy and other measures, including annualized base rent and annualized base rent per square foot, used to describe real estate investments included in the Notes to Consolidated Financial Statements are presented on an unaudited basis. |
LIABILITIES FOR ESTIMATED COS22
LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Liability during Liquidation [Abstract] | |
Schedule Liquidation Basis of Accounting | Upon transition to the liquidation basis of accounting on December 1, 2017, the Company accrued the following revenues and expenses expected to be incurred during liquidation (in thousands): Rental income $ 5,196 Operating, maintenance, and management (1,230 ) Real estate taxes and insurance 151 Asset management fees due to affiliates — Property management fees and expenses to affiliate (299 ) General and administrative expenses (1,103 ) Interest expense (1,391 ) Other interest income 100 Liquidation transaction costs (1,500 ) Capital expenditures (187 ) Liabilities for estimated costs in excess of estimated receipts during liquidation $ (263 ) |
Schedule of Changes in Liability during Liquidation | The change in the liabilities for estimated costs in excess of estimated receipts during liquidation as of December 31, 2017 is as follows (in thousands): December 1, 2017 Cash Payments (Receipts) Remeasurement of Assets and Liabilities December 31, 2017 Assets: Estimated net inflows from investments in real estate $ 2,427 $ (861 ) $ 254 $ 1,820 2,427 (861 ) 254 1,820 Liabilities: Liquidation transaction costs (1,500 ) — — (1,500 ) Corporate expenditures (1,003 ) 176 — (827 ) Capital expenditures (187 ) 8 — (179 ) (2,690 ) 184 — (2,506 ) Total liabilities for estimated costs in excess of estimated receipts during liquidation $ (263 ) $ (677 ) $ 254 $ (686 ) |
REAL ESTATE (Tables)
REAL ESTATE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
Schedule of Revenue and Expenses of Real Estate Held-for-Sale | During the 11 months ended November 30, 2017 and for the period from December 1, 2017 through December 31, 2017, the Company sold the following seven real estate properties: Property Name Location Date Sold Number of Units Contractual Sales Price (1) (in thousands) Wesley Village Charlotte, NC 03/09/2017 301 $ 57,150 Watertower Apartments Eden Prairie, MN 09/12/2017 228 42,500 Legacy Crescent Park Greer, SC 09/29/2017 240 24,500 Legacy Grand at Concord Concord, NC 10/30/2017 240 33,500 Legacy at Martin’s Point Lombard, IL 10/31/2017 256 38,250 Millennium Apartment Homes Greenville, SC 10/31/2017 305 36,250 Total for the 11 months ended November 30, 2017 1,570 232,150 Poplar Creek Schaumburg, IL 12/20/2017 196 31,000 Total 1,766 $ 263,150 ____________________ (1) Contractual sales price excludes closing credits, closing costs and fees. |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | As of December 31, 2017 and 2016 , the Company’s notes payable consisted of the following (dollars in thousands): Book Value as of December 31, 2017 Book Value as of December 31, 2016 Contractual Interest Rate as of December 31, 2017 Payment Type Maturity Date Legacy at Valley Ranch Mortgage Loan (2) $ 30,334 $ 30,958 3.9% Principal & Interest 04/01/2019 Poplar Creek Mortgage Loan (3) — 19,414 (3) (3) (3) The Residence at Waterstone Mortgage Loan 44,716 45,653 3.8% Principal & Interest 05/01/2019 (1) Legacy Crescent Park Mortgage Loan (4) — 13,560 (4) (4) (4) Legacy at Martin’s Point Mortgage Loan (5) — 21,866 (5) (5) (5) Wesley Village Mortgage Loan (6) — 26,862 (6) (6) (6) Watertower Mortgage Loan (7) — 23,943 (7) (7) (7) Crystal Park Mortgage Loan (8) 26,296 27,013 2.5% Principal & Interest 06/01/2018 (1) Millennium Mortgage Loan (9) — 20,190 (9) (9) (9) Legacy Grand at Concord Mortgage Loan (10) — 22,392 (10) (10) (10) Lofts at the Highlands Mortgage Loan 30,303 30,754 3.4% Principal & Interest 08/01/2052 (1) Total notes payable principal outstanding $ 131,649 $ 282,605 Discount on note payable, net (11) — (2,644 ) Deferred financing costs, net (11) — (815 ) Prepayment penalties (11) 1,283 — Total notes payable, net $ 132,932 $ 279,146 ____________________ (1) The Company has the right to repay the loan subject to certain conditions and prepayment penalties. (2) On February 8, 2018, in connection with the disposition of Legacy at Valley Ranch, the Company entered into a defeasance agreement with the lender to defease the entire outstanding principal balance of the Legacy at Valley Ranch Mortgage Loan and release Legacy at Valley Ranch as security for the Legacy at Valley Ranch Mortgage Loan. See Note 12, “Subsequent Events — Dispositions Subsequent to December 31, 2017 — Disposition of Legacy at Valley Ranch.” (3) On December 20, 2017, in connection with the disposition of Poplar Creek, the Company entered into a defeasance with the lender to defease the entire outstanding principal balance of the Poplar Creek Mortgage Loan and release Poplar Creek as security for the Poplar Creek Mortgage Loan. (4) On September 29, 2017, in connection with the disposition of Legacy Crescent Park, the Company paid off the Legacy Crescent Park Mortgage Loan. (5) On October 31, 2017, in connection with the disposition of Legacy at Martin’s Point, the Company paid off the Legacy at Martin’s Point Mortgage Loan. (6) On March 9, 2017, in connection with the disposition of Wesley Village, the Company paid off the Wesley Village Mortgage Loan. (7) On September 12, 2017, in connection with the disposition of Watertower Apartments, the Company paid off the Watertower Mortgage Loan. (8) On February 8, 2018, in connection with the disposition of Crystal Park at Waterford, the Company entered into a defeasance agreement with the lender to defease the entire outstanding principal balance of the Crystal Park Mortgage Loan and release Crystal Park at Waterford as security for the Crystal Park Mortgage Loan. See Note 12, “Subsequent Events — Dispositions Subsequent to December 31, 2017 — Disposition of Crystal Park at Waterford.” (9) On October 31, 2017, in connection with the disposition of Millennium Apartment Homes, the Company paid off the Millennium Mortgage Loan. (10) On October 30, 2017, in connection with the disposition of Legacy Grand at Concord, the Company paid off the Legacy Grand at Concord Mortgage Loan. (11) As described in Note 3, “Summary of Significant Accounting Policies — Principles of Consolidation and Basis of Presentation,” on December 1, 2017, the Company adopted the liquidation basis of accounting which requires the Company to record notes payable at their contractual amounts. |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2016 (dollars in thousands): December 31, 2016 Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 282,605 $ 279,146 $ 279,258 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Property Management Agreements | During the year ended December 31, 2015, the Company, through the Property Owners, entered into the Property Management Agreements, 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 (2) 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 (3) 05/12/2015 3.00% Poplar Creek (4) 05/14/2015 3.00% Wesley Village (5) 05/19/2015 3.00% Legacy Grand at Concord (6) 05/21/2015 3.00% Millennium Apartment Homes (7) 05/27/2015 3.00% Legacy Crescent Park (8) 05/29/2015 3.00% Legacy at Valley Ranch (9) 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 February 8, 2018, the Company sold Crystal Park at Waterford. See Note 12, “Subsequent Events — Dispositions Subsequent to December 31, 2017 — Disposition of Crystal Park at Waterford.” The Property Management Agreement for Crystal Park at Waterford was terminated effective as of February 8, 2018. (3) On October 31, 2017, the Company sold Legacy at Martin’s Point. The Property Management Agreement for Legacy at Martin’s Point was terminated effective as of October 31, 2017. (4) On December 20, 2017, the Company sold Poplar Creek. The Property Management Agreement for Poplar Creek was terminated effective as of December 20, 2017. (5) On March 9, 2017, the Company sold Wesley Village. The Property Management Agreement for Wesley Village was terminated effective as of March 9, 2017. (6) On October 30, 2017, the Company sold Legacy Grand at Concord. The Property Management Agreement for Legacy Grand at Concord was terminated effective as of October 30, 2017. (7) On October 31, 2017, the Company sold Millennium Apartment Homes. The Property Management Agreement for Millennium Apartment Homes was terminated effective as of October 31, 2017. (8) 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. (9) On February 8, 2018, the Company sold Legacy at Valley Ranch. See Note 12, “Subsequent Events — Dispositions Subsequent to December 31, 2017 — Disposition of Legacy at Valley Ranch.” The Property Management Agreement for Legacy at Valley Ranch was terminated effective as of February 8, 2018. |
Schedule of Related Party Costs | Pursuant to the terms of these agreements and the Services Agreements and Property Management Agreements discussed above, summarized below are the related-party costs incurred by the Company for the years ended December 31, 2017 , 2016 and 2015 , respectively, and any related amounts payable as of December 31, 2017 and 2016 (in thousands): Incurred Payable as of Years Ended December 31, December 31, 2017 2016 2015 2017 2016 Expensed Asset management fees (1) $ 234 $ 399 $ 729 $ — $ — Reimbursable operating expenses (2) 246 225 356 16 15 Property management fees and expenses (3) 5,547 5,811 3,523 69 142 Disposition fees (4) 1,710 — — — — $ 7,737 $ 6,435 $ 4,608 $ 85 $ 157 ____________________ (1) See “Advisory Agreement — Asset Management Fee” above. For the 11 months ended November 30, 2017 , asset management fees were $0.2 million as presented on a going concern basis. (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 $171,000 , $161,000 and $141,000 for the years ended December 31, 2017 , 2016 and 2015 , respectively, and were the only type of employee costs reimbursed under the Advisory Agreement through December 31, 2017 . The Company does not reimburse for employee costs in connection with services for which the Advisor earns or earned 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. For the 11 months ended November 30, 2017 , reimbursable operating expenses were $0.2 million as presented on a going concern basis. (3) Property management fees and expenses are all paid to LPI. Those fees and expenses are described above under “— Property Management Agreements.” For the 11 months ended November 30, 2017 , property management fees and expenses were $5.2 million as presented on a going concern basis. (4) Disposition fees presented are amounts incurred pursuant to the Advisory Agreement and approved by the conflicts committee during the year ended December 31, 2017 . For the 11 months ended November 30, 2017 , disposition fees were $1.5 million as presented on a going concern basis. Disposition fees accrued as of December 31, 2017 , as part of the liquidation basis of accounting, of $1.4 million are included in liabilities for estimated closing costs and disposition fees in the accompanying Consolidated Statement of Net Assets. |
SELECTED QUARTERLY FINANCIAL 27
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Quarterly Financial Information | Presented below is a summary of the unaudited quarterly financial information for the 11 months ended November 30, 2017 and year ended December 31, 2016 (in thousands, except per share amounts): 2017 First Quarter Second Quarter Third Quarter Period from October 1, 2017 through November 30, 2017 Revenues $ 10,966 $ 10,381 $ 10,111 $ 4,835 Net income 16,076 51 13,697 19,290 Net income per common share, basic and diluted 0.77 — 0.65 0.92 Distributions declared per common share (1) 0.160 1.091 0.137 — 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 11,154 $ 11,367 $ 11,498 $ 11,282 Net income (loss) 86 (24 ) 5,040 19 Net income per common share, basic and diluted — — 0.24 0.01 Distributions declared per common share (1) 0.160 0.162 0.164 0.164 _____________________ (1) See Note 3, “Summary of Significant Accounting Policies — Per Share Data,” for more information regarding distributions declared. |
ORGANIZATION (Details)
ORGANIZATION (Details) | Feb. 08, 2018property | Feb. 28, 2017shares | Nov. 30, 2017USD ($)shares | Dec. 31, 2017property | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Mar. 12, 2013USD ($)shares | Mar. 31, 2014USD ($)shares | Dec. 31, 2017USD ($)propertyshares | May 31, 2012USD ($) | Mar. 12, 2010shares | Aug. 07, 2009$ / 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) | 20,896,268 | |||||||||||
Number of properties sold | property | 7 | |||||||||||
Issuance of common stock | $ | $ 2,953,000 | $ 5,737,000 | $ 5,736,000 | |||||||||
Redemptions of common stock (in shares) | 154,109 | |||||||||||
Redemptions of common stock, value | $ | $ 2,000,000 | $ 2,019,000 | $ 1,697,000 | |||||||||
Apartment Building | ||||||||||||
Organizational Structure [Line Items] | ||||||||||||
Number of real estate properties | property | 4 | 4 | ||||||||||
Common Stock | ||||||||||||
Organizational Structure [Line Items] | ||||||||||||
Shares of common stock authorized under dividend reinvestment plan (in shares) | 80,000,000 | |||||||||||
Issuance of common stock (in shares) | 347,390 | 586,585 | 595,095 | 18,088,084 | 3,943,266 | 22,031,350 | ||||||
Issuance of common stock | $ | $ 3,000 | $ 6,000 | $ 6,000 | $ 179,200,000 | $ 39,700,000 | $ 218,900,000 | ||||||
Shares of common stock sold under dividend reinvestment plan (in 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 | 171,528 | 1,024,594 | ||||||||
Redemptions of common stock, value | $ | $ 2,000 | $ 2,000 | $ 2,000 | $ 9,900,000 | ||||||||
Common Stock | Maximum | ||||||||||||
Organizational Structure [Line Items] | ||||||||||||
Number of shares authorized to be repurchased (in shares) | 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 (in dollars per share) | $ / shares | $ 10 | |||||||||||
Subsequent Event | ||||||||||||
Organizational Structure [Line Items] | ||||||||||||
Number of properties sold | property | 2 |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | 26 Months Ended | ||||||||||||
Nov. 30, 2017property$ / shares | Sep. 30, 2017$ / shares | Jun. 30, 2017$ / shares | Mar. 31, 2017$ / shares | Dec. 31, 2016$ / shares | Sep. 30, 2016$ / shares | Jun. 30, 2016$ / shares | Mar. 31, 2016$ / shares | Nov. 30, 2017USD ($)property$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Feb. 28, 2017$ / shares | Dec. 31, 2017property | Dec. 21, 2017$ / shares | Apr. 20, 2017$ / shares | Dec. 09, 2016$ / shares | Jan. 17, 2013 | |
Real Estate Properties [Line Items] | |||||||||||||||||
Impairment of real estate | $ | $ 0 | $ 0 | $ 0 | ||||||||||||||
Amended Dividend Reinvestment Plan common stock price per share as percent of common stock price per share from the public offering | 95.00% | ||||||||||||||||
Updated primary offering price (in dollars per share) | $ 8.35 | $ 9.35 | |||||||||||||||
Special distribution (in dollars per share) | 1 | ||||||||||||||||
Dividend reinvestment plan, purchase price per share (in dollars per share) | $ 7.93 | ||||||||||||||||
Distributions declared per common share (in dollars per share) | $ 0 | $ 0.137 | $ 1.091 | $ 0.160 | $ 0.164 | $ 0.164 | $ 0.162 | $ 0.160 | $ 1.388 | $ 0.650 | $ 0.650 | ||||||
Distribution rate per share per day, declared (in dollars per share) | $ 0.00178082 | $ 0.00178082 | $ 0.00178082 | ||||||||||||||
Initial liquidation distribution per share (in dollars per share) | $ 4.05 | ||||||||||||||||
Apartment Building | |||||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||||
Number of real estate properties | property | 4 | ||||||||||||||||
Apartment Building | Disposed of by Sale | |||||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||||
Number of real estate properties | property | 6 | 6 | |||||||||||||||
Apartment Building | Held-for-sale | |||||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||||
Number of real estate properties | property | 5 | 5 |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Useful Life) (Details) | 11 Months Ended |
Nov. 30, 2017 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Building Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Land Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Land Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Computer, Furniture, Fixtures and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Computer, Furniture, Fixtures and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 12 years |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Share Redemption Program Terms and Amendments) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 19, 2017 | Nov. 30, 2017 | Feb. 28, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 20, 2017 | Apr. 05, 2017 | Dec. 09, 2016 |
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||
Percent of weighted-average shares outstanding that may be redeemed | 5.00% | ||||||||||||||||
Estimated value per share of Company's common stock (in dollars per share) | $ 8.35 | $ 9.35 | |||||||||||||||
Distributions declared per common share (in dollars per share) | $ 0 | $ 0.137 | $ 1.091 | $ 0.160 | $ 0.164 | $ 0.164 | $ 0.162 | $ 0.160 | $ 1.388 | $ 0.650 | $ 0.650 | ||||||
Updated primary offering price (in dollars per share) | $ 8.35 | $ 9.35 | |||||||||||||||
Special distribution (in dollars per share) | $ 1 | ||||||||||||||||
Redemptions of common stock, value | $ 2,000 | $ 2,019 | $ 1,697 | ||||||||||||||
Number of shares non-redeemable do to limitation, shares | 176,510 | ||||||||||||||||
Redemptions of common stock (in shares) | 154,109 | ||||||||||||||||
Other Liabilities | |||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||
Unfulfilled redemption liabilities | $ 1,700 | $ 1,700 | |||||||||||||||
Held for One Year | |||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||
Share holding term | 1 year | ||||||||||||||||
Redemption price percentage of most recent estimated value per share | 92.50% | ||||||||||||||||
Held for Two Years | |||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||
Share holding term | 2 years | ||||||||||||||||
Redemption price percentage of most recent estimated value per share | 95.00% | ||||||||||||||||
Held for Three Years | |||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||
Share holding term | 3 years | ||||||||||||||||
Redemption price percentage of most recent estimated value per share | 97.50% | ||||||||||||||||
Held for Four Years | |||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||
Share holding term | 4 years | ||||||||||||||||
Redemption price percentage of most recent estimated value per share | 100.00% | ||||||||||||||||
Including Shares Redeemed Pursuant to Special Redemptions | |||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||
Stock repurchased during period, value | $ 1,500 | ||||||||||||||||
Shall be Reserved Exclusively for Special Redemptions | |||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||
Stock repurchased during period, value | 500 | ||||||||||||||||
Maximum | |||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||
Stock repurchased during period, value | $ 2,000 |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Related Party Transactions) (Details) | Dec. 31, 2017 | Aug. 14, 2013 | Aug. 13, 2013 |
Related Party Transaction [Line Items] | |||
Disposition fee, percent | 1.00% | ||
Option One | |||
Related Party Transaction [Line Items] | |||
Asset management fee, percent | 1.00% | 1.00% | |
Option Two | |||
Related Party Transaction [Line Items] | |||
Asset management fee, percent | 2.00% |
LIABILITIES FOR ESTIMATED COS33
LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION (Accruals) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Nov. 30, 2017 |
Item Effected [Line Items] | ||
Capital expenditures | $ (686) | $ (263) |
Liquidation Basis of Accounting | ||
Item Effected [Line Items] | ||
Capital expenditures | (263) | |
Liquidation Basis of Accounting | Accounting Standards Update 2013-07 | Rental income | ||
Item Effected [Line Items] | ||
Capital expenditures | 5,196 | |
Liquidation Basis of Accounting | Accounting Standards Update 2013-07 | Operating, maintenance, and management | ||
Item Effected [Line Items] | ||
Capital expenditures | (1,230) | |
Liquidation Basis of Accounting | Accounting Standards Update 2013-07 | Real estate taxes and insurance | ||
Item Effected [Line Items] | ||
Capital expenditures | 151 | |
Liquidation Basis of Accounting | Accounting Standards Update 2013-07 | Asset management fees due to affiliates | ||
Item Effected [Line Items] | ||
Capital expenditures | 0 | |
Liquidation Basis of Accounting | Accounting Standards Update 2013-07 | Property management fees and expenses to affiliate | ||
Item Effected [Line Items] | ||
Capital expenditures | (299) | |
Liquidation Basis of Accounting | Accounting Standards Update 2013-07 | General and administrative expenses | ||
Item Effected [Line Items] | ||
Capital expenditures | (1,103) | |
Liquidation Basis of Accounting | Accounting Standards Update 2013-07 | Interest expense | ||
Item Effected [Line Items] | ||
Capital expenditures | (1,391) | |
Liquidation Basis of Accounting | Accounting Standards Update 2013-07 | Other interest income | ||
Item Effected [Line Items] | ||
Capital expenditures | 100 | |
Liquidation Basis of Accounting | Accounting Standards Update 2013-07 | Liquidation transaction costs | ||
Item Effected [Line Items] | ||
Capital expenditures | (1,500) | |
Liquidation Basis of Accounting | Accounting Standards Update 2013-07 | Capital expenditures | ||
Item Effected [Line Items] | ||
Capital expenditures | $ (187) |
LIABILITIES FOR ESTIMATED COS34
LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION (Changes) (Details) $ in Thousands | 1 Months Ended |
Dec. 31, 2017USD ($) | |
Movement in Liquidation Accrual [Roll Forward] | |
December 1, 2017 | $ (263) |
Cash Payments (Receipts) | (677) |
Remeasurement of Assets and Liabilities | 254 |
December 31, 2017 | (686) |
Assets: | |
Movement in Liquidation Accrual [Roll Forward] | |
December 1, 2017 | 2,427 |
Cash Payments (Receipts) | (861) |
Remeasurement of Assets and Liabilities | 254 |
December 31, 2017 | 1,820 |
Estimated net inflows from investments in real estate | |
Movement in Liquidation Accrual [Roll Forward] | |
December 1, 2017 | 2,427 |
Cash Payments (Receipts) | (861) |
Remeasurement of Assets and Liabilities | 254 |
December 31, 2017 | 1,820 |
Liabilities: | |
Movement in Liquidation Accrual [Roll Forward] | |
December 1, 2017 | (2,690) |
Cash Payments (Receipts) | 184 |
Remeasurement of Assets and Liabilities | 0 |
December 31, 2017 | (2,506) |
Liquidation transaction costs | |
Movement in Liquidation Accrual [Roll Forward] | |
December 1, 2017 | (1,500) |
Cash Payments (Receipts) | 0 |
Remeasurement of Assets and Liabilities | 0 |
December 31, 2017 | (1,500) |
Corporate expenditures | |
Movement in Liquidation Accrual [Roll Forward] | |
December 1, 2017 | (1,003) |
Cash Payments (Receipts) | 176 |
Remeasurement of Assets and Liabilities | 0 |
December 31, 2017 | (827) |
Capital expenditures | |
Movement in Liquidation Accrual [Roll Forward] | |
December 1, 2017 | (187) |
Cash Payments (Receipts) | 8 |
Remeasurement of Assets and Liabilities | 0 |
December 31, 2017 | $ (179) |
NET ASSETS IN LIQUIDATION (Deta
NET ASSETS IN LIQUIDATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | |
Dec. 31, 2017 | Dec. 21, 2017 | |
Net Assets In Liquidation [Abstract] | ||
Decrease in assets, net | $ 84,904 | |
Initial liquidation distribution per share (in dollars per share) | $ 4.05 | |
Liquidating distributions to stockholders | $ 85,158 | |
Estimated liquidation distribution per share (in dollars per share) | $ 4.44 |
REAL ESTATE (Narrative) (Detail
REAL ESTATE (Narrative) (Details) $ in Thousands, ft² in Millions | Feb. 08, 2018property | Dec. 31, 2017USD ($)ft²propertyunit | Nov. 30, 2017propertyunit |
Real Estate Properties [Line Items] | |||
Number of real estate units | unit | 1,273 | ||
Rentable square feet | ft² | 1.4 | ||
Percentage of portfolio occupied | 93.00% | ||
Real estate | $ | $ 217,500 | ||
Number of properties sold | 7 | ||
Subsequent Event | |||
Real Estate Properties [Line Items] | |||
Number of properties sold | 2 | ||
Disposed of by Sale | Subsequent Event | |||
Real Estate Properties [Line Items] | |||
Number of real estate properties | 2 | ||
Apartment Building | |||
Real Estate Properties [Line Items] | |||
Number of real estate properties | 4 | ||
Apartment Building | Disposed of by Sale | |||
Real Estate Properties [Line Items] | |||
Number of real estate properties | 6 | ||
Number of real estate units | unit | 1,766 | 1,570 |
REAL ESTATE (Disposed) (Details
REAL ESTATE (Disposed) (Details) $ in Thousands | Dec. 31, 2017USD ($)unit | Nov. 30, 2017USD ($)unit |
Real Estate Properties [Line Items] | ||
Number of Units | 1,273 | |
Disposed of by Sale | Apartment Building | ||
Real Estate Properties [Line Items] | ||
Number of Units | 1,766 | 1,570 |
Contractual Sales Price | $ | $ 263,150 | $ 232,150 |
Disposed of by Sale | Apartment Building | Wesley Village | ||
Real Estate Properties [Line Items] | ||
Number of Units | 301 | |
Contractual Sales Price | $ | $ 57,150 | |
Disposed of by Sale | Apartment Building | Watertower Apartments | ||
Real Estate Properties [Line Items] | ||
Number of Units | 228 | |
Contractual Sales Price | $ | $ 42,500 | |
Disposed of by Sale | Apartment Building | Legacy Crescent Park | ||
Real Estate Properties [Line Items] | ||
Number of Units | 240 | |
Contractual Sales Price | $ | $ 24,500 | |
Disposed of by Sale | Apartment Building | Legacy Grand at Concord | ||
Real Estate Properties [Line Items] | ||
Number of Units | 240 | |
Contractual Sales Price | $ | $ 33,500 | |
Disposed of by Sale | Apartment Building | Legacy at Martin’s Point | ||
Real Estate Properties [Line Items] | ||
Number of Units | 256 | |
Contractual Sales Price | $ | $ 38,250 | |
Disposed of by Sale | Apartment Building | Millennium Apartment Homes | ||
Real Estate Properties [Line Items] | ||
Number of Units | 305 | |
Contractual Sales Price | $ | $ 36,250 | |
Disposed of by Sale | Apartment Building | Poplar Creek | ||
Real Estate Properties [Line Items] | ||
Number of Units | 196 | |
Contractual Sales Price | $ | $ 31,000 |
NOTES PAYABLE (Narrative) (Deta
NOTES PAYABLE (Narrative) (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Interest expense | $ 8,623 | $ 10,332 | $ 10,501 |
Amortization of deferred financing costs | 491 | 415 | 415 |
Amortization of debt discount | 81 | 87 | 86 |
Interest payable, current | 800 | ||
Notes Payable | Interest expense | |||
Debt Instrument [Line Items] | |||
Amortization of debt discount | $ 81 | $ 87 | $ 86 |
NOTES PAYABLE (Schedule of Long
NOTES PAYABLE (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Total notes payable principal outstanding | $ 131,649 | $ 282,605 |
Discount on note payable | 0 | (2,644) |
Deferred financing costs, net | 0 | (815) |
Prepayment penalties | 1,283 | 0 |
Total notes payable, net | 132,932 | 279,146 |
Mortgages | Legacy at Valley Ranch | ||
Debt Instrument [Line Items] | ||
Total notes payable principal outstanding | $ 30,334 | 30,958 |
Contractual Interest Rate | 3.93% | |
Maturity Date | Apr. 1, 2019 | |
Mortgages | Poplar Creek | ||
Debt Instrument [Line Items] | ||
Total notes payable principal outstanding | $ 0 | 19,414 |
Mortgages | The Residence at Waterstone | ||
Debt Instrument [Line Items] | ||
Total notes payable principal outstanding | $ 44,716 | 45,653 |
Contractual Interest Rate | 3.79% | |
Maturity Date | May 1, 2019 | |
Mortgages | Legacy Crescent Park | ||
Debt Instrument [Line Items] | ||
Total notes payable principal outstanding | $ 0 | 13,560 |
Mortgages | Legacy at Martin’s Point | ||
Debt Instrument [Line Items] | ||
Total notes payable principal outstanding | 0 | 21,866 |
Mortgages | Wesley Village | ||
Debt Instrument [Line Items] | ||
Total notes payable principal outstanding | 0 | 26,862 |
Mortgages | Watertower Apartments | ||
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 | $ 26,296 | 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 | $ 0 | 20,190 |
Mortgages | Legacy Grand at Concord Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Total notes payable principal outstanding | 0 | 22,392 |
Mortgages | Lofts at the Highlands Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Total notes payable principal outstanding | $ 30,303 | $ 30,754 |
Contractual Interest Rate | 3.40% | |
Maturity Date | Aug. 1, 2052 |
FAIR VALUE DISCLOSURES (Details
FAIR VALUE DISCLOSURES (Details) | Dec. 31, 2016USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Notes payable, Face Value | $ 282,605,000 |
Carrying Amount | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Notes payable, Value | 279,146,000 |
Fair Value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Notes payable, Value | $ 279,258,000 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||||
Jul. 31, 2013 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2017 | Aug. 14, 2013 | |
Related Party Transaction [Line Items] | |||||||
Asset management fees to affiliate | $ 1,500,000 | $ 234,000 | $ 399,000 | $ 729,000 | |||
Due to affiliates | $ 85,000 | 157,000 | |||||
Asset management fees | $ 0 | ||||||
Maximum | |||||||
Related Party Transaction [Line Items] | |||||||
Costs paid by the company if selling commissions, dealer manager fees and other organization and offering costs exceed gross proceeds of the offering as percent | 15.00% | ||||||
Asset Management Fees | |||||||
Related Party Transaction [Line Items] | |||||||
Due to affiliates | 200,000 | 400,000 | 700,000 | ||||
Incurred expenses | 2,000,000 | 3,000,000 | 2,800,000 | ||||
Deferred fees | 1,800,000 | 2,600,000 | 2,100,000 | ||||
Property Insurance Rebate | KBS Capital Advisors LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Due from related parties | $ 27,000 | ||||||
Lofts of the Highlands | |||||||
Related Party Transaction [Line Items] | |||||||
Property management fee, percent fee | 3.00% | ||||||
LPR Inc. | |||||||
Related Party Transaction [Line Items] | |||||||
Property management fee, percent fee | 1.00% | ||||||
KBS Capital Advisors LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Payments for supplemental coverage | $ 61,000 | $ 61,000 | $ 61,000 | ||||
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 of the Highlands | |||||||
Related Party Transaction [Line Items] | |||||||
Period of monetary default | 10 days | ||||||
August 2013 through December 2016 | Asset Management Fees | |||||||
Related Party Transaction [Line Items] | |||||||
Due to affiliates | $ 9,800,000 | ||||||
Option One | |||||||
Related Party Transaction [Line Items] | |||||||
Acquisition advisory fee, as percent | 1.00% | ||||||
Option One | KBS Capital Advisors LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Asset management fee, as percent | 8.33% | ||||||
Option Two | |||||||
Related Party Transaction [Line Items] | |||||||
Acquisition advisory fee, as percent | 2.00% | ||||||
Option Two | KBS Capital Advisors LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Asset management fee, as percent | 0.17% |
RELATED PARTY TRANSACTIONS (Pro
RELATED PARTY TRANSACTIONS (Property Management Agreement) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 of 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% |
Legacy Crescent Park | |
Related Party Transaction [Line Items] | |
Management Fee Percentage | 3.00% |
Legacy at Valley Ranch | |
Related Party Transaction [Line Items] | |
Management Fee Percentage | 3.00% |
RELATED PARTY TRANSACTIONS (Sch
RELATED PARTY TRANSACTIONS (Schedule of Related Party Costs) (Details) - USD ($) $ in Thousands | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jul. 31, 2013 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||
Payable | $ 85 | $ 157 | |||
Asset management fees to affiliate | $ 1,500 | $ 234 | 399 | $ 729 | |
Administrative fees, amount paid | 171 | 161 | 141 | ||
Reimbursable operating expenses | 230 | ||||
Property management fees and expenses to affiliate | 5,249 | 5,811 | 3,523 | ||
Disposition Fees | 1,500 | ||||
Disposition fees accrued | 1,400 | ||||
Asset Management Fees | |||||
Related Party Transaction [Line Items] | |||||
Expenses | 2,000 | 3,000 | 2,800 | ||
Payable | $ 200 | 400 | 700 | ||
Advisor and Dealer Manager | |||||
Related Party Transaction [Line Items] | |||||
Expenses | 7,737 | 6,435 | 4,608 | ||
Payable | 85 | 157 | |||
Advisor and Dealer Manager | Asset Management Fees | |||||
Related Party Transaction [Line Items] | |||||
Expenses | 234 | 399 | 729 | ||
Payable | 0 | 0 | |||
Advisor and Dealer Manager | Reimbursement of Operating Expenses | |||||
Related Party Transaction [Line Items] | |||||
Expenses | 246 | 225 | 356 | ||
Payable | 16 | 15 | |||
Advisor and Dealer Manager | Property Management Fees | |||||
Related Party Transaction [Line Items] | |||||
Expenses | 5,547 | 5,811 | 3,523 | ||
Payable | 69 | 142 | |||
Advisor and Dealer Manager | Disposition Fees | |||||
Related Party Transaction [Line Items] | |||||
Expenses | 1,710 | 0 | $ 0 | ||
Payable | $ 0 | $ 0 |
SELECTED QUARTERLY FINANCIAL 44
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 4,835 | $ 10,111 | $ 10,381 | $ 10,966 | $ 11,282 | $ 11,498 | $ 11,367 | $ 11,154 | $ 36,293 | $ 45,301 | $ 44,613 |
Net income (loss) | $ 19,290 | $ 13,697 | $ 51 | $ 16,076 | $ 19 | $ 5,040 | $ (24) | $ 86 | $ 49,114 | $ 5,121 | $ 791 |
Net income per common share, basic and diluted (in dollars per share) | $ 0.92 | $ 0.65 | $ 0 | $ 0.77 | $ 0.01 | $ 0.24 | $ 0 | $ 0 | $ 2.34 | $ 0.25 | $ 0.04 |
Distributions declared per common share (in dollars per share) | $ 0 | $ 0.137 | $ 1.091 | $ 0.160 | $ 0.164 | $ 0.164 | $ 0.162 | $ 0.160 | $ 1.388 | $ 0.650 | $ 0.650 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | Feb. 08, 2018USD ($) | Dec. 31, 2017USD ($)unit | Dec. 01, 2017USD ($) | May 08, 2013aunit | Oct. 26, 2010aunit |
Subsequent Event [Line Items] | |||||
Number of real estate units | unit | 1,273 | ||||
Real estate | $ 217,500 | ||||
Legacy at Valley Ranch | Disposed of by Sale | |||||
Subsequent Event [Line Items] | |||||
Real estate | $ 67,500 | ||||
Crystal Park at Waterford | Disposed of by Sale | |||||
Subsequent Event [Line Items] | |||||
Real estate | $ 45,700 | ||||
Subsequent Event | Legacy at Valley Ranch | Disposed of by Sale | |||||
Subsequent Event [Line Items] | |||||
Disposal group, consideration | $ 67,500 | ||||
Subsequent Event | Legacy at Valley Ranch | Disposed of by Sale | Legacy at Valley Ranch Mortgage Loan | Mortgages | |||||
Subsequent Event [Line Items] | |||||
Outstanding amount | 30,200 | ||||
Subsequent Event | Crystal Park at Waterford | Disposed of by Sale | |||||
Subsequent Event [Line Items] | |||||
Disposal group, consideration | 45,700 | ||||
Subsequent Event | Crystal Park at Waterford | Disposed of by Sale | Crystal Park at Waterford Mortgage Loan | Mortgages | |||||
Subsequent Event [Line Items] | |||||
Outstanding amount | $ 26,200 | ||||
Legacy at Valley Ranch | |||||
Subsequent Event [Line Items] | |||||
Number of real estate units | unit | 504 | ||||
Area of land | a | 20.3 | ||||
Crystal Park at Waterford | |||||
Subsequent Event [Line Items] | |||||
Number of real estate units | unit | 314 | ||||
Area of land | a | 16.3 |